Assembly GOP leaders today notified Gov. Scott Walker they will accept his offer to redirect $203.5 million in income tax cuts he had proposed and instead pump new cash toward road projects over the next two years.

But Senate Majority Leader Scott Fitzgerald said this afternoon following discussions with his caucus there was “no deal” yet on the budget in the Senate. reported Wednesday the guv had made the offer to lawmakers in an attempt to break the impasse on transportation. Doing so also would provide the state more financial flexibility in future budgets for a possible incentive package if Wisconsin lands a proposed plan from the electronics manufacturer Foxconn.

The letter, signed by all members of the Assembly GOP leadership team as well as the chamber’s Republican Finance members, praised Walker for leadership that “bridged the gap between our two houses.”

In recent weeks, Fitzgerald, R-Juneau, has pressed Assembly Republicans to drop demands for new transportation revenue, say it was unrealistic with the guv’s threat to veto any hike in the gas tax or registration fee.

Assembly Speaker Robin Vos, R-Rochester, has answered by accepting that prospect on the condition that Senate Republicans drop demands for new borrowing. The budget proposal the Senate GOP released this week sought $712 million in additional bonds, with $350 million of that to be paid off using general fund revenues.

The Assembly GOP letter called Walker’s framework “responsible” and wrote the guv had “offered the possibility of no new transportation bonds.” Still, they added the caucus understood “there is a possibility of new bonding based on future federal appropriations and revenue-supported bonding.”

A spokesman for the guv and did not immediately respond to requests for comment.

Read the letter:

See more from Fitzgerald in Friday’s AM Update.

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