Madigan offers wish list in exchange for Rauner’s property tax freeze

June 26--After years of railing against Republican Gov. Bruce Rauner for making several "non-budget" items a prerequisite to a spending agreement, Democratic House Speaker Michael Madigan announced Sunday he's come up with his own demands if there's to be a deal.

The veteran speaker wants Rauner's signature on legislation to overhaul how the state doles out money to schools, a bill the governor has vowed to veto, saying it amounts to a bailout for Chicago Public Schools. Madigan also wants Rauner's approval of a bill to regulate rates set by workers' compensation insurance companies as well as increased oversight over the administration's effort to overhaul the state's Medicaid managed care program that provides health coverage for the poor.

Madigan ticked off his requirements following a closed-door meeting between the four Democratic and Republican legislative leaders but not the governor, a gathering billed as "progress" given they all have not been in a room together for several months. Rauner called lawmakers back to the Capitol for a 10-day special session after they left town without a budget agreement at the end of May.

Their return has so far been largely unproductive, marked by partisan bickering instead of budget talks with Illinois on the path to enter a third straight year without a spending plan in place beginning July 1. Both sides said they hoped Sunday's gathering marked a turn of events, though a number of hurdles remain, chief among them a general lack of trust that's permeated state government in recent years.

Madigan emerged from the meeting and went on the attack, reiterating his "firm belief that Gov. Rauner has unjustifiably held hostage the budget making in order to achieve his extreme right agenda." But Madigan said he was willing to participate in some deal making, noting what he wants in exchange for items on the governor's wish list, including a property tax freeze.

"This is a governmental negotiation," Madigan said. "This is a situation where nobody gets 100 percent. I asked the Republican leaders 'Please go down to the governor and explain, in a governmental negotiation nobody gets 100 percent. Please do that.'"

Rauner's office declined to comment after the meeting, deferring to House Republicanleader Jim Durkin of Western Springs. Durkin said Madigan's willingness to negotiate is "a little more movement than we have seen in the past."

"There's been a lot of complaints about the governor moving the goal posts, we just saw that today from the Democrats," Durkin said. "But we can walk and chew gum at the same time, we will work it out."

While Rauner supports large portions of the education funding proposal, his overall opposition centers on hundreds of millions of dollars that Democrats had insisted on providing for CPS. That includes $215 million for the district's teacher pension fund -- CPS is the only district in the state that pays for its own teacher pension system -- and $202 million in special grants that the district historically has received from the state. Republicans have pushed a competing plan that would reduce such support.

Madigan's call to regulate workers' compensation insurance rates comes as Rauner has sought standards to prove an injury happened on the job and tougher restrictions on how much a worker is paid for an injury. Democrats, who have said that would harm the middle class, contend the insurance industry hasn't passed along premium savings in the wake of changes made in 2011. They note companies are largely free to set their own rates. Insurance companies argue that limiting their ability to set rates would decrease competition and could drive up premiums.

Meanwhile, Madigan's call for increased oversight of Rauner's push to revamp the Medicaid managed care program comes amid criticism from Democrats who say the move limits the number of eligible insurers and would hurt safety net hospitals.

It's unclear if Madigan's new focus on horse trading will result in a budget deal by month's end.

Durkin said Republicans would not participate in any more meetings until House Democrats unveiled their own budget proposal. Madigan said one would be "forthcoming very shortly." He is pushing for another leaders meeting Tuesday.

Senate Democrats approved a budget in Maythat raises an additional $5.4 billion by raising the personal income tax rate from 3.75 percent to 4.95 percent and the corporate income tax rate from 5.25 percent to 7 percent, extending the state's share of the 6.25 percent sales tax to services like tattooing and piercing, and imposing new taxes on satellite television and streaming services such as Netflix.

Rauner has said he would sign that proposal, but the income tax hike would have to be limited to four years starting in July and must be tied to a four-year property tax freeze. Madigan said his members are working on a budget plan that includes a property tax freeze, but would not say how long of a freeze is under consideration.

"We're open to that question, but only because the governor wants to impose that on people who rely on public schools to educate children," Madigan said. "It's part of the extreme right-wing agenda."

[email protected]

___

(c)2017 the Chicago Tribune

Visit the Chicago Tribune at www.chicagotribune.com

Distributed by Tribune Content Agency, LLC.