Politics                                                             

Making deals Illinois-style Session ends with everyone getting at least a consolation prize By CHARLES N. WHEELER III

As fans of daytime television know, game-show contestants rarely walk away empty-handed. They may not win the grand prize, but for their trouble they can count on a consolation gift or two.

In similar fashion, all those who participated in the Statehouse version of "Let's Make A Deal" this spring came away with something to show for their efforts. The major players, of course, were Gov. Jim Edgar and the four legislative leaders, who painstakingly assembled a blockbuster budget deal, then sold it to enough rank-and-file lawmakers to wrap up the spring session.

Indeed, the budget compromise was so thoroughly negotiated that Edgar was able to sign the spending plan without change — the first time that's occurred since the 1971 Constitution granted the chief executive much stronger veto powers.

"There's no changes, no reduction vetoes, no item vetoes, the governor said at a signing ceremony in his office. "That is significant because it underscores the fact. . . that this is a good budget. . . that was a compromise."

The veto-less budget was not the only noteworthy aspect of the spring session. Even more significant was the political ascendancy of Chicago's suburbs, after a decade-long shift of population away from the central city and downstate and into suburban Cook and the collar counties of DuPage, Kane, Lake, McHenry and Will.

The die was cast for suburbia to flex its muscles two years ago, when Secy. of State George H. Ryan pulled the name of state Republican Chairman Albert M. Jourdan from a crystal bowl to give the GOP a one-vote majority on the commission that drew new legislative districts in the wake of the 1990 census.

Reflecting the demographic changes in the Chicago area, the Republican map shifted five Senate and eight House seats to the suburbs from the city. As a result, the 88th General Assembly marked the first time in state history that more lawmakers came from suburban-based districts than from districts rooted either in Chicago itself or in the 96 downstate counties.

The new suburban districts helped Republicans win control of the Senate for the first time in 18 years, greatly strengthening Edgar's hand in the legislature. The 32-27 GOP margin assured a favorable reception for administration initiatives, but even more importantly, guaranteed that the governor would not be blind-sided by partisan legislation rammed through last-minute conference committees. Besides its partisan implications, the growing suburban strength made itself felt as well on the budget and on other key issues, from tollways to tax caps. Also at work in the dynamics of the session were the early stirrings of Campaign '94, as Edgar and his potential Democratic rivals sought to position themselves for the coming race.

As the no-veto budget suggests, one could argue that the session's biggest winner was the Republican governor

It was against this dual backdrop — a suburban surge and a looming election — that the session played itself out. And as the no-veto budget suggests, one could argue that the session's biggest winner was the Republican governor.

Consider the budget itself. When all the wrangling was over, Edgar's initial spending plan was pretty much intact. In fact, only about $205 million in general funds spending was in dispute, out of a

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$30 billion proposal, about $14 million in general funds. In essence, the governor received about 98 percent of the spending authority he requested.

In addition, on perhaps the most vexing of the fiscal issues, he won a two-year Medicaid assessment program that should put the question of financing health care for the poor on the back burner until after the 1994 election.

Granted, the nursing home portion of the program relies on a 14-cent-a-pack increase in the state cigarette tax, clearly contrary to Edgar's 1990 campaign pledge to oppose higher taxes. But the governor already crossed that bridge last year, when he sought to raise both tobacco and liquor taxes under the guise of user fees. And the tobacco taxes were critical to a financing package that replaced the so-called "granny tax," a $6.30-a-day levy on nursing home beds that was passed on to private-pay patients.

The tobacco taxes are "a much fairer mechanism to fund this program," Edgar said. "Instead of having senior citizens have to pay, we now will assess smokers, and I think that's the appropriate approach, because there definitely are health problems caused by smoking."

Democrats also accused the governor of breaking his no-new-tax pledge after the income tax surcharge was reinstated some two weeks after it expired. Semantically, the critics may be correct, but voters may not be swayed by the argument. Edgar campaigned on making the surcharge permanent, and as the governor noted, renewing the tax rates of 3 percent for individuals and 4.8 percent for corporations didn't raise anyone's taxes. "This is the same amount that people were paying last year that they'll be paying this year," he said.

At the same time, the state's fiscal condition seems to be improving; revenues for fiscal 1993 actually came in slightly higher than the governor's Budget Bureau estimates, and the budgetary deficit is projected to drop again in 1994, after reaching an all-time high of $887 million in 1992.

Even an apparent setback on tax relief may turn out to be a plus for the governor. Democrats once again stymied Edgar's effort to cap real estate taxes statewide, but as part of the budget deal, agreed to put the tax cap issue to an advisory referendum in Cook County at the November 1994 general election.

Although the vote will be nonbinding, Republicans are confident the issue will swell turnout in suburban bastions of GOP strength, boosting Edgar's anticipated bid for a second term. Pushing hard for that tax cap referendum was Senate President James "Pate" Philip (R-23, Wood Dale). "That's going to pass, it's going to turn a lot of voters out — our kind of voters — and I think it's going to be a great help to the governor," said Philip. In addition, a heavy turnout of GOP-leaning voters would provide a welcome boost for Republican legislative hopefuls facing incumbent Democrats in suburban Cook County.

