SPRINGFIELD - Illinois lawmakers are moving closer to resolving two key issues that have kept them in the Capitol for much of the summer.

But, some are scoffing at the suggestion that the loosening of the logjam on the issues of electric rates and health care could be a sign that the record-setting overtime session is nearing an end.

"I don't think we're anywhere closer than we were a week or two or three or four months ago. We're in suspended animation. We're going nowhere fast," said House Minority Leader Tom Cross, R-Oswego.

With a temporary spending plan set to expire in a week, lawmakers have crafted a plan to offer customers some relief from high electric rates. A vote on the proposal could come Wednesday.

At the same time, Gov. Rod Blagojevich appears to be dropping his push for a massive increase in state health insurance programs in exchange for a smaller, scaled-down plan.

Instead of his original $3.1 billion proposal aimed at providing health insurance to 1.4 million Illinoisans, Blagojevich is now floating a new version that would cost about $1 billion and be financed by taxing companies that don't spend at least 4 percent of their payrolls on employee health care.

By structuring the legislation so it doesn't go into effect until next year, Blagojevich could get it approved without Republican votes.

While both those issues have kept budget talks at a virtual standstill since March, Democrats and Republicans agreed Tuesday that there remains widespread disagreement over the state's spending plan.

"I think the problems that exist with the budget still exist," said state Rep. Gary Hannig, a Litchfield Democrat who serves as point man on budget issues for House Speaker Michael Madigan.

There is disagreement over school funding, gambling expansion and pension payments, each of which pits not only Democrats and Republicans against each other, but lawmakers from Chicago and the rest of the state.

In 2004, it took lawmakers until July 24 to approve a budget for the fiscal year that started July 1. With that record broken, the next major deadline is July 31, which marks the day a temporary budget expires.

Illinois Comptroller Dan Hynes says the state could keep operating for at least another week after the state's spending authority expires on August 1.

But, Hynes insists he needs a budget outline by August 8 in order to send out the first round of school aid payments. After that, the comptroller said he needs money to pay state workers by August 9.

State Sen. Dale Righter, R-Mattoon, said Tuesday that he would vote for another temporary budget in order to keep schools from being harmed by the stalemate.

"The debate and the discussion that's going on here and the unwillingness to come off of some positions should not affect whether kids go to school on time," said Righter.

Other Republicans are opposed to giving Democrats another extension.

"I don't see myself giving them another 30-day operations budget when we need to bring this thing to a close," said state Rep. Dan Brady, R-Bloomington.