Mini-capital plan coming Thursday

By Bethany Jaeger
State lawmakers are expected to vote tomorrow on a “mini-capital plan,” which would drive $2 billion into crumbling roads and bridges and $1 billion into mass transit as part of a five-year transportation program, relying on bonding and transfers from existing state funds. The plan is being framed as a precursor to a more robust capital plan that would rely on new revenues through driving-related fees and, potentially, tax increases. But some fear enacting a mini-capital plan now could slow the momentum for a larger plan later.




Illinois Department of Transportation Secretary Gary Hannig, former deputy leader for House Speaker Michael Madigan, said this afternoon in the Statehouse that the mini-capital plan would go toward maintaining and fixing existing roads and bridges, not paving new ones.

“Right now, the conditions of our roads as rated by the engineers is about 76 percent, which most people would say is not good,” he said. “Within the next five years, we want to take the conditions of the roads … and bring them up to 90 percent.”

Spending money on existing roads, however, would not tap into federal highway funds that have been waiting a long time for a state match. Hannig added that the proposal would include an emergency plan to fill potholes on some state and local roads.

While Sen. Martin Sandoval, a Chicago Democrat who chairs the Transportation Committee in his chamber, said he would vote to support the mini-capital plan, he said it would be a minimal investment that drastically undercuts the funding needed for mass transit.

There’s been a longstanding agreement that for every $1 spent on mass transit, the state would spend $2 on roads and bridges. Sandoval wants to change that so the state would spend an equal amount on each. He cited a five-year plan to dedicate about $5.5 billion for roads and bridges and another $5.5 billion for transit.

“Now is the time to do it right,” Sandoval said in a Statehouse news conference this afternoon. “Doing it in a half-step method today is the wrong way to go.”

To generate some more money that could shore up funds for mass transit, he supports the idea to increase the state’s motor fuel tax by at least 8 cents a gallon. That’s currently proposed in HB 1. Yet, Sandoval said that a motor fuel tax increase, alone, wouldn’t be enough. It would have to be coupled with Quinn’s proposed increases in driving-related fees, as well as federal funds.

Brian Imus, state director of the Illinois Public Interest Research Group, added that the Illinois Department of Transportation could use some of the $1.4 billion of federal stimulus funds for mass transit, but the department has not planned to do so. (We wrote about mass transit advocates last week.)

Transportation Department spokeswoman Marisa Kollias said the agency decided to put all federal “highway investment” funds into highways rather than into transit. “There are needs in both programs, and we chose to use the limited funds to address road and bridges,” she said in an e-mail.

Sandoval’s push for more mass transit money will come up again the week the legislature returns from its two-week spring break. He said he plans to schedule a public hearing in Springfield to discuss a $13.5 billion capital plan called for by labor and business officials of the Transportation for Illinois Coalition. That $13.5 billion, however, also doesn’t include a specific funding source. The coalition offers general ideas here. The coalition did send letters today to the governor and to lawmakers to say its members supported the mini-capital plan.

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Countdown to capital begins

By Bethany Jaeger and Jamey Dunn
Gov. Pat Quinn wants at least a portion of his statewide plan for major construction projects approved by the General Assembly before April 3. That’s the last session day scheduled before legislators are supposed to head home for a two-week spring break, and Quinn reportedly said today that he thinks they should bypass spring break to work on a capital plan.


The $26 billion plan, called Illinois Jobs Now, eventually would fund infrastructure, mass transit, railroad improvements, new school buildings, housing, conservation projects, and water treatment projects. Two new projects also would include an airport near Chicago’s south suburbs and the construction of the first veterans’ home within Chicago.

The proposed funding mechanisms, as usual, spark controversy. If Quinn’s budget plan were approved, vehicle-related fees would help fund road and bridge construction. (Driver’s license fees would increase from $10 to $20; license plate fees would go from $79 to $99; and vehicle registration fees would rise from $15 to $30.) Mass transit projects would be funded by title transfer fees, which would increase from $65 to $105.

