Governor's fix for mass transit cash crunch: Charge it

SPRINGFIELD -- The state would borrow $27 million to avert a weekend transit meltdown and keep the buses and trains running through the end of the year, under a plan Gov. Rod Blagojevich proposed Friday.

Lawmakers knowledgeable of the deal say Blagojevich already has the authority to borrow the money, but legally the money can only be used for construction and to buy things like buses and trains. So the transit agencies would use the state money to replace federal construction money and then use those federal dollars for daily operations, a switch that must be reviewed by federal authorities.

Legislative and transit leaders were awaiting word of federal approval for the deal Friday.

House Republican leader Tom Cross of Oswego said the early indication from transit officials is that they will take the deal. Thursday night, they'd expressed serious doubts regarding another quick fix. But that apparently was based on the belief that the governor would offer another cash advance on future state funding, as he did a few weeks ago to similarly stall a transit doomsday.

Blagojevich has been roundly criticized for borrowing money to pay for the state's daily operations, but with bus and train cuts and fare increases looming, even critics appeared resigned to go along.

"From a financial standpoint it's not ideal, it's not perfect, but I don't think riders of the CTA care too much about how the money gets there," said Cross.

The Illinois House had planned to vote today on a suburban sales tax increase and Chicago real estate transfer tax to come up with $500 million for the transit agencies. However, it's become increasingly clear that the votes are not there to pass that plan.

A growing number of suburban and downstate lawmakers say mass transit funding needs to be part of a statewide plan to address construction needs. That plan would be funded with gambling expansion. A vote on the tax increases is now not expected.

Blagojevich said his plan would buy more time and Cross said legislative leaders hope to have a statewide construction plan available for a vote in the coming weeks.

The Illinois House has been negotiating behind closed doors on a gambling plan that would put a casino in Chicago and one other location plus slots at horsetracks. Both the south suburbs and Waukegan are pushing for a casino. A previous Senate-approved gambling plan includes the additional casinos.

On Friday, state Sen. Terry Link, a Waukegan Democrat and member of the Senate leadership team, said the House version would be a mistake.

"I don't think that bill would see the light of day in the Senate," Link said at a Capitol news conference.