Budget Deadline Passes Without a Deal

Democratic legislative leaders missed their self-imposed deadline for passing a new budget Friday and sent lawmakers home until they can figure out a solution to the state's $13 billion deficit.

"Our business is not finished," House Speaker Michael Madigan told lawmakers before adjournment. "When we are prepared to finish our business we will come back to Springfield for one or two days."

The Chicago Democrat gave no indication of when that might happen. With lawmakers opposed to raising taxes, slashing spending or borrowing money to fill the massive budget hole, finding a solution may take time.

While Madigan and Senate President John Cullerton had aimed for a May 7 conclusion to the spring legislative session, that date has no special significance.

The first key date is May 31. After that, passing a budget would require a super-majority, meaning the Democratic majority would need some Republican votes to take action.

The most important date for passing a new budget is June 30, when the current budget expires.

The Senate has passed a version of the budget that would address the deficit almost entirely by borrowing money or delaying payment of the state's many bills.

That budget plan would delay a $3.7 billion payment the state is supposed to make to Illinois' troubled government pensions. It also would delay payment of roughly $6 billion the state owes to people and businesses.

Gov. Pat Quinn would be allowed to dip into special-purpose funds and spend about $1 billion on routine government operations. He also would be given huge lump sums and allowed to choose which programs get the money and which don't.

The House balked at going along with that version of the budget but could not agree on any alternatives, such as borrowing money for the pension systems or raising income taxes as Quinn wants to do.

ILLINOIS HOUSE:

The Illinois House rejected a plan to borrow $3.7 billion for the state's troubled pension systems.

The failure makes it more likely the Legislature's Democratic majority will pass a budget that leaves out the much-needed pension money.

Democrats haven't been able to build support for a tax increase or for major spending cuts. So they are trying to patch together a budget that will keep government operating despite a $13 billion deficit.

The attempt to borrow money for the pension systems needed 71 votes. It got only 59 Friday.

ILLINOIS SENATE:

There may be new powers for the governor as the Illinois Senate worked past midnight Thursday to approve a $57 billion spending plan without a major tax increase.

House Democrats met with Gov. Quinn Friday before considering the budget.

Republican critics questioned why Democrats passed a budget in the middle of the night. They said they didn't get a chance to read the 2,300 page budget before voting on it.

The scramble to fund education and social services will mean a $1 tax on cigarettes, cashing in on a portion of the state's tobacco lawsuit settlement.

The budget also delays a $3.7 billion pension payment. There may also be a 5 percent across the board cut in spending.

Governor Quinn could get unprecedented power to divvy up the funds among the state agencies.

Democrats said no one is willing to raise taxes so they were forced to pass the budget after midnight.

The $26.1 billion budget leaves the state borrowing for short term operations and postponing paying its bills to get by until after the November election.

Democrats who sponsored the budget admit it turns out to be a temporary spending plan, but there are no major tax increases.

Republicans say this budget is not fiscally responsible. They say when those pension payments come due in January, the state still won't have money to pay them.

OTHER ISSUES UNDER LEGISLATIVE CONSIDERATION THIS WEEK:

• Illinois lawmakers voted Thursday to extend a property tax relief program for Cook County homeowners. The plan caps Cook County property tax assessment increases by 7 percent to a maximum exemption of $20,000 this year. It now awaits approval by Gov. Pat Quinn, who proposed the idea just last weekend.
   
• A proposal aimed at stepping up safety at some nursing homes by toughening oversight, screening residents and increasing staff passed unanimously in the House on Thursday. It now goes to the Senate.
   
• State legislators have approved a plan to modernize Illinois' telecommunications law and lift most state regulation on land lines. It now goes to Gov. Quinn.
   
• On Wednesday, an unprecedented plan to let kids in failing public schools transfer to private classrooms with state help failed in the Illinois House.
   
• Also on Wednesday, the Illinois Senate voted to limit free transit rides to needy seniors. The measure now goes to the House.