House Speaker Madigan Drops Pension Proposal after GOP Objections

</element><element id="paragraph-1" type="body"><![CDATA[A day of bitter accusations and a confrontation between two legislative leaders ended with the Illinois House approving a new budget and moving closer to a deal on reducing the state's massive annual pension bill.

House Speaker Michael Madigan had two remarkable moments Wednesday.

First, the normally calm and soft-spoken Democrat raised his voice in an angry response to criticism from the Republican side of the aisle.

Later, he agreed to give the Republican minority what it wanted. Madigan announced he was dropping a proposal to make schools and colleges help pay pension costs for their employees. He even handed control of the pension legislation to House Minority Leader Tom Cross to handle as he sees fit.

A House committee is scheduled to consider the pension issue Thursday morning. It could approve a plan to cut annual cost-of-living increases for government retirees, an idea opposed by unions but likely to find enough support to pass the General Assembly.

The budget approved by the House Wednesday night, mostly along party lines, appears to be stingier than one that passed the Senate last week.

That puts Senate Democrats on the spot. They can agree to a House budget that cuts education and social services or they can turn it down and risk a summer-long stalemate that might produce an even tighter budget.

If a budget isn't approved by midnight Friday, the legislative rules change and it will take a super-majority to pass a spending plan.

Sen. Terry Link, D-Waukegan, predicted the Legislature would adjourn on time. He also said he expects a vote Friday on a major gambling expansion.

Originally, House Democrats and Republicans worked together on a possible budget and seemed to be doing the same on pension cuts.

Then Madigan released a surprise pension proposal that would make schools and colleges responsible for their employees' future retirement costs.

Republicans called Madigan's pension move a betrayal.

They accused Democrats of bargaining in bad faith and padding the state budget. They tried to halt debate with parliamentary maneuvers and charged that Democrats cut diabetes funding to punish Republican lawmakers whose children suffer from diabetes.

They challenged Madigan to explain himself - an unusually personal approach in a chamber that gives great deference to the powerful speaker.

Visibly angry, Madigan suggested Republicans were opposing the budget they helped draft because they aren't getting their way on pensions.

''Thank you very much for your interest,'' he snapped at the Republicans who had demanded an explanation.

Minority Leader Tom Cross, R-Oswego, then pressed Madigan on whether he would allow legislators to consider a version of the pension plan that won't hit schools with new retirement costs. He didn't get a straight answer.

''I'm not going to offer you any predictions,'' Madigan said.

But a couple of hours later, Madigan announced he was dropping the idea of a pension shift. He said he was doing it at the request of Democratic Gov. Pat Quinn.

''He agrees with you. He agrees with Republicans,'' Madigan said. ''I disagree with the governor, but he is the governor.''

Pensions have been one of the top challenges during the legislative session.

The state is obligated to contribute an increasing amount of money each year to retirement funds for public employees. The obligation chips away at the rest of the state's needs, so officials are trying to change the payment schedule.

One way to justify smaller contributions would be to reduce the annual 3 percent cost-of-living increase for retirees. While public-employee unions object, the idea seems to have solid support in the Legislature.

Another way is to make schools, universities and community colleges gradually take over the retirement costs the state now pays. That's what triggered such strong opposition when Madigan pushed it through committee with little notice.

In addition to addressing pensions, the Legislature also has to pass a state budget - one that is likely to cut most programs because of climbing expenses and stagnating revenues.

The House version includes money to operate prisons in Dwight and Tamms that Gov. Pat Quinn had proposed closing. Democrats said that money was restored partly to appease Republicans, and Madigan cautioned that Quinn would still have the authority to close the prisons if he wants.

The budget also includes money for mental institutions and developmental centers Quinn plans to close as he emphasizes community-based care. He could still go forward with that shift in policy and use the money to support community care.

The House has approved legislation allowing a land-based casino in Chicago, four more on riverboats in various cities and slot machines at ailing horse racing tracks. The measure still needs approval in the Senate, which has backed similar plans before.

But Quinn remains opposed to an expansion that includes slot machines at race tracks.