Quinn thumbs his nose at legislature

by Jamey Dunn

Gov. Pat Quinn said today that balancing the state’s operating budget is his top priority and that the capital plan for construction projects should come only after legislators approve a spending plan. The move could be perceived as a dig at the legislature, which is doing the exact opposite.

At an annual Springfield event, the Illinois Governor’s Prayer Breakfast, Quinn said the so-called doomsday budget he released Monday was the “responsible” way for him to inform legislators and citizens about the consequences if lawmakers fail to approve new revenue sources to help balance the budget. Quinn has proposed an income tax increase to help repair a combined $11.6 billion deficit over this fiscal year and next, and he said that he thinks lawmakers will support it before session adjourns at the end of the month.

“We have to help education and public safety and health care,” he said. “And if we don’t have the revenue, there are going to have to be severe cutbacks.”

Quinn said that passing a budget to keep social programs in place should come before a capital plan, but lawmakers plan to pass parts of the capital bill as early as today. This is the first time Quinn has publicly voiced opposition to passing a capital plan before passing an operating budget.

“I want to tell the members of the General Assembly I know they want a lot of [capital] projects and so on, and so do I. But that is not coming before the priority of taking care of real live human beings.”

As for funding for the capital bill, Quinn said that he is still not enthusiastic about legalizing video gaming to help pay for it. However, he said that the challenges the state currently faces might spur him to consider a proposal he wouldn’t normally support. He urged legislators to be flexible about their positions, as well.

“Right now I think it is important for both parties, both houses of the legislature, everybody to become people of Illinois,” he said. “Put aside differences and put aside, maybe, some of their past positions if it means that we have to band together to save our state.”

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Alternative transportation

By Jamey Dunn
A transportation and business group is proposing what it says is a more specific plan than Gov. Pat Quinn’s proposal for major construction plans for roads, bridges and transit.

Sen. Martin Sandoval, a Cicero Democrat and chairman of the Senate Transportation Committee, came out in support of the Transportation for Illinois Coalition’s proposed capital plan today. The coalition claims the plan calls for more state money than Gov. Pat Quinn’s proposal for a capital plan, but almost $10 billion less than the coalition says the state should be investing in its infrastructure.



According to a 2006 study commissioned by the Transportation for Illinois Coalition, the unfunded need for Illinois transportation projects exceeds $23 billion. That number has not been adjusted for inflation. Linda Wheeler, a transportation consultant for the Transportation for Illinois Coalition, said the findings mirror the Illinois Department of Transportation’s estimates of the unmet needs.

In an attempt to be more realistic about the state’s budget restraints, the coalition has since pared that number down to a $13.5 billion “minimally adequate” plan. Michael Kleinik, Transportation for Illinois Coalition co-chair, said, “There is little money for expansion in this proposal, but it does bring us closer to where we need to be.”

Wheeler said that Quinn’s proposed budget is not specific enough about how much state money would go toward transportation and that it uses some creative accounting techniques. She said that some of the money that is listed as highway funding actually would go toward debt service on bonds.

Sandoval said he wants to fund the alternative plan with a motor-fuel tax increase, which he said has support in the Senate. However, he said he supports a higher increase than a version proposed in the House, which seeks an 8 cents per gallon increase. Sandoval said that he thinks there is little to no support for Quinn’s proposal to spend part of the money from an income tax increase to fund a capital plan.

While Sandoval had the backing of business groups, labor unions, transit officials and transportation experts, he was the only legislator making a pitch for the coalition’s proposal.

Sandoval urged swift action to hammer out a plan that could find enough votes to pass. “We are at a crossroads literally and figuratively here in Illinois, and if we don’t get it right today, I don’t know if we ever will.”

Many of the speakers who addressed the Senate committee this morning raised concerns that too much squabbling in Illinois over a capital plan could hurt the state’s image in Washington, D.C. and possibly damage its ability to seek increased federal funding in the future.

“It’s not lost on me, and I think it’s not lost on anyone in Washington who follows what’s going on in the states, that Illinois has struggled to come to terms with what it needs to do in the long term,” said Janet Kavinoky of the U.S. Chamber of Commerce. “But, the longer you debate and discuss and struggle with who’s going to invest in what, and who’s going to get credit for what, … it appears chaotic.”

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Starting points, but no consensus, yet

By Hilary Russell and Jamey Dunn
It's the time of year when legislative leaders continue to say everything is on the table, but nothing seems to be falling to the ground.

The Senate’s special Deficit Reduction Committee ended today without any clearer answers about solving the state’s financial crisis than when the committee started meeting a month ago. Gov. Pat Quinn also held a meeting with Republican leaders and business leaders today in the Statehouse in an attempt to find some consensus.

Neither provided a common ground. But they did provide more "starting points."



“We had a really good discussion and dialogue,” Quinn said. “I’m sure not everyone is of the same mind, but I think it’s healthy to have a discussion about our economic crisis. The statistics yesterday were extremely sobering.” The state’s unemployment rate reached 8.6 percent, according to the Illinois Department of Employment Security.

The meeting included House Minority Leader Tom Cross of Oswego, Senate Minority Leader Christine Radogno of Lemont and business leaders, including the Tooling and Manufacturing Association and the Illinois Chamber of Commerce.

The special Senate committee charged with finding consensus about where to cut spending out of the state budget with little consensus. Here's the report.

“What we did not come up with in the past four weeks — and this was not the intent of this committee — we did not come up with the final solution,” said Sen. Donne Trotter, co-chair of the committee and a Chicago Democrat. “We did, in fact, meet and define some parameters in which we should start this appropriation process as we go forward with the strong intent to be out of here by May 31.”

Republicans want to cut spending and avoid raising taxes.

“We heard many people from this committee who passionately and sincerely believe that raising taxes is essential,” said co-chair Sen. Matt Murphy, a Palatine Republican. “Speaking for myself, … I think the proposal to raise taxes is profoundly misguided. Raising taxes in Illinois will cost more Illinoisans their jobs. Period. With 8.6 percent unemployment, we cannot afford to lose any more jobs.”

Quinn proposed a 1.5 percentage point increase in the state income tax as part of his budget plan for next fiscal year, which is projected to have up to a $12.4 billion deficit.

Democrats, in turn, said cutting spending is not nearly enough to fill the gap.

“I hope we can also agree that we cannot solely cut our way out of this deficit,” said Sen. John Sullivan, a Rushville Democrat. “The cuts will be, to say the least, drastic and devastating, and when you talk about making some of the cuts that would be necessary to balance this budget, we would be laying off thousands of people across the state of Illinois to do that.”

One way to increase the number of jobs available is for the legislature to pass a capital bill; the problem reverts to how to pay for it.

Quinn proposes funding the capital plan through fee increases and some new tax revenues. Republicans oppose that idea and support gaming as a funding source.

One example is to legalize video gaming. Sullivan said revisiting gaming as a funding source for a capital plan, however, is a mistake. He said that two previous capital bills that included gaming advanced through the Senate with bipartisan support, but they stalled in the House. “We tried it. It didn’t work. There wasn’t enough support in both chambers for it to become law,” he said. “So, why are we still having that discussion?”

Sullivan suggested that lawmakers move on to an income tax increase or come up with some new suggestions for funding sources.

