MADISON, WI (WTAQ) - The State Building Commission is expected to approve a new capital budget Thursday for new and improved state government facilities over the next two years.

It’s separate from the overall state budget – but it includes borrowing that GOP lawmakers could cut later on.

Governor Scott Walker, who chairs the commission, has proposed a $329 million package. About 60 percent of the amount would go to a new headquarters facility for the state Transportation Department in Madison.

The new structure would replace the 56-year-old Hill Farms office building on the city’s west side.

Walker is proposing $1.4 billion in borrowing in both the general state budget and the capital budget. Assembly Republican Dean Kaufert of Neenah says his leadership wants to cut about $300 million from that total.

He says some capital projects will end up being scrapped – most likely private facilities proposed with state bonding.

About $30 million of items are in that category – including a new convention center in Green Bay and facility expansions for the Medical College of Wisconsin.