* Gov. Rauner didn’t talk much about state income taxes yesterday, but Speaker Madigan was asked about the topic afterward…

Madigan said he will keep an “open mind” when it comes to Rauner’s tax ideas and suggested the governor do the same. Madigan noted many Democrats would support increasing the income tax rate — an idea the speaker said he raised with the governor but Rauner rejected. A Rauner spokesman later said the governor “believes we need to work within the framework of a 3.75 (percent income-tax rate) budget.”

Failing any more money, Madigan said he will work with Rauner to plug the budget hole using a combination of techniques that could include giving the governor more authority to cut spending, or dipping into roughly $600 million in specially designated funds.

“We have budget deficits, there’s no dispute about that. They can’t be eliminated simply by cutting,” Madigan said. “I think there has to be a balance in reduction in spending and (new) revenue.”

Subscribers know more about the spending cut authority and the special funds.

* An interesting point by the Tribune…

And while he urged lawmakers to make “choices about what’s best for the next generation, not the next election,” Rauner also unveiled a series of proposed constitutional amendments, including several he wants voters to consider in 2018 — his re-election year — rather than the next statewide election in 2016.

Few if any of those proposals will pass. Asking for the 2018 date is probably more of a subtle dig at Quinn, Madigan and Cullerton for attempting to gin up turnout with several statewide referenda last year.

* Reboot has more of Speaker Madigan’s response to yesterday’s speech…

“I’ve known Mr. Rauner before he decided to be a candidate for governor. He has a lot of strong views on a lot of public issues. He enunciated a lot of those views in the speech today, which he should do,” Madigan said in a press conference following the speech. “Now those views, those issues, those bills will be before the Legislature and they’ll be disposed of by the Legislature, some favorably, some not favorably. That’s the American democratic process.” […]

Madigan’s press conference was illuminating if only to appreciate how deftly he mixed a pledge to work with Rauner and a warning to the governor about his true feelings on some of the ideas in the speech. Here, for example, is Madigan’s answer when asked about Rauner’s desire to let local communities decide if workers in union workplaces can opt out of union membership.

“Right-to-work and right-to-work zones are a favorite topic of, let’s be kind and call them right-wing thinkers. There are others that disagree with it. It all gets into economics, it gets into putting people to work. I’m for putting people to work,” Madigan said. “That’s the best thing we can do for the state. So am I going to reject it out of hand? No. Do I want to know more about the details? Yes. And we’ll take it with everything else that’s before the Legislature.”

* Sun-Times…

On the whole, Rauner gave one of his most detailed speeches yet. But Democrats still found themselves scratching their heads when it was over — wondering how the governor would find new money for the investments in education. He also wants to hire more correctional officers for the state’s prisons.

“The administration is interested in balanced budgets, they’re interested in restraining the growth of state spending,” Madigan said after the speech. “But today they’re asking for an increase in appropriations for child care and for the Department of Corrections. Not being critical, but this just explains how difficult it is to manage state government when there’s a shortage of resources.”

* SJ-R…

Madigan said the immediate concern should be dealing with the estimated $1.5 billion deficit the state faces in its current budget. Already the state has said money has run out for the program that provides subsidized day care for the poor.

* And…

Senate President John Cullerton, D-Chicago, called Rauner’s first State of the State speech a missed opportunity.

“Unfortunately, too much of the governor’s opportunity was squandered with campaign rhetoric that denigrates the reputation of the state,” Cullerton said in a written statement. “With each speech that Governor Rauner delivers, I am reminded that the new governor has a lot to learn if he is to build on our successes in Medicaid reform, workers compensation, pension reform, cutting the bill backlog and meeting our obligations.”

* Back to the Trib…

Rauner got applause for calling for a minimum wage hike, but drew gasps and laughter from some Democratic lawmakers when he outlined it would be phased in through 2022. Hours earlier, Senate Democrats advanced a bill to raise the rate to $11 an hour by 2019. The full Senate could vote on the measure Thursday, though support remains questionable in the House.

Some Democratic lawmakers? Try “most, if not all.”

* Speaking of the minimum wage…

Rauner’s seven-year minimum wage plan did not get rave reviews from all business groups either, including the Illinois Retail Merchants Association. Rob Karr, the group’s president, said the costs of a minimum wage increase would “fall disproportionately on the retail industry.”

After fumbling the minimum wage issue early in his campaign, Rauner eventually focused on tying a minimum wage increase to business-backed reforms. Still, there is recognition the governor’s agenda is politically daunting, with the state government’s finances reeling.

Ed Wehmer, chief executive of Rosemont-based bank operator Wintrust Financial, said Rauner’s phased-in minimum wage increase and workers’ compensation and medical malpractice reforms are “all good initiatives but maybe not all the most important ones.”

“Illinois has so many issues that Bruce Rauner’s State of the State speech would have to be turned into a mini-series if you wanted to cover them all,” Wehmer said.

* The Tribune followed up with ratings agencies…

(R)ating agencies say the most critical issue for Illinois is to match the state’s tax revenues to spending without hiding deep, festering financial wounds under temporary bandages.

The past is littered with proposals to “right the ship, but they didn’t get there,” said Karen Krop, an analyst for Fitch. “We’re looking for an effective balanced budget and a pension solution.”

* And…

At least one major bond rating agency disagrees with Rauner’s idea.

In a report for the General Assembly’s fiscal forecasting office, Moody’s Analytics said it is not clear whether right-to-work laws affect economic growth.

“The lack of clarity is mainly due to the fact that union strength is just one factor businesses look at when deciding whether to set up shop or relocate,” the report notes.

The report also notes that right-to-work laws could actually hurt Illinois’ long-term economic growth.

That report is here.

* Greg Hinz gets the last word…

It’s true that, if you don’t ask, you don’t get. It’s also true that Rauner the successful private-equity mogul is used to firing off orders and is on a governmental leaning curve. Maybe we’ll learn that he’s one tough guy who will get what he wants. Or maybe he’ll learn that he has something to learn.