Watch for Republicans to release some proposals next week. In the meantime, Murphy said that some of the broad suggestions made by the committee such as Medicaid and pension reforms are important starting points. The one thing everyone seems to agree on is the need to pass a capital plan. “We just have to get around to doing it and stop making excuses,” Murphy said.
Quinn remains opposed to gambling expansion. " I think it's a bad bet. Take a look at some of the stocks at these gambling firms. I don't think you'd want to buy those penny stocks today.”

Video gaming advances in the House
By Bethany Jaeger
Meanwhile, a House committee advanced a bill that would legalize video poker machines and tax them, potentially generating between $300 million and $500 million a year, according to Rep. Frank Mautino, the Democratic sponsor. He would dedicate the revenue to school construction projects, starting with a list of 23 schools that have been waiting for money that the state promised to them since 2002.

“The realization is that some of the things in the governor’s budget proposal are going to fail,” Mautino said shortly after his bill sailed through committee. “And so there have to be other alternatives that are out there. I don’t think the speaker’s interested in a big gambling package, but here’s something that we have to make a decision to either get rid of it or tax it — because they’re producing this money one way or the other.

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Gas, Gambling, Games, Governor and Safeguard

By Jamey Dunn
A gas tax increase, a proposition to sell lottery tickets online and early plans for possible 2016 Chicago Olympic Games all progressed in the legislature today. So did a measure to protect youth from sex offenders who prowl on social networking Web sites.


Gasoline
A controversial measure to increase in the sales tax on gasoline, proposed by Democratic Rep. John Bradley of Marion, advanced this morning. Bradley warned that HB 1 still needed work, and he urged committee members to support the concept rather than the details as introduced.

Gambling
A bill backed by Senate President John Cullerton would allow the state to sell lottery tickets on the Internet. Sen. Don Harmon, a Democrat from Oak Park, said SB 1654 would do three things:

1. Prohibit the state from selling the Illinois Lottery to private investors.
   
2. Allow the state to hire a private firm to manage the lottery, while the state would still own it. Harmon said the idea would be to “contract with someone smarter than us to operate it.”
3. Create a pilot program to sell tickets for the Lotto and Mega Million games online.

The measure advanced out of committee today, but Harmon said it needed work before it would be ready for a final vote on the Senate floor.

Games
The Senate sent a bill to the House that is an early step towards preparing for the possibility of the 2016 Olympic Games being held in Chicago. The specifics of the bill will be worked out in the House, but sponsor Sen. Kwame Raoul, a Chicago Democrat, said it was important to get the ball rolling to meet an April deadline set by the International Olympic Committee.

Governor
Also in the Senate today, Cullerton announced that Senate Secretary Deborah Shipley (scroll down for bio) will join Gov. Pat Quinn’s staff as director of legislative operations. It’s another move that could build bridges between the executive and legislative branches, which have had frosty relationships during the past six years.

Shipley was elected secretary by Senate members in January 2007, replacing retired secretary Linda Hawker. Shipley will bring some institutional knowledge and offer guidance to Quinn’s relatively new and young legislative staff.

Safeguard against sex offenders
By Hilary Russell
The state could make it harder for individuals convicted of sex crimes to use the Internet.

Rep. Sandra Pihos, a Glen Ellyn Republican, is sponsoring HB 1314, a bill that would make using a social networking Web site a Class 4 felony for registered sex offenders. Convicted offenders must register with the state.

Earlier this year, Pihos said she read a report that nearly 100,000 sex offenders were removed from social networking Web sites in Connecticut and North Carolina, where two state attorneys general targeted sex offenders who used the Web.

“If they can remove that many sexual predators, we can do that here,” Pihos said. “Until we’re sure we have a mechanism in place that actually safeguards our children from sexual predators being on that site, I just feel that here in Illinois, we need to put some legislation in place.”

Her bill would apply a Class 4 felony or up to a three-year prison sentence if someone used social networking Web sites while registered as a sex offender. As a condition of parole, probation or release, the offender would have to agree not to use such sites as MySpace or FaceBook.

MySpace and FaceBook have more than 180 million users, and Pihos said that it’s an ideal anonymous place for sexual predators to troll for young people.

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Similar concepts, new context

One week before Gov. Pat Quinn proposes his first state budget to the General Assembly, legislators and advocates of all stripes are revisiting a lot of issues they tried but failed to enact during the Blagojevich Administration. This time, there’s a new context:

1. Legislators and Statehouse insiders trust Quinn more than they trusted Blagojevich.
2. Senate President John Cullerton has a better working and personal relationship with House Speaker Michael Madigan than did former Senate President Emil Jones Jr.
3. The economic and fiscal crises have sparked a new sense of urgency to find quick fixes at the same time they have inspired a willingness (however reluctant) to pursue more long-term reforms.

Whether the new context and new players actually will foster consensus and meaningful changes to revenue and spending, however, is yet to be seen. At this point in the spring session, it’s still all talk. Here are a few examples:

Gaming for capital
Republican leaders oppose increasing the state sales tax on gasoline to pay for a major construction program. Instead, they rekindled ideas to fund a capital program for schools, mass transit and infrastructure projects by expanding gaming. Their goal is to avoid raising any state taxes in a recession.

“Right now is absolutely not the time to be raising taxes on people who are struggling themselves,” said Senate Minority Leader Christine Radogno.

She and House Minority Leader Tom Cross propose expanding gaming to generate $1 billion in new revenue, which would help finance a $25 billion capital program. (They propose bonding about $12 billion, tapping $11 billion in the dedicated Road Fund to pay for transportation projects and leveraging about $3.5 billion from federal and local matching funds.)

Their gaming ideas include recurring proposals to allow a Chicago casino, expand positions at existing gaming facilities and enter a public-private partnership so that private investors manage the Illinois Lottery while the state continues to own it. Newer ideas include allowing video poker, as proposed in HB 4329, which is sponsored by one of Madigan’s assistant majority leaders, Rep. Frank Mautino of Spring Valley. Republicans also mentioned allowing Lottery tickets to be sold online, a proposal previously advanced by Cullerton.

Madigan took gaming off the table last year, but his spokesman, Steve Brown, said this is a new year. However, he said gaming tends to be a regressive source of revenue that usually generates a bunch of hype before falling by the wayside.

Senate Majority Leader James Clayborne said gaming for capital is still on the table in his chamber.

Tax reforms for education and economy
Ralph Martire, executive director of the Chicago-based Center for Tax and Budget Accountability, reintroduced a concept of increasing the state income tax rate and expanding the state sales taxes to cover services. The goal is to reform the way the state pays for public education and to reduce the burden on local property taxes.

Cutting back on state spending during a recession may sound logical, Martire said, but “it is quite clearly the absolute worst thing the state of Illinois could do.”

He joined two leaders in the Illinois Legislative Black Caucus to cite new evidence from Mark Zandi, Moody’s Economy.com’s chief economist, that the idea could help reduce the length of the economic recession in Illinois by preserving thousands of jobs and helping taxpayers spend money in their local economies.

The plan has been proposed in various forms before and would increase state income taxes, expand state sales taxes and provide targeted tax relief to low- and middle-income taxpayers. He added that broadening the sales tax to apply to services could reduce its rate, although it would be a hard sell to Cook County residents who already pay some of the highest sales tax rates in the country.

Sen. James Meeks, a Chicago Democrat and longtime sponsor of education funding reform measures, said Blagojevich is no longer in a position to threaten to veto tax reforms, and Cullerton has been a co-sponsor of such reforms. However, he added, his peers in the Senate likely would not support an income tax increase if it didn’t lead to education funding reform and property tax relief.

