May 28--On a single day in May more than a quarter century ago, House Speaker Michael Madigan used his power to pass a state income tax increase entirely with Democratic votes and without any foreknowledge by Republican lawmakers or a GOP governor.
"It is bold. It's audacious. And it might even be diabolical," then-Gov. Jim Thompson said of Madigan's move.
That's back when Illinois politics -- and the campaign cash and rhetoric surrounding it -- were a much tamer game between Democrats who ran the legislature and Republicans who controlled the governor's office.
Fast forward from 1989 to 2016. This time, Madigan, the longest-serving state House speaker in the nation's history, isn't preparing a tax increase. It's an election year, and he wants to keep his Democratic majority.
Instead, in a surprise move last week, he and his members muscled through the House a state budget proposal that would pump hundreds of millions of dollars into education, much of it for Chicago Public Schools, and provide cash to neglected social service agencies and universities, but spend $7 billion more than what the state is expected to bring in.
Amid a historic stalemate about to reach its first anniversary, Madigan's spending plan represents a big-stakes political game of dare -- not only for first-term Republican Gov. Bruce Rauner, but also for Democrats across the capital under Senate President John Cullerton, a former Madigan protege.
The question ahead of Tuesday night's adjournment deadline is whether Cullerton dares to tell Madigan no, gets the speaker to make changes or persuades reluctant Senate Democrats to knuckle under. That last option is usually how it goes this time of year in Springfield.
For Rauner, the dare is that vetoing such a budget could leave the state without school funding and parents nervous about whether classrooms will reopen once summer vacation ends.
What's the betting line at the Capitol? As lawmakers left town Friday afternoon for a quick Memorial Day break, with plans to return Sunday, some were inquiring whether Rauner already had called for a post-Tuesday special session of the General Assembly.
In a Statehouse filled with enmity on many fronts, Rauner did little to soothe passions Friday afternoon when he vetoed a measure to stretch the payment schedule for Chicago police and fire pension funds, a move that could lead to another big property tax hike for city residents.
Rauner said by not meeting current pension funding requirements, Mayor Rahm Emanuel was "kicking this can down the road" at a price tag that was "truly staggering."
The Democratic mayor issued a stinging rebuke of Rauner, a former vacation buddy and business partner, saying the Republican "just told every Chicago taxpayer to take a hike" and accusing him of "shaking down Chicago residents" and "using them as pawns in his failed political agenda."
The veto and its effects on city finances created more final-days tensions for lawmakers, coupled with the money troubles of the city's public schools, amid the ongoing battle between Rauner and Madigan that's the underpinning of a state impasse that goes far beyond the lack of a budget.
The governor has called Madigan "corrupt" and has pledged to use his personal wealth and that of his friends to erode Madigan's power and Democratic control of the legislature.
Rauner's agenda includes items to loosen collective bargaining rules and make it harder for workers to claim job-related injuries. That affects major sources of Democratic campaign cash -- labor unions and civil liability attorneys -- and has been rejected by Madigan. Rauner, a former private equity investor, has made approval of agenda items a condition for considering tax increases needed to balance any future state budget.
While the Republican governor has continually spoken of his optimism toward reaching a "grand compromise" by Tuesday, Madigan's budget proposal and actions Friday suggested otherwise. A closed-door meeting of the four legislative leaders and the governor, ostensibly to hash out differences and clear obstacles, lasted less than an hour.
"We sent a budget to the Senate that does not engage in hostage-taking. We're not going to hold hostage people who need education, need health care, need social services. We're not going to do that," Madigan said on his way out of the meeting, adding once again that Rauner "continues to fail to persuade" lawmakers of the need for his agenda items.
Madigan's budget plan is an attempt to dare Rauner to veto it in its entirety -- particularly provisions to give all school districts more money next year, including several hundred million dollars to CPS, which faces huge budget cuts without an influx of state cash. Such a veto could endanger many schools from opening in the fall. Last year, Rauner vetoed a Democratic-passed budget short on revenues, except for the portion funding grade and high schools, for precisely that reason.
But for Rauner to even have the chance to break out his veto pen, something his aides have emphatically stated he will do, the Madigan plan must be approved by the Democratic-led Senate under Cullerton. And at this still-fluid stage, Senate Democrats want to move forward with their own plan.
Cullerton on Friday floated the idea of a short-term state budget to get lawmakers past the November election and to encourage further discussions among legislative working groups on Rauner's agenda.
"Between now and the end of the fiscal year there might be universities closing. So we would provide for an agreement where they'd have spending authorization.... That would be something we'd give the governor, he'd agree to sign it, so that he can continue to make payments, for example, so we don't have a total meltdown of government," Cullerton said.
But Madigan's spokesman said the speaker isn't willing to be a partner with Cullerton on the short-term spending bill.
Senators also spent Friday approving two education-related measures, one that would allow the Chicago Board of Education to boost property taxes and provide additional state funding to the district, but it was unclear whether the House would consider them.
Democratic Sen. Daniel Biss of Evanston acknowledged there are divisions in his party.
"Of course, there's not unanimity (among) Democrats, but I don't think we should make this a personal fight about this Democrat has to buck that Democrat, this person is corrupt, this person isn't. Let's just try to figure something out, man," Biss said.
The bickering, while somewhat traditional at the end of session as Madigan has sought to dictate the state budget process, is being encouraged by Rauner, who has sought to exploit a divide-and-conquer strategy among rank-and-file Democrats toward their leaders.
"They may have to push or stand up to their leaders who may not want to get reform now, who are resisting, but they can do the right thing, stand up and vote for reforms to get a balanced budget and get reforms to protect our taxpayers and protect our economy," Rauner said of individual Democratic lawmakers on Friday.
"We'll never give up, we've got to stay persistent," said Rauner, who stopped to take a selfie with a seventh-grade class from Logan Square before addressing reporters.
Democratic leaders had expected a similar rank-and-file exodus on the Republican side due to Rauner's positions. Last week, seven Downstate GOP House members who have heavy public labor-union representation, sent a letter to Rauner and the American Federation of State, County and Municipal Employees, urging a return to the bargaining table on a new union contract for state workers. The Rauner administration has asked the state labor relations board to determine that talks with the union are at an impasse.
In the end, Senate Democrats may try to advance the short-term budget Cullerton backs, a salve to his members who feel too much of the budget is being dictated by Madigan. But the speaker already has deemed it to be a nonstarter in the House.
That leaves Madigan's ultimate dare -- the bet that despite their distaste, Senate Democrats will realize they are left with no other choice but to pass the House Democratic budget plan as the last viable option, even with the Rauner administration's veto threat.
Rep. Elaine Nekritz of Evanston was one of a few House Democrats who voted against Madigan's budget plan, saying she thought there was still time to develop a comprehensive balanced budget. But, she said, "If that bill came up May 31st, I might feel differently about it."
Chicago Tribune's Celeste Bott contributed.
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