Besides the tax cap referendum and elimination of the granny tax, Philip and House Minority Leader Lee A. Daniel (R-46, Elmhurst) successfully championed a suburban agenda that included new suburban tollways, more money for suburban schools through boosted spending for categorical grant programs like special education, a package of tax breaks for manufacturers intended to spur economic growth, and an elected regional schools superintendent for suburban Cook County.

Philip also demonstrated more forceful leadership than some expected when he convinced his 31 fellow Republican senators to join him in passing a budget proposal that included a permanent surcharge and higher tobacco taxes. While the plan was dead on arrival in the Democratic House, the Senate vote served to rejuvenate the flagging budget talks.

Philip also worked well with Edgar, despite early speculation about a growing rift in Republican ranks. The veteran DuPage County lawmaker ensured enough support among GOP senators to make the surcharge permanent and to enact the new Medicaid assessment program, neither high priority items for most rank-and-file Republican lawmakers.

Although Philip's hopes for a May 28 adjournment proved to be "Pate's Impossible Dream," as an enterprising T-shirt company proclaimed, it's not the sort of failure that voters are likely to remember. And when budget negotiations forced the session into 13 days of overtime, public attention was focused on the rising Mississippi River, headed toward record flooding, rather than on lawmakers unable to finish their business.

While Republicans relished their new role as full partners in the legislative process, the session was a time of adjustment for Democrats. After a decade of holding both chambers against a GOP governor, now only one-third of the legislative equation is in Democratic hands, noted House Speaker Michael J. Madigan (D-22, Chicago). "What that means for the Democrats in the House and my leadership is that you have to identify and protect your vital interests first, and then look for legislative opportunities to leverage or link matters so that you can accomplish some of your goals," he said. "It is a dramatic change from the situation where the Democrats controlled two-thirds of the equation and were able to move certain bills onto the governor's desk .... Now, your posture is almost completely defensive."

Outgunned though he may have been, Madigan still managed to win for Chicago and other local governments a prize that had eluded them for years —

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Politics                                                             

a larger slice of the state's income tax pie. In return for accepting some $125 million less in surcharge proceeds this year, cities and counties are in line for a larger share of income tax receipts in the future. Since 1969, municipalities have been cut in for one-twelfth of the take. Under the surcharge deal, the local government share increases to one-eleventh next year and one-tenth in fiscal 1996, a 20 percent hike that continues forever.

Madigan still managed to win for Chicago and other local governments a prize that had eluded them for years — a larger slice of the state's income tax pie

Looking out for City Hall's interests has always been one of Madigan's main concerns, of course. In addition to the surcharge deal, the city received renewed authorization for a package of home-rule taxes worth about $40 million and a state commitment to provide $17 million this year for city mental health clinics and crime and public health laboratories. "The administration and the governments of the city of Chicago received a good deal of help from this session of the General Assembly," observed Madigan. Perhaps the toughest leadership job this session, however, was that of Senate Minority Leader Emil Jones Jr. (D-14, Chicago), whose troops were dubbed at one point "the raucous caucus." Even as a majority, Senate Democrats over the years have been a quarrelsome bunch, and some veteran senators seemed shell-shocked at being in the minority for the first time in their long careers.

But Jones united his disparate members in response to the spending plan rammed through by Philip's forces, eventually forcing virtual line-by-line agreement on the budget before the session could end. In the bargaining, Jones garnered $84 million in relief for Chicago's financially strapped public schools and won a small increase in some welfare grants despite strident initial opposition from Philip and other GOP senators.

"I believe we had a tremendous victory for my Democratic caucus," said Jones. "We were able to work on the budget, we were able to forge more money for education across the state of Illinois, we were able to save programs to help the needy people in this state, so we did achieve our endeavour."

With both Republican leaders from DuPage County and both Democratic leaders from Chicago, some downstaters complained their interests were not being represented in the budget negotiations.

Just like a good game show, however, the final agreement included something for those outside the Chicago area. For example, the budget pumps $67.5 million more into general state aid for the 1993-94 school year than for last year, and downstate gets the lion's share under the school aid formula, doing much better than either Chicago or the suburbs.

Moreover, expectations are high that some downstate community will get the new, $60 million super-maximum security prison authorized this spring to house the state's worst inmates — it's been 73 years since Stateville Correctional Center opened near Joliet, the last prison built in the Chicago area.

In addition, the Medicaid assessment plan exempts hospitals in rural areas from the hospital tax, yet many will benefit from the higher reimbursement rates made possible by the financing program.

Just as there's often a grand prize that eludes contestants on game shows, lawmakers left town with a pair of big-ticket items unclaimed — riverboat gambling in Chicago and a bailout for city schools. Look for those prizes to be awarded in a special session of Springfield's "Let's Make A Deal." *

Charles N. Wheeler III is director of the Public Affairs Reporting program at Sangamon State University in Springfield and a former correspondent in the Springfield Bureau of the Chicago Sun-Times.

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