Illinois Public Media News
Two Central Illinois lawmakers dispute the funding mechanism behind one budget proposal that failed in the waning hours of the legislative session in Springfield Tuesday night.
On Monday... the House overwhelmingly passed a proposal to use 2-point-2 billion dollars in pension bonds to pay for human service programs. But the measure failed to make it out of the Senate on Tuesday night. Champaign Democratic Senator Mike Frerichs voted against components of the bill. He says the proposal was fiscally irresponsible.
"I think the state needs to stop using our pension system as a piggy-bank to get us out of our problems," says Frerichs. "We need to tackle the real issues facing the state and stop borrowing on the backs of future Illinoisans to solve our problems."
Mahomet Republican House member Chapin Rose says what was perceived as only a temporary funding plan would have fully funded the pension system by making a payment through a short-term loan at a lower interest rate than normal. He says that would have freed up the dollars for mental health, drug treatment, and related areas.
And Rose questions the actions of Governor Pat Quinn, and says the governor changed his tune in about an hour.
"At 4 PM yesterday (Tuesday, June 30th), he asked us to pass it," says Rose. "At 5 o'clock, he was apparently making phone calls to Democrats, asking to vote against his own plan, to blow a 2-million dollar hole in this budget. So basically, at 5 o'clock, he said, 'Y'know what? Let it crash, let it burn, let everybody close their doors.' That's ridiculous!"
The measure was killed on the Senate floor on Tuesday.
Senator Frerichs also contends the Governor has made inconsistent comments when it came to considering pensions as a way to balance the budget. He says Quinn has also wavered between proposals for temporary and permanent tax hikes.
Both lawmakers say they're ready to return to Springfield to continue budget talks. Legislative leaders have called for a special session on July 14th.
The University of Illinois' monthly gauge of economic performance has hit its lowest point since it was established 14 years ago.
But the author of the Flash Index says the current recession still hasn't reached the depths of the early 1980's economic slowdown. Economist Fred Giertz also says there are promising signs that the recession may be approaching an end, perhaps by the end of the year. Even so, Giertz says statistics before then are bound to get slightly worse.
"Some of the things that go into the Index don't turn around very rapidly," says Giertz, "in particular, employment, which has a lot to do with the individual income tax collections. So this is not a surprise. I think the only surprise would be that it went down a little bit more than might be expected."
The U of I Flash Index measures Illinois tax proceeds to evaluate the state of the economy. With any number above 100 suggesting economic growth, the June rate checked in at only 92. That's more than two points lower than May.
Illinois Governor Pat Quinn on Tuesday vetoed a key portion of a makeshift state budget that was approved by legislators, calling it a "halfway measure'' that would fail to fund basic services and set Illinois up for a wave of lawsuits.
Quinn's action leaves state government without a spending plan for the new budget year. That endangers the paychecks of thousands of state employees and creates a risky financial situation for state-funded groups that provide child care, drug treatment and other services.
Lawmakers aren't scheduled to return to the Capitol for further discussions until July 14, roughly the same time that the first government paychecks would be interrupted by the budget impasse.
The Democratic governor did not use his power to call a special session that would bring legislators back to Springfield more
Quinn's budget veto marks another round of uncertainty and frustration for Illinois taxpayers. The move leaves state workers who might not get a paycheck and poor families wondering if they'll lose daycare and health services.
For the third straight time, Illinois government has entered a new budget year without a new budget in place. State officials are amid the worst fiscal crisis in Illinois history.
Things have gotten so twisted in Springfield that Quinn wound up opposing his own borrowing plan and legislative leaders are likely to fight to revive a budget they didn't want in the first place.
For now, government will operate more or less normally. But Quinn noted without a budget, any group depending on state money can keep delivering services as usual but they "do so at the risk of not being paid.
Indiana Gov. Mitch Daniels has quickly signed into law a new two-year state budget that lawmakers approved just hours before the current spending plan was to expire.
Daniels signed the bill Tuesday night in his Statehouse office about an hour after the Senate adjourned. The Republican governor says the budget has some flaws but does limit spending to preserve Indiana's reserves. The Republican-controlled Senate voted 34-16 in favor of the plan, which the Democrat-led House had passed on a 62-37 vote amid impassioned debate earlier in the day.
Lawmakers had faced a midnight deadline to pass a new budget or stopgap funding measure to prevent most of state government from shutting down.
Wednesday marks the start of the new state government fiscal year. But there's no budget agreement and no indication when one might happen.
The state will keep operating for at least a while... even though it has no spending authority. Lawmakers have approved a budget that includes heavy cuts to social services, which Governor Pat Quinn announced he won't sign. It all adds up to an ongoing stalemate that threatens to drag well into the summer or longer. Quinn spoke before a joint session of the House and Senate just hours before lawmakers left the Capitol. "We must not put off decisions until later in the summer or the fall or next winter... that's not what adults do," Quinn told lawmakers in the House chamber.
