CHICAGO (AP) — More than a thousand conservative lawmakers and business executives are gathering this week for a conference that could shape a new wave of Republican legislation in state capitols pushing for deeper tax cuts, limits on union powers and a private-sector makeover for government Medicaid programs.

Attendees at the American Legislative Exchange Council were countered Thursday by a roughly equal number of protesters upset by the close ties between big businesses and lawmakers. As meeting participants handed out awards and dined at a meal sponsored by the Texas Oil and Gas Association, picketers denouncing "corporate greed" paced the sidewalks and clogged the street in front of the Chicago hotel hosting the conference.

The conservative organization's 40th annual meeting comes as it is experiencing increased influence due to a growth in Republican-led legislatures and enhanced opposition from liberal-leaning groups that have successfully persuaded some corporations to drop their support of the council. Businesses provide the bulk of the financing for the association, and industry officials serve with lawmakers on closed-door, issue-oriented task forces that develop model legislation for states.