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Blagojevich hands off tricky spending question

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SPRINGFIELD - Gov. Rod Blagojevich has approved diverting $221 million in the state budget that lawmakers hope will prevent layoffs and program cuts, but claimed Wednesday it's up to a potential rival, Comptroller Dan Hynes, to determine whether the money is available.

That leaves in question the fate of 323 state employees who have been told they'll lose their jobs this fall and 24 state parks and historic sites that would be shuttered.

Hynes quickly pointed out that the legislation requires him to transfer the money to a "budget relief fund" in quarterly installments. So more than $110 million will be available by Thursday, spokeswoman Carol Knowles said.

Blagojevich OK'd a bill to move the money from state accounts set aside for special purposes, even though two weeks ago the Democratic governor thought $50.7 million of it was off-limits. Lawmakers sent him the bill last month hoping to prevent the layoffs, which would begin Oct. 31, and state site closures.

But Blagojevich has not taken action on a separate measure that authorizes using the money to restore the cuts.

A spokeswoman for Blagojevich, who signed the "sweeps" bill Tuesday, said it's up to Hynes, a potential challenger for governor in 2010, to determine whether the money has no strings and can be transferred.

"He has a responsibility to do, and we're respectful of that responsibility," spokeswoman Kelley Quinn said. "Once we see how much money is moved into the budget relief fund, we will take the next step."

Hynes has no choice but to transfer the money, said Knowles, who wondered why the governor signed the legislation if he thinks it's flawed.

"It's a constitutionally enacted law," Knowles said. "We will follow the law."

Quinn said signing a spending bill at the same time as the sweeps bill would be irresponsible, but did not say whether the governor had reconciled his concerns about possible restrictions on the money.

It's uncharacteristic for Blagojevich to defer to another branch of government or constitutional officer. He typically charges ahead with his agenda, often defying critics to stop him. Just weeks ago a state appellate court ruled the governor was wrong to unilaterally expand state-subsidized health care after the Legislature rebuffed the idea.

Lawmakers approved last month taking "surplus" money from special state accounts often funded with license or permit fees and adding another $10 million from other state sources. But the Blagojevich administration questioned whether $50.7 million of it is available, including $14.5 million it says is restricted by court action.

In the second bill, lawmakers approved using the money to fund the employees Blagojevich said he would have to lay off, restore substance-abuse treatment and other social services, and keep open the state attractions.

State Rep. Gary Hannig of Litchfield, a Democratic budget negotiator, pointed out that Blagojevich earlier this year supported a plan by Senate Democrats to sweep $530 million - more than double the amount finally approved - and said lawmakers never heard from the governor's office during the debate on last month's legislation.

Blagojevich cut $1.4 billion from the budget lawmakers sent him in July, saying it was out of balance.

That translated into laying off 250 human services workers, beginning Oct. 31, the rest from closing 11 state parks and 13 historic sites Nov. 30.

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