Plans to build new schools, then, would be funded by shaving a portion of tax revenues typically given to local governments.

In addition to federal stimulus money, Quinn also proposes using about $150 million a year from the state’s dedicated Road Fund. That would allow the state to bond/borrow money to pay for projects specifically for roads and bridges.

That’s one portion of a capital plan that could be done by April 3. Senate President John Cullerton said it could be realistic for the legislature to approve increasing the amount the state may borrow for the purposes of kick-starting a road program and tapping into federal matching funds.

The part of the capital plan that will take the longest to negotiate is other sources of funding, especially if it's intertwined with an attempt to increase the state income tax rate or motor fuel tax rate. For instance, Cullerton said he still supports the idea of increasing the state’s 19-cent tax on each gallon of motor fuel, which hasn’t changed since 1990. He describes the motor fuel tax as a traditional way to pay for roads, and because it’s a so-called user fee, people could adjust their lifestyles if they didn’t want to pay more. (Senate Democrats are working on a plan that would increase the tax by about 16 cents, while the House is considering a bill to increase the tax by 8 cents.) According to Cullerton, an 8-cent increase could generate $500 million.

Sen. Martin Sandoval, a Chicago Democrat who chairs the Transportation Committee in his chamber, agreed that an increase in the gasoline tax has support in the legislature and would fund a “robust” capital plan. He’s sponsoring SB 200, which doesn’t have language, yet, but could be used to advance a motor fuel tax bill.

Sandoval is one critic of Quinn’s capital plan because, he said, he’s concerned it would be unfair to Chicago. “Mass transit takes a huge hit at a time when we’re preparing for the Olympics, at a time when we’re trying to protect the environment, at a time when we’re trying to put people back to work. Gov. Quinn is going in the wrong direction when it relates to mass transit.”

Under Quinn’s proposed budget, the Chicago-area Regional Transportation Authority would lose $32 million in grants for operating assistance. Public transportation also would lose about $42 million, but that’s based on decreased sales tax revenues. Downstate transportation districts, on the other hand, would see an increase of about $24 million.

Jennifer Morrison, managing director of the Transportation for Illinois Coalition, said that her organization was encouraged by Quinn's emphasis on a long-awaited capital plan but that the funding for mass transit, highways and local roads would be “way too small to make any meaningful impact.” She added that the budget plan is “more than a little unclear” about which revenue sources would be designated to which projects.

While neither Senate Minority Leader Christine Radogno nor House Minority Leader Tom Cross supports Quinn’s fee increases, they said last week that they do hope to meet with the governor to work out a compromise.

Another part of the plan that will take a long time to negotiate is how the money would be distributed throughout the state. Not only could it differ depending on the source of revenue approved by the legislature, but it also could change if Democratic Rep. Kathleen Ryg of Vernon Hills has her say.

She wants the planning process to empower local stakeholders through various metropolitan planning organizations. House Bill 2359 would create a new advisory committee to the Illinois Department of Transportation when prioritizing road projects. Ryg said the new committee would help assure taxpayers and state officials that the limited amount of money available would be spent on the best use, particularly as a capital bill is drafted and new revenue sources are generated.

The recent appointment of Transportation Secretary Gary Hannig, a former state representative and budget expert for House Democrats, actually could help the measure advance. Ryg said this afternoon that she changed her bill from its original form in response to concerns expressed by Hannig shortly after his transition from the legislature to the state agency. Now Ryg's bill would ensure more representation for all areas of the state, including those that don't have metropolitan planning organizations.

Her bill also would change the way projects would get funded. Currently, engineers distribute money based on such factors as the condition of roads, the traffic flow and the population served. Ryg said her bill would fund the greatest maintenance needs first, and then the regional groups would advise the Transportation Department on other local needs. All areas of the state would be evaluated under the same set of new criteria.

