Ill. Democrats fumble for budget plan that can pass as they try to address deficit and adjourn

By Christopher Wills, AP
Saturday, May 8, 2010

Ill. Dems fumble for budget plan that can pass

SPRINGFIELD, Ill. — Democratic leaders struggled to put together a mix of budget maneuvers Friday that would close a $13 billion deficit, or at least disguise it, and still attract enough votes to pass.

Gov. Pat Quinn huddled for hours with House Democrats but emerged without any breakthrough. Rank-and-file lawmakers continued to reject his call for higher taxes and to reject the major alternatives — borrowing money or slashing costs.

The House voted down a proposal to borrow $3.7 billion so the state could make its required payment to troubled government pension systems.

After that, House Speaker Michael Madigan, D-Chicago, tried to make a point by introducing legislation that would cut spending by $4 billion. If you won’t raise taxes and you won’t borrow money, Madigan said to lawmakers, then you should face the reality of cutting billions to make room for the pension payment.

The cuts got a total of 15 votes. Ninety-nine people voted “no.”

With an eye toward the November elections, each party blamed the other.

Republicans accused Democrats of shutting them out of budget talks and refusing to consider reasonable spending cuts. Democrats countered that Republicans reflexively say no to everything.

Quinn took a shot at his Republican opponent, Sen. Bill Brady of Bloomington.

“Sen. Brady wants to run around and cause chaos and tear down Illinois,” Quinn said. “Sen. Brady is vying for No. 1 naysayer in Illinois. Naysayers don’t get things done.”

Brady shot back that Illinois is sinking deeper and deeper into debt because of Quinn’s “lack of leadership and incompetence.”

The House action made it more likely the state will end up with a budget that even supporters say is deeply flawed. It addresses the deficit almost entirely by borrowing money or delaying payment of the state’s many bills.

This proposal, already approved by the Senate, would postpone the massive pension payment until January — after the election. The next governor, joined by legislators with breathing room before the next election, would have to figure out how to come up with the money.

The proposed budget would delay payment of roughly $6 billion the state owes to people and businesses. Local agencies that care for the elderly and disabled would wait months to be paid. Day-care centers and drug-addiction clinics would again have to figure out how to pay their bills even if the state isn’t paying its own bills.

This version of the budget would give Quinn the power to dip into special-purpose funds and spend about $1 billion on routine government operations. The legislation would require the money to be repaid with interest, but critics question whether that would ever happen.

Quinn also would get broad authority to decide how state money is spent. Lawmakers would approve huge lump sums and let Quinn choose which programs get the money and which don’t.

One piece of the possible budget is a $1-a-pack increase in the cost of cigarettes, with the money going to education. But there were indications the House might balk at the increase, creating another gap in the spending plan.

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