>> GOOD AFTERNOON AND WELCOME TO ILLINOIS LAWMAKERS' LIVE COVERAGE OF GOVERNOR J.B.

PRITZKER'S STATE OF THE STATE AND BUDGET ADDRESS TO THE GENERAL.

I'M JAK TICHENOR ALONG WITH RICH MILLER AND CHICAGO TONIGHT CORRESPONDENT AMANDA VINKE FROM WGTW.

SPEAKER MADIGAN BEGINS INTRODUCING THE VARIOUS DIGNITARIES WHO ARE GATHERED FOR THIS HISTORIC SPEECH FOR GOVERNOR PRITZKER, A COMBINED STATE OF THE STATE AND BUDGET MESSAGE.

CHRIS, WHAT IS YOUR IDEA ON WHY HE DECIDED TO TIE THE TWO TOGETHER?

>> IN THE PAST THEY HAVE DONE THE STATE OF THE STATE ADDRESS, PEOPLE SAY, WHAT ABOUT THE BUDGET, MAN?

SO COMBINING THEM IS FINE.

I MEAN, IT IS FUN.

>> IN OUR TIME HERE, AMANDA, WE HAVE SEEN A COUPLE OF THESE.

IT HAS BEEN DONE BEFORE.

WHEN YOU LOOK AT THE MAGNITUDE OF THE JOB GOVERNOR PRITZKER IS TAKING OVER AND SOME OF THE CHALLENGES THAT AWAIT, I'M SURE THE MONTH OR SO OF LEAD TIME TO WORK THROUGH THE BUDGET AND EVERYTHING ELSE IS PROBABLY ALSO A BIG PART OF THIS?

>> YEAH.

YOU NEED TIME TO FIGURE THIS OUT.

WE ARE TALKING ABOUT BILLIONS OF DOLLARS.

THERE IS NOTHING THAT CAN PREPARE YOU FROM THAT.

FORMER GOVERNOR JIM EDGAR WHO WAS SECRETARY OF STATE, WHEN HE BECAME GOVERNOR HE SAID HE DIDN'T HAVE PREP FOR THAT.

SO, YES THERE IS LEAD TIME NECESSARY TO DO ALL THE PREPARATIONS TO GET THIS IN ORDER AND TO FIGURE OUT WHERE THINGS ARE AT.

I DO EXPECT A LOT OF THE SPEECH IS GOING TO BE GOVERNOR J.B.

PRITZKER PUTTING BLAME ON HIS PREDECESSOR ON THE TOUGH THINGS HE WILL HAVE TO DO.

>> THERE HAVE BEEN SOME OF THAT IN THE DAYS LEADING UP.

BUILDS THE CASE THE STATE OF ILLINOIS WILL HAVE A $3.2 BILLION BUDGET DEFICIT IN THE YEAR 2020.

>> YEAH.

HE WASN'T EXACTLY HANDED THE GREATEST INHERITANCE.

>> EVEN RAUNER, FOR THAT MATTER >> WHEN BRUCE RAUNER TOOK OFFICE THE TAX INCREASE HAD PARTLY ROLLED BACK.

QUINN GETS SWORN IN IT, IT IS A HORRIBLE BUDGET SITUATION.

BLAGOJEVICH, THE FIRST THING HE COMPLAINED ABOUT IS PENSIONS, MASSIVE PENSION PAYMENTS HE HAD TO MAKE.

WE HAVE HAD A LONG RUN OF REALLY BAD FISCAL NEWS.

I WOULD REALLY LIKE SOMEBODY TO ACTUALLY SOLVE THESE PROBLEMS, BUT IT IS A LOT OF MONEY.

IT TAKES A LOT OF MONEY TO SOLVE THE KIND OF PROBLEMS WE HAVE.

>> IT IS A PROBLEM THAT GOES BACK A GOOD 20 YEARS IF YOU LOOK AT CERTAIN REPORTS.

WE HAVE HAD A STRUCTURAL DEFICIT SINCE THE LATE 1990s.

A BIG ROUND OF APPLAUSE IN THE HOUSE CHAMBERS AS THE NEW GOVERNOR OF THE STATE OF ILLINOIS J.B.

PRITZKER MAKES HIS WAY INTO THE HOUSE CHAMBERS, MAKING HIS WAY DOWN THE SILVER AISLE OF THE ILLINOIS HOUSE.

ESCORTED BY MEMBERS OF THE HOUSE AND SENATE, MAKING HIS WAY TO THE DAIS HERE.

ALL IN ALL, WE KNOW PART OF WHAT HE HAS BEEN DOING IN THE PAST FEW DAYS IS TALKING ABOUT THE BUDGET DEFICIT IS BUILDING MOMENTUM TOWARD A PROGRESSIVE INCOME TAX IN 2020.

>> THIS SPEECH IS DESIGNED TO BE TOWARD THE PROGRESSIVE INCOME TAX IN TWO YEARS.

ALL HE IS TRYING TO DO, HE IS GOING TO SAY, FOR THE TWO BUDGET YEARS IS TO GET US THROUGH UNTIL A PROGRESSIVE INCOME TAX IS PASSED.

IT REMAINS TO BE SEEN WHETHER HE CAN DO THAT, BY THE WAY.

>> THAT IS GOING TO BE A HEAVY LIFT.

>> VERY.

>> IT HAS TO CLEAR THE HOUSE AND THE SENATE AND THE VOTERS OF ILLINOIS IN 2020.

>> ALREADY WE ARE SEEING DARK MONEY AND THAT MEANS MONEY THAT DOES NOT HAVE TO BE DISCLOSED.

WHO THESE DONORS, WHO THESE CONTRIBUTORS ARE.

>> ON BOTH SIDES.

>> DEFINITELY ON BOTH SIDES.

WE'RE SICK OF AN ELECTION, WE GOING TO BE DONE, NO, NEW YORK CITY.

THE 2020 PRESIDENTIAL.

THIS IS GOING TO BE A HEATED BATTLE.

>> SPEAKER MADIGAN, PRESIDENT COLORTON, LEADER DIRKEN, LEADER BRADY, LIEUTENANT GOVERNOR CENTRALEN, ATTORNEY RAUL, MENDOZA, MEMBERS OF THE GENERAL ASSEMBLY, HONORED GUESTS AND CITIZENS AND THE EXTRAORDINARY FIRST LADY OF ILLINOIS, MY WIFE M.K.

THANK YOU ALL FOR YOUR VERY WARM WELCOME.

I ASK THAT WE BEGIN TODAY BY TAKING A MOMENT TO GRIEVE WITH OUR NEIGHBORS IN AURORA OVER THE GRAVE TRAGEDY THAT OCCURRED LESS THAN A WEEK AGO.

FIVE GOOD PEOPLE KILLED IN AN EVIL ACT OF WORKPLACE VIOLENCE.

FIVE POLICE OFFICERS WHO WERE INJURED WHEN THEY RAN INTO GUNFIRE.

AS I SAID FRIDAY WHEN I VISITED AURORA, MAY THE MEMORY OF THOSE THAT WE LOST BE A BLESSING.

MAY THEIR MEMORY FUEL OUR WORK TO BRING PEACE TO OUR STATE AND MAY GOD BLESS THE BRAVE LAW ENFORCEMENT OFFICERS WHO CONTINUED TO JOIN DANGER.

PLEASE JOIN ME IN A MOMENT OF SILENCE.

THANK YOU.

EVERY ONE OF US WHO SERVES IN PUBLIC OFFICE BECOMES A STUDENT OF HISTORY.

SO FEW PEOPLE HAVE HELD THESE JOBS.

WE MUST ALLOW THE EXPERIENCES OF THOSE WHO CAME BEFORE US TO HELP SHAPE WHAT LIES AHEAD.

EVERY YEAR THE GOVERNOR OF ILLINOIS IS REQUIRED TO PROVIDE THE GENERAL ASSEMBLY WITH A PROPOSED BUDGET AND AN UPDATE ON THE CONDITION OF OUR STATE.

IT IS A TRADITION IN TRUE KEEPING WITH OUR DEMOCRACY AND A TASK THAT REQUIRES HUMBLE HONESTY AND SOME BOLD OPTIMISM.

TODAY I OFFER THAT PROPOSAL AND REPORT WITH AN EYE TOWARD OUR SHARED HISTORY AND OUR HOPES FOR THE FUTURE.

ILLINOIS'S 200-YEAR HISTORY IS A WEB OF CHALLENGES, THE SAME THEME RECYCLING WITH EACH NEW DECADE.

INDEED, WHEN REVIEWING PAST REPORTS BY PREVIOUS GOVERNORS THE SAME PROBLEMS ARE RAISED OVER AND OVER AGAIN.

THERE'S NOT ENOUGH MONEY TO ADRES SOCIAL ILLS, NOT ENOUGH JOBS TO EMPLOY PEOPLE, NOT ENOUGH RESOURCES TO MAINTAIN AND BUILD OUR INFRASTRUCTURE AND NOT ENOUGH ATTENTION TO THE PLIGHT OF WORKING FAMILIES.

IT MAY NOT SURPRISE YOU TO LEARN THESE PROBLEMS EXISTED IN 1819.

THEY EXISTED IN 1919.

AND THEY EXIST TODAY IN 2019.

HISTORY CAN BE A CRUEL EXERCISE IN PESSIMISM IF YOU NARROW YOUR GAZE, BUT IF YOU WIDEN YOUR VISION JUST A LITTLE BIT, YOU WILL SEE THE RECURRING REPORTS FROM THE PAST HAVE BEEN OCCASIONALLY DOTTED WITH UNAPOLOGETIC OPTIMISTS WHO FOCUSED ON TACKLING OLD PROBLEMS WITH NEW IDEAS AND NEW VIGORS, REDUCING THE BURDEN FOR EACH GENERATION ALONG THE WAY.

ONE OF THOSE UNAPOLOGETIC OPTIMISTS WAS GOVERNOR HENRY HORNER, WHO TOOK OFFICE IN 1933.

IT PUTS THE CURRENT DAY IN HONEST PERSPECTIVE TO THINK ABOUT THE CHALLENGES HORNER FACED.

THE GREAT DEPRESSION HAD JUST BEGUN.

NEARLY HALF OF ILLINOIS'S WORKFORCE WAS UNEMPLOYED.

HUNGRY WORKERS WERE MARCHING ON SPRINGFIELD, TEACHERS HAD NOT RECEIVED A PAYCHECK IN YEARS, BANKS WERE SHUDDERING AND TO ADD IT ALL FLOODS WERE SWEEPING ACROSS BIG SWATHS OF OUR STATE.

NEVERTHELESS, WITH THE DAUNTING NATURE OF THE STATE'S CONDITION, HORNER APPROACHED HIS JOB WITH OPTIMISM, WITT AND A DOGGED WORK ETHIC.

IN A SPEECH SOON AFTER HE TOOK OFFICE HE SAID, WE HAVE GOT TO HURDLE A FEW MORE OBSTACLES BEFORE WE ARE ON THE BROAD HIGHWAY TO RETURN OF NORMAL CONDITIONS.

HOWEVER, THE ROAD IS CLEARLY IN SIGHT.

TODAY THAT IS WHERE WE FIND OURSELVES AGAIN.

THE ROAD TO NORMAL CONDITIONS IS INSIGHT.

HOWEVER, TO GET THERE, WE MUST BEGIN WITH AN HONEST ACCOUNTING WITH THE STRUGGLES OF THE LAST FEW YEARS AND THE CHALLENGES LEFT BEHIND.

ILLINOIS IS FACED WITH A $3.2 BILLION BUDGET DEFICIT AND A $15 BILLION DEBT FROM UNPAID BILLS.

LAST YEAR ALONE THE STATE PAID OUT MORE THAN $700 MILLION IN LATE PAYMENT PENALTIES.

THAT IS ENOUGH TO COVER A FREE FOUR-YEAR UNIVERSITY TUITION FOR MORE THAN 12,000 STUDENTS.

WE'RE DEALING WITH A FUNDAMENTAL STRUCTURAL DEFICIT THAT HAS EXISTED FOR QUITE SOME TIME AND SPANNED THE ADMINISTRATIONS OF SEVERAL GOVERNORS AND IT WON'T BE SOLVED UNTIL WE RETHINK OUR SPENDING PRIORITIES AND SOME BASIC REVENUE ISSUES FACING THE STATE.

DURING A TIME OF UNPRECEDENTED ECONOMIC GROWTH ACROSS THE COUNTRY, WE LOST FOUR VALUABLE YEARS BECAUSE OF AN IDEALOGICAL BATTLE.

THAT STOPS NOW.

[ APPLAUSE ] BUDGETING WILL NOT BE DONE BY TAKING THE STATE HOSTAGE OR COURT ORDERS, CONSENT DECREES AND CONTINUING APPROPRIATIONS BUT DEBATE, COMPROMISE AND A RETURN TO REGULAR ORDER.

WE WILL WORK TOGETHER EARNESTLY TO SOLVE THE STATE'S PROBLEMS.

WE WILL DISAGREE AT TIMES ON IMPORTANT THINGS, BUT THE WORK WE ALL CAME HERE TO DO WILL GET DONE.

TO THAT END, THE BUDGET I PRESENT TODAY IS AN HONEST PROPOSAL.

THE COSTS ARE NOT HIDDEN, THE REVENUES ARE NOT OUT OF REACH, THE HOLE WE NEED TO FILL IS NOT IGNORED.

