Governor OKs most of budget

SPRINGFIELD, Ill. -- After 23 days, Illinois finally has a state budget -- or most of one.

Gov. Rod Blagojevich signed the roughly $60 billion budget into law Thursday, except for $463 million that he called "special pet projects and other spending that we simply can't afford."

But he spared money for state officials' raises and for the pet projects requested by some legislators, while cutting funds for health care, veterans and the upcoming Lincoln bicentennial.

He also renewed his promise to add government health programs that legislators had refused to support.

He plans more than $400 million in new or expanded services despite questions about whether he has the money or the legal authority.

Approving the budget means the state will start delivering school aid, worker's compensation, health care payments and other checks that were halted when the state's old budget expired July 31. The portions he vetoed go back to the General Assembly.

The new budget includes an increase of $597 million, or 9 percent, for elementary and secondary schools. It depends largely on natural growth in state revenues during the coming year, as well as ending a handful of tax breaks for business.

It does not have any major tax increases or gambling expansions, two of the many ideas discussed in the long months of bickering over the budget. Blagojevich signed the spending plan despite arguing earlier this month that it was perhaps $1 billion out of balance.

His signature largely resolves the most contentious issue of a bizarre legislative session marked by bitter disagreements among Democratic leaders and a record-breaking overtime session.

But the disagreements are likely to continue when lawmakers return to Springfield to consider the vetoes and try to come up with money for roads, bridges and mass transit, perhaps by expanding casino gambling.

Blagojevich did not explain why he made each cut or he settled on a total of $463 million. He did say some of the legislative projects "had little to do with the core mission of state government" and offered examples such as improvements to a volleyball court, a drill team and planning funds for an arboretum.

Money set aside for Senate President Emil Jones, D-Chicago, to dole out to his members was untouched. "We know the Senate president shares our priorities," Blagojevich spokeswoman Rebecca Rausch said in an e-mail.

Pay raises of 3.5 percent for constitutional officers and legislators remained in the budget. They are along with 10 percent raises that Blagojevich approved earlier this month. The governor's salary will now be $171,000 a year, while the base pay for rank-and-file legislators will be $65,353.

Most "member initiative" money for House Republicans were spared, too, while projects for House Democrats and Senate Republicans were slashed.

Steve Brown, House Speaker Michael Madigan's spokesman, said it would take days for staff to "count up all the mistakes" in the governor's veto message and decide when legislators should return to Springfield.

In some cases, similar projects were treated differently -- for instance, one grant for a handicapped-accessible van was approved while another was vetoed. And while planning to expand some health services, Blagojevich cut $40 million in Medicaid funds from hospitals and $50 million from nursing homes.

He also slashed funding for pandemic flu preparedness, home services to the disabled and 80 new beds at the LaSalle veterans retirement home.

Patty Schuh, spokeswoman for Senate Minority Leader Frank Watson, R-Greenville, said Blagojevich sends a mixed message "when he talks about making health care a priority but cuts the legs out from under the people who provide those services."

An effort to override the vetoes would collide with Jones and his promise to uphold the Democratic governor's cuts.

The budget debate began in March, when Blagojevich proposed the largest tax increase in state history to fund an ambitious agenda for health care, education and debt reduction. His idea bombed with lawmakers, who did not share his fervor for health care or his interest in a major business tax.

The disagreements yielded a new record. When the legislative overtime session reached 55 days on July 25, it became the longest in modern Illinois history -- and the record has just kept climbing since then.

Unable to agree, officials let the old budget expire July 31. State paychecks continued going out, thanks to a court order, but the impasse blocked payments to schools, Medicaid providers and companies doing business with the state.

Comptroller Dan Hynes said his staff will work around the clock to deliver the money.

"Some of these recipients have been waiting nearly an entire month to receive their checks, funding they depend on for everyday needs. They shouldn't have to wait any longer," Hynes said in a statement.

Blagojevich intends to launch many of the health programs he proposed earlier in the year, even though lawmakers have not agreed to pay for them. The initiatives include subsidies for families struggling to pay for health insurance, coverage for poor adults who don't qualify for Medicaid and cancer screenings for every uninsured woman.

"While I'm pleased that we're making a record investment in education, families across the state are still being priced out of health coverage and don't have a way to see a doctor when they need to," Blagojevich said.

---

The bill is HB3866.

---

On the Net:

Governor's veto message: http://tinyurl.com/2nve2e