[Bumped up for obvious reasons.]

* 10:05 am - We’re expecting some word on the governor’s budget decision later today. From a press release….

CHICAGO – Governor Rod R. Blagojevich will brief the media with an update on the status of the FY09 budget.

WHO: Governor Rod R. Blagojevich
WHAT: Gov Blagojevich holds media availability on FY09 budget.
WHEN: 1:00 p.m.
WHERE: Governor’s Office JRTC, 16th Floor

[The Bill Daley post has been moved here to keep these issues separate.]

*** 1:14 pm *** No surprise, but the governor’s press conference has been moved back to 1:45 pm.

*** 1:17 pm *** This is mostly correct. From Fox Chicago…

Governor Rod Blagojevich plans to make a staggering $1.5 billion in cuts to the state budget lawmakers approved last month unless legislators step in with money to prevent them. […]

The governor will also try to use the cuts to pressure the House to soon send him two ideas that would spare more than $1 billion in the proposed cuts.

They are plans to borrowing money for pension funding and sweep money out of special state funds. Blagojevich doesn’t plan to call lawmakers back into special session right away.

He’ll urge the House to come back to pass the revenue ideas that will start being felt when the new budget year starts July First.

Blagojevich will urge the House to reconvene and pass the revenue generators and the capital plan by July 9th, which is when the Comptroller claims is the date that he won’t be able to pay bills. No special session yet.

*** 1:36 pm *** From the AP…

Blagojevich does not plan to call lawmakers back into special session right away but will urge the House to come back to town soon to prevent the cuts that will start being felt when the new budget year begins next Tuesday.

Blagojevich will make the reductions if no new revenue is passed, the aide said.

*** 1:38 pm *** So far, Mayor Daley has been publicly opposed to the governor’s capital plan because of the gaming component. He threw a tiny bit more cold water on it today…

Mayor Daley also said even if state lawmakers approved a Chicago casino, it would take 2 to 4 years to be constructed. Late last year, state lawmakers were talking about as a Chicago casino as a possible way to raise revenue for mass transit and other needs.

*** 1:50 pm *** You can listen to Mayor Daley’s full press conference by clicking here.

*** 2:03 pm *** Well, the guv’s presser was pushed back to 1:45 pm, and now it’s after two o’clock and he still hasn’t started. Comcast is coming over yet again to try and fix something they should’ve fixed weeks ago, so I’m beginning to worry about my Internet access. I’ll figure something out.

*** 2:08 pm *** OK, the press conference has finally begun and I told Comcast to come back tomorrow.

*** 2:12 pm *** The governor said he can’t sign the budget as is because it would be like signing a check he knows would bounce. He called on the House to pass the revenue generating bills (pension obligation bond and fund sweeps) that the Senate has already approved.

*** 2:14 pm *** Once again, he’s calling on the House to pass the capital construction package, which would allow him to free up about $600 million for the budget.

*** 2:18 pm *** The governor said he will be “forced to make a decision” if the House doesn’t act by July 9th, but hasn’t yet specified what that decision will be.

*** 2:24 pm *** The press release handed out to reporters makes no specific mention of the $1.5 billion in cuts…

[If the House doesn’t act] I will not allow the people of the state to be pushed into uncertainty by putting off tough decisions until later in the year, or asking
lawmakers to start from scratch at the last minute. Instead I’ll use my constitutional authority to match spending to available funds.

Reductions should not be made because they will mean pain and harm in most areas, including those where we worked hard to invest and make progress over the past few years.

*** 2:37 pm *** The guv said that ” lawmakers would be acting irresponsibly if they override the vetoes.”

He also blamed Speaker Madigan for refusing to participate in the budget discussions.

“I think the House Democrats should be honest with the people that they’re setting it up to sock it to them with a big income tax increase,” the governor said.

*** 2:39 pm *** More from the press release…

A lack of additional revenue would mean:

• Significant reductions in staffing throughout State government at agencies such as Department of Natural Resources, Department of Human Services, Department od Corrections, and others.

• Increased workload for DCFS caseworkers.

• A $110 million reduction in education spending.

• Nearly $260 million in reductions to social services programs. Over 100,000 individuals would see a reduction in services or access to community health and prevention services; 21,000 individuals with developmental disabilities living in the community would face reductions in service; mental health services and programs for individuals with developmental disabilities would be reduced; rates for foster parents would not increase.

• A $257 million reduction to economic development and transit. More than 100,000 workers will not receive job-skills training, and state support for RTA fare subsidies for students and people with disabilities would be eliminated.

• More than $600 million in healthcare reductions. This includes a $530 million Medicaid reduction resulting in healthcare providers such as hospital and pharmacies waiting an additional 20 days for payment from the State, on top of the 70 days they already wait; 20,000 outpatients would not receive service at Oak Forest Hospital; and up to 10,000 uninsured residents who are unaware of their HIV status would not be identified and linked to healthcare.

• More than $106 million in reductions to services for seniors and Veterans. Expansion of the Elder Abuse Line would not be funded, despite a 25 percent increase in calls to the line since its inception. An additional 40 bed expansion at the LaSalle Veteran’s Home would not open.

*** 2:44 pm *** The governor has left, but a budget spokesperson is still taking questions.

*** 3:01 pm *** The full press release can be seen by clicking here.

*** 3:05 pm *** The Tribbies have a piece up, but it’s mostly about the governor’s current options.

*** 3:53 pm *** Statement from Senate President Emil Jones…

“On May 31st the Illinois Senate passed a spending plan and sent the revenue bills (Senate Bill 788 and Senate Bill 790) to the Illinois House, in addition to a bipartisan capital plan (House Bills 6339, 1496, 2651, 4723, and 5618). The inaction of the Illinois House has put funding for vital programs at risk.

“I urge the House to work to pass the revenue bills sent to them by the Senate in order to avoid cuts to the spending plan that the Governor will be forced to make unless they take action. The House knew when it did not pass the revenue bills that they were playing a dangerous game in which the people of Illinois could lose.

“The solutions to the state’s challenges including passing a jobs program, balancing the State’s budget and providing funding for a well-constructed spending plan have all been addressed by the Senate and are all sitting in the House Rules Committee. These aren’t easy votes to make, but they are necessary to finish the people’s work.”

*** 4:03 pm *** Crain’s has Madigan react…

Mr. Madigan’s spokesman said there are “substantial defects” with each of the revenue measures favored by the governor. “Absent some effort to fix the defects, I can’t imagine the Legislature would go along.” […]

The governor also opened a new front in his war with the speaker, suggesting that Mr. Madigan is plotting to approve a big increase in the state income tax after the November election. […]

Mr. Madigan’s spokesman said the speaker does not have plans to push an income tax hike shortly after the November election.

*** 5:52 pm *** More from Madigan’s spokesperson…

A spokesman for House Democrats responded to the governor’s assertions, saying that speaker Mike Madigan does not have a plan to raise taxes “not this year, not next year.”