Gov. Rauner delivers Illinois budget address

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SPRINGFIELD, Ill. --Gov. Bruce Rauner says Illinois lawmakers of both parties agree for the first time that the state needs regulatory change as well as reduced spending.

He says "on this, we all now agree. And that is real progress."

Rauner began his third budget address Wednesday by praising bipartisan Senate negotiations attempting to break a two-year deadlock on an annual spending plan.

Rauner has insisted on business-friendly changes such as restrictions on workers' compensation payouts as part of a budget agreement. Democrats have said he should agree with them on the way to reduce a multibillion-dollar deficit first.

But the Senate plan addresses workers' compensation and other Rauner priorities such as a property tax freeze. It also would raise income taxes.