THERE IS NO FANTASY LINE ITEM CALLED WORKING TOGETHER OR EXECUTIVE MANAGEMENT.

[ APPLAUSE ] INSTEAD, THIS BUDGET PROPOSAL REFLECTS SOME OF MY MOST DEEPLY HELD VALUES AND THE HOPES OF VOTERS WHO SENT US HERE, BUT TEMPERED BY THE KNOWLEDGE THAT WE MUST HOLD THE LINE ON SPENDING IN THE CONTEXT OF REVENUE AVAILABLE AND THE DIMINISHED CONDITION OF OUR STATE GOVERNMENT.

UNDOUBTEDLY, ALL OF YOU WILL BRING YOUR OWN PRIORITIES, IDEAS AND CONCERNS TO THE BUDGET PROCESS.

I WELCOME THAT CONVERSATION.

THAT IS AS IT SHOULD BE.

WE ARE ALL HERE, DEMOCRATS AND REPUBLICANS, WITH THE COMMON DESIRE TO SERVE THE PEOPLE OF OUR STATE WELL.

WE DO THAT BETTER WHEN WE TALK TO EACH OTHER AND MORE IMPORTANTLY, LISTEN TO EACH OTHER.

I HAVE TRIED IN THE WEEKS LEADING UP TO TODAY TO GET TO KNOW EACH OF YOU, TO MEET YOUR FAMILIES, TO DANCE TOGETHER TO MAROON 5 SONGS AND HAVE AN OPEN DOOR TO CONVERSATION AND COMMON GROUND.

AS IT TURNS OUT, SOME OF YOU ARE PRETTY GOOD DANCERS, SOME OF US, NOT SO MUCH.

I DON'T THINK WE SPEND ENOUGH TIME GETTING TO KNOW ONE ANOTHER AS PEOPLE BEFORE WE GET TO KNOW EACH OTHER AS POLITICAL OPPONENTS.

MY FIRST WEEK SENATOR SUE RESIN STOPPED BY TO INTRODUCE HERSELF.

I INVITED HER TO SIT WITH ME AND WE TALKED ABOUT HOW TO ATTRACT MORE BUSINESS TO ILLINOIS.

SUE IS A MOM OF FOUR, RUNS A REAL ESTATE BUSINESS WITH HER HUSBAND AND STARTED VOLUNTEERING FOR THE MAKE-A-WISH FOUNDATION 30 YEARS AGO WHEN SHE WAS FIRST STARTING HER FAMILY BECAUSE IT OFFERED HER A FLEXIBLE SCHEDULE.

I HAVE TO SAY I'M NOT SURE HOW A MOM OF FOUR HAS ANY FLEXIBILITY IN HER SCHEDULE, BUT I'M IMPRESSED WITH THE TREMENDOUS OPPORTUNITY OR SPIRIT THAT SHE LOOKED FOR THE OPPORTUNITY TO GIVE HER TIME TO THOSE IN NEED WHEN SHE MUST HAVE BARELY HAD ANY TIME FOR HERSELF.

I WILL NOT SOON FORGET EVEN WHEN WE INEVITABLY DISAGREE THAT SENATOR RESIN EXTENDED A HAND TO ME ON MY VERY FIRST DAYS ON THE JOB.

SUE MAKES NO BONES ABOUT BEING A CONSERVATIVE AND I'M NOT SHY ABOUT BEING A DEMOCRAT.

I THINK WE WILL DO MORE TO GET THINGS DONE FOR ILLINOIS BY LISTENING TO EACH OTHER WHICH WE WILL DO WITH RESPECT AND CIVILITY.

[ APPLAUSE ] IT IS WITH THE KNOWLEDGE THAT PEOPLE WITH TRUE GENEROSITY OF SPIRIT OCCUPY BOTH SIDES OF THE AISLE IN SPRINGFIELD THAT I SET OUT ON THE TASK OF PROVIDING A NEW DIRECTION FOR OUR STATE.

THIS IS NOT THE WORK OF JUST ONE YEAR.

REAL FISCAL STABILITY REQUIRES A LONG-TERM COMMITMENT TO PAYING DOWN DEBT, INVESTING IN CRITICAL INFRASTRUCTURE AND STABILIZING OUR PENSION SYSTEM.

IT ALSO REQUIRES A RECOGNITION TO LOWER COSTS AND INCREASE REVENUE OVER THE LONG TERM, WE MUST MAKE INVESTMENTS IN EDUCATION, LIVABLE WAGES, INNOVATIVE HUMAN SERVICES PROGRAMS AND JOB TRAINING.

WE MUST STOP SLASHING PROGRAMS THAT BUILD FUTURE PROSPERITY.

IF WE CUT SKILLS SPRAIN TRAINING AND COLLEGE AFFORDABILITY, WE CURB LONG-TERM GROWTH AND WE DRIVE BUSINESSES AWAY.

IF WE DON'T FUND INEXPENSIVE GUN VIOLENCE PREVENTION PROGRAMS WE WILL SEE MORE TRAGEDY AND HIGHER PUBLIC SAFETY EXPENDITURES.

IF WE DON'T HAVE HAVE STRONG SOCIAL SERVICES PROGRAMS, WE INCREASE A FAMILY'S SUFFERING AND INCREASE THE POTENTIAL FUTURE FINANCIAL BURDEN ON THE STATE.

IN THE PAST, IT HAS BEEN THE PRACTICE OF TOO MANY POLITICIANS TO BE SHORTSIGHTED ABOUT SLASHING COSTS AND BEMOAN THE STATE OF THE STATE WHEN THOSE CUTS HAVE LONG-TERM CONSEQUENCES ON OUR ECONOMY.

SO LET'S NOT HOLLOW OUT VITAL GOVERNMENT SERVICES ANYMORE.

[ APPLAUSE ] LET'S MAKE SURE WE ARE FOCUSED ON TRULY MANAGING AND MEASURING THE REAL RESULTS OF STATE PROGRAMS.

TAXPAYERS DESERVE TO KNOW THEIR DOLLARS ARE BEING SPENT WISELY.

PROGRAMS THAT DON'T WORK NEED TO BE ELIMINATED AND WE NEED TO EXPLORE NEW WAYS TO ADDRESS OLD PROBLEMS.

EFFICIENTLY SAVING TAX DOLLARS, THOUGH, ISN'T ENOUGH TO LIFT ILLINOIS OUT OF OUR FISCAL MESS.

WE MUST ALSO GROW JOBS.

WE CAN DO THAT BY FOSTERING A BUSINESS ENVIRONMENT IN ILLINOIS TO ATTRACT TALENT AND ENTREPRENEURS FROM ALL OVER THE COUNTRY.

WE NEED TO CONTINUE TO GROW OUR POSITION AS A TOP-TIER START UP ECOSYSTEM AND WE ARE DOING THAT IN THIS BUDGET WITH NEW INVESTMENTS A AND REPRIORITIZING DOLLARS WITHIN OUR STATE GOVERNMENT.

WE ARE A BIG STATE WITH REAL INFRASTRUCTURE AND TRANSPORTATION OPTIONS.

WORLD CLASS COMPANIES AND BUSIEST DISTRIBUTION CENTERS IN THE NATION.

WE MUST BE PREPARED TO MAKE A BIG INVESTMENT WITH OUR TRANSPORTATION AND INFRASTRUCTURE WITH THE PASSAGE OF A CAPITAL BILL THAT WILL BE INTRODUCED IN THIS LEGISLATIVE SESSION.

[ APPLAUSE ] WE CAN ALSO GROW OUR ECONOMY AND MAKE IT MORE INCLUSIVE BY TAKING ADVANTAGE OF THE TALENT AMONG THE DIVERSE PEOPLE OF OUR STATE.

THAT'S WHY WE MUST PROMOTE THE DEVELOPMENT OF SUSTAINED WEALTH IN BLACK AND BROWN COMMUNITIES BY BEING PURPOSEFUL ABOUT INCREASING THE NUMBER OF MINORITY-OWNED BUSINESSES ELIGIBLE FOR STATE PROCUREMENT OPPORTUNITIES AND ATTRACTING PRIVATE CAPITAL TO BUILD NEW BUSINESSES AND JOBS IN OPPORTUNITY ZONES.

[ APPLAUSE ] AND I WANT DOWN STATE REPUBLICANS AND DEMOCRATS TO WORK TOGETHER WITH ME ON A DOWN STATE REVITALIZATION PLAN TO ENCOURAGE THE CREATION OF NEW BUSINESSES AND JOBS AND FOSTER THE GROWTH OF EXISTING ONES IN STRUGGLING COMMUNITIES SO THEY CAN THRIVE.

[ APPLAUSE ] TO GET TO FISCAL STABILITY AND ELIMINATE OUR STRUCTURAL DEFICIT, THERE IS NO QUICK FIX.

IT TOOK DECADES TO GET US INTO THIS MESS.

IT WILL TAKE AT LEAST SEVERAL YEARS TO GET US OUT.

WE MUST EM BRAGS A MULL YEAR APPROACH WITH FAIR PRINCIPLES AND SMART INVESTMENTS IN OUR PEOPLE.

OUR STATE DOES WELL WHEN OUR PEOPLE DO WELL.

I WANT TO BE CLEAR, THIS FISCAL 2020 BUDGET IS BALANCED.

THAT IS NOT ENOUGH.

THIS IS YEAR ONE OF A MULTIYEAR ENDEAVOR.

FOR IMPORTANTLY IT IS BUILT ON THE STATE'S CURRENT REGRESSIVE TAX STRUCTURE I DO NOT FAVOR AND PUTS THE GREATEST BURDEN ON WORKING FAMILIES.

NOT ONLY IS OUR TAX SYSTEM UNFAIR, IT IS INADEQUATE TO SOLVE OUR LONG-TERM FINANCIAL CHALLENGES.

IT IS TIME FOR A CHANGE.

[ APPLAUSE ] WORKERS DESERVE AN INCOME TAX CUT AND A PROPERTY TAX BREAK.

A FAIR TAX SYSTEM WILL ALLOWS TO ELIMINATE THE STRUCTURAL DEFICIT THAT HAS PLAGUED OUR STATE FOR NEARLY TWO DECADES.

THERE IS UNANIMOUS AGREEMENT IN THIS ROOM IF WE WANT TO SOLVE OUR STATE'S FISCAL WOES, WE CANNOT CONTINUE ON THE PATH WE ARE ON.

THERE IS A STRUCTURAL DEFICIT TODAY OF OVER $3 BILLION PER YEAR IF LEFT UNADDRESSED WILL CONTINUE TO GROW.

THERE IS A BACKLOG OF UNPAID BILLS AND DEBTS ASSOCIATED WITH IT THAT EXCEEDS $15 BILLION.

IN ADDITION, THERE'S A BUILT-IN MULTIBILLION DEFICIT OF FUNDING FOR SCHOOLS AND UNIVERSITIES AND HUMAN SERVICES THAT MOST FAMILIES RELY UPON.

FOR THE SAKE OF ARGUMENT, THOUGH, LET'S AGREE THERE IS AT LEAST A NEED TO ADDRESS THE STRUCTURAL DEFICIT WITH ENOUGH TO PAY OFF THE BACKLOG OVER SEVERAL YEARS.

WE'RE TALKING ABOUT BILLIONS OF DOLLARS EACH YEAR TO FILL THE HOLE IN OUR FUTURE BUDGETS.

THERE ARE, IN ESSENCE, THREE ALTERNATIVE OPTIONS FOR FIXING THIS PROBLEM.

FIRST, WE COULD CHOOSE ONLY TO CUT STATE GOVERNMENT SPENDING AND RAISE NO REVENUE.

TO DO THAT, WE HAVE TO RECOGNIZE THAT OUT OF THIS YEAR'S $39 BILLION BUDGET, APPROXIMATELY $20 BILLION IS REQUIRED PAYMENTS ON OUR DEBT, ON OUR PENSIONS, ON OUR COURT-ORDERED OBLIGATIONS OR FEDERALLY PROTECTED PROGRAMS.

THAT LEAVES APPROXIMATELY $19 BILLION.

THAT IS THE MONEY WE SPEND EDUCATING OUR CHILDREN, RUNNING OUR COLLEGES AND UNIVERSITIES, KEEPING OUR STREETS SAFE, PRESERVING OUR NATURAL RESOURCES, GETTING PEOPLE TO AND FROM WORK EFFICIENTLY AND CARING FOR OUR VETERANS.

WE'LL CALL THAT DISCRETIONARY SPENDING.

TO BALANCE THE BUDGET BY SIMPLY CUTTING GOVERNMENT, WE WOULD HAVE TO REDUCE DISCRETIONARY SPENDING ON ALL THESE DIRECT SERVICES THAT OUR JOBS, FAMILIES AND BUSINESSES RELY ON BY APPROXIMATELY 15%.

THAT IS 15% FEWER STATE POLICE.

15% FEWER STUDENTS GOING TO COLLEGE, 15% FEWER WORKING PARENTS RECEIVING CHILD CARE ASSISTANCE AND 15% LESS MONEY FOR YOUR LOCAL SCHOOLS, WHICH LIKELY ALSO MEANS THAT LOCAL PROPERTY TAXES WILL INCREASE.

I SHOULD POINT OUT THIS OPTION WAS TRIED IN THE PRIOR ADMINISTRATION.

AND IT FAILED.

