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* Buried way down deep in this budget article is a key item that’s been missing from most reportage about the two revenue streams (pension obligation bond and special funds sweeps) that the Senate has passed and the House has not yet voted on…

Madigan isn’t the only dissenter. Rep. Raymond Poe, R-Springfield, said he opposes both ideas and Rep. David Leitch, R-Peoria, said he doubts the bills have a chance in the House even if Madigan allows a vote on them.

“I don’t think those revenue measures would pass if they called them,” Leitch said.

Leitch is correct. The two revenue bills will require extraordinary majorities now that we’re in June. The Republicans don’t have any votes for either of them, yet nobody seems to want to report this.

* From the same story…

A total veto, though, would also leave the state without a budget, and that could threaten a shutdown of state services if there is a protracted stalemate. It could also alienate Jones, one of the few consistent allies Blagojevich has in the General Assembly.

“We’re trying to encourage the governor not to veto the spending plan,” Davidsmeyer said.

A total veto also could put Senate Democrats in a politically embarrassing situation over pay raises. If the Senate meets four more times, scheduled pay raises will automatically take effect unless the Senate votes to reject them. A total budget veto could force the Senate to be in session for those days, with public pressure mounting on the chamber to reject the raises.

Those are both things that I’ve been stressing to subscribers for weeks. Jones doesn’t want to come back to town for any length of time, and neither do his members. The lack of a Sente backstop has been frustrating for the governor.

* As I think I’ve mentioned before, Doug Finke’s Sunday column is a good window on the Statehouse press room groupthink…

For a couple of weeks now, the Blagojevich administration has been organizing dog and pony shows around the state to pump up support for the capital bill. They generally star Rep. Jay Hoffman, D-Collinsville, Blagojevich’s floor leader in the House, and a bunch of local lawmakers from both parties to show that there is bipartisan support for the plan. Toss in some local labor leaders and some local mayors or other elected officials for good measure. Then dangle in front of the cameras a long list of projects that could (repeat, could) be done in the area if a capital bill passes, and let the show begin.

It was the Springfield area’s turn last week. The site was Breckenridge, a tiny community along Illinois Route 29 between Springfield and Taylorville. Why there? Because that’s where the highway is still only two lanes, and the capital plan, naturally, promises to make it four lanes. Well, at least the news release promised that, and as you may be aware, a news release from the governor’s office is pretty much an iron-clad legal document.

These stunts are a continuation of the tactics used by Blagojevich before. Run around the state promoting some program or other and expect that to make Madigan and other lawmakers cave into the pressure. Hasn’t worked before, and there’s no reason to think it will now.

If Finke is once again reflective of the press room conventional wisdom, then that general attitude among Statehouse reporters about these publicity stunts will eventually work their way up to editorial boards and to local reporters who are covering these events. We’ll see.

* Related…

* Spin, frustration, talk … just another day for Gov. Blagojevich

* Illinois government failing, religious leaders say

* The coming state and municipal financial crisis

* Study urges wariness of state gambling revenue: “People don’t have as much discretionary income,” O’Shea said. “It’s going into their gas tanks.”

* Illinois: Paving with I-O-Us

posted by Rich Miller
Monday, Jun 23, 08 @ 9:01 am

Comments

Blago can not afford to lose Jones who operates as his gatekeeper and protector. Jones has destroyed his deal making credibility to help the Gov., so the Gov owes him.

Defiently puts the Gov in a pickle; either Blago makes unpopular cuts from the budget himself and becomes the target of those cuts, or he tosses the whole thing back at the general assembly at the potential cost of his key knight protector Jones.

Madigan has cooked the Gov’s goose with this, all thats left is for blago to decide on which sauce.

Comment by Ghost Monday, Jun 23, 08 @ 9:11 am
The endgame of all of this seems to be some sort of bump in the income tax. Madigan has hinted at it and Jones has said he’s for it. It’s your turn, governor.

In all honesty, I’ve never heard anyone complain about the state income tax. Federal taxes, FICA, real estate taxes, transfer taxes, sales taxes, gas taxes, beer taxes, tobacco taxes, vehicle stickers, license plate stickers, etc., but never the state income tax.

There’s a deal there somewhere.