Regardless of which revenue sources the General Assembly ultimately agrees upon, the influx of money has some legislators nervous about whether their districts will benefit. So watch for the concept in Ryg’s bill to serve as a potential “accountability” measure, meant to assure legislators that, at the least, their areas would be represented in the decision-making process.

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Crazy Political Rantings: Fixing Illinois

The Crazy Politico offers his proposal for solving the problem of transit in the suburbs and for increasing representation in the General Assembly.

Instead, a "spread the weath" formula needs to be developed. While the 2020 groups contention that faster rail would make folks more likely to use it has merit, so does the idea that a non-Chicagocentric system for the RTA would help. Making it easier to get from Points A and B, without going through Chicago, or close to it would help. Metropolis 2020 ignores the fact that a lot of the traffic on Chicago freeways isn't going to Chicago, it's going somewhere less well served by our current transit structure.

One of the downsides to the current transit structure is that is makes it nearly impossible for the collar counties to develop their own transit systems, the money they have for it is already tied up in the bloated RTA, CTA, Pace, Metra system leaving little for regional transport outside of Chicago.

Chicago Metropolis 2020 points out that the number of trucks jamming the roads is part of the problem. Easing truck congestion is much easier than anyone will admit, because it doesn't fit in the "Chicago First" mold. Rockford has an excellent airport that is tossed occasional bones in cargo transit, but is basically locked out of becoming a major regional hub by O'Hare contracts. The same is true of major brand airlines trying to fly from Rockford. Anything that takes away from idea of O'Hare as the epicenter of Northern Illinois transit is looked on as bad, and whispers of punishment from the O'Hare folks shut down the idea quickly.

DeKalb and Rockford both have the rail, road and air transport facilities to reduce the congestion in the O'Hare area, and Chicago area as a whole, but have been, through state and regional actions, hampered in developing them to their full potential. Both area also closer to other states time and distance wise than Chicago, and could be used to attract business from them, growing Illinois, but the same groups that want to grow Illinois by making Chicago better ignore methods that would grow Illinois anywhere but Chicago.

So, how does this get fixed? Well this year Illinois has the chance to vote on holding a Constitutitional Convention to rewrite or Amend the State Constitution. Changing Article IV of the State Constitution to change the makeup of the state legislature would be a good start. Currently the makeup is completely population based, with 59 districts, each providing one Senator and 2 Assembly members. Because over 65% of the states population is located in Cook County and it's "collar counties" both houses of our the legislature are disproportionately representative of that area, making everything else in the state second rate as far as the legislature is concerned.

A good change would be to make the Legislature more like the Federal Government. The Assembly could be made slightly bigger, by coming up with 70-75 districts based on population, with 2 members from each. However, the Senate could be based on Counties instead of population, with 1 Senator from each of the 102 counties. By giving equal voice to all of the counties in one branch of the legislature we'd be able to mitigate some of the Chicago First mentality, and maybe, just maybe, grow the whole state from different angles, instead of hoping growth radiates from an overgrown and overburdened epicenter.

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"We are so done," for now

Those were the words of Rep. Julie Hamos, the Evanston Democrat in charge of months of mass transit negotiations. Mass transit riders and workers in northeastern Illinois are saved from major service cuts and layoffs, and Illinois seniors will start to get free rides on public buses and commuter rail lines within their districts by March.

That's the rosy picture from Springfield Thursday after the Illinois General Assembly approved a mass transit deal and a last-minute idea by Gov. Rod Blagojevich to grant free rides to seniors. But some lawmakers had to hold their noses to support the governor's program. Here's why:

Last minute: The governor's move to create a new “free rides” program for seniors came in the 11th hour. If he would have offered the same deal months earlier, then last summer's drama of threatened layoffs and service cuts could have been avoided. And the mass transit issue might not have distracted lawmakers from other important pieces of legislation. Several lawmakers of both political parties bashed the governor's last-minute actions as a political ploy to benefit his possible re-election campaign. The governor, however, didn't mind the wait. “All's well that ends well,” he said at a Statehouse news conference Thursday evening. “This was a process that took nine months for the General Assembly to finally pass something that I could act on. The wait was well worth it.”