BECAUSE NEARLY NO ONE THINKS IT IS A GOOD IDEA TO FORCE OUR MOST TALENTED KIDS TO LEAVE THE STATE, DRIVE FAMILIES AWAY BY DEFUNDING LOCAL SCHOOLS, MAKE OUR COMMUNITIES LESS SAFE BY REDUCING PUBLIC SAFETY AND INCREASE POVERTY BY CUTTING BADLY NEEDED HUMAN SERVICES.

OUR SECOND OPTION IS TO RAISE REVENUE WITH OUR CURRENT REGRESSIVE FLAT INCOME TAX SYSTEM AND IMPOSE MORE FLAT TAXES, WHICH FALL DISPROPORTIONATELY ON THE WORKING POOR AND THE MIDDLE CLASS.

THIS OPTION COULD REQUIRE IMPOSING SALES TAXES ON SERVICES, IMPLEMENTING A RETIREMENT TAX OR RAISING THE INCOME TAX OVERALL BY 20% OR ALL OF THE ABOVE.

FOR A FAMILY EARNING $100,000, THAT MEANS PAYING ALMOST $1,000 MORE IN INCOME TAXES.

AND THEIR PROPERTY TAXING WILL CONTINUE THEIR UPWARD MARCH AS THEY ALWAYS HAVE.

OUR THIRD OPTION IS TO REJECT IMPOSING ADDITIONAL INCOME, RETIREMENT AND SALES TAXES ON THE MIDDLE CLASS AND INSTEAD ENACT A FAIR INCOME TAX.

THIS WOULD LIFT SOME OF THE TAX BURDEN OFF OF MIDDLE INCOME EARNERS AND INSTEAD ASK THE WEALTHY TO PAY A LITTLE BIT MORE.

JUST FOR CLARITY, FAIR TAX IS WHAT THREE QUARTERS OF STATES WITH INCOME TAXES HAVE.

WE CAN ACCOMPLISH THIS IN ILLINOIS WITH A MORE COMPETITIVE RATE STRUCTURE THAN WISCONSIN AND IOWA, BOTH OF WHICH ARE OUTPACING ILLINOIS IN JOB CREATION AND ECONOMIC GROWTH.

WE CAN ALSO IMPLEMENT A FAIR TAX SYSTEM THAT LOWERS OR METROPOLITAN COMPETITORS -- SORRY, THAT IS LOWER THAN OUR METROPOLITAN COMPETITORS ON THE EAST AND WEST COASTS.

MAKE NO BONES ABOUT IT, I CHOOSE TO STAND UP FOR WORKING FAMILIES AND WILL LEAD THE CHARGE TO FINALLY ENACT A FAIR TAX SYSTEM IN ILLINOIS.

[ APPLAUSE ] ULTIMATELY OUR CHIEF RESPONSIBILITY TO THE PEOPLE OF ILLINOIS IS TO SET THIS STATE ON A PATH TO SUSTAINABLE GROWTH WITH AN INCOME TAX SYSTEM THAT IS FAIR.

IT IS NOT FAIR THAT I PAY THE SAME TAX RATE AS A TEACHER, A CHILD CARE WORKER, A POLICE OFFICER OR A NURSE.

AND EFFORTS TO SIMPLY INCREASE THE INCOME TAX RATE ACROSS THE BOARD FUELS FURTHER INCOME INEQUALITY AND KICKS THE CAN DOWN THE ROAD FOR OUR CHILDREN AND GRANDCHILDREN TO SOLVE OUR ONGOING BUDGET ISSUES.

THE STATE NEEDS A FAIR TAX AND I AM GOING TO BE RELENTLESS IN PURSUING ONE OVER THE NEXT TWO YEARS.

[ APPLAUSE ] MY OFFICE INTENDS TO IMMEDIATELY BEGIN NEGOTIATIONS OVER FAIR TAX RATES WITH LEADERS FROM THE HOUSE AND THE SENATE.

CONVERSATIONS AND DEBATE ABOUT RATE STRUCTURES AND HOW MUCH REVENUE WE NEED TO RAISE ARE APPROPRIATE.

I EXPECT DIFFERENT OPINIONS AND VIEWPOINTS OVER THE BEST WAY TO ACHIEVE AN EQUITABLE TAX SYSTEM AND I SINCERELY WELCOME THAT CONVERSATION.

I HAVE ALREADY ASKED A FEW LEGISLATORS WHO OPPOSE THE FAIR TAX TO OFFER THEIR BEST IDEAS TO IMPROVE IT.

I'M CONFIDENT THEY WILL COME TO THE TABLE IN GOOD FAITH.

WHAT IS NOT APPROPRIATE IS A SMALL COLLECTION OF THE WEALTHIEST PEOPLE THINKING THEY SHOULD DROWN OUT MILLIONS OF LOWER AND MIDDLE INCOME ILLINOISANS BY THE CURRENT FLAT TAX SYSTEM.

I UNDERSTAND I'M AN UNLIKELY PROPONENT FOR THIS MUCH-NEEDED CHANGE.

PERHAPS THE HEAVIEST BURDENS WOULD FALL UNDER TAXPAYERS LIKE MYSELF UNDER THIS TAX SYSTEM WILL CONVINCE MANY OF YOU I'M PURSUING THIS BECAUSE I BELIEVE THIS IS WHAT IS BEST FOR ILLINOIS.

TO FIX OUR STATE'S PROBLEMS WE NEED FUNDAMENTAL TAX REFORM.

THERE IS NO HIDING FROM IT, RUNNING FROM IT, LYING ABOUT IT.

I CHOOSE A FAIR TAX SYSTEM TO GET US OUT OF THIS MESS.

[ APPLAUSE ] IT WILL TAKE 18 MONTHS TO GET DONE, BUT IT IS WORTH THE WAIT SO WE CAN SAVE WORKING FAMILIES HUNDREDS OR THOUSANDS PER YEAR.

A FAIR TAX WILL CHANGE THE ARC OF ILLINOIS'S FINANCES FOREVER.

UNTIL THEN, THIS PROPOSED BUDGET SERVESs A -- SERVES AS A BRIDGE TO A SUSTAINED FISCAL FUTURE.

WE TARGET INCREASES IN THREE KEY AREAS TO HELP OUR STATE THRIVE AND GROW.

EDUCATION, HEALTH AND HUMAN SERVICES AND PUBLIC SAFETY.

INVESTMENTS IN PEOPLE THAT I BELIEVE WILL PAY DIVIDENDS DOWN THE ROAD.

THIS IS A CONSTRAINED BUDGET, MORE AUSTERE THAN I WOULD LIKE, BUT I THINK IT IS IMPORTANT WE BE DISCIPLINED AND FOCUSED OVER THE NEXT FEW YEARS TO PAY DOWN OUR BILL BACKLOG AND THE DEBT LEFT OVER FROM PRIOR ADMINISTRATIONS.

THE RESPONSIBLE COURSE OF ACTION IS TO EMBRACE SOME NEAR-TERM REASONABLE AND REALISTIC NEW REVENUE WHICH WILL BRING IN AN ESTIMATED $1.1 BILLION IN TOTAL.

LET'S BEGIN WITH THIS, BY LEGALIZING AND REGULATED ADULT USE CANNABIS WE WILL CREATE JOBS AND BRING IN $70 MILLION IN LICENSES AND OTHER FEES IN THIS FISCAL YEAR 2020.

I NOTED MANY TIMES I DON'T VIEW THIS ISSUE THROUGH A PURELY FINANCIAL LENS.

I THINK WE SHOULD TAKE THIS ACTION FOR OUR STATE BECAUSE OF THE BENEFICIAL CRIMINAL AND SOCIAL JUSTICE IMPLICATIONS AND THE JOBS IT WILL CREATE.

LET'S BE HONEST, LIKE IT OR NOT, CANNABIS IS READILY AVAILABLE RIGHT NOW.

I WOULD RATHER THIS STATE TAX IT AND REGULATE IT THAN DENY THE REALITY OF ITS USE AND ACCESSIBILITY.

THIS BUDGET ALSO INCLUDES THE LEGALIZATION AND TAXATION OF SPORTS BETTING.

EXPANSION OF GAMBLING IS A PERENNIAL EFFORT IN THIS STATE AND OFTEN THESE PROPOSALS GET BOGGED DOWN IN REGIONAL DISPUTES AND A CHRISTMAS TREE APPROACH, BUT IN THOSE INSTANCES WE WERE TALKING ABOUT ADDING MORE RIVERBOATS OR ADDING INTO OTHER REGIONS.

SPORTS BETTING IS DIFFERENT.

THIS IS A NEW MARKET CREATED BY A RECENT U.S.

SUPREME COURT DECISION.

EVERY DAY WE ARGUE ABOUT WHO IS IN AND WHO IS OUT IS MONEY THAT GOES TO OTHER STATES AND TO THE BLACK MARKET.

I'M CALLING ON THE LEGISLATURE TO TAKE THIS UP IMMEDIATELY SO THAT ILLINOIS CAN REALIZE HUNDREDS OF MILLIONS OF DOLLARS, CREATE NEW JOBS AND BRING SPORTS BETTING INTO A REGULATED ENVIRONMENT THAT WILL PROTECT CITIZENS FROM BAD ACTORS.

IF WE DO IT THIS YEAR AND BECOME THE FIRST STATE IN THE MIDWEST TO MOVE ON THIS INITIATIVE, WE CAN REALIZE MORE THAN $200 MILLION FROM SPORTS BETTING FEES AND TAXES IN FY 2020.

I'M ALSO PROPOSING THAT ILLINOIS ENACT A TAX ON INSURANCE COMPANIES, SPECIFICALLY A MANAGED CARE ORGANIZATION ASSESSMENT TO HELP COVER THE COST OF THE STATE'S MEDICAID PROGRAM SOMETHING LEADER GREG HARRIS HAS CHAMPIONED FOR MANY YEARS AND ENACTED IN OTHER STATES.

THIS WOULD BE STRUCTURED TO GENERATE APPROXIMATELY $390 MILLION IN REVENUE TO COVER A PORTION OF THE STATE'S MEDICATE COSTS.

THIS WOULD BE A SMART WAY TO INCREASE OUR FEDERAL MATCH.

BRINGING EFFICIENCIES TO STATE GOVERNMENT IN ADDITION TO THESE NEW REVENUES IS NOT ENOUGH FOR ILLINOIS TO REACH FIRM FISCAL FOOTING.

WE MUST ADDRESS OUR PRESENTATION LIABILITIES.

THROUGHOUT MY CAMPAIGN I SAID THAT WE MUST PAY THE PENSIONS THAT ARE OWED AND THE SUPREME COURT HAS RULED THAT.

AND, THEREFORE, THAT IS WHAT WE MUST DO.

SO I AM PROPOSING A RESPONSIBLE APPROACH TO OUR PENSIONS THAT DOES NOT CROWD OUT ALL THE OTHER INVESTMENTS WE MUST MAKE SO THAT ILLINOIS IS A STATE THAT THRIVES.

25 YEARS AGO WHEN THE PENSION PAYMENT SCHEDULE WAS PUT IN PLACE THE WELL-INTENTIONED ARCHITECTS PREDICTED THAT IN FISCAL YEAR 2020 WE WOULD SPEND $4.9 BILLION ON PENSIONS.

INSTEAD THE BILL TODAY IS $9.1 BILLION.

NEARLY DOUBLE.

THIS MUST NOT CONTINUE.

WE MUST PUT THE SYSTEM ON A MORE SUSTAINABLE PATH.

ONE THAT PRESERVES PENSIONS FOR THE RETIREES THAT EARNED THEM AN AT THE SAME TIME ALLOWS US TO GROW OUR ECONOMY AND GROW OUR WAY OUT OF THE PENSION LIABILITY.

AND LAST WEEK MY ADMINISTRATION PUT FORWARD A FIVE-POINT PROGRAM TO DO JUST THAT.

WE WILL DEDICATE A PORTION OF THE NEW FAIR INCOME TAX, IN OTHER WORDS HUNDREDS OF MILLIONS OVER AND ABOVE THE REQUIRED PENSION PAYMENTS.

WE WILL INFUSE NEW ASSETS INTO THE SYSTEM UPFRONT, MANAGE OUR DEBT THROUGH A SMALL-SCALE PENSION BOND ENTIRELY TO REDUCING OUR LIABILITY, WE WILL MAKE THE OPTIONAL BUYOUT PROGRAM PERMANENT AND SMOOTH THE PENSION RAMP BY MODESTLY EXTENDING IT.

THIS CANNOT BE LOOKED AT AS A MENU TO PICK ONE AND DISCARD THE REST.

THERE IS NO ROOM FOR THAT ANYMORE.

WE MUST ATTACK OUR PENSION LIABILITY FROM MANY ANGLES ALL AT ONCE AND WE MUST BE CONSISTENT AND PERSISTENT IN THIS BATTLE.

SOME WILL CRITICIZE THIS APPROACH.

THERE ARE THOSE WHO WILL SAY THAT RETIREES SHOULD LOSE THE BENEFITS THEY HAVE EARNED.

THE SUPREME COURT HAS MADE IT CLEAR THAT THAT IS ILLEGAL.

THERE ARE OTHERS WHO WOULD RAISE TAXES ON MIDDLE CLASS FAMILIES TODAY.

I SAY MIDDLE CLASS FAMILIES HAVE PAID ENOUGH.

I PROMISE TO BE HONEST ABOUT OUR CHALLENGES AND SOLUTIONS.

THIS IS THE MOST RESPONSIBLE, SUSTAINABLE AND BALANCED APPROACH TO DEALING WITH A PROBLEM THAT WAS DECADES IN THE MAKING AND THAT WILL TAKE YEARS TO SOLVE.