GOP budget reforms
By Hilary Russell
House Republicans flatly disagree and say Illinois has a spending problem, according to House Minority Leader Tom Cross.

He joined his GOP Caucus members and John Tillman, chief executive officer of the Chicago-based Illinois Policy Institute, a nonpartisan research organization, to propose budget reforms that would help reduce the $9 billion deficit and increase accountability. Introduced today in a Statehouse news conference, the proposals include:

The Sunshine Act (HB 4134) would create a volunteer commission of four legislators and four members of the public to review each of the state’s executive branch programs. The bill is sponsored by Rep. David Reis, a Willow Hill Republican. The state does not have an accurate list of existing programs, making it difficult for lawmakers to keep track of them, GOP members said.

Reis is also sponsoring the Stimulus Watch Act, which would require the General Assembly’s approval to use federal stimulus funds to create new state programs. Once the funds run out for a particular program, it would end.

“Pay as You Go Spending” (HB 3189), sponsored by Rep. Mike Connelly, a Lisle Republican, would implement a start and end date for new state spending programs. Just to add a program another must be eliminated.

Rep. Darlene Senger, a Naperville Republican, is co-sponsoring a constitutional amendment that would change the required number of votes to raise taxes. Currently, a majority of 60 votes in the House and 30 in the Senate is needed to increase fees or taxes. Senger’s proposal would increase the required number of votes to a “supermajority,” or 71 votes in the House and 36 in the Senate, making it more difficult to pass tax bills.

Rep. Lou Lang, a Skokie Democrat, said that the Republican’s timing was more showboating for their constituents than offering real solutions. “I find it very interesting that whenever there is a public policy decision to be made and the facts are clear that many people look for a political peg to take the chance to hang their hat on rather than take any political risk whatsoever.”

Gun control vs. gun rights
By Jamey Dunn
On the same day that thousands of people came to the Capitol building to participate in the annual gun owner lobbying day, every gun control measure voted on in a House committee advanced to the floor. A feeling of déjà vu was in the air.

Two of the gun control measures that passed through the committee today were proposed last session by the same two Democrat sponsors from Chicago. House Bill 12, sponsored by Rep. Luis Arroyo, would limit handgun purchases to one per person per month. House Bill 165 , proposed by Rep. Edward Acevedo, would ban semi-automatic assault weapons.

Other measures before the committee included House Bill 179, proposed by Chicago Democrat Rep. Deborah Graham, which would require that guns must either be equipped with gun locks or stored in lock boxes around minors. House Bill 180, also sponsored by Graham, would make gun dealers register with the Illinois State Police, who could then do spot checks on the dealers.

Rep. Brandon Phelps, a Democrat from Harrisburg, supports gun rights and is pushing for a few different bills that would allow counties to decide if they wanted to allow concealed carry of guns. One concealed carry bill sponsored by Sen. John Jones, a Republican from Mount Vernon, did not make it out of the Senate Public Health Committee yesterday.

Special elections
Two special election bills were killed today in a partisan showdown in the House Executive Committee. The hearing only included Cross’ special election bill and one proposed by Rep. Jack Franks, a Democrat from Woodstock. Both votes split along party lines. Republicans on the committee were visibly miffed and protested the demise of the bills.

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Where's the Party?

The Illinois State Fair kicked off the political campaign season, with Democrats and Republicans rallying on the fairgrounds for the past two consecutive days. They’re rearing up for national conventions at the end of this month and beginning of next. Illinois Democrats hope to ride the coattails of the presumptive presidential nominee, U.S. Sen. Barack Obama, a Chicago Democrat, but that doesn’t mask the divisions of state party leaders. The Illinois GOP has an opportunity to win over disgruntled voters frustrated by the Democrats in power. On the other hand, the party recognizes the challenge of gaining momentum while the “Obama factor” is anticipated to draw a record number of Democrats to the polls November 4.

The strengths and weaknesses of each party were on full display during their State Fair rallies.

On a packed lawn, Democrats had a huge draw to hear New Mexico Gov. Bill Richardson, former presidential candidate with a national and international resume. He’s now a hard-core Obama supporter, visiting Illinois to support Obama and U.S. Sen. Dick Durbin.

Richardson substituted the words “dynamic” and “diverse” to replace the word “dysfunctional” when describing the Illinois Democratic Party. He downplayed internal tensions by saying: “I’m a governor. I have, with my legislature, differences. There’s that control tension that I think is healthy in a democracy.”

But state Comptroller Dan Hynes, a Democrat, indicated he thinks the tension is suffocating rather than healthy. He cast a harsh light on the party leaders while speaking at the Democratic County Chairmen’s Association Wednesday morning, saying the existing state of affairs in Illinois represent “the worst of times.” He cited this year’s $1.4 billion in budget cuts that cripple state services and said it’s not a policy problem, it’s a personality problem personified by power clashes between the governor, Senate President Emil Jones Jr. and House Speaker Michael Madigan.

The division carried over that afternoon to the State Fair during Governor’s Day (a.k.a. Democrat Day). The only other statewide officeholder to attend was Treasurer Alexi Giannoulias. Hynes didn’t attend. Neither did Madigan, Attorney General Lisa Madigan, Lt. Gov. Pat Quinn or Secretary of State Jesse White.

The front of the audience was filled with busloads of supporters holding blue signs that said, “Pass the jobs bill today.” But when the governor rose to speak, members of the American Federation of State, County and Municipal Employees union booed and waved green picket signs that read, “Governor, don’t cut our health care.” They chanted as they passed through the audience, interrupting the governor’s speech.

The boos faded as AFSCME employees exited the lawn, and they were replaced with cheers as the governor yelled over the commotion: “I would ask our friends in AFSCME to join us in our crusade. They’re going to keep their jobs. They’re going to keep their health care, but now start helping us create jobs for other people and provide health care to other people across our state.”

He later said AFSCME was just using a political ploy to draw attention during contract negotiations with the administration. Union members argue that the cost of their health insurance continues to increase while their wages and their manpower is stagnant, at best.

Republicans aren’t much better off. While they have ripe opportunity to take advantage of the unpopular Democratic governor and the Democratically controlled legislature, GOP candidates have an obvious uphill battle to grab attention and prove their relevancy as an option for disgruntled voters.

The GOP leaders were quick to point out, however, that the Democrats didn’t even have their state party chair, Michael Madigan, present. The GOP also had a few other things the Democrats lacked: American flags, people dressed in red, white and blue, the national anthem and an opening prayer. But the Republicans had an emptier director’s lawn.

Given that Republicans are in the minority in both the Illinois House and Senate and don’t hold a single statewide office, they have the advantage of declaring innocence in the state’s problems. “They’ve completely dropped the ball and have had an awful six years,” said House Minority Leader Tom Cross. But he acknowledged that the GOP needs to revive itself and be stronger advocates for lower taxes and reforms.

He and Senate Minority Leader Frank Watson repeatedly blamed Blagojevich, as well as Senate President Emil Jones Jr. and Michael Madigan, for a lack of progress on a balanced budget, a capital construction program, an ethics reform package and a host of pension and Medicaid reforms.

“They enable him to do the things that he’s done over the past six years to put the state in the fiscal crisis that we’re in today,” Watson said of his legislative counterparts. “They enable him. There has to be a political price to pay. The voters have got to understand, the public has to understand the difference between what we believe in and what they believe in.”

