He didn't come out and say it, but Governor Pat Quinn has apparently abandoned his promise to allow the "temporary" income-tax hikes to expire three years from now.

The governor submitted a three-year revenue and spending projection last week as he's required to do by a new Illinois law. The bottom line of Quinn's projection is that revenues are simply not high enough to match what Quinn wants to spend. According to the governor's projections, the state will finish this fiscal year with a $507-million deficit, despite the recent tax hikes.

I talked with former state Senator Howie Carroll last week about the proposal by state Representative Bill Mitchell (R-Forsyth) to kick Chicago and suburban Cook County out of Illinois. Mitchell's resolution has just a tiny number of co-sponsors, but he's managed to get himself lots of statewide and national media coverage, and he clearly appears to be enjoying his 15 minutes of fame claiming that his region of the state is tired of paying for Chicago's liberal programs.

Carroll knows all too well about breaking the state in two because he sponsored just such a resolution back in 1981. Carroll, a Chicago Democrat, proposed to make Cook County a separate state. According to newspaper accounts from the time, the resolution was introduced in the midst of heated fighting between Chicago-area and Downstate legislators over funding for mass transit.

A massive turnaround in the Illinois House may have whetted political appetites for even more corporate tax relief. But don't count on it just yet.

As you may recall, a tax-cut plan for corporations and individuals failed miserably in the House a few weeks ago, getting eight votes - comically short of the 60 needed for passage.

So the House went home for two weeks and some intense lobbying began. When state representatives came back to Springfield, a slightly revised version of the corporate-tax-cut plan passed with a whopping 81 votes. The bill will grant large tax breaks to CME Group and Sears to keep them from leaving the state, as well as a few broad-based provisions.

"I ... I ... I ... I ... I couldn't fathom what I would say to those two girls," U.S. Attorney Patrick Fitzgerald stammered last week when asked what he would say to Rod Blagojevich's daughters after our former governor was sentenced to 14 years in prison.

It was impossible not to think of those little girls last week. Even some of the most hardened, partisan Republicans I know felt no joy at Blagojevich's long prison sentence because of those kids. I don't know the children well, but I did spend some time with them a few years back and thought they were good kids, even normal kids, despite their father's position at the time and the overall weirdness of their situation.

It's a fairly common Statehouse phenomenon that bills will zoom out of the Senate or the House and then flame out in the other chamber. People in the other chamber don't always care as much as the people who first sponsor the bills. Often, they also don't want to be pushed around by the other chamber.

That explains part of what happened last week, when the Senate passed a major tax-cut package with a super-majority of 36 votes and then the bill received only eight votes in the House, despite the fact that the Senate bill would cost just a few million dollars more than the House's plan.

There's far more to this failure than the usual House-versus-Senate dynamic, of course. House Speaker Michael Madigan has declared neutrality on the bill, apparently because of a conflict of interest. Without the "Velvet Hammer" pushing hard for what is obviously a hugely controversial measure, the House just couldn't get it done.

You may have read the stories about how next year's mandatory state-pension payment will rise by a whopping $1 billion.

The new numbers show the state's total pension payment, with debt service, will be more than $7.4 billion next fiscal year. This year's pension payment was originally set at $6.4 billion back in March but is now $6.5 billion.

Not including federal money, the state budget is around $30 billion. So one out of every four state tax dollars spent next year will go to the pension funds, and every last penny from January's "temporary" state-income-tax increase will be used for that pension payment next year.

While all eyes last week turned to the Republicans' lawsuit against the new federal district map for U.S. congressmen in Illinois, a similar GOP lawsuit against the legislative district map for Springfield's state senators and representatives may be teetering on the brink of collapse.

Many of the same arguments are being used by the Republicans in both the congressional and state-legislative cases. Both suits have a partisan angle. The Republicans claim that the majority Democrats so intensely used political gerrymandering to draw their maps that the end result illegally deprived Republicans of their constitutional rights.

The court that is hearing the congressional-map case has yet to rule on the political angle, but the court that heard the state-legislative-remap case dismissed the Republicans' political charge last week. The political gerrymandering strategy was never considered all that solid because nobody has ever won a case using that argument. The strategy is given about the same chance of success - slim to none - in the congressional case.

"I love this governor!" exclaimed a jubilant utility lobbyist a few weeks ago.

Why would a utility lobbyist express his undying love for our self-proclaimed consumer-activist governor?

Simple.

The lobbyist was absolutely convinced that Governor Pat Quinn's over-the-top media antics had helped pass the so-called "Smart Grid trailer bill" by a huge margin and provided the extra oomph needed to override Quinn's own veto of the original Smart Grid bill.

That lobbyist was not alone. Several legislators, staff members, and longtime observers said basically the same thing. When the governor decided not to negotiate the bill's details and switched to to slamming legislators who received utility campaign contributions as somehow criminal or at the very least sleazy, he created a nasty legislative backlash so intense that the utilities were able to hold their coalition together.

Yet Quinn appeared to revel in his alleged victories. He got his clock cleaned, but he fought the good fight, and that's apparently what really mattered.

Terry DuffyIn an exclusive interview last week, CME Group Executive Chair Terry Duffy said he's more than ready to leave Illinois if he doesn't get what he believes is a "fair" tax deal from the General Assembly.

The company owns the Chicago Board of Trade and several other firms. It's a very big wheel in this state, and leaving would be the worst sort of news for Democrats who raised taxes this year.

Duffy has been under intense pressure all year from Wall Street to reduce expenses. State taxes are listed as expenses on corporate books, so Duffy has been publicly fuming about his company's $150-million-a-year state-tax burden since corporate tax rates were increased.

Duffy claims CME pays 6 percent of all corporate income taxes in Illinois, and pays more than any other company. "I don't know another company in the world that pays 6 percent of another state's taxes."

An apparent legislative drafting error has created a massive loophole in the state's new campaign-contribution-limit law, and ComEd and its parent company Exelon have been aggressively exploiting it since early this year.

State campaign-finance-reform laws that capped campaign contributions went into effect January 1. One provision of the new law set a $50,000 cap on what political action committees could receive from other political action committees during a calendar year.

Despite that cap, Exelon's federal PAC has transferred more than $189,000 this year to a state PAC controlled by subsidiary ComEd. Those transfers appear to be almost four times larger than the law allows.

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