Illinois looks to federal money to maintain services amid budget impasse

[August 05, 2015]  By Karen Pierog
 
 CHICAGO (Reuters) - With Illinois starting its second month of fiscal 2016 without a budget, the Senate on Tuesday passed a bill that has Governor Bruce Rauner's support to tap $4.8 billion in federal dollars to fund certain state services.

The 57-0 vote in the Democrat-controlled Senate sends the measure to the House, which returns to session on Wednesday. The bill will help fund programs that provide food and child care, help pay utility bills for low-income families, support domestic violence victims, and aid the disabled.

Earlier on Tuesday, social service agencies that rely on state funding held a press conference in the state capitol in Springfield warning that if the budget impasse continues, the nonprofit groups will have to lay off workers and curtail critical programs.

The Democrat-controlled legislature has resisted the Republican governor's call for the wholesale adoption of his agenda that includes legislative term limits and business-friendly reforms before he considers additional revenue for the budget for the fiscal year that began July 1.

The Senate passed other bills aimed at keeping Illinois museums open, convention center bonds paid, and to also address items on Rauner's agenda.

Legislation offered by Senate President John Cullerton for a temporary local property tax freeze, coupled with pension payment help for the cash-strapped Chicago Public Schools passed the chamber over Republicans objections that it left out cost-saving elements of Rauner's proposal.

The Senate also approved legislation to retool workers' compensation, with Republicans voting against the measure, while noting major Illinois business groups oppose it.

The measure will do little to bring down workers’ compensation costs and could actually make things worse, according to the governor's office.

In a 51-6 vote, the Senate passed a bill allowing tax revenue earmarked to pay off bonds issued by Chicago's Metropolitan Pier and Exposition Authority for an expansion of the McCormick Place convention center to be transferred to the authority without a state appropriation in fiscal 2016 until a state budget is enacted.

The authority informed bondholders on Monday that the lack of a fiscal 2016 budget meant that no tax revenue has been appropriated and that a $20.8 million monthly debt service deposit was not sent to the bond trustee last month.

The Senate on Wednesday is expected to take up a bill passed by the House last week stopping a cost-of-living increase for state lawmakers in the current fiscal year.

(Reporting by Karen Pierog; Editing by Lisa Shumaker)

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