Comment by wordslinger Monday, Jun 23, 08 @ 9:59 am
I ran into a Republican legislator over the weekend. He said they have been told to expect to return to Springfield in two weeks.

Comment by GA Watcher Monday, Jun 23, 08 @ 10:14 am
Income tax is the best solution. One of the problems with these stealth taxes like the fund sweeps, or hidden costs like selling off State assets for pennies, is it hides the cost of operating government from the people. We should pay those costs so that we see them.

Comment by Ghost Monday, Jun 23, 08 @ 10:24 am
Re: the plan that would tap into up to $530 million in dedicated funds, it’s worth mentioning that this proposal is structured far differently than previous efforts which have drawn criticism. It closely resembles the same mechanics of the hospital assessment plans that we’ve passed into law, which have already brought Illinois $2.3 billion in new federal Medicaid funds for healthcare with a proposal for another $4.5 billion over five years pending federal review.

For starters, the money from the dedicated funds would be pooled and used exclusively to draw down matching federal funds, thus turning that $530 million into over $1 billion. Secondly, those hundreds of millions in new matching federal dollars would be restricted by whatever federal guidelines are tied to them, so any diversion into inappropriate spending would result in forfeiting the federal funds. That point is critical if you’re concerned about the Administration overreaching on its spending authority. Finally, the Road Fund, veterans homes and an unprecedented number of other key funds are protected from being tapped into for this leveraging of new federal money.

During times when revenues are slowing down because of the economy, we absolutely have to be more aggressive about pursuing new federal funding sources. There are plenty of other states who’d be more than happy to put those federal healthcare dollars to good use if we don’t. I’m hoping we can finetune this plan in the House and access those hundreds of millions in new federal funds for our existing healthcare obligations.

Comment by Sen. Jeff Schoenberg Monday, Jun 23, 08 @ 10:32 am
Sen. Schoenberg, as a self-proclaimed defender of ethics and opponent of conflicts of interest, why didn’t you feel compelled to disclose your sponsorship of SB 790, as amended to be called the “Federal Revenue Maximization Act of 2008?”

Could you give the slow learners among us a bit more color on exactly how the fund raids “closely resemble” the hospital assessment programs, excluding that they both involve healthcare and recovering more federal funds?

Doesn’t your bill also allow the Governor, meaning Filan, to take swept funds to pay “obligations of the State Board of Education?”

Could you explain what ISBE obligations (p.2, line 1, SB 790 engrossed) have to do with Federal funds and healthcare, for those of us “concerned about the Administration overreaching on its spending authority?”

Wouldn’t you also agree that it’s a bit disingenious to argue that the Road Fund is being “protected” by the Administration (and its Senate foot soldiers) when in fact the Road Fund has suffered more diversions under Blago than ever before and when a magic extra surplus in the Road Fund was discovered right about the time Illinois Works/NOT needed another funding source?

Transparently Yours,

Monty Hall

Comment by "Three Card" Monty Hall Monday, Jun 23, 08 @ 11:41 am
Sen. Jeff Schoenberg, let me posit this, why have these special funds in the first place? Why are we allowing lobbiest for all of these industires to demand special funds where the monie is only spen on their area? Look at the proliferation of funds. The big fight over how to spend their money etc.

Instead of sweeping speciality funds how abou a real solution, get rid of the funds!!! Put the money for fines, fee’s etc into General Revenue. These funds never ever pay the ture cost to operate anyway. They never cover inicendtals like the services provided by the State Police and so forth. Why does a biker get their fees and fines put into a special fund? repeate question for every special fund.

How abou a special funbd for tax payers. This way our tax money will only be spent on the direct cost of services applicable to us. These funds are a tool of special interests use to direct State money and keep fee’s in some cases way below the national average. Get rid of all special funds and put the money in GRF and let the general Assembly apportionate as needed like the do with the rest of the fees and taxes the people pay.

Comment by Ghost Monday, Jun 23, 08 @ 12:32 pm
One must enjoy the tasty morsel of “Monty Hall” berating Jeff Schoenberg for a “disclosure” lapse and signing his/her post “Transparently Yours” and while hiding behind “Monty Hall” with no hint of irony. Another profile in courage.

Comment by David Ormsby Tuesday, Jun 24, 08 @ 9:05 am