Quinn is still trying for an income tax increase, but so far he lacks the votes to get it passed. A gubernatorial veto would force lawmakers back to the Capitol, but there's no timetable yet for their return. The Governor says the state has a budget deficit of more than nine billion dollars, but there's even disagreement if that's an accurate amount.
The initial groundwork has already been laid for a high-speed rail line between Chicago and St. Louis, with trains traveling 110 miles an hour.
Now the authors of a new study of even faster trains want to include Champaign on such a route. The Midwest High Speed Rail Association is advocating for 220 mile an hour trains that would connect Champaign to Chicago in 45 minutes.
Association Executive Director Rick Harnish says competitors in Asia and Europe have gained an edge on their ability to compete in a global economy. He says China's trains will cover the distance of Chicago to New York down to four hours by the year 2013:
"If you could get on a train here and be in Chicago and transfer to another train and be in New York in 5 hours, you can't do that by plane today. It does have an impact," Harnish said. "We're spending more on our infrastructure than our competitors are, we're spending more per-trip, per-person than our competitors are, and we're making fewer trips than our competitors are because it's so much more expensive to travel here than over there."
Illinois is in the running to receive 8-billion dollars in federal stimulus money to begin building initial high-speed rail lines. Meanwhile, Governor Pat Quinn is asking lawmakers to add 400-million dollars for high-speed rail in a capital construction program. Harnish estimates the state would need to find another 10-million for a market study of the faster trains.
Illinois Senate Transportation Committee Chair Martin Sandoval says Illinois is no longer looking at theories and believes the state will make the investment.
Ameren is planning a summer of public input as it proposes a new high-voltage electric transmission line around Champaign's western and southern outskirts.
The 138-thousand volt line would link substations in Bondville and Champaign's south side and would bring more capacity to the area around the University of Illinois campus, including the future Blue Waters petascale computer project.
Marty Hipple is supervising the planning for the line. "It provides capacity to serve that future load that's forecasted, and it provides a loop in network transmission to improve the reliability of existing transmission," Hipple said.
Doni Murphy, a planning consultant working with Ameren, says lists of "sensitivities" will be drawn up so that those planning the route of the new line can watch out for them. "Existing developments, proposed developments, whether they be residential, commercial or what have you," Murphy said. "And often times you'll see the traditional environmental considerations like wetlands, archaeological and cultural sites, protected species habitats, things of that nature."
Ameren says it will hold open houses and meetings with local officials to find three recommended routes for the line. The utility would submit those proposals this winter to the Illinois Commerce Commission, which would decide if and where the line would be built. Ameren hopes to finish it by 2014.
The small village of Philo in east central Illinois has a new water tower.
The village on Monday replaced a 50,000-gallon water tank thought to date back to the late 1800s with a new 250,000-gallon water tower. The older tank was wooden but was replaced by a steel tank in the 1920s or 1930s.
The company Aqua Illinois now runs the village's water system. Company vice president Tom Bruns says the new tower will be safer for the community because it can pump water for six hours if there was a fire, instead of only 45 minutes.
Philo is about 13 miles from downtown Champaign in Champaign County. Aqua Illinois serves residents in seven Illinois counties.
Better traffic flow, new streetscape designs and a more pedestrian friendly setting are part of a long-range plan for University Avenue in Champaign-Urbana. The Champaign County Regional Planning Commission held a public meeting on the project last (Tuesday) night in downtown Champaign.
Between now and 2035, the project aims to transform University Avenue from downtown Champaign to the Four-Corners-Cunningham. Part of the corridor lies within the county board district of Champaign Democrat Alan Kurtz, who says the plan is sorely needed.
"The corridor itself is getting old"m says Kurtz.. "It hasn't been revamped, only in certain areas. And I think a long range plan working in this way to run the corridor both through Champaign and Urbana and to renew both ends right through the cities are very important to this mistake."
Kurtz says one remaining question is the cost of the project. Eric Halvorsen of the Regional Planning Commission says they'll be working on the cost estimates --- and strategies for paying the cost --- over the next few months.
Will County State's Attorney James Glasgow says an Urbana man found guilty of shooting a Champaign woman and dumping her body on the side of an interstate in Will County has been sentenced to 85 years in prison.
Officials say 24-year-old Delon Scott was sentenced to 60 years for murder and another 25 years for using a firearm in the death of Champaign resident Cassondra Cawthon. Glasgow says Scott must serve the whole sentence.
Scott allegedly shot Cawthon three times on October 8, 2007, while he was a passenger in the car she was driving. The car veered off the interstate near Peotone, but did not crash.
Glasgow says Scott dumped the body and ran into a nearby field to get rid of his gun. He says police had arrived when Scott returned.
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