HOUSE, SENATE FINALLY START MOVING BUDGET BILLS
On straight party-line votes, the Democrat-controlled House approved two state budgets contained in more than two dozen bills this week and now awaits further negotiations in the Senate. The first version keeps state funding for the new fiscal year essentially the same as this year. The other version, which has been called a “Christmas tree budget” because of all the expensive new programs that was hung on it, greatly expands funding for education, health care and other programs. None of these bills contained any type of new or increased tax or fee.
Meanwhile, the Democrat-controlled Senate began moving bills out of committees that reflect their vision of a limited-growth state budget for next year. They said the state does not have enough money to start new programs or greatly expand existing ones, like the House’s “Christmas tree” budget. They also advanced a plan Thursday night to borrow $16 billion for pension debt and free up scarce money for other budget needs. The Senate Revenue Committee voted 6-0 for the idea while all the Republicans stormed out of the committee in disapproval. The plan would essentially trade high-cost pension debt for lower-cost debt, trying to save the state long-term costs while making up a major shortfall in its funds for state government retirees. It would also free up about $500 million for lawmakers to spend on other areas of the budget as Senate Democrats prepare to pass their own budget plan. If the pension borrowing is not approved, their budget would have to cut back on what they hope to spend next year or find a way to raise more money. Without it, budget negotiators will need to come up with an extra $800 million to meet the state’s pension obligations.
Despite their differences, lawmakers in both chambers say they want to reach a compromise and have a new state budget in place by the end of the month to avoid a protracted overtime session like last year. After May 31, it will take Republican votes in the Democrat-controlled House to pass a budget, making compromise more difficult.
The “wild card” in all of this is, of course, Governor Blagojevich who also wants lawmakers to approve a $31 billion public works construction program as part of a new state budget.
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