SPRINGFIELD, Ill. (AP) — Illinois House Democrats have given up on extending a temporary income tax increase and have begun working on a scaled-back state spending plan.

Speaker Michael Madigan said Monday that House working groups would begin work on a “middle-of-the-road” budget that’s in line with a revenue estimate of about $34 billion.

Democratic Gov. Pat Quinn wants to make permanent the income-tax increase that’s set to roll back in January. It’s costing the typical Illinois taxpayer about $1,100 more this year.

But the House couldn’t collect enough support to adopt that plan to fund a budget blueprint of about $38 billion. The House also rejected on Friday a “doomsday” budget that would have meant severe cuts to services.

Madigan says a new revenue estimate adds about $189 million to the bank account.

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