*** 2:13 pm *** Speaker Madigan is agreeing to the mass transit bailout proposed by House GOP Leader Cross and Gov. Blagojevich. However, both of those men have demanded that any transit deal be tied directly to a capital program. Madigan apparently hasn’t agreed to that yet.
In other words, Madigan is accepting their transit language as a standalone proposal and leaving it up to Cross and Blagojevich to decide whether they’ll support their own idea divorced from capital.
From a letter Madigan sent to state legislators today…
On Wednesday, November 28, in response to Governor Blagojevich’s special session proclamation, the General Assembly will convene for the purpose of considering legislation that provides “funding solutions for mass transit.”
Last week, the governor sent a letter to all representatives and senators indicating that he supports a plan advanced by Republican Leader Tom Cross, contained in House Bill 4161, which re-directs the state’s share of the sales tax on gasoline in Cook and the collar counties to the RTA.
This is not our preferred solution. As is well known, we favor Senate Bill 572 because it is structured to not be merely a bailout or a band-aid, but to provide the RTA and its service boards with a reasonably stable source of operating funds that would help them avoid the need to return in a few years to the capitol with hat in hand.
However, as an act of compromise, we are willing to accept the Blagojevich-Cross plan and ask that our fellow lawmakers support it, too. We face a genuine crisis and the time to act is now. It is irresponsible to continue to leave workers and employers wondering about travel to jobs, students concerned about making it to class and senior citizens worried about preserving their independence and ability to get to leisure activities, visit relatives, go shopping and see the doctor. This compromise will put an end to the piecemeal cash infusions, months of anxiety for transit riders and workers, and the incessant, and unfortunate, legislative drama that has surrounded this issue for the past several months.
In brief, the legislation we will advance, with some technical adjustments, is modeled on House Bill 4161. It does not include a general sales tax increase, nor would it allow the city of Chicago to increase its real estate transfer tax. The reform components of Senate Bill 572, which include substantial pension and benefit concessions from transit unions and other requirements to protect the best interests of taxpayers and transit riders, will remain in the bill. Allocations to Metra, Pace and the CTA are generally comparable to those in Senate Bill 572. For a more detailed explanation of the measure’s provisions, please see the accompanying fact sheet.
Just as we believe that others should not hold hostage transit riders in northeastern Illinois for the sake of accomplishing unrelated ends, we will not treat mass transit riders as pawns to be used as leverage to pass our desired solution. Instead, we choose to take Governor Blagojevich and Republican Leader Cross at their word and, for the sake of transit riders, will support the funding mechanism they favor.
We also share the governor’s expressed desire to see this bill passed before the holidays and fear that a failure to do so will jeopardize the broad and significant reforms it contains.
The heads of the service boards, RTA chairman, transit unions, and Mayor Daley have made it clear that we cannot afford any further delay. The damage to the livability and economic viability of the northeastern Illinois region would be severe, possibly catastrophic, if its mass transit system is allowed to deteriorate. The issue at hand is mass transit and now is the time to set aside alternative agendas and embrace this compromise.
Session begins at 1:00 p.m. on Wednesday. We expect to proceed to partisan caucuses shortly thereafter and to call this measure for a floor vote sometime later in the day.
Click here for the full Madigan letter with attached info sheet.
*** 2:48 pm *** From Blagojevich spokesperson Rebecca Rausch…
This was a compromise solution we embraced several weeks ago. We made this compromise the center-piece of the special session we called for Wednesday. We hope the legislature can muster the votes necessary to pass it quickly.
Now, the question becomes whether Blagojevich releases his five House Democrats who voted against the earlier bill.
*** 3:13 pm *** From House Republican Leader Tom Cross’ spokesman…
We believe it is positive that [Madigan] agrees with us that now is not the time to burden citizens with higher taxes.
We hope he will continue to work on passing a capital bill to address the great needs of mass transit, road construction, school construction and higher education.
I’ll have more on what that actually means in tomorrow’s Capitol Fax.
*** 3:16 pm *** From the AP brief…
But it’s uncertain whether the proposal he now says he’ll support will go anywhere. That’s because a letter Madigan released this afternoon makes no mention of finding money to pay for a statewide construction program.