The one thing all parties agree on is that the state needs a capital plan to repair schools, roads and bridges.

Madigan announced a potential agreement to lease the Illinois Lottery as a way to finance an infrastructure program, seeming to inch closer to a compromise with Blagojevich. But Senate President Emil Jones Jr. said his caucus already negotiated a deal and approved two capital plans, a $36 billion version and a $25 billion version. He added that he hadn’t seen any proposal in writing from Madigan.

The House later approved a roughly $1.1 billion capital bill that would draw federal funds that are waiting in Washington, D.C., for a state match. Republicans, however, called it a false hope and said the plan fails to give approval for the state to spend enough money. “Even if you thought last night was real, it doesn’t work,” Cross said. “It is a very small component of a bigger picture that has to be developed and be painted. But at the end of the day, it doesn’t work.”

Watch Illinois Issues magazine and this blog for more about a capital plan.

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Capital debate in the Capitol

Gov. Rod Blagojevich is expected to host a series of leaders’ meetings at the executive mansion in Springfield starting April 10, according to a letter from former U.S. House Speaker Dennis Hastert and Southern Illinois University President Glenn Poshard. The March 25th letter is addressed to all four top legislative leaders.

Republican Hastert and Democrat Poshard are co-chairing the governor’s coalition to promote his $25 billion capital program, called Illinois Works, and it seems as though they could serve as a much-needed buffer between the governor and the legislative leaders in what’s sure to be a contentious debate about financing the plan.

It’s hard to get excited about that debate. It seems as though Statehouse insiders still feel hung over from last year’s political stalemate, turmoil, disgrace — whatever you want to call it. The situation begs the question of how today’s capital debate differs from 1999, when then-Gov. George Ryan worked with the legislature to approve the last major capital plan in Illinois. That same year, they earmarked 51 percent of the state’s general funds for education and rewrote the state’s gaming law to allow a docked casino in Cook County.

Why could leaders of opposing political parties accomplish all that when today’s Democratically controlled legislature and executive branch have a hard time even meeting in the same room? Personalities, for one. Republican and former Sen. James “Pate” Phillip led the Senate in 1999. The current House Speaker, Michael Madigan, controlled the House then, too. But Madigan and Blagojevich drastically differ in personalities and leadership styles (see our March cover story). It also should be noted that the context of the 1999 debate was a much better economy with higher-than-expected revenues. Today’s revenue picture is much gloomier.

But Ryan himself was quoted as saying in Illinois Issues magazine that working with the legislature was the key. “That’s what government’s about, sitting down to negotiate your differences,” he said in our own Charlie Wheeler column in 1999. “I worked hard for people to cooperate, to make sure we got done what had to be done.”

Stay tuned next week when the legislature will spring back into action after a two-week break. The Capital Development Board will testify about a capital bill during a House committee at the same time Rep. Jack Franks, a Woodstock Democrat, is scheduled to hold a hearing about the governor's $1 million promise to the private Loop Lab School.

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Let's hope it's not a lemon

By Patrick O’Brien and Bethany Jaeger
Correction
I mistakenly labeled Democratic Sen. A.J. Wilhelmi as a Republican. My apologies. Sen. Wilhelmi is a Joliet Democrat.

The House and Senate finally agreed on major legislation for the first time since the electric rate debate. They approved a mass transit deal Thursday, but the hitch is that Gov. Rod Blagojevich said he’d make a change that would allow all seniors in the state to ride public transportation, including trains, for free. “I’m going to turn what I believe is a lemon into lemonade. I’m going to sweeten the bill,” he said at a Statehouse press conference.

The “sweetness” of the deal would cost almost $20 million statewide in fares that seniors would have paid in reduced rates. The change also means lawmakers will have to come back next week to either accept the governors changes or reject them with a super majority of votes, which would be difficult given that they’re short by a handful of votes in each chamber and that it’s a few short weeks before the primary elections.

House Democrat Julie Hamos stressed caution about declaring victory too early. “This is not over yet. It’s incumbent on us to bring back to Springfield 60 supportive voters in the House and 30 supportive voters in the Senate."

Regional Transportation Authority Chairman Jim Reilly said the job was only half done because the transit systems of northern Illinois needs upwards of $10 billion in infrastructure improvements. That requires a statewide capital bill.

Chicago Transit Authority President Ron Huberman said the deal could close a “difficult chapter” in the CTA history, especially when his employees received layoff notices three times last year. But he said his agency must “keep the wheels in motion” for January 20 service cuts until a “signed, executable bill” is delivered by state government. The CTA’s doomsday scenario involves more than 2,400 job cuts and eliminating half of all bus lines.

After months of wrangling, the General Assembly delivered a bill to the governor in a matter of hours. A last-minute change of heart by Democratic Sen. James Clayborne of Belleville allowed the bill to pass with no margin to spare in the Senate. The bill passed by two votes in the House.

Clayborne, who voted present for the bill last night, explained his switch: “I had to deal with reality. I want a capital bill. I think everybody in the Senate wants one. But until Madigan sits at the table and decides that we’re all going to negotiate in good faith like we did with medical malpractice, like we did with Ameren, then why should we jeopardize services in Chicago?”

He added that downstate transit riders also benefit from this version because the state aid for mass transit districts increases from 55 percent of operating costs to 65 percent. See our November feature, Token support. The increase means a lot for those districts.

The measure, HB 656, uses a small sales tax increase in Chicago and the surrounding counties, one-quarter of one percent, to fund the following:

- $100 million for paratransit services for people with disabilities

- A 10 percent increase in state aid for downstate transit districts

- $20 million for PACE bus services in the Chicago suburbs

- $100 million a year if the Chicago City Council enacts a real estate transfer tax. The revenue would help fund pension and health care costs of CTA retirees.

- The counties surrounding Chicago also would have the option of using their funds from the sales tax increase for public safety purposes

Republicans are still relevant
by Bethany Jaeger
The approval of a mass transit plan has political ramifications for House and Senate Republicans. All along they’ve fought for a statewide capital bill to fix roads, bridges and schools in their districts. They tried to gain leverage by saying they wouldn’t vote for a mass transit plan without the promise of a capital bill.

“There’s no question there’s a leverage issue that’s gone,” said House Minority Leader Tom Cross after his chamber approved the measure Thursday. “But there’s still a need there from a policy standpoint to do this bill that spans the whole state. So I hope people recognize that.”

Republicans also have lost their seat at the negotiating table that they enjoyed for the past seven months of overtime session. Democrats still have a majority in each chamber, but the new calendar year means the House and Senate technically don’t need Republican votes to approve legislation. The House has 67 Democrats but only needs 60 votes; the Senate has 37 Democrats but only needs 30 votes.

Republicans fear the politically difficult, clunky legislation for a gaming expansion coming any time soon is “as likely as the Cubs winning the World Series,” as Sen. Kirk Dillard said during Senate floor debate. Dillard lives in Hinsdale and said DuPage County has dire transportation needs that are met by the approved mass transit deal. He and Sen. Dan Cronin of Elmhurst broke with their GOP Caucus to vote in support of mass transit despite lacking a capital bill.

