CHICAGO - Wisconsin Gov. Jim Doyle and legislative leaders yesterday announced measures to trim about $700 million from the state's $5.7 billion, three-year budget deficit through spending cuts, a hospital assessment program that leverages more federal funds, and other maneuvers.

Under the plan, the state will cut $125 million in spending. Additional general funds of about $300 million will be saved by implementing a hospital assessment tax aimed at leveraging more Medicaid matching dollars. The governor did not propose any increase in Wisconsin's income or sales taxes, but he would raise new revenue by extending the sales tax to cover some Internet sales that are now exempt.

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