*** 3:20 pm *** Big trouble in the Senate.
Sen. John Sullivan (D-Rushville) just said that Downstate Senate Democrats still believe that transit and capital are “absolutely locked together,” and reiterated their earlier vow to vote against a transit bill until a capital deal is worked out. Sen. Sullivan said he and his colleagues were more than willing to work out a solution.
*** 3:23 pm *** Check out the governor’s official proclamation that called this week’s special session. Not one word was mentioned about a capital plan.
*** 3:56 pm *** Senate President Emil Jones’ office has “No comment” on the proposal.
*** 4:17 pm *** From the Senate Republicans…
It’s a mirage. Without a proposal to backfill GRF, this particular bill is not a plan.
*** 4:49 pm *** More from the Senate Republicans. Apparently, this e-mail bounced back at them from my account…
It appears the Speaker and Rep. Hamos have come to the realization that there is little support for a tax increase. Senate Republicans have been clear all along that asking the taxpayers to foot the bill is not the solution. We believe the transit systems must be invested in the solution — with greater efficiences, budget cuts and reforms.
- GoBearsss - Monday, Nov 26, 07 @ 2:26 pm:
What was all that about the sales tax/real estate transfer tax/unspecified state money plan being the only viable plan?
Something makes me think that I will not hear all the ed boards around the State now urging everyone to support the only viable plan on the table - the Cross-Blagojevich-Madigan plan.
- EDDY - Monday, Nov 26, 07 @ 2:32 pm:
This is good news for those that rely on the CTA to get to work. Rich, do you think this has anything to do with blago’s private threat to keep everyone in Springfield until something got worked out ?
- unclesam - Monday, Nov 26, 07 @ 2:34 pm:
I cannot the link. Not sync-ing with Word properly.
- unclesam - Monday, Nov 26, 07 @ 2:34 pm:
Sorry,
Cannot download the link.
- downhereforyears - Monday, Nov 26, 07 @ 2:36 pm:
If they don’t there all fools. Madigan just gave them what they wanted…a long term transit bailout. If they balk now they deserve the rage of the transit patrons. Looks like once again Madigan has outsmarted them, only this time he caught Cross off guard as well. You’re my hero Mike!
- Rich Miller - Monday, Nov 26, 07 @ 2:36 pm:
Fixed. Try again.
- There you go again - Monday, Nov 26, 07 @ 2:36 pm:
Hey Statehouse experts out there, does this fresh development (MJM backing the transit compromise) announced by Capitol Fax moments ago make it more — or less — likely we’ll make progress on passage of a capital bill by the end of 2007?
- Rich Miller - Monday, Nov 26, 07 @ 2:40 pm:
It depends on how Cross and Blagojevich react. I’m checking now.
- MOON - Monday, Nov 26, 07 @ 2:41 pm:
EDDY
Madigan doesn’t care if he spent Xmas and New Years in Springfield if he thought he could pass his favored bill. He has put the ball squarely in Cross and Blagos corner….If they want public transportation to continue then step up to the plate. If Cross, Blago or any other legislature won’t agree to this plan then in Madigan’s opinion they are at fault for whatever happens. Madigan will not tie public transportation funding to the capital program. The speaker has compromised……will the rest follow?
- Rich Miller - Monday, Nov 26, 07 @ 2:46 pm:
Moon, I think you pretty much hit it on the head. They asked for it, he gave it to them. Oops.
- downhereforyears - Monday, Nov 26, 07 @ 2:52 pm:
In chess it’s called Check Mate. Let’s get a comment from Daley and the unions and riders for the local news tonight. Any op-ed board that critizes this must be south of I-80.
- Doodles - Monday, Nov 26, 07 @ 2:56 pm:
Beyond the gamesmanship, this is scary because it, in effect, diverts $385 million from GRF to Chicago-area mass transit. That means the State’s FY08 budget would be $385 million or so short. Hynes has already warned that the GR fund balance is low and the State is slow in paying bills from that fund. Blagojevich wants more money for health care, which would probably come from GR. This diversion would worsen an already bad situation.