Senate Minority Leader Frank Watson said he’s disappointed but that he would never tell his fellow lawmakers that they shouldn’t vote with their districts. But now they're back to square one on capital. “I think we’ve lost an opportunity to make sure that capital, infrastructure would be a part of any solution here," Watson said. "I think we’ve taken a step backwards"

Republicans are still needed, however, for major spending and borrowing plans that require three-fifths majority. Capital for infrastructure projects is the biggest example. So are other budget-related items and overrides of the governor’s vetoes.

Republicans also may be needed as a buffer between the dueling Democrats. Cross already took the role as peacemaker last year. He and Watson partook in “shuttle diplomacy” between legislative offices because House Speaker Michael Madigan declined to join a series of leaders’ meetings that included the governor.

Watson said that practice has to end. “Everyone has to be in the room. Everyone has to check their egos at the door. Everyone has to understand this is an important issue for the state as an entirety, not just a region.”

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Mass transit stalls on the tracks

By Patrick O’Brien and Bethany Jaeger
Correction
I mistakenly labeled Democratic Sen. A.J. Wilhelmi as a Republican. My apologies. Sen. Wilhelmi is a Joliet Democrat.

The House and Senate finally agreed on major legislation for the first time since the electric rate debate. They approved a mass transit deal Thursday, but the hitch is that Gov. Rod Blagojevich said he’d make a change that would allow all seniors in the state to ride public transportation, including trains, for free. “I’m going to turn what I believe is a lemon into lemonade. I’m going to sweeten the bill,” he said at a Statehouse press conference.

The “sweetness” of the deal would cost almost $20 million statewide in fares that seniors would have paid in reduced rates. The change also means lawmakers will have to come back next week to either accept the governors changes or reject them with a super majority of votes, which would be difficult given that they’re short by a handful of votes in each chamber and that it’s a few short weeks before the primary elections.

House Democrat Julie Hamos stressed caution about declaring victory too early. “This is not over yet. It’s incumbent on us to bring back to Springfield 60 supportive voters in the House and 30 supportive voters in the Senate."

Regional Transportation Authority Chairman Jim Reilly said the job was only half done because the transit systems of northern Illinois needs upwards of $10 billion in infrastructure improvements. That requires a statewide capital bill.

Chicago Transit Authority President Ron Huberman said the deal could close a “difficult chapter” in the CTA history, especially when his employees received layoff notices three times last year. But he said his agency must “keep the wheels in motion” for January 20 service cuts until a “signed, executable bill” is delivered by state government. The CTA’s doomsday scenario involves more than 2,400 job cuts and eliminating half of all bus lines.

After months of wrangling, the General Assembly delivered a bill to the governor in a matter of hours. A last-minute change of heart by Democratic Sen. James Clayborne of Belleville allowed the bill to pass with no margin to spare in the Senate. The bill passed by two votes in the House.

Clayborne, who voted present for the bill last night, explained his switch: “I had to deal with reality. I want a capital bill. I think everybody in the Senate wants one. But until Madigan sits at the table and decides that we’re all going to negotiate in good faith like we did with medical malpractice, like we did with Ameren, then why should we jeopardize services in Chicago?”

He added that downstate transit riders also benefit from this version because the state aid for mass transit districts increases from 55 percent of operating costs to 65 percent. See our November feature, Token support. The increase means a lot for those districts.

The measure, HB 656, uses a small sales tax increase in Chicago and the surrounding counties, one-quarter of one percent, to fund the following:

- $100 million for paratransit services for people with disabilities

- A 10 percent increase in state aid for downstate transit districts

- $20 million for PACE bus services in the Chicago suburbs

- $100 million a year if the Chicago City Council enacts a real estate transfer tax. The revenue would help fund pension and health care costs of CTA retirees.

- The counties surrounding Chicago also would have the option of using their funds from the sales tax increase for public safety purposes

Republicans are still relevant
by Bethany Jaeger
The approval of a mass transit plan has political ramifications for House and Senate Republicans. All along they’ve fought for a statewide capital bill to fix roads, bridges and schools in their districts. They tried to gain leverage by saying they wouldn’t vote for a mass transit plan without the promise of a capital bill.

“There’s no question there’s a leverage issue that’s gone,” said House Minority Leader Tom Cross after his chamber approved the measure Thursday. “But there’s still a need there from a policy standpoint to do this bill that spans the whole state. So I hope people recognize that.”

Republicans also have lost their seat at the negotiating table that they enjoyed for the past seven months of overtime session. Democrats still have a majority in each chamber, but the new calendar year means the House and Senate technically don’t need Republican votes to approve legislation. The House has 67 Democrats but only needs 60 votes; the Senate has 37 Democrats but only needs 30 votes.

Republicans fear the politically difficult, clunky legislation for a gaming expansion coming any time soon is “as likely as the Cubs winning the World Series,” as Sen. Kirk Dillard said during Senate floor debate. Dillard lives in Hinsdale and said DuPage County has dire transportation needs that are met by the approved mass transit deal. He and Sen. Dan Cronin of Elmhurst broke with their GOP Caucus to vote in support of mass transit despite lacking a capital bill.

Senate Minority Leader Frank Watson said he’s disappointed but that he would never tell his fellow lawmakers that they shouldn’t vote with their districts. But now they're back to square one on capital. “I think we’ve lost an opportunity to make sure that capital, infrastructure would be a part of any solution here," Watson said. "I think we’ve taken a step backwards"

Republicans are still needed, however, for major spending and borrowing plans that require three-fifths majority. Capital for infrastructure projects is the biggest example. So are other budget-related items and overrides of the governor’s vetoes.

Republicans also may be needed as a buffer between the dueling Democrats. Cross already took the role as peacemaker last year. He and Watson partook in “shuttle diplomacy” between legislative offices because House Speaker Michael Madigan declined to join a series of leaders’ meetings that included the governor.

Watson said that practice has to end. “Everyone has to be in the room. Everyone has to check their egos at the door. Everyone has to understand this is an important issue for the state as an entirety, not just a region.”

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Transit on the move

By Patrick O’Brien and Bethany Jaeger
Editor’s note: Welcome Patrick O’Brien, our new Public Affairs Reporting intern from the University of Illinois at Springfield, where he’s earning his master’s. He’s from Chicago and is the former editor of the Independent at Northeastern Illinois University.

Before hearing a word of testimony at the Illinois House Gaming Committee today, Chairman Lou Lang, a Skokie Democrat, issued a warning that signaled action on gambling expansion in Illinois was far from eminent. Instead, the committee set the stage for a showdown about mass transportation funding over the next two to three days. Lawmakers will start the new legislative session Wednesday with trying to prevent a doomsday scenario for Chicago’s transit system.

Rep. Bob Molaro, a Chicago Democrat and point person on gaming issues, said gaming was being put on the back burner to find a solution for the transit funding crisis. “I’m hoping we do mass transit the next two days. I was never one to say let’s hold mass transit hostage for capital.”

He’s talking about a group of downstate lawmakers who previously vowed not to vote for a Chicago-area mass transit deal until the legislature also advanced a major capital program that would fund new construction of roads, bridges and schools. But with the flip of the calendar to a new spring session, it’s going to be easier to approve legislation than it was in the past seven months of overtime session. Fewer votes are needed now.

But needing fewer votes hardly tames the challenges confronting the General Assembly. Trust or lack thereof is the biggest hurdle to agreeing on ways to collect taxpayer money to pay for such large spending programs.

Molaro, co-sponsor of the gaming legislation, said the biggest obstacle to approving a gaming deal, for instance, is divvying up casino revenues.

