Wisconsin governor passes expansion on short term lending legislation

Wisconsin Governor Scott Walker declined to veto provisions to loosen short term lending restrictions and allow lenders to issue high-interest vehicle title loans before recently ratifying a $66 billion, two-year budget for the state, the Post-Bulletin reports. Last year, the democratic legislature capped short term loans at a maximum of $1,500, and then-Governor Jim Doyle banned title loans using his veto powers. Under the current legislation, consumers who do not qualify for traditional loans will have more freedom to make credit decisions by taking out short term and title loans. Although Walker did not veto the short term lending legislation, he did veto 50 other provisions, including one that prevented public employees from collecting pensions if they have worked for a state or local government for less than five years, the news source reports. The budget slashes funding for public schools by $800 million, reduces the amount assigned to the University of Wisconsin system by $250 million and cuts tax credits for the poor. According to CBS News, Walker defended the budget as a way to "step up to the plate and make the tough decisions today … so that our children and our grandchildren don't face the same challenges."