Confusion: Seniors will get free rides but only in the districts in which they live. They might not understand that seniors who live in central Illinois won't be able to get a free ride on the Chicago commuter trains.

Limitless income eligibility: There is no income limit for seniors. They only have to be 65 or older. The House tried and approved a measure to include income limits, but it never got called in the Senate.

Seniors only, for now: The free rides program does not apply to other low-income riders. The House also tried to change that to allow free rides for people with disabilities, but again, that plan never got called in the Senate. Hamos said it's sensible to include people with disabilities in the free rides program,but she fears a slippery slope. “I really am seriously worried that this program will balloon out of sight over the next few years. We don't like to say no to hardly anyone.”

Cost: Estimates already have increased from $15 million to $30 million a year, with about $1 million for downstate transit systems. Ron Huberman, president of the Chicago Transit Authority, issued caution. “We can't pretend that it comes at no cost. We need to understand it. We need to have an intellectual debate about the public policy, understanding full well what the costs are going to be.”

No guaranteed follow-up: There's no guarantee the Senate will pursue a follow-up measure to enact income limits or free rides for people with disabilities. Senate President Emil Jones Jr. said he would not rush to judgment on the House Democrats' proposal and that there's still time to tweak the free-ride program.

Sales tax increase: The regional sales tax increase does apply to food and drugs in the area under the Regional Transportation Authority. Hamos said that's an unintended consequence. The state sales tax exempts food and drugs, but the portion of the sales tax for municipalities and the RTA still do apply to food and drugs. Tax reform could fix that.

There's still no capital deal: Downstate lawmakers for months tried to use political leverage, saying they wouldn't support a Chicago-area mass transit deal until they got a statewide plan for construction projects. They lost that leverage last week when enough lawmakers approved the mass transit deal, but that doesn't change the increasing capital needs across the state. Regional Transportation Authority executive director Steve Schlickman said, “We have to rebuild the infrastructure of our system. If we don't do that, some of these dollars we're getting for operating are going to be wasted.”

Good news: Downstate transit systems will get more operating assistance from the state as a part of this deal. A 10 percent jump from 55 percent to 65 percent could offset some of the lost revenue. The increased state aid also has potential to allow some rural transit districts to expand to areas that have up to this point lacked any public transportation, said Bill Jung, who runs Rides Mass Transit in the southern tip of Illinois. Read more about the downstate transit needs in our November feature.

Long-term outlook: While mass transit is saved from financial peril for a while, a few lawmakers argued that the lawmaking process is broken. Actually, Sen. Martin Sandoval, a Chicago Democrat, called it a three-ring circus. In the other chamber, Rep. John Fritchey, another Chicago Democrat, filed a constitutional amendment to take away the governor's power to change only part of a measure. The amendatory veto is intended to smooth out the legislative process by allowing the governor to make minor changes to improve the legislation. Fritchey said Blagojevich has abused that power and significantly altered measures to fit his own agenda.

On a lighter note: The highlight of the debate, at least for chocolate lovers, was Rep. Jack Frank's comparison of the governor to a 3-year-old dripping in chocolate and running through a clothing store, touching all the linens and leaving a mess for everyone else to clean up. Franks is a Woodstock Democrat who often has harsh words for the governor.

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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 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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Mass transit compromise begs questions

Two major questions remain unanswered after House Speaker Michael Madigan issued a letter pledging support for a mass transit compromise. The plan would prevent drastic service cuts in the Chicago area and boost funding for downstate services (it would increase the state assistance for downstate transit agencies from 55 percent of operating costs to 70 percent. See my November article for more on that).

Hot-button questions for Wednesday’s special session:

1) Madigan agreed to the general idea of diverting the state’s portion of the sales tax on gasoline in Cook County to meet the region’s transit needs, but here's the question: How will the state plug the estimated $385 million hole in the general revenue fund, which is like the state’s main checkbook?

