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Madigan, Cross meet, to little avail

Posted October 24, 2007 11:00 pm

Mike Ramsey

A proposal to divert a share of state gasoline taxes to Chicago's mass-transit systems was rebuffed Wednesday by Illinois House Speaker Michael Madigan, who said he still prefers a regional sales tax hike to prevent service cuts and fare hikes planned for early next month.

Meanwhile, the Chicago Democrat said he will not link a transit bailout with a capital-construction program, as some Republican lawmakers have insisted. A Senate-approved bill would fund schools, roads and bridges with three new casinos, including one for Chicago.

"I will not hold hostage transit riders for casinos," Madigan said after emerging from a three-hour meeting in Chicago with House Minority Leader Tom Cross, R-Oswego, and other House members.

Madigan's remarks cast into doubt whether he and the three other legislative leaders and Gov. Rod Blagojevich - his political nemesis - can reach agreements on transit funding and a gambling-fueled capital program. The cash-strapped Chicago Transit Authority, which faced a more than $100 million budget shortfall this year, plans to begin phasing in "doomsday" cutbacks and fare increases Nov. 4, with more severe measures set for January.

Cross, like Democrat Blagojevich, does not support Madigan-backed legislation that would increase (by 0.25 percent) the Chicago-area sales tax that helps finance mass transit. The Republican unveiled an alternative idea that would give the CTA and its sister transit agencies, Metra and Pace, annual infusions from the state sales tax on gasoline that is sold in Cook County and the collar counties.

The strategy, however, would shift hundreds of millions of dollars from state coffers. Cross said the hole could be filled through a combination of taking money from special-purpose funds and increasing state fees on items such as car titles.

He also advocated a "reasonable" transit fare increase of 10 percent or 15 percent.

Blagojevich spokeswoman Abby Ottenhoff said the governor supports the proposed gasoline tax diversion but is cautious about how to offset the transfer. She said the governor does not want to raise taxes on working families.

"Our hope would be the speaker would set aside his tax-increase plan and give this plan consideration," Ottenhoff said.

Madigan's preferred option, the Chicago-area sales tax increase, was included in a House bill that failed in his chamber earlier this year. He said the plan represents a regional solution to a regional problem, whereas shifting gasoline tax money creates the need to find replacement funds from statewide sources.

"There's a significant difference," Madigan said.

Cross said he and Madigan will meet again over the weekend. In contrast with Madigan, Cross said a transit-funding plan and capital program should "go hand in hand."

Madigan's camp has said the Democrat could support a Chicago casino. Madigan was mum Wednesday on whether he would support additional casinos as part of a capital program.

Mike Ramsey can be reached at (312) 857-2323 or ghns-ramsey@sbcglobal.net.

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