ULTIMATELY, THE FAIR TAX MUST BE PART OF THE LONG-TERM SOLUTION TO OUR PENSIONS.

THERE ARE MANY EDUCATION, HEALTH CARE AND JOB CREATION INITIATIVES THAT I THINK ARE WELL WORTH FUNDING AND MANY OPPORTUNITIES FOR INVESTMENTS ACROSS THE STATE THAT I TALKED ABOUT DURING MY CAMPAIGN.

BUT STATE GOVERNMENT TODAY CAN ONLY DO SO MUCH.

AND WITHOUT A COMMITMENT TO REACHING FIRM FISCAL GROUND WE WILL SOON BE ABLE TO DO EVEN LESS.

MY HIGHEST PRIORITIES ARE STABILIZING STATE GOVERNMENT, GROWING OUR ECONOMY AND PROTECTING WORKING FAMILIES.

FOR OUR FISCAL AND ECONOMIC HEALTH, WE MUST START WITH A SUSTAINED EFFORT TO RESTORE AND IMPROVE OUR EDUCATION SYSTEM.

I HAVE BEEN ADVOCATING FOR LARGE INVESTMENTS IN EARLY CHILDHOOD EDUCATION FOR DECADES, LONG BEFORE I BECAME GOVERNOR.

REAL FOCUS ON THE LEARNING THAT HAPPENS FROM BIRTH TO 5 CAN DETERMINE THE ENTIRE ARC OF A PERSON'S LIFE.

INVESTS IN EARLY CHILDHOOD IS THE SINGLE MOST IMPORTANT EDUCATION POLICY DECISION GOVERNMENT CAN MAKE.

AND IT HAS PROVEN TO PROVIDE A SIGNIFICANT RETURN ON INVESTMENT.

THAT IS WHY I'M PROPOSING FUNDING THE EARLY CHILDHOOD BLOCK GRANT AT $594 MILLION, AN INCREASE OF $100 MILLION FROM FISCAL 2019.

[ APPLAUSE ] IT WILL ALLOW US TO BEGIN THE MARCH TOWARDS UNIVERSAL PRESCHOOL SO THAT EVERY CHILD IN ILLINOIS WILL HAVE A REAL OPPORTUNITY TO SUCCEED.

I HAVE ALSO FOCUSED ON REVERSING THE DAMAGE DONE TO HIGHER EDUCATION BY THE BUDGET IMPASSE.

COLLEGE AFFORDABILITY IS A PARAMOUNT INVESTMENT IN NEAR-TERM ECONOMIC GROWTH FOR OUR STATE.

SO I PROPOSED A 5% INCREASE FOR PUBLIC UNIVERSITIES AND COMMUNITY COLLEGES AS WELL AS AN INCREASE IN THE MONETARY AWARD PROGRAM BY $50 MILLION TO HELP MORE THAN 15,000 MORE LOW AND MODERATE INCOME STUDENTS ATTEND COLLEGE NEXT YEAR.

[ APPLAUSE ] AND I INTEND TO DO MORE EVERY YEAR AS WE CAN.

I AM PROPOSING $35 MILLION FOR THE SECOND YEAR COSTS OF AIM HIGH MERIT PROGRAM FOR HIGH-ACHIEVING STUDENTS SO WE CAN KEEP OUR BEST AND BRIGHTEST HERE IN ILLINOIS.

[ APPLAUSE ] NOW, ON A SMALLER SCALE, I'M CONSISTENTLY LOOKING TO MAINTAIN OR INCREASE FUNDING FOR PROGRAMS THAT HAVE AN OUTSIZED BENEFIT FOR THE ECONOMY FOR TRADITIONALLY NEGLECTED COMMUNITIES.

THIS BUDGET INCLUDES FUNDING FOR THE ADVANCED PLACEMENT LOW-INCOME TEST WAIVER.

THE $90 TO TAKE AN A.P.

HISTORY EXAM IS A HUGE BURDEN FOR A LOW-INCOME FAMILY.

WE MUST BE EVER MINDFUL WE AS A SOCIETY INADVERTENTLY PERPETUATE A CYCLE OF POVERTY ANDTY WASES, LASHLG AND SMALL, TO HELP PEOPLE FIND A WAY OUT.

I SAID IN MY INAUGURAL ADDRESS I WILL NOT BALANCE THE BUDGET ON THE BACKS OF THE STARVING SICK ANDING.

I WILL CONTINUE TO INCREASE THE CHILD CARE ASSISTANCE PROGRAM WHICH WILL GIVE QUALITY CARE TO APPROXIMATELY 10,000 MORE CHILDREN.

WE PROVIDE FUNDING TO OPEN -- [ APPLAUSE ] WE PROVIDE FUNDING TO OPEN THE NEW 200-BED CHICAGO VETERANS HOME LONG DELAYED BY THE BUDGET IMPASSE.

[ APPLAUSE ] WE WILL BE ABLE TO HIRE AN ADDITIONAL 126 DIRECT SERVICE STAFF FOR DCFS TO PROTECT CHILDREN.

[ APPLAUSE ] WE WILL PROVIDE FUNDING TO HELP INVESTIGATE CASES OF KIDS' EXPOSURE TO LEAD.

THIS IS IMPORTANT BECAUSE WE RAISED OUR STANDARDS IN ILLINOIS TO BE MORE AGGRESSIVE.

THIS BUDGET ADDS FUNDS FOR COMMUNITY-BASED VIOLENCE INTERRUPTION, HOMELESSNESS PREVENTION, BEHAVIORAL HEALTH, MENTAL HEALTH, ADDICTION, DEMENTIA AND ALZHEIMER'S.

BUT THIS IS LESS THAN WHAT I WOULD LIKE TO DO, BUT IT IS WHAT WE CAN AFFORD TO DO IN YEAR ONE OF OUR RECOVERY.

AS ANOTHER PART OF MY PLAN TO STRENGTHENING WORKING FAMILIES WE ARE GIVING 1.4 MILLION ILLINOISANS A RAISE.

OUR COUNTRY IS ENGAGED IN A SERIOUS CONVERSATION ABOUT INCOME INEQUALITY RIGHT NOW.

I THINK THAT IS LONG OVERDUE.

THERE WAS A TIME WHERE WE OPERATED WITH A GENERAL PHILOSOPHY THAT WORKERS SHOULD BE ABLE TO AFFORD THE GOODS AND SERVICES THEY HELP PRODUCE.

THAT IS NOT SOME OUTDATED NOTION.

THAT IS FUNDAMENTALLY AMERICAN.

MANY OF YOU ASKED ME WHY I MADE PASSING A $15 MINIMUM WAGE AN IMMEDIATE PRIORITY GIVEN ALL THE CHALLENGES OUR STATE FACES RIGHT NOW.

THE CURRENT MINIMUM WAGE IS $8.25.

EVEN IF YOU WORK FULL TIME EVERY WEEK OF THE YEAR, YOU ARE MAKING $17,000 A YEAR.

YOU CAN'T SEND YOUR KIDS TO COLLEGE ON $17,000 A YEAR.

YOU CAN'T AFFORD A SINGLE HEALTH EMERGENCY OR PAY FOR ANY OF THE THINGS THAT MIGHT PREVENT A HEALTH EMERGENCY.

YOU CAN'T SUSTAIN CHILDCARE OR SAVE FOR RETIREMENT.

A FLAT TIRE OR WORN CAR BATTERY IS A GENUINE FISCAL EMERGENCY THAT MIGHT ALSO THREATEN YOUR JOB AND ONE PAYCHECK IS OFTEN THE ONLY FIREWALL AGAINST HOMELESSNESS.

THE CURRENT MINIMUM WAGE IS A LIFETIME SENTENCE TO POVERTY.

WHETHER YOU LIVE IN CHICAGO OR CAIRO, I FIND THAT UNACCEPTABLE.

AND I WORK -- [ APPLAUSE ] AND I WORKED WITH THE APPROPRIATE AMOUNT OF HASTE TO CHANGE IT.

WHEN YOUR HOUSE IS BURNING DOWN, YOU DON'T WAIT FOR THE RAIN TO PUT OUT THE FIRE.

I SAID THAT I WOULD PUT SPRINGFIELD BACK ON THE SIDE OF WORKING FAMILIES AND I MEANT IT.

[ APPLAUSE ] FINALLY, WE WILL DO MORE TO KEEP OUR NEIGHBORS SAFE IN THE STATE OF ILLINOIS.

THIS BEGINS WITH MAKING SURE THE ILLINOIS STATE POLICE CAN BE REBUILT WITH TWO NEW CADET CLASSES TO REPLENISH THEIR DWINDLING RANKS.

WE WILL PAY FOR THE GUN DEALER LICENSING LAW I WAS PROUD TO SIGN IN MY FIRST WEEK IN OFFICE TO TAKE A REASONABLE STEP TO END THE SCOURGE OF GUN VIOLENCE IN TOO MANY OF OUR NEIGHBORHOODS.

WE WILL TAKE A MORE RIGOROUS APPROACH OF GETTING GUNS OUT OF THE HANDS WHO SHOULDN'T HAVE THEM IN THE FIRST PLACE.

I'M COMMITTED TO ADVOCATING FOR COMMONSENSE GUN LAWS AND MAKES SURE WE ARE IMPLEMENTING THE LAWS WE ALREADY HAVE ON THE BOOKS MORE EFFECTIVELY.

THESE INVESTMENTS HAVE TAKEN ON A GREATER IMPORTANCE SINCE THE MASSACRE IN AURORA, WHICH SERVES AS A POIGNANT AND PAINFUL REMINDER OF THE WORK THAT STILL REMAINS.

EVERY GOVERNOR DEALS WITH THEIR SHARE OF TRIALS, TUMULT AND TRIBULATIONS.

I MENTIONED AT THE BEGINNING OF THIS SPEECH THAT HENRY HORNER TOOK OFFICE IN 1933 AT THE START OF THE WORST DECADE IN ECONOMIC DECLINE.

HORNER WAS GOOD FRIENDS WITH KARL SANDBURG.

THEY SHARED A LOVE WITH ALL THINGS RELATED TO PRESIDENT LINCOLN.

SANDBURG GRANTED AN INTERVIEW ABOUT HIS FRIEND GOVERNOR HORNER IN WHICH HE SAID, HORNER WAS THE REAL GOODS.

HE GOT TO HIGH PLACES WITHOUT SELLING HIS SOUL.

INDEED, DESPITE THE ECONOMIC TROUBLES THE STATE FACED IN THE DEPRESSION, HE INCREASED SCHOOL FUNDING, INSTITUTE PENSIONS FOR OLDER ILLINOISANS, IMPROVE PUBLIC HEALTH SERVICES.

HE UNDERSTOOD THAT PROSPERITY DUNCE TRICKLE DOWN, IT TRICKLES UP.

WHEN WE LIFT UP THOSE WHO HAVE THE LEAST, OUR BOATS ALL RISE TOGETHER.

HORNER WAS A FUNDAMENTALLY OPTIMISTIC MAN.

HE APPROACHED HIS JOB AS GOVERNOR WITH A HOPEFUL HEART AND HE NEVER LET THAT HOPE DIMINISH UNDER THE UNCOMMON BURDENS OF BEING HEAD OF STATE.

HE KNEW WHAT I KNOW, THAT THE STATE OF OUR STATE HAS ALWAYS BEEN STRONG BECAUSE OF THE VALUES OF OUR PEOPLE, NOT THE VALUE OF OUR COFFERS.

HORNER ONCE SAID THE ONLY WAY TO CARRY OUT ANY GREAT PURPOSE IS NOT ON YOUR SHOULDERS BUT IN YOUR HEART.

CARRY IT ON YOUR BACKS AND IT MAY WEAR YOU DOWN, CARRY IT IN YOUR HEARTS AND IT WILL LIFT YOU UP.

THE HEART STRENGTHENS THE PURPOSE AND THE PURPOSE GIVES POISE AND INSPIRATION TO THE WILL.

LIKE YOU, I CARRY THE BURDENS OF THIS STATE IN MY HEART AND DESPITE THE HEAVY LOAD, IT LIFTS ME UP EVERY DAY.

I SHARE MY PURPOSE WITH YOU SO THAT IT MAY GIVE POISE AND INSPIRATION TO OUR COLLECTIVE WILL BECAUSE I KNOW THE ROAD AHEAD IS HARD.

BUT I THINK IT IS ABOUT TIME WE ALL WALK IT TOGETHER.

THANK YOU.

[ APPLAUSE ] >> J.B.

PRITZKER WRAPPING UP ABOUT A 35, 40-MINUTE COMBINED STATE OF THE STATE AND BUDGET MESSAGE AT THE ILLINOIS STATE CAPITOL IN THE HOUSE CHAMBERS.

WELCOME BACK TO THE LIVE COVERAGE.

I'M JAK TICHENOR ALONG WITH RICH MILLER OF CAPITAL FACTS AND AMANDA VINKE OF CHICAGO TONIGHT.

STANDING OVATION FROM BOTH SIDES OF THE AISLE AT THE CONCLUSION OF THE GOVERNOR'S SPEECH.

ANY SURPRISES OR HAVE WE KNOWN WHAT WE WERE GOING TO BE HEARING?

>> YEAH.

THE ONLY THING IS I THINK WE ARE GOING TO HAVE TO GO THROUGH THE BUDGET ITSELF TO FIND OUT WHERE THE CUTS WERE MADE.

