SPRINGFIELD - An expansion of gambling in Illinois is emerging as a likely piece of a final budget deal, but legislative leaders remain far apart on the details.

Democrat and Republican leaders in the House say they favor a limited expansion of gambling to help pay for a statewide construction program.

But Senate Democrats, led by Senate President Emil Jones, want to add at least four casinos to the state's existing fleet of nine to pay for an even larger expansion of state government.

"There's a serious difference between Senator Jones and I on gaming," said House Speaker Michael Madigan, D-Chicago.

Madigan's comment came following a 40-minute meeting between Madigan, Jones and Gov. Rod Blagojevich. With a week to go before a May 31 deadline, it marked the first time the trio sat down together to try and hash out a spending plan for the coming fiscal year.

Jones did not respond to questions afterward, but Madigan and Blagojevich described the closed-door talks in positive terms.

"It was a good day. It was a nice conversation. It was good to have discussions," said Blagojevich as he exited the Capitol on Thursday afternoon.

"I found it to be a very informative discussion. We are moving forward. I'm here to get the job done. I'd love to finish at the end of May, but I've done overtime sessions in the past and I'd be prepared for that also," said Madigan.

Blagojevich chief of staff Sheila Nix said the governor was especially encouraged by a survey Madigan took of his Democratic members showing that many of them favor a plan to close business tax loopholes.

Although the survey wasn't specific about which loopholes would be targeted in order to bring more money into state coffers, Nix said that fits in with the governor's desire to raise taxes on businesses to pay for universal health care and education funding.

The governor "said he was flexible on what kind of revenue sources you use as long as they were not income taxes and sales taxes," Nix said. "We'd like to get health care for everybody and finally solve the education funding problem that's been plaguing the state for many, many years."

As for gambling, Madigan said Democrats in the House could likely support a plan to add gaming positions at the existing nine casinos.

House Republicans also favor such a plan if the proceeds are targeted toward building roads, schools and other state facilities.

"Our belief is that it is market-driven. It is not an expansion," Cross said.

The program would pay for a statewide construction program at a time when lawmakers are in no mood to increase taxes on citizens, who are already facing rising electricity and gasoline costs.

"I'm just not sure the will is there to do that," said Cross. "We're down to the point where there aren't many options."

Rank-and-file lawmakers say getting money from expanding gambling is a better way to finance growth in state government.

"That's a self-imposed tax. My point on gaming is that I'd rather have an expansion of gaming rather than put on any other tax," said state Rep. Pat Verschoore, D-Milan.

Senate Democrats, however, are crafting legislation that would add at least four casinos. Targeted sites include Chicago, O'Hare International Airport, Lake County and Chicago's southern suburbs.

"We are talking about making the current boats more competitive with the neighboring states," said state Sen. James Clayborne, D-Belleville.

Clayborne said negotiators are not leaning toward a plan that would allow horse tracks to add slot machines as a way to bolster their ledger books and generate revenue for the state.

"That's been discussed but, at this point in time, I doubt if that's going to be on the table," Clayborne.

Kurt Erickson can be reached at kurt.erickson@lee.net or 789-0865.