The bright, shiny ball
Tuesday, Aug 7, 2007 - Posted by Rich Miller
* That bright, shiny ball of gaming expansion has once again driven the state’s leaders to distraction…
negotiations among members of the House and Senate zeroed in again on gambling as a way to funnel more money to state programs.
Republican leaders in the House and Senate signaled that they may be ready to support a plan to add a casino to Chicago, with revenues from the land-based facility going toward schools and a statewide construction program.
“We can support a boat in Chicago,” said Senate Minority Leader Frank Watson, R-Greenville, echoing comments by House Minority Leader Tom Cross, R-Oswego.
Both GOP leaders cautioned that not all their members see gambling expansion as a cure-all for the state, which has been operating without a budget since July 31 because of wide disagreement among lawmakers and Blagojevich.
* More…
Nearly $1 billion for state spending could come from a city casino and more gambling opportunities at existing casinos, lawmakers say.
As envisioned, that would finance upward of $8 billion in construction statewide while helping increase education spending by $900 million and potentially bailing out the region’s transit agencies to prevent service cuts and fare hikes.
* More…
The revised plan would generate enough money to finance $8 billion to $10 billion in construction. Cross said House Republicans want some of that money for the financially troubled Chicago-area mass transit system. He said that is preferable to the alternative plan that calls for imposing a regional sales tax.
Jones also wants some of the gambling money used to increase education spending. Gaming expansion would allow for a $900 million increase for education. Without the gaming bill, the state could only afford about $600 million more.
Jones’ office said that with a $900 million increase, per-pupil spending could rise from $5,334 to $5,888. That’s still short of the recommended level of $6,405.
* But there’s a catch…
Gov. Blagojevich, Senate Democrats, and Republicans in both chambers have shown support for tying a capital program to a city casino, isolating House Speaker Michael Madigan (D-Chicago) as the lone potential obstacle to the first major state building program in eight years.
A top Madigan aide expressed skepticism the House could pass such a deal, noting the chamber voted in October 2005 to shut down the state’s riverboat casinos, and that big gambling legislation typically collapses of its own weight.
While some of the 67 House Democrats might back a city casino for a state bricks-and-mortar program, “clearly not very many would, not a majority,” Madigan spokesman Steve Brown said.
Madigan’s reticence to publicly back such a plan has heightened speculation the speaker doesn’t want to hand Blagojevich a political win of any sort, nor give the administration unbridled freedom to spend billions of dollars on construction when lawmakers from both parties mistrust him.
* The governor and the Republicans think they’ve caught Madigan in a trick box. We’ll see what his next move might be. We don’t know yet how many votes that Cross actually has for a casino proposal, for instance. There’s also some curiosity about the governor’s health insurance plan…
Blagojevich remains a wild card. The governor dropped his opposition to gambling expansion in May, but only to try to save his massive health coverage proposal. It’s unclear what the governor would do if his plan were left out, and at this point it appears to be.
* And there’s some speculation that Madigan may run his own budget this week without the gaming provision or a capital plan…
House Speaker Michael Madigan told Democratic representatives late Monday to expect a budget vote as early as Wednesday. Sources tell CBS 2 that Madigan’s budget proposal does not include the cash that the Chicago Transit Authority said it needs to avert nearly 1,100 layoffs and huge service cuts.
It reportedly does have about $570 million in new money for public schools, far short of what the governor wants, and ignores completely his demand for a big new health insurance program.
The money reportedly earmarked for schools, Madigan’s allies note, is more new money than in any recent year.
* More budget and end of session stories, compiled by Paul…
* Governor takes abuse while jogging
* IL budget impasse could delay payments to schools
* Blagojevich backs recalls for Governors
* Sparks fly on utility deal
* Chicago Public Radio: The governor gets a grilling
* Legislators talk of county tax cap, state session may be winding down
* Courts wont close during budget woes
* Lawmakers complain about ’sitting around’ during special sessions
* LeRoy: No budget, but work not optional
* Eric Zorn: Questions answered on ’special sessions’
* Editorial: Theme for the fair is ‘ironic’
- Siyotanka - Tuesday, Aug 7, 07 @ 9:43 am:
This all sounds well and good…where is the portion for pensions…where does this funding come from? It is time to pay the borrowing back…!
- Justice - Tuesday, Aug 7, 07 @ 9:51 am:
Madigan has the right idea in that government should not be supported on the backs of the poor who are the preponderance of those gambling. Though, a land-based casino in Chicago could be a huge boost to tourism in Chicago and the overall Illinois economy. I think it still goes back to being frugal with spending versus raising as much money as one can by any means. At least Madigan has that level of common sense to help protect the pocketbook of the average citizen. As far as Blagojevich or any promises he makes goes, it would be foolish for anyone with an ounce of sense to trust him. Surely the legislators have learned that lesson….or have they?
- RollThemBones - Tuesday, Aug 7, 07 @ 9:52 am:
has anyone asked Rich Daley if he wants to send Chicago casino money to the bumpkins downstate or the ‘burbs.
