Gov. promises to sign transit bailout

Gov. Rod Blagojevich said today he'll sign a measure increasing Chicago-area sales taxes to pay for metropolitan mass transit systems sent to him by the state Legislature -- but with an amendatory veto that would provide free rides to senior citizens.

The House adopted the sales-tax measure 62-51 after the Senate approved it 30-25 earlier in the day.

Lawmakers abandoned demands that a transportation bailout be tied to a statewide construction program. Approval of the measure would avert extensive service cuts and fare hikes slated for the Chicago Transit Authority and its suburban counterpart Jan. 20.

Blagojevich had opposed tax increases such as those in the bill and wanted to divert taxes on gasoline sales in the Chicago area to pay for mass transit. But he said he'll OK the measure in a "spirit of compromise." The amendatory veto will require that lawmakers return to Springfield, probably next week, to uphold the additional language.

If that occurs, the plan will stave off major service cuts, layoffs and fare increases set for later this month. The same plan failed Wednesday night.

This issue has lingered in the General Assembly for months. Blagojevich had both called for quick action but also threatened to veto the plan that relies on sales taxes.

Blagojevich had a video monitor erected outside his Capitol office, and throughout Wednesday and Thursday it played taped testimonials from Chicago-area transit riders, urging lawmakers to act.

The apparent breakthrough is also good news to DuPage County and some other suburban counties. The transit bailout is based on a quarter percentage point sales tax increase, but the same plan would give those counties the authority to approve their own quarter-point sales tax increase to fund transportation or public safety issues.

That provision was inserted at the request of DuPage County Board Chairman Robert Schillerstrom, whose county is facing its own financial crunch and has repeatedly turned to lawmakers for help.