[Bumped up for discussion purposes and updated.]

In an angry letter to House Speaker Michael Madigan, Gov. Rod Blagojevich has declined to appear before tomorrow’s Committee of the Whole.

The governor claims he won’t attend the meeting because Madigan is “more interested in playing games and taking solutions off the table than trying to find solutions to solve real problems,” which he specifically pointed to as causing the overtime session in the first place. Instead, the governor will be sending staff to the meeting.

Blagojevich called a special session for tomorrow to discuss pension funding reform. Madigan, in turn, called a Committee of the Whole and invited the governor to attend.

It’s not clear from the letter whether the governor has finally put his pension “solutions” into actual bill form. The governor proposed a lottery lease and a pension bond deal months ago, but has never had any legislation drafted. Madigan wanted him to do so before tomorrow’s meeting.

Blagojevich demanded that Madigan come up with his own pension alternative if the House votes down Blagojevich’s still unspecified plans. “Rejecting one option without providing an alternative solution is both irresponsible and counterproductive,” the governor wrote.

Noteworthy items are highlighted…

ROD R. BLAGOJEVICH
GOVERNOR

July 4, 2007

The Honorable Michael Madigan
Speaker of the House of Representatives

Dear Mr. Speaker:

I called the legislature into Special Session this week to address the State’s under-funded pension liability. This is one of the most important budget issues we face. It is my intention to have members of my administration and financial experts available to testify at the Committee of the Whole on the nature of the pension problem and potential solutions.

If the purpose of your Committee of the Whole is to inform and educate members about how the pension debt threatens both the short and long-term fiscal health of the state, then it is a laudable purpose. But if the purpose is simply to vote down my proposed solution, then it is just more games. It is this type of gamesmanship that has brought us into overtime and has left me no choice but to call the members into Special Session. I must confess that I believe you are more interested in playing games and taking solutions off the table than trying to find solutions to solve real problems. So I will not be attending your Committee.

Instead, I would respectfully suggest that you appear in front of the Committee of the Whole and explain to the Members how the pensions became underfunded. After all, you are the only one who has been in leadership for each of the past 24 years making the decision to underfund or outright skip pension payments.

You can explain to the Members that it wasn’t always like this. In 1983, the unfunded liability was $6.5 billion. By 1995, it had grown to over $19 billion and it now stands at over $40 billion. Though our hands were tied by the fiscal condition of the state when I came into office, we have invested more than $13 billion into the pensions. That’s more than any administration in Illinois history. We’ve reduced the unfunded liability, but in spite of the progress we’ve made, this problem is getting worse, not better. Paying the interest on more than $40 billion in pension debt leads to less money for our priorities. If we solve this problem, instead of wasting money on interest, the citizens of Illinois will have higher quality schools, improved access to healthcare and better transportation networks.

There are three options that have been discussed for fixing the current pension crisis:

1. The option I support infuses the pension system with $26 billion and saves taxpayers some $60 billion over the next several decades.

2. The second option is the one supported by the business community that would reduce pension benefits for workers.

3. The final option others have discussed is identifying an alternative revenue source that could be used to pay down the unfunded liability.

Rejecting one option without providing an alternative solution is both irresponsible and counterproductive. If you do that, you will only serve to prolong this overtime session needed to get a state budget.

Ignoring and putting off a solution must not be an option. I hope at the end of your hearing, your members will be prepared to vote on solutions to this problem. As I’ve said before, I have put forth my solution, but I am remain flexible as to the means to get there. The end goal is what is important. I look forward to working with you and your members on a long-term solution to our pension funding problem.

Respectfully,

Rod R. Blagojevich
Governor

*** UPDATE *** From the SJ-R…

Rebecca Rausch, a spokeswoman for Blagojevich, said Wednesday that the governor will be in his office at the Capitol today. Asked why Blagojevich had decided not to attend the House hearing, she said, “The letter pretty much speaks for itself.” […]

Madigan spokesman Steve Brown said the hearing will continue as scheduled, despite the governor’s refusal to attend.

“I don’t know what the governor is afraid of,” Brown said. “He’s the one advocating bringing these members to these show-and-tell meetings,” referring to Blagojevich’s promise to call special legislative sessions on various budget issues every day until an agreement is reached.

“What would be a game? The governor wanted to bring the members and the media into the process,” he said, calling Blagojevich’s decision “baffling.”

Hearings on budget issues are “all part of the legal process,” Brown said. “This shows how little he understands how state government works.”

* More special session and budget updates, compiled by Paul…

* Marin: Michael Madigan also to blame for state’s disorder

* Miller: What are they fighting over? Ego, political advantage

* Special session to cost thousands a day

* Taxpayers tab is $42,000 a day

* Governor snubs Madigan; won’t appear before House

* Governor gears up for special budget session

* Governor will stay in Springfield for session

* Illinois budget showdown appears to be looming

* Editorial: Early special session unlikely to spark deal

* Bethany Carson: On special session duel

* Editorial: One-month extension enough; pass a full year budget

* Lawmakers weigh in on lottery

* Rep. Fritchey: Responding to the governor; more here and here

* Phil Kadner: State’s leaders use children as human shields

* Opinion: Expand Medicare to every Illinois resident

* Chuck Sweeny: Get serious and pass a capital plan

* Opinion: Time for state to do its part for schools