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Budget talks include renewed emphasis on capital spending

Posted August 02, 2007 11:00 pm

Doug Finke

Legislative negotiators continued to try and reach agreement on a new state budget Friday with a renewed interest in a construction bond program in the wake of the Minnesota bridge collapse.

Gov. Rod Blagojevich emerged from a private meeting with his primary budgetary ally, Senate President Emil Jones, D-Chicago, and said he, Jones and both Republican leaders think the state needs a capital bill that will pay for road and bridge repairs, school construction and an array of other government building projects.

"There is a real need this year to make the necessary investments to keep our infrastructure sound and safe," Blagojevich said. "I think there is real progress being made on that front."

But like a budget itself, which was supposed to have been passed by May 31, agreement on a capital bill is elusive. Senate Minority Leader Frank Watson, R-Greenville, said he wants a capital-spending program as much as anyone, but he also wants to make sure Republican-represented districts get their fair share of the money. It is ultimately the Democratic governor who decides when money can be spent on construction projects.

"Trust is a big factor for us," Watson said. "We're trying to develop a relationship that we would have some trust that they would carry out what they commit to."

"We could pass a capital bill if we trusted Blagojevich to spend on a merit basis, not just a political basis." added Sen. Kirk Dillard, R-Hinsdale.

A capital bill is also linked to the revenue generated by expanded gambling, and there is no agreement yet on that issue, either. The extra gaming taxes collected would be used to retire bonds floated to pay for the construction projects.

A proposal backed by House Republicans would allow the state's nine existing casinos to expand their operations. Senate Democrats approved a plan that not only allows existing casinos to expand, but adds three new ones in the Chicago suburbs and a land-based casino in Chicago. That bill is stalled in the House.

Other combinations have been floated, but there is no agreement on them.

Sen. John Cullerton, D-Chicago, is sponsoring a bill to raise the state cigarette tax by 90 cents a pack and use the proceeds to pay off construction bonds. However, several lawmakers have said they don't think the idea has enough support to pass the General Assembly.

Meanwhile Friday, Jones, Watson, House Speaker Michael Madigan D-Chicago, and House Minority Leader Tom Cross, R-Oswego, shuttled between each other's offices trying to hash out details on a fiscal 2008 budget that can be approved next week. The state had been operating under a temporary spending plan that expired Tuesday.

Comptroller Dan Hynes said that if a budget is not in place by Wednesday, $170 million in school-aid payments will be delayed and 4,900 state employees will miss paychecks.

"We are trying to put the pieces together," Jones said.

The pieces include not only a budget, but what to do about shoring up the financially ailing mass transit system in Chicago, the governor's plan for universal health-care coverage and the capital-spending program.

"Everyone has a plan, but everyone must be willing to vote for the plan and the resources to get it done," Jones said.

Blagojevich repeated that he wants lawmakers to pass another one-month budget rather than a "bad" budget for the full fiscal year that doesn't provide enough money for education, health care and other services. On Wednesday, Blagojevich implied that passage of an inadequate budget could lead to a government shutdown.

"I'm not going to speculate," the governor said Friday when asked if a shutdown would result should the General Assembly refuse to pass a one-month budget and give him a "bad" budget instead.

Both the House and Senate are scheduled to meet at 9 a.m. today (Saturday) for what is expected to be only a brief session. Both chambers will return to work at 5 p.m. Sunday.

"I hope when we come back we can conclude our business and get out of here," Jones told senators Friday.

Political writer Bernard Schoenburg contributed to this report. Doug Finke can be reached at (217) 788-1527.

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