“The good news about a gaming bill, it raises about $1.2 billion extra money every year — but that’s the bad news about the bill, the fight’s going to be over how to spend it,” he said.

The measure seeks to empower a revamped Illinois Gaming Board to exercise strict scrutiny over a potential Chicago casino, which would help fund a statewide capital program.

Lang’s message made clear that while the gaming expansion is key to funding a capital program, an agreed upon proposal won’t be ready to go for weeks. Lang told the audience of lobbyists and activists that if they testified before this meeting of the committee, they wouldn’t able to testify at future meetings on the primary gambling proposal in the House, HB 4194.

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The chips may fall, but ...

The Illinois House will convene in Springfield next Monday to debate a major gaming proposal announced in Chicago this morning. Two new casinos, one in Chicago and one elsewhere in the state, could unlock months of political stalemates, according to sponsors Reps. Lou Lang of Skokie and Bob Molaro of Chicago (I heard their press conference on the Internet through Capitol Fax). Or, that same plan could be a dud if it isn’t quickly followed up by separate but related plans to fund road and school construction projects and mass transit and education subsidies.

House Speaker Michael Madigan wrote a letter to legislators and labeled the gaming plan as a “compromise,” but even if all four legislative leaders and the governor agreed on the latest version, there’s a whole lot of back-and-forth that needs to happen before they agree on ways to distribute that money. It’s generally agreed that revenue will be split, with the largest chunk paying for road and school construction projects and the rest for increased education spending. However, Lang said they still have to decide whether the governor or the legislative leaders will have discretion in which projects get funded. And considering trust hasn’t been strong this year, that decision could take a while. In a phone conversation Monday, Lang said, “[The leaders] have yet to come to members and say, ‘Hey, we’re going to get a capital bill. You get X. Where’s your list?’ None of those things have happened yet.”

While Republicans will have this week to suggest tweaks to the gaming legislation, Lang said he’s “very confident” that this proposal or something like it will pass the House. Whether the Senate could support it is unknown. Cindy Davidsmeyer, spokeswoman for Senate President Emil Jones Jr., said in an e-mail that the leadership could support some issues but that it needs to see the actual language before moving forward. She also said session next week is possible, but nothing’s set in stone.

Major parts of the gaming plan include reissuing a legally challenged “10th license” that was previously marked for Rosemont. The plan also would create an 11th license. Chicago would get one of them to build a land-based casino owned by the city and operated by a private investor. All casinos in the state would be governed by a completely new, independent Gaming Board, Racing Board and Director of Gaming Enforcement. They’d work with ethics officers to oversee the bidding process for the two new licenses and manage the nine existing licenses.

Other details include:
- The owners of the two new licenses would have to open 25 percent of their ownership to minorities and women for as little as $5,000.
- The nine existing riverboats would gain a total of 3,500 new positions for a fee.
- The five racetracks would pay a fee to add slot machines.
- The Illinois Gaming Board would have to dedicate $5 million for compulsive gaming programs and kiosks.

If you’re curious about the pros and cons of legalized gambling and about what other states do with the money, check out the analysis provided by the National Conference of State Legislatures.

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The 12th month

The Illinois House is working on a plan to expand gaming as a way to pay for a long-awaited infrastructure projects around the state. That plan is highly anticipated because it has potential to unlock the entire, gridlocked legislation session of 2007. Downstate lawmakers say they won't vote to subsidize Chicago-area mass transit until a statewide capital plan materializes.

But while gaming negotiators say there are only a few issues to work out before a gaming bill comes through, there’s another set of negotiations that could potentially further delay an actual deal. As spelled out by Rep. Lou Lang, a Skokie Democrat and House Gaming Committee chair, Thursday, the challenge is never ending: “So there’s going to be $X billion in capital. What’s on the list? Who gets what? When do they get it? How do they get it? What’s the priority? How do you make sure that people get what they’ve been promised?”

Once those questions are answered, there’s still the question of whether those plans would have any future in the Senate. Lang said after Thursday’s special session that he didn’t know.

Those types of incremental steps have drawn out the entire session, all 12 month’s worth. Yes, Gov. Rod Blagojevich again threatened to call state lawmakers into special sessions throughout December if they can’t agree on how to subsidize Chicago-area mass transit and finance the statewide infrastructure plan. “There is the possibility we could have special sessions every day as we get closer and closer to Christmas,” Blagojevich said outside his Capitol office Thursday afternoon. December marks the seventh month of overtime session.

House Speaker Michael Madigan told his members to expect a four-day notice if they were to be called back to Springfield in December.

If the governor does resort to calling special sessions, there’s a chance lawmakers would simply “gavel in” and “gavel out,” or convene and then adjourn without doing any actual business until a deal is made. That’s been the case in many of the 18 special sessions so far this year. The governor’s office says at least they’re in the same building and more likely to meet. “They’ve made little noticeable progress over the past several weeks when they were not in session,” said Abby Ottenhoff, Blagojevich’s spokeswoman, in an e-mail. “When they are in session, they are at least talking and working toward a solution.”

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No action sets the stage for another show

Compromise would be a welcomed word during this 6th month of overtime session, but Wednesday’s special session — the 17th called by Gov. Rod Blagojevich this year — exemplified the “you show me yours, I’ll show you mine” game played by legislative leaders and caucuses, said Rep. Bob Molaro, a Chicago Democrat. He provided comic relief with a candid and blunt analysis during a committee hearing Wednesday night.

The daily news is that the House shot down a mass transit plan that was backed by the governor and drafted by House Republicans. It was altered by House Democrats, and House Speaker Michael Madigan urged lawmakers to support it as an “act of compromise.” But the bigger picture is that the mass transit plan was doomed from the start. By letting it die in the House, the speaker demonstrated that yet another one of the governor’s plans failed.

It’s all come down to two issues: 1) How to save Chicago-area mass transit from cutting services and raising fares and 2) how to finance an infrastructure program for roads, bridges and schools statewide.

“There’s a lack of trust on many fronts,” said Sen. John Sullivan, a Rushville Democrat. He was one of nine senators who reiterated Wednesday that he wouldn’t vote for a mass transit plan without a capital plan. “We need an assurance that both of these issues will be addressed, and the only way we see to do that is if they’re done at the same time.”

Madigan said he’s continuing to negotiate on a capital plan, which would rely on gaming expansion to pay for the bonds. But he said he refuses to tie gaming to mass transit. On the other hand, once a gaming-for-capital plan drops, downstate members of both political parties would be more likely to approve a mass transit plan.

While Madigan said he was “disappointed” Wednesday night, the failure of the "compromise" plan could revive another measure that the speaker prefers, Rep. Julie Hamos’ measure. It previously failed but is preferred by Madigan for its “regional approach” with a sales tax increase in the Chicago area, as opposed to the compromise plan that would have taken money from the state’s general revenue from the sales tax on gas.

Hamos’ measure was framed as the lesser of two evils in debate Wednesday night — Molaro joked that it was “the greatest bill that never passed" — but the governor repeatedly vowed to veto the measure because it raises general taxes. Hamos pointed out, however, that lawmakers will have to make some tough votes whether they vote to save mass transit by increasing the sales taxes in Chicago or by diverting general revenue from the sales tax on gas.

