Illinois Senate approves bill to tap federal dollars, overrides veto

(Reuters) - The Illinois Senate on Wednesday gave final approval to a bill tapping more than $5 billion in federal money to keep some state programs operating in the absence of an enacted fiscal 2016 budget. The Democrat-controlled chamber also overrode a veto by Republican Governor Bruce Rauner of a bill allowing arbitration for collective bargaining impasses. The measure, which would prevent strikes or lockouts, arose amid ongoing contract negotiations between the state and its labor unions. Rauner, who lobbied against an override, chastised Senators for choosing special interests over taxpayers. "They made it abundantly clear that they’d rather raise taxes than stand up to the politically powerful. It is now up to House members to take the responsible, pro-taxpayer position and uphold our veto,” the governor said in a statement. The House, which is also controlled by Democrats, has 15 days to take an override vote that requires a three-fifths majority. “Public service workers want to be treated fairly, they don’t want to be forced out on strike, and today’s vote is a strong step in the right direction,” American Federation of State, County and Municipal Employees Council 31 Executive Director Roberta Lynch said in a statement. The Senate in a 52-0 vote sent Rauner the federal funding bill that will help pay for programs that provide food and child care, help pay utility bills for low-income families, support domestic violence victims, and aid the disabled. Illinois on Wednesday marked its seventh week of operating without a budget for the fiscal year that began July 1. Court orders have kept money flowing to certain programs and for state payroll. Democratic lawmakers have resisted Rauner's call for the wholesale adoption of his turnaround agenda that includes legislative term limits and business-friendly reforms before he considers additional revenue for the budget. The federal funds measure also appropriates state taxes that back bonds issued by the Metropolitan Pier and Exposition Authority for an expansion of the McCormick Place convention center in Chicago. The lack of an appropriation led to a technical default on the bonds when the authority was unable to send a July debt service deposit to the bond trustee. That in turn resulted in multi-notch rating downgrades for more than $3 billion of the authority's bonds by Standard & Poor's and Fitch Ratings. (Reporting by Karen Pierog; Editing by Toni Reinhold)