IF THERE ARE ANY CUTS IN THE PROPOSED BUDGET HE DIDN'T TALK ABOUT THEM TODAY.

WE WERE TOLD WE WERE GOING TO SEE AN AUSTERE PROPOSAL COMBINED WITH ANOTHER PROPOSAL THAT WOULDN'T BE SO AUSTERE, BUT I DIDN'T HEAR -- HE SAID THE WORD AUSTERE ONE TIME, BUT I DIDN'T HEAR ANYTHING ABOUT WHERE THE CUTS ARE.

WE HAVE TO DO THE WORK OF GOING THROUGH THE BUDGET.

>> RIGHT.

HE SAID MORE AUSTERE THAN HE WOULD HAVE LIKED.

HE WANTED TO SPEND MORE.

LET'S BE CLEAR, THIS BUDGET DOES GIVE MORE MONEY TO THINGS, HUMAN SERVICE PROVIDERS, K-12 EDUCATION, EARLY CHILDHOOD.

HE MENTIONED THE MINIMUM WAGE LAW HE JUST SIGNED.

THAT, OF COURSE, IS GOING TO BE AN EXPENSE FOR STATE GOVERNMENT AS WELL.

HE PROMISED EDUCATION, HUMAN SERVICE PROVIDERS, HE WAS GOING TO PROVIDE ENOUGH EXTRA MONEY THEY WOULDN'T HAVE TO EAT ON THEIR OWN.

>> HE DID PROPOSE WHAT WOULD HAPPEN OF THE REVENUES YOU HAVE.

$20 BILLION IS SPOKEN FOR, PENSION PAYMENTS AND DEBT SERVICE.

YOU HAVE TO CUT 15% AND NO ONE WOULD LIKE TO LIVE IN A WORLD LIKE THAT.

THAT IS THE SCENARIO HE IS LAYING OUT.

>> RIGHT, BUT THEN HE DIDN'T TALK ABOUT THAT ANYMORE.

THIS IS A BUDGET ADDRESS ALMOST OF SOMEONE WHO HAD MONEY TO SPEND.

>> YEAH.

>> AND HE DOESN'T.

SOME THINGS I HAD WRITTEN ABOUT, TAX ON MANAGED CARE, WHICH THEY HAVE IN MICHIGAN SORT OF.

THEY GOT RID OF PART OF IT AND REIMPOSED IT BACK.

>> LEGALIZING POT WHICH HE TALKED ABOUT FOR A WHILE, TAXING THAT.

SPORTS BETTING AS WELL.

>> RIGHT.

THERE IS MONEY THERE.

>> $1.1 BILLION IS WHAT HE PEGGED FOR IT, BUT -- >> EXACTLY.

THEN HE HAS $800 MILLION HE GAINED FROM SHORTING THE PENSION FUNDS.

IF JUDY -- WAS ALIVE TODAY SHE WOULD BE SCREAMING ABOUT HOW HE IS SHORTING THE FUNDS.

>> HE BASICALLY SAID YOU CAN'T REMOVE ITEMS FROM THIS MENU, IT IS NOT A LA CARTE.

IT IS ONE BIG THING.

>> IN PARTICULARLY, THE PENSION MENU HE HAS A FIVE-POINT PLAN AS HE PUT IT TO ATTACK PENSION.

WHAT HE IS REALLY WANTING IS NOT TO CROWD OUT SPENDING, BUT KEEP THESE CAMPAIGN PLEDGES AND ALL THE OTHER SPENDING WHILE NOT HAVING TO PAY THE FULL PENSION PAYMENT.

THAT IS SOMETHING HE SAYS, HEY, LOOK, WE HAVE THE OTHER FOUR POINTS WE ARE DOING.

LET ME BE CLEAR, ANY OTHER GOVERNOR WHO HAD PROPOSED THAT AS SOME HAVE IN THE PAST THAT WOULD BE SEEN AS A PENSION HOLIDAY, SHORTING THE PENSION FUNDS WHICH IS -- >> WE WILL LIKELY HEAR FROM DEMOCRATIC LEADER TERRY LITTLE.

>> WE WILL HEAR FROM ONE OF MOMENT.EMOCRATIC LEADERS IN A >> I JUST SAID THAT.

>> RICH LITTLE, THANK YOU VERY MUCH.

AMANDA, IT IS OBVIOUSLY VERY CLEAR THAT WHAT A LOT OF TODAY'S SPEECH WAS IS BUILDING TOWARDS THE PROGRESSIVE INCOME TAX OVER THE NEXT 18 MONTHS TO HAVE THAT ON THE REFERENDUM IN 2020, TO PAY DOWN DEBTS, TO GROW DIFFERENT PARTS OF STATE GOVERNMENT, TO PUT THE STATE BACK ON FIRM FINANCIAL GROUND.

HE IS TALKING ABOUT TALKING WITH THE FOUR LEGISLATIVE LEADERS TO GET THEM ON BOARD, CREATING A FAIR TAX STRUCTURE, THAT IS A BIG LIFT.

>> OH, MY GOSH, IS IT A MONSTER LIFT.

A LOT OF THIS BUDGET IS PREDICATED ON THAT HAPPENING.

I SEE IT AS THE GOVERNOR ALREADY BANKING HIS LEGACY ON THAT COMING TO FRUITION AS WELL AS NOT JUST THE DISCUSSION FUTURE BUDGETS, WHICH WOULD TAKE AMENDING THE CONSTITUTION, THAT IS NOT GOING TO BE AN EASY THING TO DO BECAUSE THERE ARE ALREADY ORGANIZATIONING THAT ARE TRYING TO SAY THAT, NO, THIS IS TANT AMOUNT TO A TAX INCREASE.

THAT IS GOING TO CONTINUE.

>> WE ARE JOINED BY DEMOCRATIC SENATE PRESIDENT MR.

COLORTON.

GOOD TO HAVE YOU.

>> THANK YOU.

>> WHAT ARE YOUR MAIN TAKEAWAYS?

>> I CAN'T HELP BUT CONTRAST IT TO SOME OF THE SPEECHES WE HAVE HAD IN THE LAST FOUR YEARS.

THE FIRST TIME GOVERNOR RAUNER HAD A BUDGET ADDRESS WAS -- BY THE WAY, I'M CUTTING PEPGSS BY $2 BILLION.

BASED ON WHAT?

THE REFERENCE EARLIER TO AN EFFORT TO WORK TOGETHER ON A GRAND BARGAIN.

HE PUT IN HIS BUDGET SAVING $4 BILLION BY WORKING TOGETHER.

THIS WAS A SPECIFIC BUDGET WITH A BALANCED BUDGET.

>> WERE THERE ANY MAGIC BEANS IN THIS BUDGET THOUGH?

AREAS WHERE, GOSH, I NEED MORE SPECIFICS TO HAVE OUR LEGS UNDERNEATH US?

>> THERE ARE PROPOSALS OF REVENUE THAT NEED TO BE FLESHED OUT.

THEY ARE CONTROVERSIAL ISSUES, MARIJUANA, SPORTS BETTING, THOSE ARE ISSUES THAT BRING IN A LITTLE BIT OF MONEY IN THE BIG PICTURE AND THE PUBLIC HAS A LOT OF ATTENTION FOR THEM.

THEY HAVE TO WORK OUT THOSE DETAILS.

WE HAVE LOOKED AT IT.

IT LOOKS LIKE IT IS BALANCED BUDGET.

IT TELLS YOU IF YOU DON'T DO CERTAIN THINGS THIS IS THE CONSEQUENCES.

KIND OF A DOOMSDAY BUDGET.

WE HAVE A STRUCTURAL DEFICIT.

>> THE GOVERNOR DID NOT TAKE UP A SUGGESTION YOU HAVE HAD FOR MANY YEARS IN TERMS OF AN ANSWER TO PENSIONS TO ORGANIZE A WAY OF WORKING AROUND THE SUPREME COURT AND WHAT THEY MANDATED.

>> I AGREE WITH WHERE HE IS GOING.

I WOULD POINT OUT THAT THE BILL WAS IN THE GRAND BARGAIN.

[ INAUDIBLE ] [ INAUDIBLE ] >> WON'T IT COST ILLINOIS MORE IN THE LONG RUN?

>> IN THE VERY, VERY LONG RUN.

[ INAUDIBLE ] >> THE BOTTOM LINE, THE GENERAL ASSEMBLY, LAWMAKERS ON BOTH SIDES OF THIS BILLION HAVE TO APPROVE THE CHANGES.

HOW DO YOU THINK THE GOVERNOR'S PROPOSAL IS GOING TO LAND?

[ INAUDIBLE ] HE WAS VERY PERSUASIVE.

HE GOT ELECTED BY A LOT OF FOLKS.

[ INAUDIBLE ] I SAW A REPORT FROM FITCH RATING COMPANY BEFORE WE WENT ON AIR, THEY ARE OKAY WITH A LOT OF ASPECTS, BUT EXTENDING THE RANGE FOR SEVEN YEARS THEY HAVE CONCERN WITH.

>> I THINK IF YOU LOOK AT THE WHOLE THING, POINTS OUT FIVE OR SIX POINTS TO THIS THING.

THE EARLY BUYOUT HAS TURNED TO BE VERY SUCCESSFUL.

AND SO ALSO WITH REGULAR INCOME TAX REALLY COMING IN LINE WITH THREE FOURTHS OF THE STATES INCOME TAX.

>> CAN YOU ENVISION A SCENARIO IN WHICH THE GENERAL ASSEMBLY DOES TRY TO BRING IN MORE REVENUE WHILE THAT CONSTITUTIONAL AMENDMENT BEFORE AND IF IT PASSES THAT WOULD RAISE THE FLAT TAX AND THEN GIVE SOME SORT OF TAX CREDIT TO THOSE ON THE LOWER INCOME?

>> HE DOES NOT WANT TO RAISE THE FLAT TAX.

IF YOU UNDERSTAND THE TIMING OF THE TAX, IF IT PASSED, IT WOULD AFFECT THE SECOND YEAR OF HIS BUDGET.

HE HAS PROVIDED A BUDGET THAT MAKES UP FOR IT IN THIS BUDGET.

>> YOU DON'T PLANT TO PURSUE INCREASE IN THE FLAT TAX?

>> [ INAUDIBLE ] >> WHAT WOULD THAT LOOK LIKE?

WOULD YOU ENVISION THAT BE AN OPEN QUESTION?

[ INAUDIBLE ] THEN YOU HAVE TO, IN MY OPINION, YOU HAVE TO PASS THE ACTUAL TAX INCREASE.

[ INAUDIBLE ] WHEN YOU LOOK AT OTHER STATES, NEBRASKA HAS A TAX RATE AS HIGH AS ALMOST 70%, FROM THE RICKETS FAMILY.

LET'S COPY THE RICKETS' IDEA.

>> WHEN YOU SAY YOU WANT THIS PLAN PASSED THIS YEAR, DO YOU MEAN THIS SESSION OR CALENDAR YEAR OR WHAT DO YOU THINK IS A GOOD TARGET?

>> THIS CALENDAR YEAR.

[ INAUDIBLE ] >> BY MAY WHEN THIS SESSION IS ADJOURNED?

>> I HOPE TO DO IT -- [ INAUDIBLE ] >> IN TERMS OF SPECIFIC REVENUE ENHANCEMENTS.

SELLING THE LICENSES FOR LEGALIZED MARIJUANA THERE ARE A NUMBER OF BILLS TO GET TO THAT.

>> THERE IS A WORK IN PROGRESS.

WE MET WITH THE GOVERNOR HOW THAT WORKS OUT.

A GOOD DISCUSSION WITH REPUBLICAN LEADERS AS WELL.

WE ARE GOING TO START WORKING ON IT RIGHT AWAY.

THERE ARE A NUMBER OF MODELS OF HOW TO DO THIS.

HALF OF THE STATES IN THE NATION ARE LEGALIZING SPORTS BETTING AND MARIJUANA AS WELL.

WE HAVE TO LOOK AT OTHER STATES AND LOOK QUICKLY.

IT CAN BE WORKED OUT.

>> IS THERE A DANGER AS YOU START TO PUT THIS TOGETHER, THERE ARE SO MANY SIDES YOU END WITH A SITUATION LIKE CASINO GAMBLING.

>> HE SPECIFICALLY ADDRESSED THAT.

CHRISTMAS TREES.

YOU ARE RIGHT.

WE HAVE LET THAT HAPPEN IN THE GENERAL ASSEMBLY.

WE DON'T HAVE TO DO THAT ANYMORE.

THIS IS A SPECIFIC REQUEST OF THE GOVERNOR, IT IS PRIORITIZED, SPORTS BETTING.

THE OTHER ISSUES ARE STILL OUT THERE.

WE CAN DEAL WITH THOSE ON THEIR OWN.

>> HOW ABOUT ARE YOU BETTING AT ALL ON PASSAGE OF AN INFRASTRUCTURE PROGRAM THAT THE GOVERNOR TALKED ABOUT HE DID NOT PINPOINT A REVENUE SOURCE?

>> WELL, WE DID THAT 10 YEARS AGO.

I SAT AT THE TABLE WITH THE OTHER LEGISLATIVE LEADERS RIGHT AFTER I GOT ELECTED AND WE WORKED IT OUT.

IT WAS TRULY A BIPARTISAN WAY.

WE HAD INPUT AT THE TIME TOM CROSS AND THE SPEAKER, SENATOR REDONIO.

