Next session dates: January 9 & 10, 2008
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This week...
Latest Mass Transit Bailout Fails
Late Wednesday evening, members of the Illinois House voted in bipartisan fashion to defeat the latest proposed band-aid for the Chicago area mass transit system. The proposal put forth by Governor Rod Blagojevich and House Republican Leader Tom Cross sought to divert gas tax revenue from the general revenue fund in order to bail out the mass transit system that faces a budget shortfall of nearly $200 million.
SB 307 (Golar, D-Chicago) would have redirected nearly $421 million annually in gas tax revenue to pay for the operating costs of running buses and trains in Cook and the collar counties. While the measure would have solved the financial problems afflicting the Regional Transportation Authority (RTA), it would have blown a gaping hole in the state budget because the Governor and legislators did not identify a legitimate way of replacing the transferred revenue.
When asked about the funding gap in state coffers, Governor Blagojevich responded with his usual refrain calling for the elimination of corporate tax incentives.
Under the terms of SB 307, eighty percent of the state's 6.25 percent sales tax on motor fuel sold in Cook and the collar counties (DuPage, Kane, Lake, McHenry, and Will) would be directed to the RTA and its three units PACE, Metra, and the Chicago Transit Authority. Further, the appropriation level cap on monthly general funds transferred into downstate public transportation would have been eliminated.
SB 307, which needed 71 votes for passage, was defeated on a vote of 57-53. Legislators have now returned to their legislative districts with the Governor continuing to issue veiled threats to call them back to the Capitol for additional special sessions in December. Further discussions could involve another look at SB 572 that sought to raise the sales tax in the six-county region by 0.25 percent and impose a new real estate transfer tax in Chicago.
According to mass transit officials, a "doomsday scenario" will occur on January 20 unless the Governor and General Assembly pass a bailout. On that date, transportation officials have stated that there would be fare hikes, bus and train route reductions, and more than 1,600 people could be laid off.
No Action on the Budget Implementation Bill
Despite earlier comments that stressed the need for the passage of a budget implementation bill (BIMP) to help school districts with funding, Governor Rod Blagojevich has refused to sign the measure which has been sitting on his desk for several weeks.
According to several reports, the Governor plans to use his amendatory veto power to rewrite the bill and include a permanent expansion of the Cook County "7 Percent Solution" that would shift hundreds of millions of dollars from residential taxpayers to commercial and industrial taxpayers. Contained in SB 783, the bills allows school districts to spend additional state aid while also making important revisions in the Tax Code to correct mistakes that were made earlier in session (HB 1544).
Special Sessions Costly to Taxpayers
According to records from the State Comptroller, the record number of special sessions (18) called by Governor Blagojevich has cost taxpayers more than $882,000 this year alone with no measurable results. By law, Illinois lawmakers are entitled to a daily $125 stipend for every day of special session in addition to mileage reimbursement of 48.5 cents per mile for travel costs.
Members of the General Assembly do not receive the additional stipend and travel costs during normal overtime sessions. However, the Governor's decision to use special sessions as a political tool has resulted in a cost of nearly $1 million to Illinois taxpayers.
IMA Salutes Congressman Henry Hyde
Longtime Illinois congressman and former state legislator Henry Hyde (R- Bensenville) passed away this week after a long and storied career. Hyde, noted for his compassion and civility, was recently honored by President George W. Bush with the Presidential Medal of Freedom, the nation's highest civilian honor. Hyde was a Navy veteran who ultimately chaired both the Judiciary Committee and International Relations Committee in Congress. The IMA salutes Congressman Henry Hyde and his service to Illinois and the country.
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