- MOON - Monday, Nov 26, 07 @ 2:57 pm:
I’am wondering what the state will now do to replace the loss of the gas tax. I think this money was used for road construction and repairs. It would seem to me that Blago has dug himself a deep hole.
He will now have to propose some kind of tax increase to offset this loss of revenue. This will need the legislatures approval……..given the current situation I don’t think they will be anxious to bail out Blago!
- Anon - Monday, Nov 26, 07 @ 2:58 pm:
What about Emil and his downstate caucus members. And Frank and his caucus?
- Rich Miller - Monday, Nov 26, 07 @ 2:59 pm:
===I think this money was used for road construction and repairs.====
Wrong tax. This is the sales tax, and it’s only from the regional take. That cash goes to GRF, not roads. How they fill the hole is a different story.
- Rich Miller - Monday, Nov 26, 07 @ 3:02 pm:
Anon, a bit of patience, please. It takes a while to get these quotes.
- Rich Miller - Monday, Nov 26, 07 @ 3:05 pm:
===This diversion would worsen an already bad situation.===
If you think this session has been rough, wait until you add a serious revenue shortfall. Ouch.
Which could be the point of all this, I suppose. Starve the beast.
- GoBearsss - Monday, Nov 26, 07 @ 3:05 pm:
What about the RTA board, Mayor Daley, Sen. Obama, and my friend’s grandmother who uses the CTA to go to the grocery store tice a week!?
- Rich Miller - Monday, Nov 26, 07 @ 3:06 pm:
You’ll have to get the grandma quote.
- Ghost - Monday, Nov 26, 07 @ 3:06 pm:
I though that bit of the tax went to GRF to be spent by IDOT on the odd road fund expenses they have like paying out insurance claims in state vehicle auto accidents etc.
Reminds me of the old addage, be careful what you wish for. I particualry like the little dig tied to the call for the special session.
- MOON - Monday, Nov 26, 07 @ 3:07 pm:
Rich,thanks for the clarification. But, as you and I said ,where does the money come from to make up the shortfall?
- Anon - Monday, Nov 26, 07 @ 3:09 pm:
====Anon, a bit of patience, please. It takes a while to get these quotes.======
Sorry Rich, I wasn’t pressing you I was wondering what everyone else’s thoughts were.
- A Citizen - Monday, Nov 26, 07 @ 3:18 pm:
It’s nice to see someone practice the art of compromise. Nicely done Mr. Speaker!
- By the numbers - Monday, Nov 26, 07 @ 3:19 pm:
If my math is correct, the Speaker is agreeing to cut his previous support for CTA funding by $54 million. Ironically, that’s the exact number that started this mess-o’-bandaids in 2005, with a $54 million grant for paratransit.
The most important questions for the Governor and President Jones are
– Do they support that $54 million reduction in CTA funding?
– How long will the “alternative” plan last before the state needs to address transit funding again?
– Do they support closing loopholes that fall primarily within the RTA 6-county region, or are they going to target broader loopholes that would increase the tax burden on businesses downstate to replenish GRF?
- Ghost - Monday, Nov 26, 07 @ 3:21 pm:
Interestin g commetn from cross…
===We hope he will continue to work on passing a capital bill to address the great needs of mass transit, road construction, school construction and higher education.===
Sounds like Cross intends to keep a “mass transit” solution tied to a capital bill. should be interesting now that Madigan has seperated the wheat from the chaffe on this issue. Wonder who will blink first.
- Gus Frerotte's Clipboard - Monday, Nov 26, 07 @ 3:27 pm:
As of this minute Downstate Senate Dems hold a lot of cards on this one; they don’t need to vote for this to stay in office. On the other hand, the pressure on them will be intense, especially considering their role in the Ameren deal. It’s entirely possible that the Chicago-area Senate Dems could cut a deal with the Senate GOP to move this piece on its own, and Cross’s statement sounds like he’s leaving himself wiggle room to vote for this piece independently. But if the downstate Senate Dems and the Senate GOP both demand the larger capital bill, then we’ll have to wait for a grand bargain.
