 Legislative leaders emerged from a two-hour meeting with Gov. Pat
Quinn saying they were moving closer to a possible deal and would
meet again after consulting with rank-and-file lawmakers.
They described a budget plan that would depend on even more
borrowing and financial maneuvering to paper over the state's
record-breaking $1.6 billion deficit. Then officials could review
the budget late this year or early next year to see whether more
spending cuts or a tax increase would be needed.
"Is there a chance that we're going to be back here maybe in
March or April or February, January? Possibly and probably," said
House Minority Leader Tom Cross, R-Oswego. "But I think we need a
little stability around here for the next six or seven months
because it's been so chaotic."
The state's new budget year began July 1 without a budget in
place, endangering paychecks for government employees and raising
questions about the many contractors and community groups that get
state money. Quinn, fighting for a tax increase, has warned that a
budget proposal backed by legislators would require merciless cuts
in human service programs.
The American Federation of State, County and Municipal Employees
is asking a St. Clair County court to order the state to pay
employees even without a budget. And unions representing state
police officers said they are also prepared to sue Wednesday if a
budget isn't approved.
Senate President John Cullerton, D-Chicago, said he hopes the
Legislature will pass a budget today. But he said the version they
would be voting on still contains a major hole that should be filled
later.
"To me, it's so obvious ... that we need an income tax increase,"
the Chicago Democrat said.
A mix of plummeting tax revenue, rising costs and increased
spending created the worst budget crisis in Illinois history. It
left Illinois with a deficit that, for the past budget year and the
current year combined, reached roughly $11.6 billion.
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The Democratic governor argued the only way to close such a
monstrous deficit was a combination of spending cuts and tax
increases. Republicans and some Democrats balked at that, however,
and the idea of a tax increase never got off the ground.
The Legislature instead sent Quinn a budget that would have cut
spending by billions of dollars, with much of that coming from
grants to groups that provide local services such as child care,
drug counseling and health care. Quinn vetoed that measure.
Now officials are searching for some way out of their deadlock.
Quinn has agreed to shelve the tax increase. He proposes passing
a budget to keep government operating and allow time to study ways
to cut Medicaid spending and other costs. Then officials could
decide in November whether to cut spending, raise taxes or neither.
Legislative leaders seemed inclined to support some variation on
that plan.
This version would include billions of dollars of financial
gimmicks and one-time sources of revenue: borrowing about $3.5
billion to help pay annual pension costs, using about $1.1 billion
worth of vaguely defined "inter-fund borrowing" and leaving about
$3.2 billion in bills unpaid.
[Associated Press;
BY CHRISTOPHER WILLS]
Copyright 2009 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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