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.

It's long been a tenet of public opinion that voters want the government to cut its budget and don't want new revenues, but also don't want any actual programs slashed.

However, the latest Paul Simon Public Policy Institute poll shows a slow but sure trend in favor of specific state budget cuts and revenue increases.

A large majority of Illinoisans do still believe in magic. According to the poll, 58 percent say the state budget can be balanced by cutting waste and inefficiency. And because of this belief in an utter fantasy world where fairies reign and pixie dust solves all our problems, too few want to actually cut state spending programs.

Jerry CostelloIllinois Democrats can be excused for feeling more than a little spooked these days.

And there's probably no greater example about why they are so worried than the stunning announcement earlier this month that longtime Democratic Congressman Jerry Costello won't run for re-election.

Shock combined with fear was in almost every Democratic voice the day of Costello's announcement. If Costello was bailing on them, then things must be even worse than they thought. It didn't help that there appeared to be no "reason" for his decision. His son, state Representative Jerry Costello II, immediately defied all expectations by saying he wasn't interested in the seat, so Costello wasn't stepping aside for the kid. The congressman wasn't ill. He didn't have a job offer. He isn't under investigation. The widespread conclusion was that it must be the worsening political environment.

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