Legislative Action By NORA NEWMAN JURGENS

Session agenda: debts and deficits

THREE MONTHS into the new session, the Illinois General Assembly has been spending about as much time reacting to a series of political events as it has been acting on government business. On top of the normal work load of bill drafting, introduction and hearing in committee, the members have had to deal with the following:

• The $60 million interest payment due on the state's $2 billion unemployment debt.
• Gov. James R. Thompson's $1.87 billion tax increase package, presented February 8.
• Thompson's 1984 bare-bones budget proposal, March 2.
• A court challenge to Thompson's 1983 $159 million budget cuts, which the legislature gave him the power to make. The Illinois Supreme Court on March 2 upheld the power.
• And last, but not least, the surprise victory of Congressman Harold Washington (D-1, Chicago) in the Chicago mayoral primary on February 22.

Washington squeaked past incumbent Mayor Jane Byrne — and Cook County State's Attorney Richard M. Daley — in the Democratic finale to a hotly contested three-way race. House Speaker Michael J. Madigan and Senate President Philip Rock immediately pledged to support Washington, who will face Republican Bernard Epton in the April 12 election.

It will be interesting to see if the Democrats will close ranks behind Washington. Everyone speaks highly of his political talent, and it is evident that the legislative leadership is aware that Washington knows as much about the system as they. While he will be easy to work with because of that, at the same time, they know he will not be easily manipulated.

Washington served in the House for 14 years, leaving in 1977 to run unsuccessfully for mayor against Michael Bilandic. He was elected to the state Senate in 1978, where he remained until his election to Congress in 1980. Epton, who was also in the House for 14 years, is an insurance lawyer and is chairman of the Illinois Insurance Laws Study Commission.

Although attention has been focused on the mayoral race, the other problems continue to plague lawmakers.

By the time the voters go to the polls April 12 in Chicago, Madigan, Rock — and Thompson — hope to have a solution to the state's growing unemployment insurance debt. Illinois owes $2,167 billion to the federal government. Of that, a $60 million interest payment is due from general revenues in the next fiscal year. If nothing is done to reform the system, the state will owe $150 million a year in interest by 1985, according to the Bureau of the Budget.

Madigan, Rock and Thompson have been attempting to reach an agreement with business and labor leaders on legislation to reform the state's unemployment insurance law. The last major reform, back in 1981, increased employer taxes $240 million and decreased employee benefits $260 million. The leaders apparently hope a similar "agreed" bill can be passed by April, so Thompson can lobby Congress for a delay, if not a waiver of the interest payment.

Although the legislative leaders seem determined to solve the unemployment compensation problem, they have not shown the same enthusiasm for Thompson's tax increase package. In his February 8 State of the State message, Thompson told the legislators that a $1.8 billion increase in revenues is needed in the next fiscal year if the state is to meet its spending obligations, as well as any increases in funds for programs.

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Rock and Madigan have said they prefer a temporary income tax surcharge hoping that the economy will eventually recover enough to boost revenues by 1985. There has even been some talk that the legislature may come up with a budget of its own.

As of this writing, on the eve of the Budget Message, Republican legislators were not exactly standing in line to support Thompson's tax plan.

At the same time plans were being made for the 1984 budget, problems continue with the 1983 budget. The Illinois Supreme Court ruled constitutional the budget cuts made by the governor under the legislature's Emergency Budget Act, passed in December. The consensus was that if the high court had ruled against Thompson, the legislature probably would have passed a series of bills to specifically authorize the cuts.

In the case, Burl v. James R. Thompson, the Supreme Court had temporarily blocked Thompson from making $54.6 million in public aid cuts. The status of the remaining $104.4 million in cuts had been unclear when the high court took the case in February. (The written opinion from the court was to be available in mid-March.)

Meanwhile, the House and Senate have been proceeding with the regular business of getting organized and setting deadlines for acting on bills. While the House settled on permanent rules in January (see "Legislative Action," March, page 26), the Senate has been going at a more leisurely pace. There was no cutback in membership like in the House, and the same party remains in control. Leadership teams have been set up, and committee assignments made (see below), but the senators were not scheduled to consider permanent rules until after the governor's Budget Message March 2.

For the first time in several sessions, the House and Senate have consolidated their deadlines. All bills are to be introduced in the house of origin by April 15. Committees will report on substantive bills by May 6, with appropriations bills to be reported on by May 13. Third reading of bills in their respective house will be by May 27, when the House will send its bills to the Senate, and vice versa. The second set of deadlines is as follows: Committees have until June 10 to report on substantive bills, with appropriation bills due out by the 17th. Legislators will consider all bills on third reading June 27. □

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