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House poised to vote on operations budget

Posted August 08, 2007 11:00 pm

Doug Finke and Adriana Colindres

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Illinois House members Wednesday got their first look at a $27.8 billion state operations budget that they could get to vote on as early as today (Thursday).

The spending plan for the fiscal year that began six weeks ago includes a $600 million increase for education and millions of dollars that will be set aside for lawmakers' pet projects. A total for the projects was not provided, but various legislative sources pegged the amount at $130 million up to $200 million.

A spokeswoman for Senate President Emil Jones, D-Chicago, said the Democrats is his chamber find the budget plan acceptable. However, even if the House gives its approval today (Thursday), the earliest the Senate could vote on it is Saturday.

The budget discussed Wednesday is separate from a capital spending plan that would pay for construction of roads, bridges, schools and other projects.

Legislative leaders are still trying to hammer out an agreement on that.

"I think in the House, our view would be we need to proceed with an operational budget now," said Rep. Gary Hannig of Litchfield, the House Democrats' top budget negotiator. "The comptroller said he is now at the point where ... some citizens and providers and school districts are going to start feeling the pain. They should not have to feel the pain for our inaction."

Comptroller Dan Hynes has said that Wednesday was the deadline to have a budget in place to ensure school districts get $170 million in aid payments Friday and that 4,900 state workers get paid on time Aug. 15. Both of those are now in jeopardy.

The budget plan being considered does not rely on any tax increases to be balanced. Instead, it eliminates about $125 million in business tax breaks and anticipates that state income and sales taxes will continue to grow because of economic expansion.

"We think there is more revenue available now (to spend) than when the governor proposed a budget" in March, Hannig said.

Under the new plan, operations spending increases by $2.1 billion, or about 8 percent. The amount set aside for education will allow per-pupil spending to increase by $400, the largest increase ever, Hannig said.

The level of education funding was a critical component for winning support from Jones.

Hannig said the budget includes money to hire additional state workers, but he could not provide a number. Other sources put the figure at 1,100.

"We would put them into those agencies where they feel they're most at need and the state is most at risk," Hannig said.

Rep. Jay Hoffman, D-Collinsville, a close ally of Gov. Rod Blagojevich, called the plan "woefully inadequate."

"The proposed budget is going to result in cuts to health care, it's not going to provide the needed money to schools, and there'll be no capital bill," Hoffman said.

Blagojevich has warned that he will not sign a budget that does not contain what he deems adequate money for education, health care and capital spending. He could veto the budget and let lawmakers try to override the veto, or he could do nothing with it for up to 60 days, after which it would become law automatically.

However, Hynes' office said it would be unable to write checks until a final budget is in place. That wouldn't occur until Blagojevich either signs it or lawmakers override his veto.

The governor met with three of the four legislative leaders Wednesday night to discuss a capital spending plan. House Speaker Michael Madigan, D-Chicago, was not there.

On the table is an $8 billion to $10 billion program funded by an expansion of gambling, including a land-based casino in Chicago. Madigan, though, has been cool to the idea of adding new casinos or riverboat licenses in the state. He wants to let existing casinos expand, but that would not generate enough money to finance a $10 billion construction program.

The General Assembly passed its 69th day of overtime Wednesday due to the budget impasse. After a one-month budget was passed to fund government operations through July, the state has been operating with no budget at all since Aug. 1, preventing Hynes from issuing checks for state expenses.

Doug Finke can be reached at (217) 788-1527 or doug.finke@sj-r.com. Adriana Colindres can be reached at (217) 782-6292 or adriana.colindres@sj-r.com.

Highlights of the proposed state budget:

* $400 increase in the per-pupil "foundation" level, or the amount the state spends on each student, for a total of $308 million. Almost $300 million more would be devoted to other aspects of education funding.

* 3 percent increase in the operating budgets for attorney general, comptroller and secretary of state offices.

* $7,276,916 for increases in state officers' salaries and retirement.

* $3 million for planning and promotion of the Lincoln Bicentennial Celebration.

* $657,000 increase for the Abraham Lincoln Presidential Library and Museum.

* 60 more auditors for the Department of Revenue.

* $26.8 million increase for MAP student awards program to guarantee on-time payment.

* $7.2 million to cover 50 percent of the costs of a college grant for Illinois veterans.

* 2 percent increase for all state universities, totaling $26.4 million.

* $3 million additional for community health centers.

* Expands LaSalle Veterans Home by 80 beds.

* $4,099,500 to fully open the Sheridan Correctional Center to its 1,300-bed capacity.

* $1.25 million for a newly created Illinois Power Agency.

* 57-day backlog for Medicaid payments maintained at 57.

* 2.5 percent increase for community providers that serve the developmentally disabled.

* $32 million increase for Community Care Program to allow seniors to remain at home longer.

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