Whatever happenws to the boats for Lake County or the south suburbs?
Should be fun to watch this implode
- A lobbyist - Tuesday, Aug 7, 07 @ 10:01 am:
Every year we hear about how gambling expansion is going to solve all of our problems, and every year it always falls apart.
Why is this year going to be any different?
- Cassandra - Tuesday, Aug 7, 07 @ 10:09 am:
RollThem has a good point. If there were a Chicago casino, how much of the money would get out of Chicago, which could easily, we all know,
absorb all of its profits to maintain their massive, corrupt patronage school and transit bureaucracies and to feed hungry political contributors to the Daley (and Blago)machines via “contracts” and business deals.
I’m surprised the Republicans are going along with this. Maybe they’ve decided it’s not worth the effort to advance Downstate and collar county interests beyond protecting the collars from a small tax increase to support the RTA.
They are a failing party after all. Why bother.
- Lula May - Tuesday, Aug 7, 07 @ 10:24 am:
This is wearing very thin. At first all these crazy statements by the governor were funny. Everything is a joke to this guy. And that goofy Shelia Nix right by his side giggling. It’s funny to him that people are swearing at him when he jogs.
It’s obvious this guy has never had to grow up.
- steve schnorf - Tuesday, Aug 7, 07 @ 10:54 am:
Cassandra,
boy, you throw those charges around like grenades. Exactly how are the Chicago Public Schools and the CTA corrupt? I read fairly widely and I missed those charges being filed, much less the trial.
- Moderate Repub - Tuesday, Aug 7, 07 @ 11:03 am:
Know whats funny but not surprising? Topinkas plan was similar (revenue stream wise) and Blago Beat her up on the TV for it, now he is pushing it. I am told he is also pushing that Chicago own it, which is contrary to Topinkas idea. He has no spine
- Little Egypt - Tuesday, Aug 7, 07 @ 11:04 am:
Oh for crying out loud, why don’t we just legalize gambling throughout the state, make it a mini-Vegas, save us the expense of having to fly to Vegas or Atlantic City, and start raking in the bucks. Riverboats are such a joke. We are doing way more than just dabbling in gambling. Either we are a gambling state or we are not. Build a bridge and get over it folks. Open the casinos and start paying down the State’s debts. In fact, I’m 1/8 Blackfoot Indian and am thinking about having my lot declared an indian reservation and turning my garage into a casino. COME ON DOWN!
- Yellow Dog Democrat - Tuesday, Aug 7, 07 @ 11:16 am:
What happened to the administration’s claim that you couldn’t base a capital program on gambling revenue?
- Cassandra - Tuesday, Aug 7, 07 @ 11:54 am:
Steve–
Illegal patronage is corruption. It’s common knowledge that Chicago city agencies are rife with patronage, including the CPS bureacracy and
the transit system, not just Streets and San.
Only the most loyal (and liberal) Democrats think it’s all legal. Talk to anybody who works in either of those systems and they’ll regale you with tales of some politician’s cousin twice removed suddenly appearing in a high-paid no-work job. It’s like Blago’s state government, only more so.
My point–I don’t live in Chicago. I shouldn’t have to pay for it.
- Plutocrat03 - Tuesday, Aug 7, 07 @ 11:56 am:
No expansion is needed.
We have a casino license that is languishing. Lets do what needs to be done to make it active.
Chicago is the biggest bang for the buck as far as revenue goes. I would support Mayor Daley (did I actually say that?) in that the license should belong to the citizens of Illinois/Chicago so that the maximum revenue flows in the public coffers.
I still Like John Kass’s idea published in the Trib many years ago where the Chicao casino is distributed amongst the top Chicago hotels, a floor or two each. Operation would start within 90-120 days, (building a new casino would take more than a year and consume big $$) would be good for business, large public corporations should be able to withstand, organized crime influences, undue political influences and they would each monitor their competitors to be sure that all are playing by the same rule book.
All can be achieved without a ‘gambling expansion’
- Fan of the Game - Tuesday, Aug 7, 07 @ 12:18 pm:
- Little Egypt - Tuesday, Aug 7, 07 @ 11:04 am:
Oh for crying out loud, why don’t we just legalize gambling throughout the state, make it a mini-Vegas, save us the expense of having to fly to Vegas or Atlantic City, and start raking in the bucks. Riverboats are such a joke. We are doing way more than just dabbling in gambling.
————————————————-
LE,
I said the same a few weeks ago. Southern Illinois could be another Vegas (or at least another Tunica). If we want gambling to pay the bills, then let’s do gambling on a scale that will generate that kind of revenue! Open it up and let the chips (pun intended) fall where they may.
- zatoichi - Tuesday, Aug 7, 07 @ 12:26 pm:
Just be done with it. Bring in Steve Wynn and the other Las Vegas developers who seem to have no problems dropping $3-$4B on a project that makes money, put up 20,000 rooms, and go. There will be endless arguements over the license on who gets a piece of the action, but the tax/employment outcomes look pretty good compared to let’s raise income tax 2%. Religion/social services and gambling exist quite well in Nevada. Let the battle of themes run: “What happens here, stays here” vs. “That’s the Chicago way”.