- Thinking ahead - Monday, Nov 26, 07 @ 3:28 pm:
Since this is the sales tax on gas, what happens if gas prices take a nose dive down into the $1.50 area for a prolong period, lets say a fiscal year? Does this mean mass transit will be back looking for another $192 million to make up the difference?
- MOON - Monday, Nov 26, 07 @ 3:38 pm:
In my opnion its up to that “great leader,Mr. Jones” to bring his downstate Dems on board. If Jones can’t deliver,it’s another case of failed leadership on his part!!!!!!!!!
- Rich Miller - Monday, Nov 26, 07 @ 3:41 pm:
===In my opnion its up to that “great leader,Mr. Jones” to bring his downstate Dems on board.===
First it has to pass the House. I just looked at the rollcall. It’s gonna be close, unless the governor and Cross release some votes.
- A Citizen - Monday, Nov 26, 07 @ 3:45 pm:
Somehow I get the distinct feeling that Mr. Speaker wrote this Act of the Play weeks if not a couple of months ago. Now we will get to see how well the other Actors will play their parts. “How sweet it is!”
- jerry 101 - Monday, Nov 26, 07 @ 3:58 pm:
seems like another bandaid…a bigger one, perhaps, but a bandaid nevertheless.
What if gas prices fall? What if gasoline usage falls? What’s the RTA/METRA/CTA take on the capital bill pony? The agencies need billions in additional capital funds for expansion and replacement of equipment that’s been in use for years past their useful lives.
Most of the CTA train cars on the red and blue lines (blue especially) have to be in excess of 20 years old. There are a lot of buses that are over 10.
The new york city mass transit system doesn’t need operating funds from the state because it hit critical mass on ridership. the best way to ensure the cta’s long term strength is expansion of service, not reduction.
Where’s the replacement revenue going to come from? What are the mysterious corporate loopholes that blago proposes closing?
Why won’t blago let chicagoans subsidize their own transit system through the real estate transfer tax?
- EDDY - Monday, Nov 26, 07 @ 4:03 pm:
Did anyone else hear that Blago and the speaker met over the long weekend and Madigan’s letter was a result of their meeting ?
- Rich Miller - Monday, Nov 26, 07 @ 4:04 pm:
===The new york city mass transit system doesn’t need operating funds from the state because it hit critical mass on ridership.===
I do not believe that’s correct. From the NY State DOT website…
===The New York State Department of Transportation distributes about $2.4 billion annually in Statewide Mass Transportation Operating Assistance (STOA), and other transportation assistance, to approximately 130 transit operators. ===
- Anon - Monday, Nov 26, 07 @ 4:10 pm:
Would not celebrate too soon, Mike-o-philes. Given the capital bill issue, this steak may only be half grilled.
It does make Tom Cross look good . . . so far.
- Ghost - Monday, Nov 26, 07 @ 4:10 pm:
Like him or hate him, Madigan’s prowess is definetly a thing of beauty. Just when the Gov thinks he has madigan backed into a corner with a hot political potato in hand, Madigan tosses it right back to the Gov with a little extra heat.
- Tory - Monday, Nov 26, 07 @ 4:16 pm:
I can see the headline now, “Gas Tax Bails Out RTA.” No matter how much sense this solution might make it’s going to be an issue when people are at the pump paying an all time high of $3 - $4/gallon for gas. It would be easy for people to think they are paying a new tax to bail out transit and fill their cars at the same time. It will be hard to inform the average voter about how this works and the fact that they already pay this tax. There may be a backlash for the primary.
- Rich Miller - Monday, Nov 26, 07 @ 4:21 pm:
===There may be a backlash for the primary.===
If candidates lie, that could happen.
- Rich Miller - Monday, Nov 26, 07 @ 4:30 pm:
===Did anyone else hear that Blago and the speaker met over the long weekend and Madigan’s letter was a result of their meeting ?===
That didn’t happen.
- DumberThanYouThink - Monday, Nov 26, 07 @ 4:38 pm:
I hear Madigan served warm cookies and hot apple cider!
