Blagojevich offers loans to schools
SPRINGFIELD — Gov. Rod Blagojevich tried Monday to ease the worries of school officials left wondering whether they will get much-needed state aid payments later this week.
With schools across the state getting ready to open their doors, the governor directed the Illinois Finance Authority to make available $175 million in no-interest loans to the state’s 900 school districts if lawmakers cannot agree on a budget by Wednesday.
That is the same day the checks are scheduled to go out to schools and nearly 5,000 state workers. But with no budget agreement in place, Comptroller Dan Hynes said the checks would be delayed.
Blagojevich’s move came as negotiations among members of the House and Senate zeroed in on gambling again as a way to funnel more money to state programs.
Republican leaders in the House and Senate signaled that they may be ready to support a plan to add a casino to Chicago, with revenues from a land-based facility going toward schools and a statewide construction program.
“We can support a boat in Chicago,” Senate Minority Leader Frank Watson, R-Greenville, said, echoing comments by House Minority Leader Tom Cross, R-Oswego.
Both GOP leaders cautioned that not all their members see gambling expansion as a cure-all for the state, which has been operating without a budget since July 31 because of wide disagreement among lawmakers and Blagojevich.
Among those opposing gambling expansion is Rep. Keith Sommer, R-Morton.
“I don’t think the state should be in the gambling business,” he said.
As the clock ticked down Monday, observers expressed doubt that a budget deal could emerge before Wednesday’s deadline.
“It’s looking bleak,” Cross said.
As for the loans to school districts, state education Superintendent Christopher Koch said the move could ease some concerns.
“I understand that this is an anxious time for many of you and thank you for your patience and understanding. It is my hope that a state budget can be agreed upon soon,” Koch said.
Rep. Roger Eddy, R-Hutsonville, who is also a school superintendent, said the loan program could help in the short-term. But the money is based on last year’s funding levels, meaning school districts still cannot plan for any changes that might be on tap this year.
“It still makes it hard for us to plan for things like more kindergarten teachers or band programs,” he said. “It only answers half of our concerns.”
Kurt Erickson can be contacted at (217) 789-0865 or kurt.erickson@lee.net.