With no budget, Rauner repeats calls for pro-business reform

Republican Gov. Bruce Rauner used his State of the State address Wednesday to make another case for changes he says would make Illinois more competitive, even as he acknowledged that huge opposition from Democrats has prompted a record budget stalemate and crippled social services and other programs.

Rauner touched on many of the same agenda items he’s pushed unsuccessfully for the past year: imposing term limits on lawmakers, freezing property taxes and allowing local governments to strip unions’ collective bargaining rights.

He also attempted to show he’s taking a more bipartisan approach to 2016, saying again that he will back Democratic Senate President John Cullerton’s plan to overhaul Illinois’ worst-in-the-nation pension system and referencing Cullerton’s call for school funding reform in saying he wants to direct more money to classrooms.

“All of us in this chamber had a difficult year together in 2015 as we debated a budget with structural reform,” Rauner said. “But it is not too late for this General Assembly to make historic progress for the people of Illinois.”

But his roughly 40-minute speech made clear that the battle lines over a budget impasse about to enter its eighth month haven’t changed. And Democrats – almost all of whom refrained from joining Republicans in applauding the governor – were quick to criticize.

“Until I see substantive progress, my patience with this charade of cooperation has all but dissolved,” said Senate Assistant Majority Leader Kimberly Lightford, a Democrat from Maywood.

Rauner and Democrats who control the Legislature have been unable to agree on a budget for the fiscal year that began July 1.

Democrats want the governor to approve a tax increase to help close a roughly $5 billion deficit. Rauner says he won’t sign off on a tax hike until Democrats give him some of his “structural reforms.” Democrats have refused, saying those changes will hurt working families and drive down wages while helping Illinois’ highest earners get richer.

“In terms of finding new revenue, I’ve said consistently that I’m prepared to negotiate with the governor,” said Democratic House Speaker Michael Madigan. “But I do believe that as part of a revenue package that we ought to have increased taxes on the wealthy of Illinois.”

Rauner’s address received a mixed reaction from metro-east lawmakers.

State Rep. Jerry Costello II, D-Smithton, said: “Today, the governor made more bold pronouncements about his values and the strength of his resolve to make a mark on Illinois. The reality that we’ve seen is that this boldness is only translating into uncertainty for job creators and into pain for those whose health, housing, child care, education and livelihoods are at stake. College students are now staying home and looking for low-paying jobs and families are scrambling for care for children with autism, homebound seniors and loved ones with cancer.”

Costello added, “The collection of choices we make to end this impasse must prioritize spending for the best interest of middle-class families and our most vulnerable residents.”

Sen. Dave Luechtefeld, R-Okawville, said: “The governor has a tough job to do and I believe that most of his legislative items are do-able, only if Speaker Michael Madigan is willing to sit down and negotiate. I am afraid we will be in for a long, tough, hot summer because the speaker of the House is bound and determined to show Gov. Rauner who is boss,” Luechtefeld said.

Luechtefeld added: “It is going to take time to make Illinois what it should be, but we’re going to need a wider tax base, by employing more people. We have to create a situation that fosters business and people moving back into Illinois. Unless we make some changes to reform Illinois, there is simply no way to tax our way out of this fiscal nightmare.”

Rep. Dwight Kay, R-Glen Carbon, said Rauner’s plan will “help climb Illinois out of debt and jumpstart the economy.”

Kay added, “In light of the budget stalemate, the governor made it clear he is ready to compromise if the Democrats are willing to meet him halfway. He realizes the legislature does not agree on everything, however we should be able to come to an agreement on something. I look forward to working with the governor and my colleagues this session as we discuss a plan to provide property tax relief, term limits, and worker’s compensation reform.”

Sen. Bill Haine, D-Alton, said: “I appreciate the governor trying to be more bipartisan and acknowledge he is willing to work with us on some issues. However the fact is we are not paying our bills. College students are not receiving their financial aid, homebound seniors continue to suffer and mothers are lacking access to day care. I hope the governor is ready to sit down and engage in an open and constructive dialogue on these issues.”

Rep. Charlie Meier, R-Okawville, said: “Today the governor unveiled a plan to turn Illinois’ economy around and make us more competitive with other states. If we want to properly fund education and services for our most needy citizens, we have to get our economy to bounce back. I’m also looking forward to tackling important issues this session such as property tax relief and eliminating burdensome government mandates.”

Republicans applauded the governor’s speech, saying it struck a conciliatory tone. They blamed Democrats for the budget deadlock, which began after the majority party in May passed an out-of-balance budget, which Rauner vetoed. Democrats insist the governor could’ve vetoed only parts of it to reduce spending instead of dismissing it entirely.

“The fact is they gotta stop playing the victim,” said Republican House Leader Jim Durkin. “They put us in this position. They sent that ridiculous budget to the governor and I applaud the governor for vetoing it.”

Without a budget, social service agencies have had to close and thousands of college students aren’t receiving state grants to help pay for tuition.

Last week, Lutheran Social Services of Illinois announced that it would close 30 safety-net programs and lay off 750 employees because of $6 million in overdue bills from the state. The programs impacted include services for the homeless, mentally ill and seniors who need home care. Chicago State University has said that come March, it won’t be able to make payroll.

The governor also touted his efforts to “transform” state government, from overhauling health and human services to reducing the state prison population by 25 percent over the next decade by focusing more on rehabilitation rather than imprisonment.

He said he will use an executive order to create a private, non-profit office to recruit businesses and jobs to Illinois, after Democrats last year shot down his plan to turn the Illinois Department of Commerce and Economic Opportunity into a private-public partnership.

Rauner also called for holding schools more accountable through testing and offering low-income students more “quality school choice options.”

Illinois Federation of Teachers President Dan Montgomery ripped Rauner’s plan as “so-called education reforms” that won’t improve teaching or student success and said the governor has failed on his top responsibility – the budget.

“His calls for bipartisanship are difficult to take seriously, especially given his identical words last year and his unwillingness or inability to lead since,” Montgomery said.

Cullerton said he looks forward to working on a plan to address Illinois’ $111 billion pension debt, but said there are still “many disagreements” about other pieces of Rauner’s agenda.

“We’ve got to find ways to work together to solve problems, and we need to start now because Governor Rauner’s first year in office didn’t work for anyone,” he said.

Rauner noted that other places, including left-leaning states such as Massachusetts, have passed similar reforms and said he stands ready to work for a deal.

“To achieve a grand compromise, we must cast partisanship and ideology aside,” Rauner said. “We must break from the politics of the past and do what is right for the long term future of our state.”

This story was originally published January 27, 2016 at 4:25 PM with the headline "With no budget, Rauner repeats calls for pro-business reform."