Capital needs, transit still priorities

Illinois legislators, nearly two months into their longest overtime session ever, are showing small signs of movement on their budget deadlock -- but only small signs.

One clear advancement came with lawmakers' consensus on an electric rate relief deal. This agreement could mean that downstate legislators, whose constituents were hit hardest by higher rates, will now be more amenable to resolving other issues.

Still, the roadblocks to settling other key issues remain daunting.

Various leaders continue to push hard for increased spending on health care and education. But if additional dollars are spent, the priorities should be 1) a capital bill to pay for school construction, transit and highways, and 2) an infusion of operating revenue for transit agencies.

The latest hot idea for capital funding is boosting the state cigarette tax by as much as 90 cents per pack -- which might not raise as much cash as legislators estimate. As State Editor John Patterson notes in a story today, cigarette taxes traditionally have raised significant new money at first only to fade as smokers either quit or find cheaper ways to buy. And at $8 a pack, with this tax hike, more smokers surely would quit or buy on the Internet. Add in the likelihood that the upcoming statewide smoking ban will further diminish tax receipts, and it's clear that funding for capital spending is far from a done deal.

A separate legislative piece that would provide transit agencies with needed operational funds has been improved by a formula change that would shift more revenue to Metra and Pace. Which might not matter much, as Gov. Rod Blagojevich says he'll veto the sales tax that would generate that money.

The governor, meanwhile, continues to insist that no one will leave Springfield until legislators OK new health-care spending. If that's the case, then lawmakers should prepare to dig in.

Granted, Blagojevich has scaled way back his original $3 billion-a-year plan, offering now a $1 billion-a-year program that would cover fewer people. This plan, instead of relying on funding from a gross receipts tax, would draw from a 3 percent payroll tax on businesses that do not spend at least 4 percent of payroll on health coverage.

While the governor merits credit for his willingness to compromise, problems remain here. One is that a payroll tax on small businesses -- only very small businesses would be exempt -- still could prove a burden for those operating on tight margins.

More basic, though, is that there's still little sign that expanded health care is a top legislative priority for most Illinoisans. The governor touts one poll claiming that it is residents' highest priority. But even he acknowledges that he doesn't have the Senate votes to pass his health-care plan during an overtime session, when extra votes are required. He's saying, then, that implementation could be delayed until next fiscal year, which could be accomplished with a simple majority vote now.

But that raises the question: If there's so much public support for a major expansion of subsidized health care, where are the votes in the Legislature?