I’ve given up on timetables and deadlines for legislative action, but pressure points will start to pop in December if lawmakers don’t deal with at least mass transit. Besides risking angering Chicago-area voters who would be affected by fare increases, lawmakers from all parts of the state risk being stuck in Springfield during the thick of campaign season due to the early primary election, February 5.

Lawmakers return to the Statehouse Thursday, when the governor called another special session Thursday to focus on mass transit funding with a capital plan.

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"Tings are OK"

That's House Speaker Michael Madigan using his best Chicago accent to jokingly gauge the progress of leaders’ meeting with Gov. Rod Blagojevich Tuesday in Springfield to discuss the expansion of gaming for new revenue. Turning on the serious tone, Madigan said, “We had a good meeting, and it appears that we’re making progress. Not everything is resolved. There are differences, which I’m not going to get into.”

The four leaders of both parties met with Blagojevich in the Statehouse Tuesday afternoon and all reported progress, although they wouldn’t talk specifics. And it may take more than the seven to 10 days originally said to be the timeline for agreeing on how much to expand gaming and how to pay for Chicago mass transit, statewide construction projects and education.

The proposals on the table but not quite agreed upon include:
- A land-based casino owned by the city of Chicago, although they have to nail down a way to share the revenue between the city and the state
- One riverboat elsewhere in the state, although there’s no indication where that second boat would go
- Slots at horseracing tracks, although they aren’t releasing a number of new positions that would be allowed
- An independent gaming board, desired by House Speaker Michael Madigan, House Minority Leader Tom Cross and Senate Minority Leader Frank Watson, although it has some opposition or concerns about who would appoint the new gaming board members
- A 70-30 split of the revenue — 70 percent of the new gaming revenue would pay for road and school construction, while 30 percent would provide new education funding per Senate President Emil Jones Jr.’s desire, although the leaders haven’t yet agreed on how much revenue would be generated in the first place

Regarding the split of money, Watson said, “The bigger the capital bill, the better, as far as I’m concerned, but I’m not opposed to the 30 percent that’s being allocated to education.”

He also said he could vote for slots at the tracks, but added, “I’m not sure I’ve got members who can. That’s the biggest problem.”

And the revised timeline, per Watson, is that seven to 10 days may have been the original goal, but “I think we’re talking more time than that.”

The leaders scheduled a telephone conference for Thursday.

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The $27 million deal

The end of the seemingly endless legislative session could be near if all goes by Thursday night’s seven-to-10-day promise. It started when Chicago-area mass transit officials announced a temporary budget solution that averts a “doomsday” scenario that would have terminated 600 workers and drastically increased fares on Sunday. The “solution” was a fiasco that didn’t peak until 3 p.m. Friday when the federal government approved a plan announced by Gov. Rod Blagojevich just hours before. But it’s not just a Chicago-area issue. The budget fix, even if only temporary, has statewide importance because it opens the door for a much-delayed agreement between the state’s top legislative leaders and the governor on long-awaited plans to fund road and school construction projects across the state.

Jim Reilly, chairman of the Regional Transportation Authority in northeastern Illinois, said the federal government had to approve the plan to divert $27 million in federal capital dollars to cover the agency’s operating expenses. The grant — not a loan — is supposed to be enough for the RTA, the Chicago Transit Authority and suburban Pace bus services to operate through the end of the year.

According to Blagojevich, the diversion of federal capital dollars for operating costs has been done in the past. Blagojevich said he plans to replace those federal funds with available state capital bond money. “By replacing converted federal capital money with state capital money, there will be no loss to either CTA or Pace’s capital plan,” he wrote in a release before talking to reporters outside of his Statehouse office.

Ron Huberman, executive director of the Chicago Transit Authority, said at the Capitol that the scheme does avert a doomsday scenario, but it doesn’t solve the structural deficit that plagues the agency’s pension system and angers its union workers. Chicago Federation of Labor president Dennis Gannon added that the pension problem will only make the mass transit system worse if not addressed in the long term.

Reilly of the RTA said he trusts the legislative leaders to come up with a long-term solution. “I believe that commitment,” he said, crediting House Minority Leader Tom Cross for becoming a mediator of sorts between House Speaker Michael Madigan, the governor and his ally, Senate President Emil Jones Jr., and Senate Minority Leader Frank Watson.

On the House floor, Cross said, “This may not be the best solution, but it’s what is here and now and available, and I support it in the interest of keeping the system running.”

The next step to ending the sixth months of overtime session is to draft an agreed capital program for road and school construction around the state. That, however, involves the expansion of gaming, a contentious and complicated subject. The legislative leaders are on opposite sides of the spectrum in terms of the size and scope of the revenue sought. There’s also disagreement on the spending side. The Senate version approved in September includes money for education and mass transit, neither of which Madigan wants to tie to gaming. Cross bears the burden of ironing out their differences.

“We have a lot to discuss,” he said from the floor. “As far as I’m concerned, what came over from the Senate isn’t what we’re going to work off of. We will start over.”

Cross and Madigan will meet frequently over the next seven to 10 days, but the House and Senate members left Springfield Friday and won’t be called back until the pending gaming and capital plans are ready.

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Relationships 101

Rep. Tom Cross, the Republican leader in his chamber, had the quote of the day from the House floor before lawmakers finished their first week of the annual fall session.

“Perhaps, at least at the higher level, we’ve had an inability to communicate to get the budget done, to take care of capital, to take care of RTA, to take care of gaming. And I have a suggestion,” he said.

He cited psychologist and author Kate Wachs, who’s been interviewed by such media entities as the Chicago Tribune and Oprah Winfrey.

“She’s a nationally acclaimed relationship expert, and she’s written a book, Relationships for Dummies,” Cross said. “And she has a very good chapter on good communication, the bolts. One of the things she talks about is finding compromises that work for you and your partners. And I thought maybe she could come to a leaders’ meeting.”

Lawmakers return to the Capitol Wednesday, October 10 for three more scheduled days of the fall session. What do we have to look forward to? Lots or little, depending on whether the legislative leaders decide to hold off on major actions until the House holds committees on gaming and mass transit later in October. Until then, we wonder:
- Will Senate President Emil Jones decide to do the same as the House and let his members vote to override some of Gov. Rod Blagojevich’s $460 million in budget cuts?
- Will Jones decide to act on the House version of a property tax assessment cap that phases out in three years or continue to side with the governor and advance language to make the cap permanent?
- Will House Speaker Michael Madigan allow budget implementation bills to be processed so schools can get their delayed state aid payments by November?
- And will the governor make a public appearance in the Capitol before the scheduled last day of the fall session, October 12?

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All on board?

When state lawmakers return to Springfield Monday, there could be more momentum behind a gaming-for-capital plan than there was at the beginning of this nearly nine-month session. The pressure is on for lawmakers to approve a capital bill to finance road and school construction projects and a plan to address mass transit shortfalls. Now House Republicans have changed their tune and indicated a willingness to consider the creation of a Chicago casino to pay for a capital plan. That leaves only House Speaker Michael Madigan to hop on the bandwagon of a Chicago casino. That's not expected.

The potential support among House Republicans also is unlikely to shore up enough votes to approve a three-casino plan passed by the Senate earlier this month. That idea was crafted by Gov. Rod Blagojevich and Senate President Emil Jones Jr., who did not seek input from House Democrats or Republicans before sending it to the floor for a vote. Members of both political parties approved the deal. Now it’s waiting to be considered by the House.

