House gives governor a win on vetoed bills

SPRINGFIELD - The Illinois House on Wednesday approved new versions of legislation that Gov. Rod Blagojevich had rewritten to cut taxes for disabled veterans and lower insurance costs for college students.

Speaker Michael Madigan also said House Democrats may reverse course and support the governor's idea of privatizing the lottery to pay for a statewide construction program.

But Madigan cautioned that his caucus still has deep doubts about whether the governor can be trusted to oversee that program fairly. They won't be pushed into a deal, he said.

"We're not prepared to have things dictated to us. Everybody in the building ought to understand that," said Madigan, D-Chicago.

Blagojevich has begun a campaign of using his amendatory veto power to make dramatic changes to legislation approved by the General Assembly. He calls it "Rewrite to Do Right."

One of his rewritten bills would exempt disabled veterans from paying property taxes. Blagojevich's office estimates 16,000 people would qualify for the exemption, which would apply to veterans with at least a 50 percent disability.

Local governments would lose $35 million to $40 million in tax revenue, said the sponsor of the legislation.

The House voted 78-12 to accept the governor's changes.

Lawmakers also approved a rewrite that would let parents keep college-age children on their health insurance. Unmarried children could stay on their parents' health plans up to age 26 under the legislation.

It was approved 70-21. In a news conference afterward, Blagojevich denied it would increase costs for insurance companies or businesses that provide health care for employees.

Asked if approving the governor's changes was meant as an olive branch, Madigan said, "You could take it that way, if you wish."

Madigan's majority leader, Rep. Barbara Flynn Currie, said the changes could be challenged in court, creating an opportunity for the courts to spell out the limits of the governor's amendatory veto power.

The state Senate now has 15 days to consider the governor's vetoes or the legislation dies. The Senate is not in session, so that would require bringing senators back to Springfield.

Madigan said discussions among House Democrats show new interest in privatizing the Illinois lottery to pay for statewide construction projects.

"The prospects look very, very good," he said.

Blagojevich has pushed for years to lease the lottery to a private company. His most recent idea is to use the proceeds to support a $25 billion capital plan.

Madigan's comments and the House votes left Blagojevich in an upbeat mood. "It's been a good day," he said.

The House also approved a $360 million bond program. If it became law, this would let Illinois qualify for federal matching money and proceed with more than $1 billion worth of construction work.

This is meant as a small-scale alternative to the major capital program that Blagojevich wants. His administration says the House plan is technically flawed and far too small.