Nightmare. Power is out at the intl headquarters. Forced to resort to my Treo. Lost a big chunk of the last post attempting to update. [Power restored.]

This is a fresh thread. I really need to buy a generator. [Earlier updates and comments can be found here…. Today’s schedule is here.]

[If you’re having any trouble looking at the video or hearing the audio, open your Windows Media application and under “Open URL” enter (for video) http://12.43.64.137/hsevideo or for audio: http://12.43.64.137/audio]

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4:48 The Committee of the Whole is officially adjourned.

4:26 Rep. Flowers: “Mr. Filan you are subsidizing the rich.” [applause]

4:23 The specific impact of the employee tax credit (passed in the Senate yesterday) has been answered in entirely different ways by the panelists today. Filan has stated that it will have the effect of exempting the first $5 million in almost all cases. Earlier, Tom Johnson claimed that in only rare cases will all $5 million be exempt. The truth is probably somewhere in the middle, and I expect we will hear more details on each argument over the coming days.

4:17 Rep. Mulligan: “We want fried chicken on Sunday tax proposal…You kill the chicken and you no longer get the eggs anymore.”

3:51 John Filan will be the committee’s final speaker. He is relaying his usual remarks highlighting the GRT’s “broad base” benefit, complaining about the flaws in the current corporate income tax system, and highlighting the success of other states with the GRT.

3:42 Mr. Peters, Illinois Hospital Association: Attempting to re-frame the debate away from the mechanics of the tax and onto the use of the increased revenue…“The GRT is neither good nor bad unto itself. It can only be reasoned in the context of purpose.”

3:23 Fritchey: “Mr. Treasurer your comments were superb. They truly were. What you have learned in 100 days about engaging the legislature…I want to thank you not only on behalf of our caucus by other chamber members I have talked to as well.”

3:18 The House response to Giannoulias is certainly telling. By far the warmest of the day.

3:16: The Treasurer is speaking now on compromise: “I could easily spend all of my time bashing the governor’s plan and make headlines as the new guy…The last thing you want to hear is a ‘lets hug it out’ ideal from a 31 year old…Lets work together and not squander this opportunity to achieve greatness…all or nothing approaches to solving problems are counterproductive.”

3:10: Rep. Hamos cuts Trevor Martin and Greg Blankenship: If they don’t believe that there are any specific programs/issues/concerns in the state that require fund increases, than obviously they would be against any tax increase (GRT included).

3:03: I have a hard time believing that lawmakers have heard anything today that is that truly novel or persuasive. There are few topics any denser than complex tax policy. As the committee meeting hits the 6 hour mark in this 80 degree weather more than a few legislators have literally closed their eyes for a couple minutes of nap time.

2:54: Pantagraph story is up…

Before the governor spoke, Madigan complimented him for putting forth a bold plan to tackle the state’s money problems.

’’Not everyone has shown that kind of courage and initiative,’’ Madigan said.

2:41: OK, Rich again for one last post today. You can find this month’s Fiscal Focus, published by Comptroller Hynes which analyzes the GRT by clicking here [pdf file].

2:35: Professor Fred Giertz explains that it is misleading to focus only on “small business” that are adversely affected by the GRT. Just because a business is large doesn’t mean it can sustain the hit from the tax.

2:21: Paul has the helm.

2:18: The governor’s budget office asked that I post these two releases on the blog, so here you go. Both are .doc files…

* Illinois Ranks Lowest Among All Midwest States in Overall Tax Burden… …After GRT is Adopted, Illinois is Second Best in the Midwest

* Setting the record straight on misleading claims made by big business groups at today’s Committee of the Whole [corrected version]

1:54: Taxpayers’ Federation: GRT is essentially a form of income tax, and therefore violates the state’s Constitution, which limits the ratio of corporate to personal income taxes.

1:52: The Committee of the Whole isn’t the only show in town today…

Hundreds of upset residents are taking their complaints about soaring electric rates straight to the place where they could get help.

They rallied today at the state Capitol and pleaded with state lawmakers to provide some relief for rates that have spiked since the beginning of the year.

The rally organized by the A-A-R-P and the Citizens Utility Board featured pictures of two pigs with the names of utilities Ameren and Com-Ed on them.

State lawmakers led ralliers in chants of “We need relief” and promised they would continue to work on a resolution.

1:50: I’m not sensing so far that anyone’s mind has been changed by any of this debate. Your thoughts?

1:43: The Illinois Farm Bureau has a brief story and a couple of audio clips…

* Speaker Madigan explains the GRT resolution that will receive a vote by the full chamber tomorrow [mp3 file]

* Gov. Blagojevich threatens to veto a tax hike [mp3 file]

1:32: The Sun-Times now has a story…

[If nothing is done] “We will hurt people,” Blagojevich said. “Schoolteachers will have to be laid off because school districts won’t have the money they need to be able to fund our schools. New textbooks won’t come because the school districts won’t have the money they need. Football teams might not get the uniforms at their high school football games because we don’t have the money we ought to have for our schools.”

His reference to football players being deprived of uniforms triggered a chorus of groans from Republicans and a handful of Democrats, who viewed the warning as an over-the-top scare tactic.

“I’m a little worried about the football players without uniforms,” House Minority Leader Tom Cross (R-Oswego) said sarcastically after the governor’s appearance. “I’m trying to envision…our high school football games this fall with only [players] having pads on and spikes. That concerns me.”

Cross predicted the governor’s tax plan has a “short life” because “it’s, policy-wise, an awful tax. It’s bad for jobs. It’s bad for business. It’s bad for consumers.”