Cross, who convened a Chicago meeting about gaming with the three other legislative leaders and the governor Wednesday, said the Senate’s gaming-for-capital plan “needs a lot of work.” “I’m not comfortable with three new licenses,” he said in a phone conversation Thursday. “Our caucus has had some interest in the increased positions, and I think reluctantly, as this process has evolved, is open to the Chicago idea.” He added there are a few House Republicans who like the idea of granting three new gaming licenses because it would give their downstate districts an opportunity to build one of the new riverboats.

Cross said the push for a capital bill isn’t about getting money for individual projects. “The roads need repair, the bridges, the school construction plan, the higher ed facilities — the needs are great. So it’s not individual member projects. It’s just the legitimate needs that exist around the state.” The focus of the caucus will be to agree on a way to generate about $1 billion for the state’s share of a $10 billion capital plan. Cross added, “I think with increased positions and Chicago that you can probably get there.”

Rep. Gary Hannig, a Litchfield Democrat and budget negotiator for his caucus, said lawmakers shouldn’t get their hopes up. Not only is approving three new casinos going to be a tough sell in the House, he said approving new licenses doesn’t produce immediate gratification. He said while the state would get an initial big check in exchange for a new license, it would have no idea when the gambling facility would be up and running or whether its revenue would live up to expectations.

He added the Senate’s revenue estimates from its gaming plan are “very optimistic.” “It really is just anybody’s guess about what this thing in Chicago could generate. I don’t know that we can make those kinds of dollars. And if we don’t, we basically borrowed a big bunch of money and ask some future generation to find a way to pay it off because we gave them an insufficient revenue stream.”

And then there’s Madigan, who may be for a Chicago casino under the right but unlikely circumstances. His spokesman, Steve Brown: “In terms of a city-owned casino that meets all of the city requirements, if that ever came up by itself, I assume the speaker would support it. No expectation it ever will.” He also cited the Senate’s gaming bill as an example of a typical plan that has kernel of an idea but gets bogged down by various demands and falls over on its own weight.

The speaker is considering scheduling public hearings to air out gaming proposals, but there’s no schedule or format for any hearings right now, according to Brown. The House first will focus on some $470 million budget cuts made by the governor last month. The fun begins Monday with a special committee of the entire House. The chamber is expected to override those budget cuts when it convenes for the annual fall session Tuesday.

Throughout the two-week “veto session,” the General Assembly also is expected to consider mass transit subsidies and Chicago property tax relief. But there’s no indication the regular legislative session will end there.

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An exercise in futility?

In a mostly rosy display of bipartisan cooperation (with some thorns in the Senate president’s side), the Senate approved an all-in-one deal to create three new casinos as a way to pay for a capital plan. That $25 billion plan would finance road and school construction projects and provide a one-year subsidy for Chicago mass transit systems. Not everyone was happy. Worse, they predict trouble in the other chamber.

“I think it’s fine and dandy that we can be here and doing this,” said Sen. William Delgado, a Chicago Democrat and Latino Caucus leader. “But this is just an exercise in futility because it’s dead on arrival [in the House].” The House wasn’t represented in the past two weeks of negotiations and isn’t expected to support that large of a gaming expansion.

The Senate version of a gaming plan would license a new land-based casino in Chicago and two new riverboats elsewhere in the state. Side note: Despite an earlier version, this plan would require all casinos to abide by the statewide smoking ban that starts in January.

A large part of the gaming revenue would subsidize mass transit with $425 million over three years. The Regional Transportation Authority, which includes the Chicago Transportation Authority, Metra rail services and Pace suburban bus services, has been threatening to lay off hundreds of workers and cut services if the state doesn’t lend a helping hand. The deal would grant the agency $200 million for operating funds in the first year (downstate would get $30 million). The catch is that if the General Assembly doesn’t come up with a way for the RTA to generate a long-term revenue source, then the RTA does not have to repay the $200 million.

Sen. Rickey Hendon, a Chicago Democrat who sponsored the gaming bill, said this plan would buy time for the General Assembly and the governor to work out a long-term funding solution for mass transit, and it avoids raising the sales tax in the Chicago area. “With this route, if you don’t play, you don’t pay. If you don’t go to the boats, it’s not costing you a nickel,” Hendon said earlier Tuesday. “And I think that’s the best way and the fiscally responsible way, the prudent way, to help the people of this state.”

House Speaker Michael Madigan, on the other hand, favors the regional sales tax for the long-term solution. He has also repeatedly said there’s not enough support in his chamber to approve a deal for new casinos. The House could tweak the Senate’s plan to do a limited expansion of gaming, but that risks being shot down in the Senate again. As Hendon said, “I just hope the House doesn’t tweak so much ‘till it’s dead on arrival when it gets over here.”

The governor said in a Statehouse press conference Tuesday night that he still opposes a regional sales tax increase and favors ending a series of business tax breaks to generate revenue.

So we have the governor, Senate President Emil Jones Jr. and Senate Minority Leader Frank Watson on the same page. But then there’s Madigan and House Minority Leader Tom Cross on a separate page, and they may not even agree with each other on a gaming for capital and mass transit plan. Veto session will provide the next chance to see how close (or if) the four legislative leaders and the governor can come to a compromise.

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All in one: gaming, capital and mass transit

The Senate could consider a new gaming bill that would pay for a capital plan and, potentially, Chicago mass transit all in one. (The governor temporarily saved mass transit last week.) Some Senate Republicans favor the all-in-one strategy, but its fate is uncertain in the House. But House Speaker Michael Madigan wasn’t invited to the Springfield meeting between Senate leadership and Gov. Rod Blagojevich this afternoon. After the meeting, Senate Minority Leader Frank Watson said, “How do you leave out the speaker of the House in this discussion? But that’s what’s happened.”

One gaming proposal outlined by Sen. James DeLeo, a Chicago Democrat and assistant majority leader, would create a new casino in Chicago and two others somewhere in the state. The revenue, an undetermined amount, would help pay for road and school construction projects as well as mass transit. It also would serve as an alternative to the House’s version of a mass transit bill that would increase the sales tax in the Chicago region and allow a real estate transfer tax in the city of Chicago.

But opinions differ about the all-in-one approach. DeLeo says Senate Democrats think the chamber should focus on gaming and capital first. “If we have a capital and gaming bill, we can certainly give the [Regional Transportation Authority] a lot more funding than anticipated. So it’s a better way to go. And we wouldn’t have to do a sales tax.” It also would satisfy the governor’s repeated no-tax pledge for state income or sales taxes.

Sen. Christine Radogno, a Lemont Republican, said she actually agreed with the governor and credited him for opposing the sales tax increase, which she says is regressive and would unfairly apply to food and drugs. Instead, she favors the consideration of more transportation-related fees, such as those for drivers’ licenses and vehicle stickers.

The governor, on the other hand, still favors closing “corporate loopholes,” or ending various tax breaks for businesses. Eric Zorn now with the Chicago Tribune has more here.

The Senate Democrats and Republicans are meeting behind closed doors in their respective caucuses tonight. The chamber is scheduled to convene around 9:30 a.m. Tuesday and break for committees around 11 a.m. or noon. Meanwhile, House Democrats continue to hold a series of budget hearings around the state to build support for overrides of Blagojevich’s budget cuts. One interesting thing I missed before: According to the Center for Tax and Budget Accountability, the governor’s budget cuts total $470 million, not the $463 million announced by the governor’s office.

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