- Tory - Monday, Nov 26, 07 @ 4:42 pm:
–If candidates lie that could happen-
Rich, you’re right but the candidate doesn’t have to lie. Just let the headline speak for itself. People will draw their own conclusions.
- Anon - Monday, Nov 26, 07 @ 4:43 pm:
I’ve heard the Madigan lovers say “check mate” so many times that it means nothing. The governor is the most formidable opponent that Mr. Madigan has ever had. This is far from over.
- Rich Miller - Monday, Nov 26, 07 @ 4:51 pm:
I agree on the “check mate” stuff. “Check” is more like it. Or even “nice move.”
- Little Debbie - Monday, Nov 26, 07 @ 5:02 pm:
As a CTA rider, I really hope Madigan’s compromise passes the House on Wednesday. Tom Cross killed the CTA bailout the first time, now it’stime to accept Madigan’s compromise and not kill it again. Thousands of people like me will be in big trouble if the CTA’s ‘doomsday’ ever happens.
- Gus Frerotte's Clipboard - Monday, Nov 26, 07 @ 5:09 pm:
Well, to follow up on what I said earlier — this may be a nice move, but it looks like there’s no deal to be had in the Senate. If Madigan and Cross can pass it, that puts a lot of pressure on both caucuses in that chamber. The Speaker hasn’t always been able to accomplish what he’s wanted this session, but in numerous instances he’s at least been able to shift the heat to others in the Capitol, and that may be what’s about to happen here.
- Independent - Monday, Nov 26, 07 @ 5:18 pm:
No checkmate on Rod yet. I don’t like his governing style but I recognize he is extremely savvy for rising from relative obscurity to winning two gubernatorial elections. I wouldn’t be surprised if he came back to win a third term.
- Bill - Monday, Nov 26, 07 @ 5:24 pm:
The Speaker worship on this blog and in Springfield never cease to amaze me. Blagojevich and Cross worked out a very good plan and Madigan had the good sense to support it. These chess references are really getting tiresome. Control your adulation. Let’s wait and see what they pass.
- A Citizen - Monday, Nov 26, 07 @ 5:34 pm:
-Bill-
I agree, Bill. It is almost pleasant when they all cooperate with each other for the common good! Good job, Mike, Rod and Tom. Er, I guess Emil too, but haven’t heard much there . . . but I’m sure he’ll rise to the occasion in a cooperative spirit. Blush, I almost feel a group hug coming.
- Rich Miller - Monday, Nov 26, 07 @ 5:35 pm:
=== I almost feel a group hug coming.===
Don’t bet on it. This is a pimp job if i ever saw one, which is exactly why the guv’s detractors love it so much.
- A Citizen - Monday, Nov 26, 07 @ 5:38 pm:
Rich, 45 seconds! That’s all the longer that rosy feeling was allowed to last, shucks!
- Rich Miller - Monday, Nov 26, 07 @ 5:45 pm:
It’s not like I thought you were serious anyway. lol
- Right On Bill - Monday, Nov 26, 07 @ 5:56 pm:
Yep, Madigan is to be worshiped for all the progressive legislation he has authored during his tenure as Speaker. Let us all now face Chicago and proclaim from the heavens, O Madigan, How Great Thou Are.
I wonder if the same GOP folks who have been unable to contain their joy at the Rod/Madigan fight and expressing their admiration of the Speaker will be so happy when he hands them their butts on a platter a year from now.
- downhereforyears - Monday, Nov 26, 07 @ 6:00 pm:
To Bill: Grow up!
- Rich Miller - Monday, Nov 26, 07 @ 6:04 pm:
C’mon. Lay off Bill. Try, at least, to dispute what he says, not just who’s saying it.
- DumberThanYouThink - Monday, Nov 26, 07 @ 6:43 pm:
Bill: You are correct. There is a touch of Einstein written all over our plan. It leaves the systems about 100 million buck short and guarantees the transit agencies will be back every year crying for cash….just like the Good Old Days. So insteadd of getting money to squander on health care I will have to bail out those EL riders who walk b the house every while I am playing Wiffle ball. Geez
- True Comparison - Monday, Nov 26, 07 @ 8:44 pm:
This last move is just another move. Nothing more than moving money from one bucket into another. Madigan knows that the only answer the Guv has to refill the gas tax bucket is his tired old “close corporate loophole” magic. Ain’t gonna happen.
