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State lawmakers still pushing for replacement of coal funds

BY ADAM TESTA, The Southern

Thursday, December 6, 2007 10:05 AM CST

SPRINGFIELD - The governor's recent raiding of funds has emptied the state's Coal Development Fund and Southern Illinois legislators believe the money won't be seen again this year.

Gov. Rod Blagojevich used $10.2 million from the coal fund as part of a $27 million bailout of the Chicago Transit Authority and the Regional Transit Authority in the Chicago area last month. Susan Hofer, spokeswoman for the governor's office of management and budget, said the movement of funds would not impact any current projects or programs.

Hofer said money needed for current coal development projects was issued before the fund account was drained to a zero balance to support the CTA, which state Rep. Mike Bost, R-Murphysboro, called a "corrupt machine in Chicago that can't handle the money it gets anyway."

Money could be added to the coal fund this fiscal year if the state sells additional bonds. When asked if funds would be restored, Hofer replied, "There are ongoing discussions of how to fund the CTA." State law allows the governor to transfer money this way, but many legislators in central and Southern Illinois disagree with the action and continue to call for the money to be restored.

"They may not have a use for that now, but we may need it later on," said state Rep. Brandon Phelps, D-Harrisburg.

When the legislature returns to session, perhaps as early as next week, state Sen. Deanna Demuzio, D-Carlinville, will introduce Senate Bill 1877 with state Sen. Gary Forby, D-Benton, as a major co-sponsor. The bill is designed to prohibit the governor and his budget director from reallocating unspent dollars obtained through the sale of bonds.

State Sen. David Luechtefeld, R-Okawville, said there have been several attempts to pass similar legislation in the past but all have been unsuccessful. Senate President Emil Jones likely wouldn't allow such legislation to come to vote, and if it did and it passed, Blagojevich almost assuredly would veto the bill, he said.

"There hasn't been much success in stopping his raiding to this point," Luechtefeld said.

Many legislators also wonder what effect the removal of money from the coal fund will have on the opening of new mines in Southern Illinois, the expansion of current mining operations and the possibility of the FutureGen research plant being located in Illinois.

The state Department of Commerce and Economic Opportunity has distributed more than $5 million in grants from the coal fund in each of the past two fiscal years, and Blagojevich set aside $17 million from the fund in June 2006 as part of an incentive program to attract the FutureGen project, a zero-emissions power plant. Two central Illinois cities, Mattoon and Tuscola, are among four finalists for the plant's construction site against two Texas sites.

With a final site selection announcement expected Dec. 17, no Southern Illinois legislators could speculate on possible effects the fund reallocations could have on Illinois' chances. State Rep. John Bradley, D-Marion, asked, "Why do anything that could potentially jeopardize our chances?"

As legislators continue to push for the replacement of money to the Coal Development Fund and other funds raided for the last bailout, Blagojevich and legislative leaders have begun meeting again to try and devise a plan that would combine a mass transit financing plan with a statewide construction program.

While the governor's office says the General Assembly could return as early as next week to hammer out a final plan, Republican leaders say a vote may not come until January.

-Kurt Erickson of The Southern Springfield Bureau contributed to this article.

adam.testa@thesouthern.com

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