UPDATE 1-Wisconsin governor proposes $1.4 bln capital budget

(Adds details from governor's statement)

NEW YORK, April 2 (Reuters) - Wisconsin Governor Jim Doyle on Thursday proposed a $1.4 billion, two-year capital spending plan that he said will create 30,000 jobs in the state.

The plan has been approved by the Building Commission and must now be passed by the Joint Finance Committee to be included in the state budget bill, Doyle said in a statement.

The state plans to issue $484.7 million in bonds, with the rest to come from the federal government, program revenue and private donations.

The building program will focus on clean energy and provide funds for the University of Wisconsin Energy Institute to bolster research in areas that include sustainable energy and bio-energy.

About 70 percent of the new borrowing will go to campuses in the university system to expand classrooms and finance new academic buildings.

"This is not the time to pull back on investing in worthwhile state building projects that create jobs and help fuel local economies," said Doyle.

"The State Building Program provides a great opportunity for us to fund needed state projects in ways that are energy efficient and environmentally friendly while creating jobs." (Reporting by Ciara Linnane; Editing by Dan Grebler)