CHICAGO - Illinois lawmakers plan to begin sending off bills that make up their $36.3 billion fiscal 2016 budget to Gov. Bruce Rauner next week, three weeks after they adopted the spending plan the governor labeled as "phony."
The Senate intends to release its budget bills next week, said representatives of state Senate President John Cullerton, D-Chicago.
Since lawmakers adopted a plan to spend about $4 billion more than Rauner proposed, tensions have risen between the freshman Republican governor and leaders of the Democratic majorities in Springfield with escalating attacks that have grown more personal.
"The governor has made clear for weeks that the budget passed by Speaker Madigan and the legislators he controls is unbalanced and unacceptable," Rauner spokeswoman Catherine Kelly said in an email. "While the governor has compromised repeatedly, it's disturbing that majority party legislators continue to reject reasonable reforms and a balanced budget. If they have any interest in real reform and a responsible budget, there is no reason a deal can't be reached before July 1."
Rauner could outright veto the plan or use his line item powers to cut some spending. Unless a compromise can be reached over the next 10 days, the state could enter the new fiscal year without a budget plan as Rauner has said he opposes simply passing a temporary plan, for say one month, to give negotiations more time. That's been a tactic used in the past when governors and lawmakers could not settle their differences before the start of the fiscal year.
Democrats enjoy a super-majority in the both chambers so could attempt to override any vetoes, but it's unclear then how the state would come up with all the revenue needed to fully cover more than $36 billion of spending that lawmakers concede is more that the state expects to collect.
Rating agencies are watching closely and have warned that the failure to strike a plan that helps stabilize state finances and doesn't add to the state's structural imbalance is crucial to staving off further deterioration in its rating that is already the lowest among state at A-minus levels.
Rauner recently launched a television advertising campaign to build public support for his position. The ads target House Speaker Michael Madigan, D-Chicago.
Rauner wants lawmakers to tackle a local property tax freeze, tort and worker's compensation reforms, term limits and redistricting changes before he considers tax hikes. Madigan accuses Rauner of taking an "extreme" position in pushing the policy issues as part of the budget.
Rauner's administration also has been laying out planned cuts, some already being implemented and others to be implemented next month if no budget is in place, that total more than $800 million.
The state comptroller has warned most payments will grind to a halt without a new budget in place. Debt service on state bonds would continue to be made under an ongoing appropriation.
Lawmakers are also still holding on to a bill that provides Chicago with relief from a $550 million spike in its public safety pension contribution coming up next year by extending the amortization schedule to reach a 90% funded status.
