* As I told subscribers this morning, the real action yesterday was in the Senate Democratic caucus meeting. That didn’t get covered elsewhere today, but here’s some stuff about the House caucus…

For two hours Tuesday morning, House Democrats met privately to hash out budget issues, a first step in the arduous task of determining how much money the state should spend in the fiscal year that begins July 1, where to spend it and how to pay for it. With less than three weeks left to the General Assembly’s scheduled adjournment, they didn’t sound optimistic.

“We came to no conclusions today. We didn’t even attempt to come to any conclusions,” said House Speaker Michael Madigan, D-Chicago. “We will engage in discussions with all of the legislative leaders and with the governor. My purpose . . . is to work to bring people together. I’m not interested in working to divide people.”

* The closer we get to adjournment, the less likely an income/sales/service tax hike looks, but, as always, there’s a lot of time to go (in session terms) so things could change dramatically…

“There’s no burning desire to force a showdown with the governor over income and sales tax increases,” said Rep. John Fritchey (D-Chicago). “Legislators are more inclined to scale back our wish lists rather than vote for an income tax hike that might also be vetoed anyway.”

* Franks did his usual schtick…

State Rep. Jack Franks, a Woodstock Democrat, skipped Tuesday’s closed-door, Democrats-only budget discussion, saying it’s designed to set the stage for a tax increase and he’s unwilling to participate.

* And the door was opened a bit wider yesterday for a change of heart by Gov. Blagojevich…

[ Rep. Jay Hoffman (D-Collinsville), the governor’s chief House ally] also suggested the administration is willing to consider alternatives to its plan.

“Does that have to be $7 billion? Can you use gaming?” Hoffman said. “Can you use other forms of revenue enhancements? I believe you can and the governor has indicated that’s all on the table.”

* Scaling back the gigantic proposals is a major option on the table right now, but first they have to meet before anything can be done…

Against that backdrop is the fact that Blagojevich, Madigan and Senate President Emil Jones, D-Chicago, have yet to meet face to face to begin discussing the budget. Blagojevich has requested a meeting today. Jones plans to attend, but Madigan hadn’t agreed by Tuesday night.

* Meanwhile, there are growing worries among some that universal health insurance may be in deep peril…

With the governor’s $7.6 billion tax plan falling on skeptical ears in the Illinois Legislature, health care activists are worried that their decades-old dream of universal health care in Illinois — a vision that seemed on the cusp of reality — may be evaporating. […]

Simultaneously, they also hinted at various plans — including sending bus loads of people to Springfield and a TV ad campaign — to convince legislators and the public that the governor’s health care reform is worth implementing, whatever the cost.

The “cost” is always a consideration in politics, and rallies don’t do much good at the Statehouse no matter how many people they bring. This idea has just not caught on yet - either among the populace or the General Assembly - and the governor’s allies don’t have much time left to make their case. That being said, I do think there will be something done on health insurance this spring.

* More tax and spend stories, compiled by Paul…

* Cindy Richards: For Illinois’ sake, lets make a deal on health care

* Lawmakers try to decide on new taxes

* Editorial: Debate over governor’s plan sidetracks transit debate

* Skarr: GRT finds a losing record in House defeat

* Sun-Times Editorial: Stop holding transit hostage