2) How likely are downstate lawmakers to support this newfound compromise if it isn’t coupled with a long-awaited capital plan to address mass transit, roads, bridges and schools?

Madigan’s letter cited a “genuine crisis,” and said, “This compromise will put an end to the piecemeal cash infusions, months of anxiety for transit riders and workers, and the incessant, and unfortunate, legislative drama that has surrounded this issue for the past several months.”

That would be the day, but the compromise will include changes and will open the door for more troublesome negotiations in the future.

According to Madigan, the House will advance the legislation supported by Gov. Rod Blagojevich and House Minority Leader Tom Cross, but it’ll include amendments. The speaker vowed those changes would not increase the general sales tax in the Chicago region or allow the Chicago City Council raise its real estate transfer tax, as proposed in Rep. Julie Hamos’ legislation. Blagojevich opposes that plan. According to the letter, the compromise legislation will include such pension reforms as requiring higher employee contributions, increasing the retirement age and limiting some health care benefits.

As far as plugging the hole in the state’s general fund, Madigan’s spokesman, Steve Brown, mentioned the governor’s proposal to end some corporate tax breaks. “The speaker has been supportive of closing corporate loopholes in the past,” Brown said. “I suspect it’ll be something that will be addressed down the road. I don’t envision that being addressed this week.” He said the state Constitution limits the legislature to discussing a specific topic designated by the special session.

According to Cross’ spokesman, David Dring, the House Republican Caucus perceives Madigan’s letter as a positive step, but members hope the speaker won’t stop working with them on a capital plan. Dring said the House GOP Caucus also will discuss Wednesday how members feel about ways to plug the general revenue hole. Previous ideas have included increasing the tax on cigarettes, which Dring said wasn’t so popular. But there’s also transferring money from other state funds or slightly increasing fares for the CTA, Metra and Pace services.

Either way, Wednesday could generate more questions than answers.

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Chicago-L.org annouces a transit funding rally

It's right smack-dab on the Chicago-L.org homepage where a rally is to be held on Monday. It's of course in light of the news from yesterday that there's been another band-aid that allows the CTA to continue running without service interuptions until the end of the year. Let Chicago-L.org give you the details...

The state has provided another short-term funding fix -- CTA® and Pace will operate full schedules on Monday, Nov. 5th -- but we still need a permanent fix to regional transit funding!

Help make it clear that supporting and expanding transit is critical to the region's future. Join the rally at the Thompson Center Plaza on Monday at noon to demand an end to funding band-aids!

What: A rally to expand transit - and hold our elected officials accountable!

When: Monday, November 5th at Noon

Where: Thompson Center Plaza (Randolph/Clark in the Loop)

I won't be there but hopefully someone will give a record of what happened there.

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"There's always next year"

The state is starting to look a lot like the Chicago Cubs in dropping the ball and saying it’ll get the job done next year. The Illinois General Assembly finished its annual fall session Friday without addressing two of the big-ticket items that have divided the legislative leaders and the governor all session: capital construction projects and mass transit subsidies. House Speaker Michael Madigan said he’d give his members seven days’ notice before calling them back to Springfield to act on some leftover business from the regular spring session, which, by the way, still hasn’t ended. It was supposed to end in May. Here’s what they did do during the six days of so-called veto session:

Budget overrides The Senate restored $7.9 million of the $470 million cut out of the state budget by Gov. Rod Blagojevich in August. Senate President Emil Jones Jr. said Thursday that the move was to restore dollars that were “inadvertently cut out of the budget.” The move restored the original funding levels for the offices of the attorney general, the auditor general and such other legislative bodies as the Commission on Government Forecasting and Accountability, the Joint Committee on Administrative Rules and the legislative research and information bureaus, as well as the Illinois courts. Budget negotiator and Chicago Democratic Sen. Donne Trotter said the Senate can come back and approve more overrides or a supplemental budget bill when the state’s revenue forecasts improve. (See the Commission on Government Forecasting and Accountability’s monthly report that says sales tax revenue has declined and the latest comparative study that says Illinois has lagged behind most other states in economic growth.)