THAT IS TRULY A BIPARTISAN EFFORT.

THE REPUBLICANS HAVE MADE IT CLEAR THEY WANT TO HELP OUT WITH THE CAPITAL BILL WHICH WOULD INCLUDE REVENUE.

>> WHERE DO YOU WANT THAT REVENUE TO COME FROM?

>> THERE'S ALL SORTS OF WAYS.

I CAN'T SAY SPECIFICALLY.

A GOOD PART OF THE MONEY DEALS WITH ROADS AND MASS TRANSIT.

THAT IS A GOOD PLACE TO START.

THINGS RELATED TO THE INFRASTRUCTURE.

>> ONE QUICK QUESTION BEFORE YOU GO, WHAT ABOUT RESTRUCTURING THE VIDEO GAMING TAX?

THERE IS A LOT OF IMBALANCE IN THE WAY THE LITTLE GUYS ARE TREATED VERSUS THE BIG GUYS?

>> EXACTLY.

THE GOVERNOR HAS THAT PROPOSAL AND IT IS SOMETHING WE CAN WORK ON.

>> SENATOR, THANK YOU FOR YOUR TIME.

WE APPRECIATE IT.

>> THANK YOU.

>> THANK YOU VERY MUCH.

AT THIS POINT, AMANDA, IT LOOKS AS THOUGH A LOT OF HEAVY LIFTING TO BE DONE IN THE NEXT FEW WEEKS AND MONTHS AS PRESIDENT COLORTON HAS INDICATED, HE WANTED TO SEE THE PROGRESSIVE INCOME TAX MOVED OUT BY THE END OF MAY, IF POSSIBLE.

>> I DO THINK IT IS INTERESTING BECAUSE I ACTUALLY INTERVIEWED GOVERNOR PRITZKER THE DAY AFTER HIS ELECTION AND ASKED WHAT ABOUT THIS NOTION THAT WAS TALKED ABOUT DURING THE CAMPAIGN TRAIL HE SEEMS TO SOMEWHAT ENDORSE IT, ONE OF THE OPPONENTS CHRIS KENNEDY VERY MUCH BACKED.

WE DON'T HAVE TO WAIT FOR A CONSTITUTIONAL AMENDMENT.

THERE ARE OTHER WAYS TO GO AUTAUT GETTING TO A GRADUATED TAX.

PRITZKER SAYING NO TO THAT CONSTITUTIONAL AMENDMENT.

WOW, HEARING THAT THE PRESIDENT WANTS TO MOVE FORWARD WITH IT THAT QUICKLY.

WE WILL BE WAITING AND WATCHING TO SEE WHAT THE PLAN FOR IT IS.

>> ONE OF THE FOLKS IN ON THE NEGOTIATIONS IN RECENT WEEKS AS THIS BUDGET PACKAGE HAS SORT OF TAKEN SHAPE, ONE OF THE TRANSITION TEAM MEMBERS, THE NEW HOUSE MAJORITY LEADER CHICAGO DEMOCRAT GREG HARRIS.

GOOD TO HAVE YOU ABOARD.

>> NICE TO SEE YOU.

>> THE FIRST TIME YOU HAVE BEEN BACK AS HOUSE MAJORITY LEADER.

>> REPRESENTATIVE CURRY LED THE HOUSE FOR SO MANY YEARS.

IT IS REALLY RATHER DAUNTING TO DO THE JOB HALF AS WELL AS SHE DID.

>> AS WE DIG INTO THIS, YOU WERE PART OF THE TRANSITION TEAM ALONG WITH DEPUTY GOVERNOR DAN HYNES, FORMER CONTROLLER, HOW MUCH INPUT OF YOURS IS REFLECTED IN THE DOCUMENT WE SEE TODAY?

>> I THINK WE SAW A LOT OF SUGGESTIONS OF THE TRANSITION COMMITTEE AND I THINK ONE OF THE KEY THINGS WAS IN FINDING A LONG-TERM SOLUTION TO THE STRUCTURAL PROBLEM.

IT CAME UP MANY TIMES AS WE LOOK AT FIXING THE OPERATING BUDGET OF THE STATE AND PENSION ILLS OF THE STATE, THAT HAS TO BE DONE CONCURRENTLY, IF WE ARE GOING TO GET THE CREDIT WE DESERVE FROM THE BONDING AGENCIES, IF WE ARE GOING TO BE ABLE TO BORROW, WE HAVE TO SHOW PROGRESS ON BOTH THOSE DIRECTIONS.

>> THAT HAS, OF COURSE, IT IS ALWAYS THE 800-POUND GORILLA IN THE ROOM.

AS THE GOVERNOR POINTED OUT, QUITE CORRECTLY, NO ONE BACK IN THE MID 1990s HAD ANY IDEA THAT PENSION PAYMENT WOULD BE $9 BILLION, A QUARTER OF THE BUDGET OPERATIONALLY.

>> SURE.

IF YOU LOOK WHAT HAS DRIVEN THAT COST, THEY BUILT THE RAMP AND BUILT THE PENSION PLAN THEY WOULD NOT HAVE FORESEEN.

THE COLLAPSE OF THE ECONOMY AND THE HOUSING MARKET AND STOCK MARKET WHERE WE LOST BILLIONS OF DOLLARS OF VALUE IN OUR PENSION SYSTEMS.

THE WORK ACTUARIES HAVE DONE TO ADJUST FOR THE INCREASING LONGEVITY OF PEOPLE AND RETIREMENT PATTERNS THAT ARE RAISING THE COST OF OUR SYSTEM.

THERE'S A LOT OF DRIVERS THERE.

AND, OF COURSE, OTHER GENERAL ASSEMBLIES HAVE TAKEN PENSION HOLIDAYS AND THAT FURTHER DECREASED THE ASSETS.

>> YOU DON'T SEE REAMORTIZATION AS TAKING A PENSION HOLIDAY?

SORT OF A DIFFERENT WAY OF DESCRIBING IT, BUT IS THAT WHAT IT AMOUNTS TO?

>> YOU CAN'T DO ANY ONE OF THESE THINGS IN ISOLATION.

YOU HAVE TO DO THESE THINGS AS A PACKAGE TO ADDRESS THE LONG-TERM PROBLEM.

TAKEN ON ITS OWN, YOU COULD MAKE THE ARGUMENT IT IS A HOLIDAY.

IF YOU DO IT WITH OTHER THINGS LIKE PUTS THE $2 BILLION UPFRONT, EXTENDING THE BUYOUT PROGRAMS, THE SMOOTHING, IT IS A PACKAGE THAT IS WORKING.

IN CONTEXT OF FIXING THE STRUCTURAL PROBLEMS OF THE OPERATING BUDGET.

>> ONE OF THE PROBLEMS AS WE LOOK DOWN THE ROAD, HOW MUCH OF THIS DEBT IS PUSHED FURTHER AND FURTHER DOWN THE ROAD TO FUTURE GENERATIONS.

WE DON'T HAVE A GOOD HANDLE ON THAT AT THIS POINT.

>> THIS IS WHY WE HAVE THE PROCESS WHERE THE GOVERNOR MAKES A PRESENTATION TO THE HOUSE AND SENATE IT IS UP TO OUR COMMITTEES, PENSION COMMITTEE, REVENUE COMMITTEE, APPROPRIATION COMMITTEE TO DRILL INTO THE DETAIL, WHAT ARE THE COSTS GOING TO BE.

BRING IN THE THINK TANKS, EXPERTS AND CONSULTANTS TO HELP US EVALUATE.

>> IN RECENT YEARS WE HAVE SEEN A BUDGET LOOK PRETTY MUCH NOTHING LIKE WHAT THE GOVERNOR INTRODUCED.

DO YOU THINK ILLINOIS WILL HAVE A 2020 SPENDING PLAN THAT CLOSELY MIRRORS WHAT THE GOVERNOR PROPOSED TODAY?

>> I THINK YOU WILL SEE THE GOVERNOR'S PROPOSALS IN THERE.

WE HAVE TALKED ABOUT WHERE THE DISAGREEMENTS LIE.

PEOPLE CONCERNED ABOUT PENSION ISSUE, INDIVIDUAL REVENUE SOURCES.

REPUBLICANS WILL SAY THEY ARE DEAD SET A FAIR TAX ON PRINCIPLE.

THOSE ARE THE AREAS THERE WILL BE DISCUSSIONS.

>> GOVERNOR PRITZKER MENTIONED YOU BE NAME THE PROPOSAL TO TAX INSURANCE COMPANIES TO GET A BETTER HANDLE ON OUR MEDICAID DEBT PROBLEM.

HOW WOULD THAT WORK.

>> >> WE ARE ALREADY DOING IT IN ILLINOIS IN HOSPITALS AND NURSING HOMES WHERE THOSE PROVIDERS PAY A TAX TO THE STATE, SENT TO THE FEDERAL GOVERNMENT, WE GET A 50% TO 60% FEDERAL MATCH.

THIS IS THE KEY.

IF WE CAN TAKE MONEY THAT IS OUT THERE AND EARN THE FEDERAL MATCH TO $400 MILLION THAT IS MORE MONEY THE FEDS WILL PAY FOR IN OUR HEALTH CARE SYSTEM WE DO NOT HAVE TO RAISE FROM ILLINOIS TAXPAYERS.

>> THE NEGOTIATIONS, SENATE AND HOUSE STARTING TO HAVE HEARINGS ON A CAPITAL BILL.

WHAT SHOULD GO INTO THAT?

DO WE HAVE A SENSE OF A REVENUE STREAM OR STREAMS AT THIS POINT?

>> AGAIN, WHERE DO YOU FIND THE MONEY.

ON A CAPITAL BILL YOU NEVER HAVE A SHORTAGE OF PEOPLE ON THE FLOOR WHO WON'T TO VOTE YES ON MORE ROADS AND BRIDGES IN AIR THAT AREA.

>> THE RIBBON CUTTINGS ARE THE FUN PART.

>> VOTING FOR THE FUNDING IS THE HARD PART.

THERE HAS TO BE A DISCUSSION ON HOW YOU PUT THAT WHOLE PACKAGE TOGETHER.

LET ME JUST SAY SOMETHING, TOO, I THOUGHT IT WAS JUST -- HAS BEEN A VERY GOOD SIGN THE LAST COUPLE OF DAYS AND EVER SINCE J.B.

TOOK OFFICE, THE COMMITMENT TO BIPARTISAN DISCUSSIONS AND WORKING TOGETHER TO FIND SOME OF THE SOLUTIONS ON SOME OF THESE HARD THINGS.

A NEW OPTIMISM WE HAVE NOT SEEN IN THIS BUILDING FOR YEARS AND YEARS AND YEARS, YOU KNOW, IT IS GOING TO BE TOUGH AND HEART AND TAKE US A LONG TIME, BUT WE CAN GET THROUGH THIS TOGETHER >> CAN YOU BE CLEAR FOR ME, WE JUST HEARD THE BUDGET, HAVEN'T HAD AN OPPORTUNITY TO PORE OVER THE DOLLARS AND CENTS.

DOES THIS COVER THE CURRENT ESTIMATED BUDGET FOR 2019 WHICH PRITZKER PEGGED AT $3.2 BILLION, HE IS PRESENTING AS A BALANCED BUDGET PLAN FOR NEXT YEAR.

IS THERE MONEY TO TACKLE THE CURRENT DEFICIT OR IS THAT SOMETHING THAT SITS ON THE BOOKS?

>> I THINK THE BUDGET OFFICE WILL HAVE TO COME UP WITH THAT ANALYSIS AND BRING IT TO US.

THEY HAVE NOT YET.

>> WHEN DOES THAT NEED TO HAPPEN BY?

>> WE ARE COASTING THROUGH THE FISCAL YEAR?

>> WE HAVE ALSO SEEN REVENUES COMING IN AHEAD OF PROJECTIONS.

THE ECONOMY HAS GOTTEN BETTER, THE STATE HAS BEEN COLLECTING TAX DOLLARS, INCOME TAX AND SALES TAX.

MAYBE WE WILL NOT NEED A SUPPLEMENTAL.

I DON'T KNOW.

WE HAVE NOT HAD A REQUEST.

>> WHAT ABOUT CUTS?

ARE THERE ANY CUTS IN THIS BUDGET?

WE DIDN'T HEAR ANYTHING ABOUT THAT.

WE HEARD ABOUT AUSTERITY.

WE HEARD ABOUT EARLY CHILDHOOD AND K-12 GETTING MORE MONEY?

>> OUR STAFF GOT THE FULL DOCUMENT LAST NIGHT.

WE ARE WORKING THROUGH THAT DOCUMENT.

YOU ARE GOING TO SEE SOME CUTS.

>> DO YOU DESCRIBE THIS AS AN AUSTERE BUDGET?

YOU ARE TELLING PEOPLE ABOUT IT.

IS IT A BUDGET THAT KEEPS STEADY.

HOW DO YOU DESCRIBE IT?

>> I DESCRIBE IT AS THE FIRST STEP IN A REALLY LONG ROAD OF RESTORING THE FISCAL STABILITY OF OUR STATE.

YOU GUYS HAVE BEEN DOWN HERE.

YOU KNOW IT HAS TAKEN US YEARS AND YEARS TO HAVE A DIFFERENT GOVERNOR TO GET IN THE POSITION WE ARE IN NOW.

IT IS GOING TO TAKE YEARS TO GET OUT.

