Lawmakers ponder roadblocks for new state budget

By The Associated Press

SPRINGFIELD, Ill. (AP) – Finally showing their hand in budget negotiations, Illinois House Democrats said Wednesday they would vote on a spending plan that gives schools more money but holds most other programs at current levels.

Lawmakers emerging from a long, closed-door meeting of the House Democratic caucus said the budget proposal would increase spending by only $800 million – roughly $500 million from natural growth in state revenues and the rest from ending a variety of tax breaks for businesses.

Nearly $400 million of the new money would go to schools. The state now spends about $6.5 billion on education.

“There’s no guarantee it’s going to pass,” said Rep. Monique Davis, D-Chicago. “Some people are very disturbed because there are a lot of things that are not in it.”

If it does pass in the House, the proposal would be a long way from becoming the state budget.

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It might never even surface in the Senate, where President Emil Jones favors a much bigger spending plan. Gov. Rod Blagojevich would almost certainly oppose it, too, as it omits the health plan he considers top priority.

The House Democratic plan could be more of a first offer in budget negotiations. Some lawmakers suggested it also might be a stopgap budget that could keep the state running until Democrats agree on a bigger spending plan.

“This is simply the beginning,” said Rep. Jay Hoffman, a Belleville Democrat and the governor’s closest ally in the House.

The legislative rules change after midnight Thursday. After that, passing a budget would require a three-fifths vote rather than a simple majority. That would give the Legislature’s Republican minority a bigger say in what ultimately happens.

The House Democratic proposal is a long way from the ambitious plan sought by Blagojevich. He originally wanted $8.6 billion worth of business taxes to give schools a $1.5 billion increase and launch a program to guarantee that everyone in the state has health insurance.

More recently, he and Jones have proposed opening new casinos to pay for the health and education programs.

House Speaker Michael Madigan has repeatedly warned that his members would not back such a big gambling expansion and that they questioned the need for a major health program this year. Yet despite repeated challenges from Blagojevich, Madigan had not offered a budget he thought actually could pass in the House.

Madigan, a Chicago Democrat like Jones and Blagojevich, would not comment after the caucus meeting.

Blagojevich’s office had no immediate comment.

The House Democratic proposal is similar to one offered by House Republicans, but the GOP version did not end any tax breaks and it assumed a larger jump in ordinary state revenues. It also contained a limited gambling expansion to pay for construction projects – an idea Democrats said still could go forward.

House Minority Leader Tom Cross, R-Oswego, objected to the new proposal.

“Their budget requires a $300 million tax increase right at business, and it’s not something I can see any of the members of our caucus supporting,” he said.

The tax part of the plan passed the full House 63-53 Wednesday night. Democrats hoped to vote on the spending provisions later.

The State Chamber of Commerce decided not to oppose the tax measure, in part because lawmakers had worked with the group to block the Blagojevich proposals that would have been many times larger. Still, lobbyist Todd Maisch said the bill contains “significant tax increases.”

One measure, worth an estimated $43 million a year, would require rental car companies to pay sales tax on vehicles purchased for their fleets. A change in deductions on federal bonds would generate $19 million.