Governor, Lawmakers Close to Breaking Historic Budget Impasse

Thursday, June 30, 2016 | 0

Illinois Republican Gov. Bruce Rauner and Democratic leaders continued talks Wednesday that were inching closer to an agreement that would end an historic budget impasse -- and possibly bring changes to the state's workers' compensation system.

Rauner met for nearly three hours late Tuesday with House Speaker Michael Madigan, Senate President John Cullerton and GOP leaders Sen. Christine Radogno and Rep. Jim Durkin.

None of the lawmakers would discuss specifics, the Associated Press reported. But Madigan said the session was productive and that he’s “optimistic.” Cullerton said it’s “exciting that we’re this close.” Radogno urged “caution.”

It was the first bona fide negotiating session since tempers flared May 31, when Rauner said Democrats were spending the state “into a toilet” and turning Illinois into a “banana republic.” Both sides differ on how to keep state government agencies and public schools afloat and whether to funnel hundreds of millions of dollars to bail out Chicago Public Schools.

The governor opposes forcing “suburban and Downstate taxpayers to pay for a massive bailout of the severely mismanaged Chicago Public Schools system,” the Chicago Tribune reported.

Chicago Mayor Rahm Emanuel accused Rauner of wasting 18 months of his term and “holding the entire state hostage” to win pro-business concessions that include lower workers' compensation benefits and scaling back union negotiating rights.

Illinois institutions of higher learning would get $1 billion under stopgap budget plans filed by state senators from both sides of the aisle. The plans are similar to Rauner’s.

The governor’s plan would cost $50.3 billion, including $8.2 billion from general funds, $33.7 billion from specialized funds and $8.4 billion in federal dollars. Of that, $7 billion would go to ensure public schools K-12 would reopen on time and stay open all year.

Both sides remain about $600 million apart on school spending, including whether to boost Chicago Public Schools’ pensions.

Illinois has not approved a fiscal year budget since 2015. It’s second fiscal year in a row without a budget begins Friday.