THERE IS NO EASY ANSWER.

IT IS NOT A HAPPY TIME FOR BUDGET BUDGETEERS OR APPROPRIATORS.

>> THANK YOU FOR YOUR EXPERTISE.

DIGGING INTO THOSE NUMBERS ON ILLINOIS LAWMAKERS.

THANK YOU, SIR.

>> THANK YOU.

>> AMANDA, THE SENATE PRESIDENT WAS SAYING HE IS OPTIMISTIC HE CAN GET THIS THING DONE AS FAR AS GETTING THE PROGRESSIVE INCOME TAX TOWARD THE END OF MAY.

THERE IS ALL OF THIS WITH THE POSSIBILITY OF A CAPITAL BILL.

THIS IS A HUGE AMOUNT FOR THEM TO GET DONE IN A RELATIVELY SHORT AMOUNT OF TIME.

>> YOU KNOW, ONE COULD SAY NOW IS THE TIME.

HOWEVER, IF IT IS GOING TO HAPPEN, I DO FEEL PRITZKER IS STILL SOMEWHAT IN THE HONEYMOON PERIOD REGARDLESS OF WHERE YOU ARE AT ON THE STATE'S FINANCES AND WHO IS AT FAULT FOR THAT.

THERE ARE CERTAINLY MANY PEOPLE WHO COULD BE ON THAT LIST FOR MANY YEARS OF TIME.

WHAT ILLINOIS WENT THROUGH WITH THE IMPASSE LIKE WHAT ANY STATE IS SUPPOSED TO GO THROUGH.

THERE IS A GENERAL CONSENSUS, YES, LET'S WORK TOGETHER.

DEMOCRATS HAVE THE SUPERMAJORITIES TO DO IT.

>> GET THE RESPONSE FROM THE GRAND OLD PARTY NOW WITH SENATE REPUBLICAN LEADER BILL BRADY, WELCOME BACK TO THE PROGRAM, SIR.

>> GOOD TO BE WITH YOU.

>> OBVIOUSLY, THE DEMOCRATS HAPPY WITH WHAT THEY HEARD IN THE LAST FEW MINUTES.

HOW DOES THIS BUDGET MESSAGE RESOUND IN THE RANKS OF THE SENATE REPUBLICANS?

>> OUR CONCERN WOULD BE THE HEAVY EMPHASIS ON RAISING TAXES AND TAX RATES.

THE IDEA OF THIS GRADUATED INCOME TAX, I THINK, PHILOSOPHICALLY, THE BETTER WAY TO RAISE REVENUE IS JOB GROWTH AND CREATION.

WHEN YOU RAISE TAXES YOU CREATE AN ENVIRONMENT THAT MAKE PEOPLE SKEPTICAL.

I WOULD SAY THERE ARE PARTS OF THIS BUDGET WE CAN BE SUPPORTIVE AND WORK ON.

>> LIKE WHAT?

>> SO, YOU KNOW, WE HAVE BEEN SUPPORTIVE OF SPORTS BETTING.

WE ARE GOING TO HAVE IT.

WE HAVE BEEN SUPPORTIVE OF THAT.

HOW WE USE THOSE RESOURCES.

IF THERE IS A BETTER WAY TO MAXIMIZE THE SUPPORT FOR OUR MEDICAID SYSTEM, WE ARE FOR THAT.

WE HAVE WORKED TOGETHER FOR THOSE THINGS IN THE PAST.

WE WANT TO WORK TOGETHER ON A CAPITAL BILL.

WHAT THAT REVENUE WILL BE, I DON'T KNOW.

AND I'M NOT CRITICAL FOR THE GOVERNOR TO BRING THAT UP TODAY.

THIS IS A DAY FOR OPERATIONAL BUDGET.

HE HAS HIS PLATFORM AND WHAT HE WANTS TO DO.

I WAS ENCOURAGED THIS MORNING WHEN HE HAD US INTO HIS OFFICE, PRESIDENT MADIGAN, SPEAKER DIRKEN AND I, HOW HE WANTS TO WORK TOGETHER.

I GENUINELY THINK HE WANTS TO WORK IN A BIPARTISAN FORMAT.

>> WAS THERE ANY LEFTOVER HEARTBURN THE WAY DEMOCRATS MOVED THAT MINIMUM WAGE HIKE THROUGH THE LAST FEW DAYS AND WEEKS?

>> THERE WASN'T.

WE FUNDAMENTALLY JUST DISAGREE ON THE ISSUE.

THERE WASN'T MUCH I COULD DO.

I BELIEVE IF WE ARE GOING TO RAISE WAGES FOR MORE PEOPLE, WE LET THE MARKETPLACE DO THAT.

ROBIN HOOD HAS RAISED THE MINIMUM WAGE.

WE LOST 50,000 JOBS AS A RESULT.

I'M FEARFUL THAT WILL HAPPEN TODAY AS OPPOSED TO ECONOMIC OPPORTUNITY BY AN INFRASTRUCTURE PROGRAM THAT BRINGS MORE JOBS TO ILLINOIS IN OTHER THINGS THAT THE MARKETPLACE RAISES THE WAGES WHERE NOW THE MARKETPLACE WILL LAY PEOPLE OFF TO MEET THE GOVERNMENT MANDATE.

>> CAN YOU SPEAK TO THE TENOR OF THE LEADERS' MEETINGS, THE FACT THERE WAS ONE.

DO YOU EXPECT THIS WILL BE FAR MORE REGULAR THAN IT HAS BEEN IN THE RECENT PAST, THE BIPARTISAN AND LESS ACRIMONY IS GOING TO CONTINUE?

>> THAT IS UP TO GOVERNOR PRITZKER.

I GENUINELY THINK HE WANTS OUR INPUT.

WHETHER HE CAN AGREE WITH WHAT WE NEED AND WE CAN AGREE WITH WHAT HE NEEDS REMAINS TO BE SEEN.

WE CAN WORK TOGETHER ON THE RIGHT SPORTS BETTING PROGRAM, SPENDING PLANS.

>> WHAT ABOUT RECREATIONAL MARIJUANA?

>> I HAVE MEMBERS OF MY CAUCUS ARE OPEN TO IT.

MUCH BECAUSE THEY WANT TO BE AT THE TABLE AND MAKE SURE IT IS DONE RIGHT, BUT MANY OF MY CAUCUS LIKE MYSELF WHO FEEL FUNDAMENTALLY WHAT WE HEAR FROM LAW ENFORCEMENT AND THE MEDICAL COMMUNITY IS HARMFUL TO OUR ENVIRONMENT.

>> IN YOUR VIEW IS THIS BUDGET AUSTERE ENOUGH THAT GOVERNOR DESCRIBED IT AS SUCH AND SAID HE WOULD PREFER TO SPEND MORE AND CERTAINLY CUTS WERE NOT EMPHASIZED.

WHAT WE HEARD WAS ADDITIONAL SPENDING INCREASES, HIGHER EDUCATION, WHEN IT COMES TO PRESCHOOL, EVEN WHEN YOU PROBABLY LOOK INTO THE LINE ITEMS HUMAN SERVICE PROVIDERS AND SUCH.

>> THERE ARE AREAS WHERE HE IS INCREASING SPENDING THAT WILL BE HELPFUL AND CREATE A BETTER INFRASTRUCTURE IN OUR STATE.

THE QUESTION IS DO WE HAVE THE RESOURCES.

>> ANSWER THAT QUESTION.

DO WE?

>> MAYBE MORE OF A MIX.

DEPENDING ON THE HE CAN PASS HIS TAX INCREASES.

I DO THINK MANY OF THE RESOURCES, GREATER MEDICAID MATCH, SPORTS BETTING, I THINK HE WILL HAVE THE RESOURCES FOR HIS RECREATIONAL MARIJUANA.

HE APPEARS TO HAVE THE VOTES FOR THOSE THINGS.

>> THOSE ARE RELATIVELY SMALL POTATOES IN REVENUE.

>> THOSE MAKE UP THE BIGGEST CHUNK IN $1.1 BILLION IN REVENUES.

I WOULD PERSONALLY PREFER TO SEE SOME DEBT REDUCTION AND THE PENSION SYSTEM GIVES US ANGST.

WE HAVE TO DO WHAT IS RIGHT FOR THE TAXPAYERS AND PEOPLE WHO RELY ON THOSE.

>> I'M GLAD YOU BROUGHT UP PENSIONS.

IT IS A KEY LINCHPIN AND IT IS A LOT OF LIFT.

YOU ARE TALKING ABOUT EXTENDING THE RAMP ON SEVEN YEARS, FURTHER THAN WE EXPECTED TO, $2 BILLION SHORT-TERM BOND INFUSION INTO THAT.

YOU ARE LOOKING AT IF THIS PROGRESSIVE INCOME TAX DOES COME ABOUT, TRYING TO PUMP $200 MILLION INTO IT.

WHAT GIVES YOU PAUSE, WHAT GIVES YOU CONCERN AS YOU LOOK AT THIS THING?

>> FUNDAMENTALLY YOU HAVE TO LOOK AT STUDIES.

WHAT GIVES ME CONCERNS ABOUT BORROWING IS IT THE RIGHT TIME IN THE MARKETPLACE.

THAT IS ARBITRAGE.

SOME STATES HAVE DONE THAT.

THAT IS A CONCERN.

EXTENDING DELAY WITHOUT A PERMANENT FIX.

GREAT CAUSE OF NOT HAVING A PERMANENT PLAN IF WE ARE GOING TO MANAGE THE PREPAYMENT AND WE RELY ON A GRADUAL INCOME TAX INCREASE IS STILL FICTIONAL IN THAT MANY POLLS WE SAY EVEN IF THEY PUT IT ON THE BALLOT, IT WILL NOT MEET THE CONSTITUTIONALLY REQUIRED APPROVAL.

I THINK WE HAVE TO WAIT AND SEE.

>> IT SOUNDS LIKE YOU'RE NOT KNOCKING IT AS MUCH AS I FIGURED SOME REPUBLICANS MIGHT IN TERMS OF THIS PENSION PLAN.

>> WELL, I'M REALLY CONCERNED ABOUT IT.

>> OKAY.

>> AGAIN, I'M ALL FOR A LONG-TERM SOLUTION TO THE PENSION CRISIS WE KNOW WE CAN LIVE UP TO.

THIS IS VERY PROBLEMATIC IN TERMS OF WHERE WE'RE AT NOW.

THE FACT THIS IS A ONE YEAR KICK THE CAN DOWN THE ROAD WITH $800 MILLION GIVES ME CONCERN.

I WOULD RATHER SEE A PERMANENT FIX.

IN THE FACT HE IS RELYING ON SOMETHING I'M NOT SURE THE PEOPLE OF ILLINOIS WILL EMBRACE, GRADUATED INCOME TAX IS A PROBLEM FOR ME AS WELL.

>> LET'S GO BACK TO THAT, LEADER, HE SAID HE WANTED TO GET ALL FOUR LEGISLATIVE LEADERS TO HAVE MEANINGFUL DISCUSSIONS ABOUT CREATING THE PROGRESSIVE INCOME TAX STRUCTURE.

WE HAVEN'T SEE THE BRACKETS.

I HEARD FROM ONE OF YOUR OWN CAUCUS, IF IT DOES TRULY IMPACT THE WEALTHIER AS OPPOSED TO LOW AND MIDDLE INCOME TAXPAYERS, I MIGHT TAKE A LOOK AT THAT.

WHAT KIND OF INPUT DO YOU HOPE TO OFFER INTO THAT AS THESE TALKS GO FORWARD?

>> WE HAVE TO SEE THE DETAILS.

BOTH HE AND PRESIDENT COLLITON SAID THEY WOULDN'T PROPOSE IT UNTIL THEY HAD THE TAX RATES.

THE REAL QUESTION DOES IT DRIVE PEOPLE OUT OF THE STATE, INVESTMENT OUT OF THE STATE AND ACTUALLY HURT OUR ECONOMY OR IS IT HELPFUL?

RIGHT NOW I AM ON THE SIDE INCREASING TAX RATES ON PEOPLE HURTS OUR ECONOMY.

I HAVE BEEN FOR EARNED INCOME TAX CREDIT EXPANSIONS.

WE NEED TO BE COMPASSIONATE AND UNDERSTANDING OF WHAT SOME OF THE LOWER INCOME EARNERS' CHALLENGES ARE.

>> GOING BACK TO THE WHOLE ISSUE OF THE PACKAGE TO REFORM THE PENSION PROGRAM WAS AN IDEA OF MOVING STATE ASSETS INTO THAT BECAUSE, OKAY, WE ARE LOOKING AT $134 BILLION PROBLEM WITH THE UNFUNDED LIABILITIES.

ONE ASPECT MIGHT BE SELLING THE -- PRIVATIZING THE STATE TOLLWAY SYSTEM.

A LOT OF FOLKS IN DOWN STATE ILLINOIS DON'T DEAL WITH THAT, BUT IN THE NORTHERN PART OF THE STATE THAT IS A BIG DEAL.

>> I HOPE THAT IS NOT -- WE SAW WHAT HAPPENS WHEN THE MAYOR OF CHICAGO SOLD THE PARKING SPACES AND OTHER THINGS.

I DON'T KNOW THAT IS A REAL SOLUTION.

THE TOLL ROAD SYSTEM SEEMS TO BE APPRECIATED AS IT IS OPERATING NOW BY A LOT OF PEOPLE.

MIGHT THERE BE SOME REVENUE TO SUPPORT OTHER THINGS?