- one of the 35 - Tuesday, Aug 7, 07 @ 12:48 pm:
Isn’t there some point where gaming expansion becomes less productive due to market saturation? In economics, the law of diminishing marginal returns would seem to apply.
- Gregor - Tuesday, Aug 7, 07 @ 1:00 pm:
We’re heading for a 2-part budget process, and I think that’s fine: operations now, capital later.
See you in September……….
- Fan of the Game - Tuesday, Aug 7, 07 @ 1:28 pm:
one of 35,
The market will dictate what can be borne.
- Plutocrat03 - Tuesday, Aug 7, 07 @ 1:30 pm:
The Federal Gaming Repor from the mid to late 90s said there is too much gambling going on in th US then. Additional seats will do less to generate new money than to shift it from other places while adding victims who get caught up in the gamblng morass.
The report further proves that ther is no, zero nada benefit from a casino with respect to an economic development tool.
For all those who wail about how unfair the income based taxations system is, remember that is is the poor who gamble (and smoke for that matter) more than the wealthy and educated, If effect, it is the most regressive tax out there.
- Siyotanka - Tuesday, Aug 7, 07 @ 2:35 pm:
This just in…
Hynes steps up criticism of governor’s budget actions
Last Updated 8/7/2007 1:10:45 PM
The Illinois comptroller is stepping up his criticism of Gov. Rod Blagojevich over the state budget crisis.
Comptroller Dan Hynes has already called the governor a hypocrite. Now he says Blagojevich is insensitive to people’s pain and is playing politics with their lives.
Hynes complained Tuesday that Blagojevich has not acted on legislation giving money to the families of slain soldiers and to hospitals that treat the poor. The bill has been sitting on the governor’s desk for nearly two months.
The legislation also includes money for legislative pay raises. Hynes says the governor should veto that section if he objects to it.
There was no immediate response from the governor’s office.
- God's Country - Tuesday, Aug 7, 07 @ 3:08 pm:
“Blagojevich waved to him.
“As I ran past him, I heard him say”..”
I really thought the next line to that was going to be “Aren’t you Mayor Daley?”
- Skirmisher - Tuesday, Aug 7, 07 @ 3:37 pm:
No responsible, moral society should support the operations of its government by promoting vice, especially vice that preys on the poor and weak. We should never have got ourselves into the business of State supported gambling in the first place, much less expand on our past errors now. I’m disappointed (again) in the Republican leadership and I’m with Madigan 100% on this one.
- Fan of the Game - Tuesday, Aug 7, 07 @ 3:50 pm:
Skirmisher,
I never understood why gambling was considered a vice. If an adult, of his own free will, decides to participate in games of chance, what business does the state have in that decision? It’s a choice that all kinds of people–wealthy and poor, strong and weak–make every day because they get to determine their own lives.
I agree with you in one regard; if the state wants to limit gambling, it should get out of the business altogether. Just remember that if you outlaw gambling, the revenue it produces must be replaced somehow because politicians won’t let that hole stay remain empty.
However, if the state is to allow gambling, it should get in with both feet and make the money.
- Chicago Cynic - Tuesday, Aug 7, 07 @ 4:56 pm:
Fan,
Like the lottery, gambling is a regressive tax on the poor that feeds on human weakness, addiction and the endless desire to get rich quick. In the process, people often get in debt quick and stay there.
While I’m not in favor of the government protecting people from themselves in all things, that doesn’t mean it should promote their addictions either.
- triplecynic - Tuesday, Aug 7, 07 @ 6:07 pm:
If the CTA goes down the tubes, so do Mayor Daley’s Olympic dreams. The budget will definitely include a bailout.
- Logical - Tuesday, Aug 7, 07 @ 10:59 pm:
This expansion plan does not make sense. The state opens a casino in Chicago, the uneducated and poor frequent this casino, and we send more tax money back to Chicago to take care of these same people. How about teaching citizens and politicians to live within their means.
- Squideshi - Wednesday, Aug 8, 07 @ 7:05 am:
“Democratic Gov. Rod Blagojevich said Monday he’s OK with the idea of allowing Illinois voters to recall a governor from office, a concept being pushed by a Republican state lawmaker.”
Kudos to Blagojevich; although, as I have said before, you can’t trust anything the man says; so I will wait to see if he actually signs any such bill, should one reach his desk. Considering history, I don’t believe that Blagojevich is it all concerned with Democracy, so this smells like a publicity stunt to me.
- Fan of the Game - Wednesday, Aug 8, 07 @ 9:32 am:
Chicago Cynic,
The lottery is a tax on no one. People CHOOSE to participate; the state does not mandate that they play. And as I said before, I don’t think the state should be in the gambling business, but it should allow gambling businesses to operate freely in the state.