Senate President Emil Jones is expected to ask lawmakers Tuesday to back a $24.6 billion capital-improvements plan that would be paid for by a major expansion of gambling, according to lawmakers briefed on the plan.
But Jones surprised Chicago lawmakers by proposing a short-term loan for the Chicago area’s struggling transit system rather than moving forward with a vote on a tax package that would raise $435 million a year for the Chicago Transit Authority, Metra and Pace.
The loan would be for $229 million, of which $200 million would go to Chicago-area transit agencies and $29 million to Downstate transit systems, said Sen. Donne Trotter (D-Chicago), Jones’ top budget expert. The agencies last week agreed to take a $91 million cash advance offered by Gov. Rod Blagojevich as a way to postpone what officials at the agencies called “Doomsday” service cuts and fare increases.
“We’re trying to take care of mass transit,” Jones said late Monday. “We’re trying to take care of everybody.”
The capital-improvements plan would be funded largely by three new casinos, including a land-based one in Chicago and two gambling boats elsewhere. Bidders would be required to put up a minimum of $800 million for the Chicago casino, though the city itself could buy a casino license for up to $40 million less if it acted quickly, according to a draft of the proposal. The city has long expressed an interest in owning a land-based casino.
The two boats would require minimum bids of $365 million. More one-time revenue would be provided by leasing up to 6,000 additional gaming positions such as slot machines at existing riverboats.
A City Hall source said Mayor Richard Daley has not signed onto the casino package, although he is studying it. The mayor has been open to a land-based casino in Chicago under the right circumstances, including an assurance that the city would get a share of the proceeds that would make hosting a casino worth the trouble. But the mayor has not signed on to any riverboat casinos.
On Monday, Jones huddled with Gov. Rod Blagojevich and Senate Republican Leader Frank Watson (R-Greenville) for more than an hour in Springfield over the transit-funding package. The alternative idea arose because Blagojevich has vowed to veto the larger transit bailout, saying he opposed the proposed sales tax increases in Cook and the five collar counties.
But Jones’ alternative idea was met with skepticism by Rep. Julie Hamos (D-Evanston), the chief sponsor of the transit-tax package in the House.
“It is very difficult for me to believe that the only immediate prospect for transit is a loan,” Hamos said. “As of last week, the transit system had to repay $91 million. It would be irresponsible to add another $200 million on top of that with the expectation that they could somehow pay it back — which we all know they could not.”
Under the governor’s proposed capital-improvements program, transit agencies would get $425 million in state funds to match $1.7 billion in anticipated federal grants.
But the vast majority of the $24.6 billion would go to other agencies. For instance, the Illinois Department of Transportation would get $15 billion in state, federal and local money for roads and bridges, with an additional $2.2 billion for new system expansion projects and $200 million for urgent bridge repairs. Local communities would get an additional $500 million for roads.
Another big chunk of money would go to schools, with $1.75 billion for construction and $150 million for a school-maintenance program worth up to $50,000 for each district.
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On Monday, Daley called on lawmakers to act on transit funding, and find money for school projects and infrastructure.
“There’s presently a plan there,” he said. “If people don’t like the plan, let’s get another plan. I think the governor realizes that.”
Sen. Christine Radogno (R-Lemont), the Senate GOP’s budget expert, said there is a consensus that a construction bill needs to move forward to help build schools, mass transit, roads and bridges. But she said the ultimate size of any casino package may be scaled back.
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