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State moves closer on budget

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SPRINGFIELD - More than three weeks after missing their original adjournment date, state lawmakers could vote on a budget agreement as early as Wednesday.

A tentative outline of the $55 billion spending plan calls for no new taxes and gives Gov. Rod Blagojevich a green light to implement a limited number of his new pet programs as he heads toward the November election.

The governor's $45 million proposal to offer universal preschool to children appears to be intact, as does a pilot plan that would reduce large class sizes in kindergarten through third-grade.

But his $90 million plan to offer tuition tax credits to families of college students has been significantly altered.

As a signal that an agreement had been reached, a key budget negotiator said the governor, Senate President Emil Jones and House Speaker Michael Madigan were not planning any more closed-door budget talks.

"I think that's all done," said state Rep. Gary Hannig, D-Gillespie. "I think it's just at the staff level right now and they're just going to crank out a bill."

Members of the House and Senate are scheduled to begin hearings on the blueprint today and could be on their way out of town by the end of the week.

Although state tax revenues have rebounded since diving in 2001, much of the new spending is being bankrolled by last year's decision to divert $1.1 billion away from the state's pension funds.

That had House Minority Leader Tom Cross grousing about the deal, which was crafted without Republican input.

"I dislike the fact that weâ€'re probably going to see a good bit of pork in this budget," said Cross, R-Oswego.

The governor's office sounded a positive note about the progress.

"We're all moving in the right direction," said Blagojevich spokeswoman Rebecca Rausch.

Democrats said negotiators smoothed over problems with an earlier version of the governor's college tuition tax break, which would have given families a $1,000 tax credit for students earning B-averages or better, regardless of financial need. Minority Democrats argued that the program should target students who need the money.

A revamped plan will instead offer $500 in scholarship money to good-performing sophomores, juniors and seniors through the state's Monetary Award Program.

Despite being able to claim victory on some initiatives, negotiators rejected Blagojevich's plans to earmark additional dollars for stem cell research and for tax breaks to buyers of hybrid, gas-saving vehicles.

They also said "no" to a long-sought $3.2 billion school and road construction program.

"It is a give and take and some of the programs that will be there will not be the way they envisioned them. Is that a bad thing? No, I don't think so," said House Majority Leader Barbara Flynn Currie, D-Chicago.

Lawmakers are on track to push through some programs of their own, such as an effort to expand the number of Amtrak trains rolling across the state.

Hannig said schools will receive an additional $400 million. The state's public universities also are in line for an overall increase of less than 2 percent an amount considered a victory after four years of flat or decreased state funding.

Hannig said $20 million will be set aside to help jumpstart ethanol production in Illinois. The budget also includes cash to speed up the state's payments to doctors, nursing homes and hospitals.

"I wouldn't say this was a 'deal,'" said Hannig. "I think this is just a negotiated budget that we put together that tries to address the needs of the respective members."

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