FLASH: Administration sources, RTA Chairman Jim Reilly and House Speaker Michael Madigan all claim the federal government has approved the governor’s temporary mass transit bailout proposal.
* CTA calls off “doomsday”
* Blagojevich again calls for capital plan in conjunction with transit deal
* Raw audio of the governor’s press availability from Metro Networks…
* The governor wants a leaders meeting on Tuesday
* “BIMP” bill expected to be on governor’s desk by the end of today
Scroll down for more info.
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* 10:10 am - The House’s nine o’clock session is about to start. Listen here.
* 10:46 am - Transit fare hike on the way? From WBBM Radio…
Senate Republican leader Frank Watson (R-Greenville) wrote RTA Chairman Jim Reilly this week that “a modest and reasonable fare increase for riders who benefit must be part of the solution.”
In his reply, Reilly wrote Watson, “Certainly if the Governor and four leaders agree on that approach we would most definitely implement it.”
How much, or when, the fare hike would occur is unclear.
RTA Executive Director Steve Schlickman reiterated that position Thursday.
“If the legislature decides to actually mandate a specific fare increase for next year, obviously we will adhere to that,” Schlickman said before leaving for Springfield to join Reilly and CTA President Ron Huberman, in making last-minute pitches for votes.
You can read Chairman Reilly’s entire letter to Sen. Watson here.
* 11:30 am - I’m not sure if we had this here or not. From Hiram’s blog…
Yesterday’s Daily Journal reports that Robert Gorman will be dropping out of the 11th District Democratic Primary, leaving Illinois State Senator Debbie Halvorson uncontested in the primary to succeed outgoing Congressman Jerry Weller.
*** 11:38 am *** The Tribune has some details of the governor’s proposed temporary transit bailout proposal and react…
Seeking to avert a transportation “Doomsday,” Gov. Rod Blagojevich today authorized a direct grant to the Chicago Transit Authority and Pace for $27 million to maintain operations until the end of the year, according to a letter he sent to lawmakers today.
Blagojevich made clear that the short-term funding is not a loan. “It is new money we are providing them to keep serving their riders,” he wrote. […]
CTA Chairman Carole Brown said the governor had offered $21 million to her agency from a federal grant for capital expenditures.
But she said it was not yet clear if the federal government would allow money that is supposed to go for capital expenditures to be diverted to operating expenses.
The governor also sent a letter to House members regarding this proposal. Read it here.
* 12:57 pm - The Commission on Government Forecasting and Accountability’s monthly state revenue report is out. Read it here.
* 1:42 pm - I meant to post something about this and got distracted. From the AP, the House has passed a BIMP bill…
In another twist in the state budget drama, the Illinois House has approved legislation to spare schools from financial hardship.
The measure authorizes spending about $550 million in additional education money. It passed 111-0 and now goes to the Senate, although there’s no guarantee the Senate will act soon. […]
That measure has been held up for months amid arguments between the House and Senate.
* 1:47 pm - From a brief House debate on transit today…
On the House floor, Rep. Julie Hamos (D-Evanston), who leads the House mass-transit committee, said she understands the governor’s proposal would take “leftover” money available from a bond fund. Because bond funds are usually used for things like buying buses or construction projects, there are technical questions that must be reviewed and approved by federal officials before the money can be used by the transit agencies, she said.
“I personally wish the governor might have checked with them first,” Hamos said. “That would have been better. But we’re waiting . . . because I think this whole ‘Doomsday’ scenario depends on this one critical fact.”
* 2:04 pm - I just talked to a House Democrat from Chicago who made a pretty good point and gets our “Quote of the Week” award…
“We’re waiting on a Republican administration in Washington, DC at 3 o’clock on a Friday afternoon to bail out a Democratic governor.”
* 2:09 pm - Despite the above pessimism, a Blagojevich spokesperson just claimed that progress was being made in the negotiations.
* 2:19 pm - Man, this is like watching paint dry on a bomb that’s about to explode.
*** 2:23 pm *** Two administration sources claim the federal government has approved the governor’s short-term bailout plan. An official announcement is expected shortly.
*** 2:25 pm *** RTA Board Chairman Jim Reilly just told reporters that it’s a done deal.
*** 2:27 pm *** House Speaker Michael Madigan is speaking on the floor of the House about the temporary bailout plan. Listen here.
Madigan confirmed the above reports. Madigan will adjourn the House today. Madigan said he and Tom Cross have already met today on the gaming and capital plan and will meet “quite frequently” over the next seven to ten days to work out a final deal.
Madigan said the House will not meet Monday.
Madigan: The governor will transfer $27 million of Series B bond money to RTA. It will then offset the use of federal capital money for operating purposes, which they’ve been doing for a few years.
*** 2:40 pm *** Governor Blagojevich will hold a news conference outside his office at 2:50.
*** 2:58 pm *** Statement from RTA Board member Judy Baar Topinka, who ran against Gov. Blagojevich last year…
“To give him and the leaders yet another extension is just to give them more time to waste. I can’t believe that he has allowed the issue to come to this when there was plenty of time to straighten it out early on. To make people dependent upon public transportation ride this roller coaster of they have a bus, they don’t have a bus, is really insensitive and sad as it leaves nothing but anxiety and fear out there. He didn’t have a transportation component in his campaign, he has no plan now.”
*** 3:10 pm *** CTA says no doomsday…
“We are not moving forward with the service cuts and fare increases,” Karen Rowan, the general counsel for CTA, told reporters Friday afternoon.
*** 3:11 pm *** Blagojevich statement…
Governor Rod R. Blagojevich announced this afternoon the Chicago Transit Authority and Pace accepted a $27 million direct grant to maintain operations until the end of the year. The short-term financial assistance package will ensure that transit riders in the Chicago area will be able to continue relying on the service they need while lawmakers work to pass a plan that provides long-term funding for mass transit as well as funding for infrastructure projects statewide.
“Now that the CTA and Pace accepted the $27 million in short-term assistance I authorized today, transit riders in the Chicago area will be able to continue relying on the service they need while we continue our negotiations on a plan that will ultimately result in stronger and safer roads, bridges, schools and mass transit systems across Illinois,” said Governor Blagojevich. “There is general consensus that a mass transit plan for the Chicagoland region should be passed in conjunction with a capital plan that would meet infrastructure needs across the state. The leaders believe that this can be completed in the near future.”
The $27 million grant will come from state transportation capital funds. $21 million will be directed to the CTA and $6 million to Pace. The additional state capital funds will free up allocated federal capital money that can then be used for operational needs related to preventative maintenance and para-transit. The transit agencies have used federal capital funds for preventative maintenance and para-transit operations in the past. By replacing the converted federal capital money with State capital money, there will be no loss to either CTA or Pace’s capital plan.
*** 3:22 pm *** Tom Cross…
House Minority Leader Tom Cross (R-Oswego) said the stopgap funding is “in the interest of preventing a shutdown.”
“This may not be the best solution, but it is what is here and now and available,” Cross said.
*** 3:30 pm *** Raw audio of the governor’s remarks, kindly provided by the fine folks at Metro Networks…
*** 3:32 pm *** The governor did not answer questions, but says he’s invited the four legislative leaders to a Springfield meeting next Tuesday at 11 am.
*** 3:52 pm *** The Senate Executive Committee has passed the BIMP bill. The full Senate is expected to pass it later this afternoon. Exec is discussing mass transit now and then the full chamber will meet. I’m told that’ll be in about 45 minutes or so.
*** 4:25 pm *** The Senate is convening. Listen here.
*** 4:32 pm *** The BIMP passed the Senate without debate.
*** 4:34 pm *** The Senate has adjourned.