I'M NOT SURE, BUT WE HAVE TO SEE THE DETAILS.

I'M INTRIGUED BY SEEING THE ASSETS THEY CAN PUT INTO THE PENSION SYSTEM THAT COULD PROVIDE REVENUE OR THE SALE OF WHICH TO PROVIDE REVENUE TO FUND THE SYSTEM.

IT IS AN INTRIGUING PROPOSITION, BUT IT HAS TO BE REAL AND MEANINGFUL.

>> LEADER BRADY, THANK YOU.

IT COMES DOWN TO THE DEVIL IS IN THE DETAILS.

>> WE JUST GOT THE DOCUMENT TODAY.

>> WE'VE GOT MANY MONTHS TO GO THROUGH IT.

>> LEADER BRADY, THANKS SO MUCH.

AS WE WERE HEARING FROM LEADER BRADY, NOT AS MUCH OF A CRITICAL RECEPTION.

WE ARE OPEN TO IDEAS.

>> WOULDN'T CALL IT ENTHUSIASTIC.

>> NO.

NOT ENTHUSIASTIC, BUT WE'LL TAKE A LISTEN TO WHAT THEY HAVE TO SAY.

WE KNOW WE DISAGREED ON THE MINIMUM WAGE HIKE THING, BUT WE DO BELIEVE HE IS WILLING TO TALK WITH US IN A BIPARTISAN WAY.

>> THEY WANT TO TALK, REPUBLICANS WANT TO BE INVOLVED AND BE PART OF THAT DISCUSSION, HAVE INPUT.

THEN AGAIN, NEED TO REMIND AT EVERY TURN THAT FRANKLY REPUBLICAN VOTES ARE NOT NECESSARY.

IN ORDER TO DO BONDING, SURE.

TO DO BORROWING, YOU NEED A SUPERMAJORITY.

DEMOCRATS HAVE THE NUMBERS TO DO THAT WITHOUT A SINGLE REPUBLICAN VOTE.

PERIOD.

THEY MAY NOT WANT TO, LOOKING AT AN INFRASTRUCTURE CAPITAL BILL, YOU BETTER BELIEVE DEMOCRATS WANT TO SHARE THAT LOAD WITH REPUBLICANS BUT THEY DON'T HAVE TO.

>> HOUSE REPUBLICAN LEADER JIM DIRKEN, GREAT TO HAVE YOU BACK ON THE PROGRAM, SIR.

>> GOOD TO SEE YOU.

AMANDA, GOOD TO SEE YOU.

>> THANK YOU.

>> WHAT IS YOUR TAKE?

>> I THINK THE GOVERNOR DID A FINE JOB SPEAKING TO HIS CONSTITUENCY.

THE GOVERNOR'S SPENDING REQUESTING IS $1.1 BILLION ON TOP OF GOVERNOR RAUNER'S PREVIOUS REQUEST.

WE TALK ABOUT THE FISCAL PROBLEMS OF THE STATE, AUSTERITY, IT MAKES ME REQUEST WHAT THE INTENTIONS ARE.

>> YOUR STAFF IS GOING GO THROUGH THAT BUDGET BOOK LINE BY LINE.

ONE OF THE THINGS AMANDA AND I DIDN'T HEAR EARLIER, WHERE ARE THE CUTS?

ARE THERE ANY CUTS YOU CAN SEE SO FAR?

>> THERE WAS NO DISCUSSION OF CUTS.

WE HAD A MEETING THIS MORNING, FOUR LEGISLATIVE LEADERS AND THE GOVERNOR.

OUR FIRST LEADERS' MEETING.

THERE WAS NOTHING REGARDING CUTS THAT WAS DISCUSSED.

IT WAS ABOUT HOW WE HAVE TO FUND I UNDERSTAND THAT.

AND I UNDERSTAND THE COMPASSIONATE ARGUMENT ON BEHALF OF THAT.

BUT TO GET TO THOSE FUNDING LEVELS, WE ARE GOING TO HAVE TO ASK ILLINOISANS TO DIG DEEPER INTO THEIR POCKETS AND I DON'T THINK THEY ARE PREPARED BASED ON MY UNDERSTANDING OF THE STATE AND THE PEOPLE OF THE STATE.

THIS IS A TIME IN WHICH WE SHOULD NOT RUN AROUND AND TAX OUR WAY OUT OF PROBLEMS.

I WOULD SAY THAT WITH THIS PARTICULAR SPEECH IT CRIES OUT FOR REPUBLICAN PARTICIPATION AND NEGOTIATIONS IF THE GOVERNOR IS TRUE TO HIS WORD THAT HE WISHES TO WORK IN A BIPARTISAN MANNER.

THERE IS SOME SIGNIFICANT DIVIDES IN WHAT HE HAS PROPOSED.

I'M PREPARE TO HELP BRIDGE THOSE DIVIDES AND TO WORK IN A SENSIBLE FASHION, BUT EVEN THOUGH THEY HAVE THE MAJORITY IN BOTH CHAMBERS, THEY CAN DO WHAT THEY WANT.

>> WHERE DO YOU SEE THOSE BIG DIVIDES?

IS IT MERELY THE LACK OF CUTS AND IF SO, WHAT WOULD YOU SUGGEST?

WHERE WOULD HE LOOK PARTICULARLY AFTER SOME WOULD DESCRIBE ILLINOIS BEING ON A STARVATION DIET OR AT LEAST POOR BUDGETS DEFACTO BECAUSE THERE WASN'T A BUDGET DURING THE IMPASSE?

>> I CAN'T GET INTO THE SPECIFICS, EXCUSE ME.

EACH AND EVERY YEAR THERE IS A NEW CONSTITUENCY DEPENDING ON THE STATE OF ILLINOIS.

WE NEED TO REVISIT HOW WE HAVE DEALT WITH ENTITLEMENTS AND WE ALWAYS GO BACK TO MEDICAID SPENDING.

THOSE ARE AREAS WE NEED TO HAVE REFORM.

WE DID A GOOD JOB PICKING APARD THE PROBLEMS WITH MEDICAID, CUTTING OUT FRAUD, WASTE AND ABUSE AND THAT WAS PULLED OUT UNDER GOVERNOR QUINN A FEW YEAR AGO WITH A THIRD PARTY THAT WAS DOING A GREAT JOB.

SO I WOULD SAY THIS.

I DON'T SUPPORT THE GOVERNOR'S POSITION ON PENSIONS.

THAT IS WHERE WE HAVE A MAJOR DIVIDE.

OUR PENSION PROBLEMS WITHIN THE STATE OF ILLINOIS IS OUR BIGGEST PROBLEM WE HAVE.

TO SAY THAT WE ARE GOING TO REA REAMORTIZE AND SHAVE OFF $900 MILLION SOUNDS LIKE DAYS OF THE PAST.

I DON'T WANT TO GO DOWN THAT ROAD.

>> DO YOU THINK WALL STREET WILL GO ALONG WITH IT?

>> NO.

>> DO YOU THINK THIS PUTS US IN JUNK BOND STATUS FOR ILLINOIS?

>> I DON'T KNOW HOW THAT CALCULATION WORKS.

WE ARE NOT GOING TO DEDICATE RESOURCES TOWARD PENSION SYSTEMS AND SHORTCHANGE THEM, I DON'T KNOW HOW ANY ECONOMIST OR RATING AGENCY CAN SUGGEST THIS IS A GOOD POLICY.

>> WHAT IS ANOTHER WAY FORWARD?

AFTER THE SUPREME COURT DECISION, WE OWE THE BILL.

WE HAVE TO PAY IT SOMEHOW.

>> WE DO.

I BROUGHT THIS UP AT THE MEETING.

LAST YEAR PRESIDENT COLLITON PASSED A REFORM BILL BASED ON HIS CONSIDERATION MODEL, I INTRODUCED THE IDENTICAL BILL WITH 26 HOUSE SPONSORS.

THE ONLY PERSON WHO WAS NOT SUPPORTIVE IS THE SPEAKER.

I BELIEVE WE HAVE TO REFORM OUR PENSION SYSTEMS FIRST AND FOREMOST AND NOT PUT 95% OF ILLINOISANS NOT PARTICIPATING ON THE HOOK.

THESE PROGRAMS WITH BE REFORMED.

THAT IS WHY WE HAVE A COURT SYSTEM.

TO SUGGEST WE CAN'T PASS A BILL BECAUSE WE ARE AFRAID OF WHAT THE COURTS ARE GOING TO DO IS EMBARRASSING.

I'M CONFIDENT WITH PRESIDENT COLLITON'S ANALYSIS THIS BILL SUPPORTED BY AFL-CIO WOULD GET THROUGH THE SUPREME COURT.

>> YOU SEE ILLINOIS WAITING TO GET TO 90% FUNDING WHAT THE GOVERNOR PROPOSED IS KICKING THE CAN DOWN THE ROAD.

HE SAYS HE IS NOT DOING THAT.

WHAT ABOUT THE OTHER FOUR ASPECTS?

>> WE WILL HAVE TO LOOK AND SEE HOW ISSUING BONDING WITH A PENSION OBLIGATION BOND, I WILL HAVE TO WORK WITH MY STAFF ON IT.

IT HAS BEEN MIXED REVIEWS BY THE RATING AGENCIES.

THIS IS PART OF THE ANALYSIS.

IS THIS GOING TO IMPROVE THE CREDIT RATING OF ILLINOIS.

IT WILL INFUSE MORE MONEY, BUT HOW IT AFFECTS THE CREDIT RATING IS IMPORTANT.

>> WHAT ABOUT THE IDEA OF TRYING TO MOVE STATE ASSETS INTO THOSE FUNDS LIKE PRIVATIZING THE TOLLWAY SYSTEM?

>> I THINK WE NEED TO EXERCISE GREAT CAUTION WITH THAT IN TIMES OF FISCAL CALAMITY.

I KNOW STATES WHEN WE HAD THE RECESSION IN THE LATE 2000s, THERE WERE STATES THAT WERE LEASING AND SELLING STATE BUILDINGS AND ASSETS WHICH WAS NOT A POSITIVE AT THE END OF THE DAY.

IT WAS A QUICK FIX.

I HAVE RESERVATIONS ABOUT WHATEVER ASSETS HE IS REFERRING TO, HAVING THOSE TRANSFERRED INTO THE SYSTEMS, WITH THE TOLLWAY YOU HAVE BILLIONS OF DOLLARS OF BONDHOLDERS WHO ARE -- WE HAVE TO WORK OUR WAY THROUGH THAT AND THE BONDING DOCUMENTS OF WHAT THE RESPONSIBILITIES AND RIGHTS OF THE BONDHOLDERS AND THE TOLLWAY.

SO I'M GOING TO KEEP AN OPEN MIND, BUT, AGAIN, IT IS A BIG ASK, BUT ONCE YOU DO THAT, YOU DON'T REALLY REALIZE THE BENEFIT OF THAT ASSET AGAIN THE REST OF YOUR LIFE.

>> LEADER, PRITS TER ADMINISTRATION MADE A LOT OF THE CURRENT ADMINISTRATION.

HE SAYS THERE IS $3.2 BILLION MISSING FROM THE BUDGET?

DID GOVERNOR PRITZKER ADDRESS WHAT HE PLANS TO DO ABOUT THAT?

>> YES.

HE GAVE US A MENU OF $2.6 BILLION TO ATTACK THE DEFICIT BUT LEAVING $600 MILLION WITHOUT EXPLANATION.

THERE WAS SOME BRIEF DISCUSSION.

>> IT IS THAT MENU.

>> REAMORTIZATION, $800 MILLION OF THE PENSION SYSTEMS, SHAVING OFF THE DEDICATED PAYMENT, RECREATIONAL CANNABIS.

>> THAT IS FOR FY 19 NOT FY 20.

>> FY 20.

>> FOR THE FY 19 THERE IS A DEFICIT LEFT OVER FROM THE RAUNER YEARS.

IS THAT SOMETHING THE LEADERS NEED TO DEAL WITH?

>> WHEN GOVERNOR RAUNER FIRST TOOK OFFICE HE INHERITED A $1.5 BILLION OFFBALANCE BUDGET THE REPUBLICANS FIXED BUT THE DEMOCRATS SENT OUT OF BALANCE BUDGETS.

THAT IS NOT A PRIORITY IN THEIR MIND.

>> YOU THEY WILL WILL LINGER ON.

>> YES.

THERE ARE A LOT OF THINGS WE CAN AGREE ON.

RECREATIONAL CANNABIS, OPENING UP THE SPORTS BOOK.

TAXATION OF MCOs, WHICH IS A HEAVY TAX.

I'M OPEN TO IT.

>> A CAPITAL BILL?

>> A CAPITAL BILL IS SOMETHING OUR CAUCUS IS OPEN TO.

WE ARE NOT RUNNING THE PROGRAM.

THEY NEED TO BRING US IN.

I KNOW THEY NEED REPUBLICAN VOTES ON CAPITAL AND OTHER ISSUES OF THAT SIZE.

IF THEY WANT OUR HELP, THEY HAVE TO INCLUDE US >> LEADER DIRKEN, THANK YOU FOR BEING WITH US.

AMANDA, GREAT HAVE YOU.

FROM ALL OF US AT "ILLINOIS LAWMAKERS" THANKS FOR JOINING US.

WE WILL BE BACK IN MAY.

FROM ALL OF US AT "ILLINOIS LAWMAKERS" SO LONG FROM