Thursday, February 26, 2015

Rauner confident deal is near on budget authority; Cullerton aide says 2 sides still far apart - Daily Journal

By KERRY LESTER 

SPRINGFIELD, Illinois — New Republican Gov. Bruce Rauner denied Wednesday that he and Democratic legislative leaders have hit a roadblock in negotiations over whether to give him more authority to patch a multibillion-dollar hole in this year's budget.

Following a meeting with Cabinet members, he expressed confidence that an agreement is just "days away." But on Tuesday, Rikeesha Phelon, a spokeswoman for Senate President John Cullerton, said the two sides are "nowhere near a deal" and instead seem to be engaging in "a high-profile game of chicken."

Rauner wants to move money from what he calls "nonessential" areas into critical state programs that have shortfalls, such as prisons and the child care program, which needs $300 million to operate through June. A fund for court reporters is expected to run out of cash next month.

The idea of giving the governor more authority isn't new. Lawmakers gave Rauner's predecessor, Democratic Gov. Pat Quinn, expanded authority the first two years of his first term.

But while Republicans decried the move at the time, Democrats had the advantage of controlling both the General Assembly and the governor's office. Now, Democratic leaders, particularly Cullerton, are showing less incentive to grant the governor's wishes, with both sides saying the other's inaction is putting vulnerable residents at risk.

Although the new divided government has created a far different dynamic, Democratic House Speaker Michael Madigan also said last week he thought a deal might be imminent. But his spokesman acknowledged Tuesday that while there have been some discussion at the staff level, no significant negotiations have taken place between Rauner and the Legislature.

Cullerton wants Rauner to release a greater level of detail about budget plans before granting expanded authority for the current year, Phelon said. She also noted that Cullerton wants next year's budget conversations to be "balanced," with discussions about new revenues such as a potential tax increases.

The Republican governor's proposed $32 billion budget for fiscal year 2016, which begins in July, would include deep cuts to Medicaid, pensions and other programs to bridge a roughly $6 billion budget gap without raising taxes. It raises no new revenue and includes controversial pension changes, which some lawmakers argue may not pass the Legislature, to account for $2.2 billion of the savings.

"During Rauner's campaign, or certainly up until this point, was a recognition that new revenue needs to be part of the budget mix," Phelon said. "But now ... it seems to be absent from any conversation about how we address structural deficiencies."

A $35.7 billion budget lawmakers passed last spring didn't allocate enough money for expenses, while a decision on extending Illinois' income tax increase went unaddressed, in part due to the November election. The tax increase rolled back on Jan. 1, from 5 percent to 3.75 percent for individuals, and from 7 percent to 5.25 percent for corporations, creating a $1.6 billion hole.

"This is not a game," Rauner's spokesman, Catherine Kelly, said in an emailed statement. "Illinois is in a financial crisis, and child care centers and the safety of our prisons are at risk. As far as the Rauner administration is concerned, the deadline to find a responsible solution to the $1.6 billion budget hole was yesterday. The governor remains committed to finding a responsible way forward that manages our immediate fiscal crisis without raising taxes and without irresponsible borrowing."

Rauner confident deal is near on budget authority; Cullerton aide says 2 sides still far apart - Daily Journal

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