MADIGAN: R AU NE R HOLDING BUDGET ‘ HOSTAGE’ FOR‘ WEALTHY FRIENDS’
House Speaker Michael Madigan emerged from a leaders meeting on Tuesday with the fiery yet unexplained accusation that Gov. Bruce Rauner is holding the budget hostage “to help his wealthy friends and large corporations.”
When asked to elaborate, Madigan would only say: “I mean by that exactly what I said.”
The speaker’s comment came after another leaders meeting with the governor in Rauner’s Chicago office — with no sign that a resolution is on its way. There are just 25 days left before appropriations granted by a partial budget run out — leaving social service agencies and universities, among many other state services high and dry.
“I’m not the one who decided to hold hostage the Illinois governmental budget. It’s a very unusual tactic for anybody, including the governor, to hold hostage the governmental budgetmaking process in order to help his wealthy friends and large corporations,” Madigan said.
The speaker came out with a list of “non- budgetary” items he said should warrant the creation of five working groups, including workers’ compensation, elementary and secondary education, local government consolidation, pension reform and an update on how the union contract with the American Federation of State, County and Municipal Employees will affect the state’s budget.
“This would be in response to the governor’s request for what he would characterize his Turnaround Agenda. These are all issues which are pending before the Legislature,” Madigan said.
Changes in workers’ compensation, education funding reform, government consolidation and pension reform are all items Rauner and Republican leaders want addressed in a full budget. The Democrats’ push for working groups would effectively leave out those reforms from the leaders meetings, at least for now. But Rauner and Republican leaders are adamantly opposed to going back to working groups, saying it’s time for the leaders to get to work on an agreement.
Rauner has said he’ll approve a stopgap budget only if it includes a permanent property tax freeze and term limits. And he’s continuously said it’s Democratic leaders who are pushing for another stopgap budget, not him.
On Tuesday, the speaker detailed what appropriations won’t run out come Jan. 1, including an additional six months of appropriations for elementary and secondary education and capital projects.
The two sides are also arguing about whom to pin a tax hike on. It’s an incredibly unpopular stance to take, even after an election — with eyes ahead to 2018.
“As part of this plan, Gov. Rauner wants to do a lameduck tax increase. He wants to raise taxes between now and Jan. 11,” Madigan said.
Rauner’s administration on Tuesday said Madigan is stalling — and pinned the tax hike back on him.
“Today the speaker refused to put forward a budget proposal and refused to commit to passing any budget whatsoever after December 31st,” Rauner spokeswoman Catherine Kelly said in a statement. “Republicans will not consider revenue without reform. Only Speaker Madigan has proposed raising the income tax.”
Rauner and Republicans point to Madigan saying last December that the state income tax rate should be raised back to at least 5 percent to help balance the state’s finances. Rauner has said he’ll only support a tax hike if it comes alongside reforms.
The leaders plan to meet again on Thursday.