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 "We'd like to be partners in trying to fix that situation as
well," Senate Republican Leader Christine Radogno said at a news
conference at the state capitol in Springfield aimed at pushing
Democrats who control the House and Senate to negotiate ways to
reform and balance the state's ailing budget.
Radogno's spokeswoman, Patty Schuh, said Republican leaders have met
with Democratic Chicago Mayor Rahm Emanuel's staff, but she declined
to discuss what fixes are under consideration.
Representatives for House Speaker Michael Madigan and Senate
President John Cullerton, who are both Chicago Democrats, said their
members continue to be involved in budget talks. Madigan's staff is
working on a proposed city-owned casino for Chicago, his spokesman
said.
Chicago's sagging finances are weighed down by a $20 billion
unfunded pension liability and a recent Illinois Supreme Court
ruling preventing reductions in public worker pensions.
Moody's Investors Service on May 12 lowered the city's bond rating
to junk status, triggering $2.2 billion in potentially accelerated
debt payments by the city. Standard & Poor's and Fitch Ratings have also downgraded ratings for
Chicago.
The Moody's downgrade led the city to delay an initial bond deal
scheduled for Tuesday that is part of the mayor's plan to convert
$800 million of variable-rate general obligation bonds to fixed-rate
debt by mid-June to end interest-rate swaps, a city official said
late on Monday.
"We are evaluating specific options to achieve the lowest borrowing
cost for Chicago taxpayers in light of the action Moody’s took last
week," the official said.
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Emanuel, who began his second term as mayor on Monday, has suggested
a restructuring of the state-mandated $550 million hike in
contributions to the city's police and fire retirement funds due in
2016.
With the legislative session scheduled to end on May 31, Radogno and
House Republican Leader Jim Durkin told reporters that Democrats
need to stop playing politics and start serious work on the fiscal
2016 budget.
"The Democrats are desperate for revenue," Radogno said. "The
problem is we're desperate for reform. And, there's not going be
revenue before there is reform."
Republican Governor Bruce Rauner has proposed a $32 billion general
funds budget that relies on $6.6 billion in spending cuts.
(Reporting by Karen Pierog; Editing by Jonathan Oatis and Lisa
Shumaker)
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