Illinois Governor to Extend Session if Lawmakers Miss Budget Deadline -- Update
29 June 2017 - 12:29AM
Dow Jones News
By Douglas Belkin
Illinois Governor Bruce Rauner has this message for legislators
as they struggle to deliver a budget to him by Friday's deadline:
No one leaves the capital until a deal is done.
"If the legislature fails to send a balanced budget package to
my desk by Friday, we will have no choice but to keep them in
session until they get the job done," Mr. Rauner, a Republican,
said in a statement Wednesday.
The warning comes as Illinois lawmakers spent Wednesday in
negotiations trying to end a two-year budget stalemate that has led
to a nearly $15 billion backlog of unpaid bills and economic pain
across the state.
Steve Brown, the spokesman for Democratic House Speaker Michael
Madigan, said many Democrats believe that Mr. Rauner isn't
negotiating in good faith and contrary to his rhetoric, has no
intention of signing any deal.
"I think people realize that they are probably chasing a set of
moving goalposts," Mr. Brown said. "There is widespread disbelief
that this guy is really capable of any deal that includes a tax
increase."
On Tuesday Mr. Madigan unveiled a $36 billion budget proposal
but didn't spell out how much taxes would have to increase to get
the state's fiscal house in order.
If a budget isn't passed by Friday, credit-rating firms have
warned they will downgrade the state's rating to junk.
On Tuesday Mr. Madigan said his budget would cut about 5% from
most state operations out of their normal appropriation. A
Republican budget blue-print included an increase to the individual
income tax. Mr. Madigan's budget hasn't spelled out those
details.
"I'm not saying that this is perfect, I'm not saying that this
meets every request of the governor, but I'm saying it goes a long
way toward giving the state of Illinois a good solid spending plan
that responds to the real needs of the state," Mr. Madigan told
reporters on Tuesday.
On Wednesday Democrats passed several pieces of legislation
designed to meet demands by Mr. Rauner, who has said he wouldn't
move forward unless tax increases are tied to overhauls aimed at
creating a more business-friendly climate in Illinois. Among those
demands: a freeze on property taxes and an overhaul of the state's
workers' compensation system. It is not yet clear if the plans the
Democrats passed will meet with Mr. Rauner's demands.
The shuffling of state revenue and expenses is necessary to
start digging Illinois out of a nearly $15 billion backlog in
unpaid bills and a $250 billion deficit to the state pension
system.
The state lottery is slated to stop selling tickets this week
and more than $2 billion in road construction projects are set to
be halted.
"We think there should be a budget," Mr. Brown said. "There are
too many things being destroyed."
The politics in the state Capitol have been fractured for so
long that many believe the impasse won't be resolved until Mr.
Rauner faces re-election in 2018. Lawmakers tried to assure their
constituencies they are working toward passing something.
"I really do believe it's real, I mean we are four days away
from a catastrophe," said Senate Republican leader Christine
Radogno on Tuesday. "I think people realized that."
Write to Douglas Belkin at doug.belkin@wsj.com
(END) Dow Jones Newswires
June 28, 2017 19:14 ET (23:14 GMT)
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