Property taxes The Senate president was the lone “no” vote when the his chamber overwhelmingly agreed with the House to override the governor’s changes to the so-called 7 percent solution. The program, which started in 2004, caps the taxable amount of residential properties’ assessed values, which started skyrocketing in 2000. As approved by both chambers, this session’s legislation extended the assessment caps another three years and raised the homeowner's exemption, on a sliding scale, to as much as $33,000 from an earlier high of $20,000. The governor used an amendatory veto to change the legislation by extending the homeowners’ exemption limit up to $40,000 and by making the 7 percent rule permanent. Because both chambers overrode the governor’s action, the original legislation immediately became law. Taxpayers can expect to receive their tax bills by November 1. The county can expect to receive payments by December 1. However, such lawmakers as Sen. Terry Link, the Waukegan Democrat who sponsored the legislation, favor making the program permanent. But he and others agreed to override the governor’s changes because a) if they didn’t agree with the House, then the measure would have died, and b) some questioned the constitutionality of the governor’s use of an amendatory veto to make such sweeping changes. Link says he’ll pursue legislation that would make the 7 percent solution permanent.

Moment of silence Rep. Bill Black, a Danville Republican, passionately spoke against the House and Senate approving a mandatory moment of silence to start each school day. “At least in that moment of silence, they can pray that the General Assembly finally sends them the money that they need,” Black said, referring to schools waiting for their belated state aid payments caught up in a political battle between Madigan and Jones, who is aligned with the governor. The moment of silence may be required, but there aren't any penalties for disobeying the rule. It’s immediately effective.

What’s next? There is no schedule for lawmakers to come back to the Capitol, but the House does have a public hearing scheduled for October 17 in Chicago to discuss the gaming-for-capital bill approved by the Senate. It would create three new casinos to pay for road and school construction projects and some mass transit subsidies, but it has been labeled as too aggressive by some House Republicans and by the speaker. It may well be next year before the legislative leaders set aside their differences and agree on capital and mass transit plans.

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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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Jones may back tax hike to fund CTA

From today's Sun-Times...

The head of the Illinois Senate for the first time is indicating he might stomach a sales-tax hike to bail out the Chicago area's mass transit systems -- a potential step toward ending CTA threats of fare hikes and service cuts.

"I don't like a sales tax because it's so regressive, but I have voted for taxes in the past and will support them again," Senate President Emil Jones (D-Chicago) said during a Friday taping of WBBM-AM 780's "At Issue."

Jones also said "we intend to pass a version" of a transit bailout bill in the Senate when lawmakers return to Springfield next month. Two such proposals are on the table; both include a quarter-percent sales-tax increase in Cook and the collar counties to help provide long-term funding for the CTA, Metra and Pace.
A transit solution is by no means assured, though.

Jones would run the risk of angering one of his closest political allies, Gov. Blagojevich, if Jones shepherded a sales-tax hike through the Senate.

Abby Ottenhoff, a Blagojevich spokeswoman, said the governor continues to oppose "raising sales taxes to fund a transit bill. We are working on other options."

Among other hurdles is Jones' contentious relationship with House Speaker Michael Madigan (D-Chicago) on a host of budget matters this year. Jones and Madigan appear to remain at odds over a Senate plan to finance $25 billion in state infrastructure projects based on revenues from three new casinos, including one in Chicago.

Should the House not approve a version of the infrastructure plan, Jones could stymie the transit-funding legislation in the Senate.

I've frequently saw the increase of a sales tax. Often this sales tax is a regional sales tax good for the Chicagoland area. Anyway this sales tax is heralded as a solution to the funding issues of the CTA and other RTA agencies.

I'm not a big fan of taxes but I don't want the CTA to increase their fares and cut services. Then again some would say CTA needs to manage their money better. Hopefully the personality clash in Springfield won't affect those individuals who rely on public transportation in the city of Chicago.

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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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