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Budget approval near, but governor not happy with it

Posted August 09, 2007 11:00 pm

Doug Finke

Eds: Updated version

Illinois lawmakers worked frantically Thursday to wrap up their record overtime session, with the Senate at about midnight approving a new, $59 billion state budget by a vote of 52-5.

The state share of spending would increase about $2.1 billion, or 8.2 percent.

It now goes to the House, which passed a nearly identical spending plan Thursday morning. However, the House version contained errors that had to be corrected in the Senate.

Dampening optimism that the impasse might be over, Gov. Rod Blagojevich said the budget moving through the legislature "has a long way to go before it's anything I could sign." He did not say if he would veto the budget or simply not act on it if it reaches his desk.

Resurrecting a previous proposal, the Senate also approved a 90-cents-per-pack increase in the state cigarette tax and was poised to tackle several other issues, including gambling expansion that exempts casinos from the statewide smoking ban, a multibillion-dollar capital spending bill and a scaled-down version of Blagojevich's plan for universal health-care coverage.

Outside of the budget, none of those proposals has been approved by the House.

Earlier in the day, the House by a 99-9 vote passed a budget for the fiscal year that began July 1 and sent it to the Senate, which fixed what senators described as "glitches" before sending it back to the House for a final OK.

House Speaker Michael Madigan, D-Chicago, adjourned about 7:30 p.m., after waiting most of the day for what he hoped would be final passage of a budget. He said the House would resume work this morning in hopes of wrapping up the 71-day overtime session.

Madigan said he was told by Senate leaders that they fixed only technical mistakes in the budget. If that is the case, he said, House passage shouldn't be a problem.

The budget calls for roughly $30 billion in spending on state operations, contains a $600 million increase for education, fills about 1,100 state jobs that have been vacant and fully funds pensions.

There is no increase in income or sales tax rates, although about $125 million in business tax breaks would be eliminated. The budget is viewed as balanced because income and sales taxes are coming in at a higher-than-expected rate and are sufficient to pay for the increased spending.

"There is general agreement that it is time we pass this budget," said Rep. Gary Hannig of Litchfield, the top budget negotiator for House Democrats. "It is not fair to ask school districts, employers and providers to not know when their next check will come."

But Rep. Jay Hoffman, a Collinsville Democrat and close Blagojevich ally, said the budget is balanced by "cooking the books" and does not provide adequate money for schools or health care.

"This budget will never be law," Hoffman said. "It hurts people. It is a phony budget put together on a shoestring."

Blagojevich would not be specific about what he would do with the budget if it arrives on his desk, instead again urging lawmakers to pass another one-month spending plan.

"We've come this far, and it makes no sense whatsoever to give up and accept budgets that don't meet the needs of the people," Blagojevich said.

The budget also contains about $250 million earmarked for "member initiatives," projects lawmakers can select on their own for funding. Each House member is allocated $650,000 for the so-called "pork" projects, while each senator will get $1.3 million.

As happens nearly every year, some lawmakers griped that they were handed a 1,400-page budget just before they were expected to vote on it.

"It's 1,400 pages put on our desks, and we're told in a matter of one hour, 'Take it or leave it,'" thundered Rep. Bill Black, R-Danville. "We don't know what's in this budget."

Most other lawmakers who spoke about the budget rattled off a litany of increases for this program or that program contained in the spending plan that gave them a reason to vote for it, even if they found the overall budget less than ideal.

"The best indication we might be getting somewhere is that everyone is not happy," said Rep. Ron Stephens, R-Greenville.

"It doesn't meet everyone's wish list. It does meet everybody's needs list," said Rep. John Fritchey, D-Chicago.

Meanwhile, a Senate committee approved a gambling-expansion bill that would provide $12.4 billion to spend on road, school, mass transit, college, airport and other construction projects. It would authorize a land-based casino in Chicago and let existing riverboat casinos expand. Revenue from the Chicago casino would be split between the city and the state. A last-minute amendment would exempt casinos from the newly passed state indoor smoking ban.

Senate Republicans, who support expanded gambling to pay for construction projects, didn't show up at the committee hearing. Spokeswoman Patty Schuh said they were given a copy of the bill only 20 minutes beforehand and wanted to review it carefully.

GOP senators also balked at supporting a capital spending bill. Sen. Christine Radogno, R-Lemont, said they didn't have enough details about how the money would be spent.

"We need to slow the train down," said Radgono of the Democrats' efforts to ram the bill though.

A committee OK'd the capital spending plan with Republican senators voting "present."

The Senate voted 34-24 to hike the state cigarette tax - now at 98 cents per pack - by another 90 cents beginning June 1, 2008. The bill also allows counties immediately surrounding Cook County to impose their own local tax of up to $1 per pack. A provision that allowed all counties in the state to impose a $2-per-pack local tax was removed.

Under the legislation, $100 million annually from the tax hike would be used to pay Medicaid bills. Another $250 million a year would be used to pay down the state's pension debt.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

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