1:13: I just noticed that the Daily Herald’s Animal Farm bloggy type thing did a bit of live-blogging earlier today. Here’s an excerpt…

Now the governor is talking about the doomsday scenario of a “do-nothing” budget if no revenue enhancements pass: no warm meals for seniors in Carbondale, no new uniforms for the high school football teams.

“I believe in football, I believe in high school football,” Blagojevich said. “A do-nothing budget means pain to your constituents.”

1:06: Gordon to IFT and IEA: Provide to me the amount of money you need, not want. (Asked for written response.)

1:02: Oops. I forgot to post today’s schedule. Here it is.

12:55: CBS2 has some video.

12:47: The Tribune’s Clout Street blog has an update…

“If that means we are here all summer… I am determined to do that,” Blagojevich said. Lawmakers are scheduled to adjourn at the end of the month.

Blagojevich answered questions from lawmakers, but left the House chambers this morning without taking questions from reporters.

“He just spent an hour answering questions,” spokeswoman Abby Ottenhoff said.

Blagojevich’s security detail surrounded him and blocked reporters from getting close to the governor as he made his way through a crowded Capitol rotunda, down a little-used stairwell and into a rear entrance of his statehouse office.

12:42: Press release from the Illinois Association of Realtors…

The gross receipts tax proposed by Governor Blagojevich would take a huge bite out of construction employment in Illinois, as slower growth in the state’s economy due to the new levy would cause a projected permanent loss of 13,968 jobs in the sector, a new study finds. The study results were provided in written testimony today in a hearing of the Illinois House Committee of the Whole on the proposed gross receipts tax.

The study, commissioned by the Illinois Association of REALTORS, finds that housing construction employment alone would fall by more than 1,700 jobs under the weight of the proposed gross receipts tax (GRT).

The research also calculates that the GRT would increase the cost of new homes in Illinois by $5,400 to more than $12,000, depending on the purchase price of the home.

The study can be downloaded here.

12:36: Speaker Madigan said earlier that the House would vote on a resolution tomorrow on the GRT. The resolution is now online and can be found here. It begins with a fairly neutral explanation of the gross receipts tax and then concludes thusly…

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that those voting “aye” on this resolution are in support of Governor Blagojevich’s proposed Gross Receipts Tax and urge that legislation to enact it into law be passed by the General Assembly as soon as possible, and those voting “no” on this resolution do not support Governor Blagojevich’s proposed Gross Receipts Tax and believe that it should not become law

Madigan is the sponsor and House GOP Leader Tom Cross is the chief co-sponsor.

12:18: Greg Baise of the Illinois Manufacturers Association pointed out a few minutes ago that Illinois has lost 200,000 manufacturing jobs since 2000. No offense to Baise, but I thought the single sales factor exemption that was rammed through the legislature about that time was supposed to create 200,000 manufacturing jobs?

12:01: Dave Vite of IRMA: “Small business is not exempt.” He’s using the pyramiding argument now. “Gasoline will cost between 7 and 15 cents more per gallon.

12:01: The governor has a new press release touting his remarks. Find it here.

11:54: More audio clips from our friends at Metro Networks. These are from yesterday’s Senate Executive Committee meeting. The first is a sharp disagreement among committee members…

[audio:58GRTFight1.mp3]

And here is some raw audio of Emil Jones’ remarks…

[audio:JonesRaw.mp3]

11:50: Here’s a short audio clip from the governor’s remarks…

[audio:guv_grt_1.mp3]

[If that doesn’t work, go to the

11:35: Quinn’s time is up. Next in the dock, Illinois AFL-CIO president Michael Carrigan and other labor leaders.

11:35: Rose: Do real people pay the tax on this GRT? Quinn: It’s a soak the middle class tax.

11:28: Hoffman just pointed out that Quinn’s alternative funding solutions aren’t adequate to solve the problems that Quinn claims need to be addressed.

11:28: The governor didn’t say a word to the press as he left the chamber. The entrance and exit was what worried his staff the most.

11:26: From the Tribune…

“I believe we have a unique opportunity right now,” Blagojevich said. Nothing that he and his fellow Democrats had recently been re-elected to lead the state, he said “all of us are back in business” and should “not shirk away” from the responsibility to move the state forward.

“We can do it together. I know it’s hard. I know it’s tough,” Blagojevich said. But he said constituents would appreciate better health care and better funding for schools “so they can have an equal chance in the race of life.”

Underscoring his belief that access to health care is a “moral imperative,” the governor vowed to keep pushing for his plan and lashed out at alternative ideas to increase sales and income taxes, vowing once again to veto either increases.

“I won’t do it — not because I made a promise not to do it,” Blagojevich said. “I believe it’s wrong.”

11:19: Pat Quinn: “Ben Franklin did not say it was inevitable to be taxed to death.” Ouch. His remarks are sure to sting as he goes along.

11:19: The governor’s finished. From what I heard, the questions were too long and open-ended for the short-answer format imposed on the proceedings.

11:02: The Senate Republicans have introduced a resolution calling for the rejection of the GRT. No Democratic co-sponsors yet. The resolution is here. [Hat tip: IP]

10:57: Lang: “You say you’re here in the spirit of compromise… but you’ve shut all of those other [tax hike] option down…. How can we compromise with you if there’s only one thing left on the table?” [applause]

Governor said he would talk compromise as long as the alternative ideas are for big bucks and comprehensive and not a sales or income tax.

10:51: Interestingly enough, Rep. Greg Harris (D-Chicago) is asking about exempting family farms.

10:43: Power is back on. Apparently, the time limits are pretty strict, so some Repubs are being forced to submit them in writing. Dems are asking questions now. Rep. Jack Franks is the first.

I’m going to try and restore that other post, but this is the thread to use.