* 7:14 am - From a press release received at 7:10 this morning…

**Media Advisory**
For Monday, June 2, 2008

Governor Blagojevich to comment on new Budget passed by the General Assembly

WHO: Governor Rod R. Blagojevich

WHEN: Monday, June 2 at 10:30 a.m.

WHAT: Governor Rod R. Blagojevich will make a statement about the Fiscal Year 2009 Budget passed by the General Assembly.

LOCATION: Governor’s Office
JRTC
100 W. Randolph, 16th Fl.
Chicago, IL

Special session, anyone?

* 8:48 am - The press conference has been delayed until 11 o’clock.

* 10:08 am - Stand down? I have a couple of solid sources [update: make that three] who say that there are no plans to announce a special session or a veto today.

Instead, the governor will say that there’s a need to “work together” to figure out how to fix the budget deficit problem. But, there’s no guarantee that he won’t go off script. Still, at this point, no special session announcement. That’s a relief. After that press release went out this morning, a pal of mine in the administration was already preparing to return to Springfield as early as tomorrow, which helped to set me off. But that’s not gonna happen yet.

* 11:57 am - So far, all I’ve gotten from inside the press conference is that the leaders will meet next week.

* 12:08 pm - Here’s the governor’s press release…

Gov. Blagojevich announces General Assembly’s Fiscal Year 2009 budget unbalanced, unconstitutional

Governor urges all four leaders to join negotiations on operating and capital budgets

Initial review shows House inaction on new revenue leaves FY09 budget $2.1 billion in the red

CHICAGO – Governor Rod R. Blagojevich announced today that after an initial review, his budget experts have found the Fiscal Year 2009 budget passed by the General Assembly on Saturday to contain $2.1 billion more in spending than anticipated revenue will support, making it unconstitutional. The Illinois State Constitution requires the legislature to pass a balanced budget. The Governor said he will call the four legislative leaders together this week to resume work so the people of Illinois will have a budget that fulfills constitutional requirements and meets the state’s needs by July 1.

“As consumer prices go up and wages stay the same, households across Illinois and across the whole country are making tough decisions. Some people may cut back on expenses, or pick up extra shifts at work – whatever it takes to make ends meet. Our lawmakers should take the same responsible approach when it comes to budgeting the public’s resources. Unfortunately, because the House did not pass new revenue as the Senate did, I have a budget on my desk that jeopardizes the State’s ability to meet its core responsibilities like providing healthcare, educating our youth and protecting the public,” said Gov. Blagojevich.

The new budget lawmakers approved for Fiscal Year 2009, which begins on July 1, includes a $1.2 billion increase in spending over the Governor’s FY2009 introduced budget. The General Assembly’s budget does not include $875 million of new revenue contained in the Governor’s proposed FY09 budget, leaving it $2.1 billion in deficit.

The Illinois Constitution states that the General Assembly “by law shall make appropriations for all expenditures of public funds by the State. Appropriations for a fiscal year shall not exceed funds estimated by the General Assembly to be available during that year.”

While the Illinois State Senate passed two new revenue sources, the House failed to adopt them. Those revenue sources included $530 million through transfers from special purpose funds, and $400 million which would have been freed up through a refinancing of the state’s pension debt.

The Governor warned lawmakers that more work will be required to ensure the state can afford to meet its obligations and serve the public in the fiscal year ahead.

“This budget will not be final until it is balanced. Lawmakers, especially those in the House, have more work to do in order to enact an operating budget that’s balanced and a capital bill that will put people to work and fix our aging infrastructure. I will call a meeting with the four legislative leaders this week to resume the work necessary to make sure we have met our responsibility to the people of Illinois before the new fiscal year begins on July 1. It’s imperative that all four leaders take equal responsibility for ensuring we can pay for new spending, and can meet the state’s most pressing needs. To date this year, that responsibility has not been shared evenly,” the Governor added.

After the state Senate approved new revenue mechanisms in conjunction with the increased spending plan, the House pushed through the spending plan without passing the Senate’s proposals to provide revenue necessary to pay for it.

In early March, Gov. Blagojevich appointed former Republican US House Speaker Dennis Hastert and former Democratic US Congressman Glenn Poshard as co-chairs of the Illinois Works Coalition. The duo focused on crafting and passing an infrastructure and jobs bill that would address pressing capital needs that have built up since the last public works plan was passed nine years ago. The co-chairs facilitated regular meetings with the Governor and four legislative caucuses to draft a capital plan that could be acceptable to all participants. Three of the four leaders participated in those negotiations. In the end, the House Democratic leadership used procedural maneuvers to kill the negotiated capital plan before it could be voted on by the full House.

* A couple of thoughts: 1) Passing the revenue generators will now require a three-fifths vote in the House; 2) That’s unlikely to be achieved.

* 12:25 pm - IIS has posted raw audio. Listen or download.

* Quotes from the presser…

* “My hope is if we can get this done with the leaders and resolve these two important issues then it would be a matter of a day or so when the General Assembly would reconvene and pass a budget that’s balanced as well as a jobs bill.”

* “I’d be delighted to have as many meetings as we can constructively have… What we’d prefer not to have are meetings where some might participate but are more interested in just running place and running out the clock than actually trying to find a way to solve problems.”

* Question: Are you afraid to call a special session? “Of course not.”

* Madigan’s parliamentary maneuver on gaming expansion “Thwarted the will of the people.”

* On Madigan’s statement that the capital plan funding ought to include some “pain” - “I didn’t run for governor or become governor because I was interested in inflicting pain on people… I want to ease their pain.”

* From the Tribune…

Blagojevich was circumspect on the fate of a new ethics bill approved by the Legislature. The bill would prevent those who have state business, or those seeking state contracts, from making campaign donations to the statewide officeholder who doles out the contracts. Blagojevich said that he is working to improve the bill and he will be “deliberate” about the process to ensure that the reforms are sweeping.

He declined to say what these improvements would be, but indicated that he would propose similar restrictions on lawmakers.

Asked if he believes his campaign fund will be indicted as the next step of the federal investigation into his administration after the Antoin “Tony” Rezko corruption trial, Blagojevich said it was “inappropriate” to comment while the Rezko jury is still deliberating.

Unsurprisingly, the IIS audio ends before the Rezko question was asked.

* LOL: Blagojevich Presser Delayed 4 Times

* More thoughts - I figure that Madigan probably won’t show up at the leaders meetings, repeating his oft-stated claim that the governor should just reduce the spending on his own. The governor will say he’s tried to make nice, darnit, and then will take the next step. A total budget veto would not go over well in the Senate, however, so this should be interesting to watch.

* 1:20 pm - Madigan’s spokesperson just asked whether this would be the first time in six years that the governor was interested in a balanced budget.

He also confirmed that if the leaders meeting was about the budget, then Madigan’s budgeteer Rep. Gary Hannig would be sent. If it’s about gaming, then House Majority Leader Barbara Flynn Currie would be dispatched.