The Guv, has to have a “big” new cash cow and his only hope for that is the capital program tied to a “Big” casino deal, and Madigan is and will continue to throw up more blocks than the Bears punt return team for Devin Hester.
Remember how this year we have moved from health care crisis to pension crisis to capital program crisis to CTA tied to capital program crisis.
The gross receipts tax bit the dust (no cash created), then his second mortgage double back home equity refinance plan and his sell the lottery scheme for the pension failed (no cash created), then the bridge collapsed and we have to have a new capital program, four new casinos to pay for it doesn’t get out of the house (no cash created), bailout the RTA doesn’t create enough new cash for his stuff by itself, so we have to tie it back to the capital program. Madigan’s change of position to move money from one bucket to another (still no cash created). Do you see what’s happening here?
The Guv just has to have more cash to pay for all of his priorities, and we know there are plenty and he is dreaming up new ones everyday. To him, this CTA thing is just another crisis to tie to other crises, which will finally make the GA pass some new “Big” revenue scheme, where he can pick up the loose change to pay for his “programs”. The problem with his plan is, that these problems and crises are real, and he is using them to fund his “programs”. This is a truly scary game he is playing to get his way.
- PCC - Monday, Nov 26, 07 @ 8:51 pm:
@Jerry101: from last Wednesday’s NY Times. “Mr. Spitzer publicly promised, for the first time, to substantially increase state subsidies to the authority’s operating budget in the future. The authority’s financial plan calls for the state and local governments to contribute an additional $600 million a year…”
Moral of the story: you can’t have good transit service on the cheap. I like how MM’s letter listed transit before highway construction, though.
(BTW, I’m writing this from yet another city [one which recently has threatened to steal 10,000 jobs from Chicago] which boasts sparkling new trains, stopping at stations surrounded by new offices and apartments. Tomorrow, back to the rickety “L.”)
- Proclaim this. - Monday, Nov 26, 07 @ 9:31 pm:
It’s all pretty funny…..
- Captain America - Monday, Nov 26, 07 @ 9:33 pm:
Its fine by me as long as the deal gets done promptly. However,it appears to be fiscally foolish to me since it creates another huge hole in a State budget that alredy appears to be in crtical condition.
I’ll tip my hat to GoBearAss on viablity if the Sales tax diversion passes during the specail session this week. Otherwise, I’m still highly skeptical
If Cross and Jones can’t/don’t deliver the votes now, the Hamos Plan will pass the House in early January because Madigan will have effectively called the obstructionists’ bluff.
- Anonymous - Monday, Nov 26, 07 @ 9:46 pm:
Rich, at least Madigan comes up with some sort of plan. Do you ever get the feeling our “other” leaders just react to his moves. You have to give him credit on this one. Personally, I always felt the sales tax was the best route to go. Nevertheless, this is some type of solution. I just don’t care for this Governor’s manner of compromise and problem solving. Who do you trust more? Madigan or Blagojevich and Jones? I’ll take arrogant, reclusive,Madigan any day. Finally, like thousands of other mass transit users let’s all hope this is Check Mate. Do we really want to prolong this even further?
- Frank Booth - Monday, Nov 26, 07 @ 10:44 pm:
Let’s pretend the House does pass this — keep in mind, Speaker Madigan’s predictions on approval of mass transit bailouts hasn’t exactly been Vegas quality lately.
So it goes to the Senate where downstate Senate Dems have been saying for weeks they will not vote for it unless there’s a construction spending deal.
Now what does the governor do? Does he rip his buddy President Jones for failing to lead? Start calling the Senate into special sessions over the holidays?
This merely takes the game to a new level.
The river card has yet to be dealt. Place your bets.
- Healthcare Worker - Tuesday, Nov 27, 07 @ 8:30 am:
Hey, why doesn’t Blago use that “pork” money he vetoed from the budget to back fill the gas tax?
And the Bears will win the Superbowl…
And Santa does exist…
:)