Illinois FIRST: Year 1 Progress Report

Summary and findings on the state's new capital improvement program.

October 31, 2000

In May 1999, Governor George H. Ryan proposed, and the Illinois General Assembly passed, legislation investing in a range of state and local infrastructure. Called Illinois FIRST (Fund for Infrastructure, Roads, Schools and Transit), the program dedicated $12 billion in state and federal funds over five years.

This $12 billion commitment includes $2.015 billion in federal funding for transit that would have been lost without the matching funds that Illinois FIRST provided.

Business Leaders for Transportation, a coalition representing more than 10,000 area employers, was actively involved in shaping and advocating the transportation component.

This report provides the first comprehensive summary of the five-year highway and transit program, including new funds from Illinois FIRST, and a detailed summary of expenditures during Year 1.

Summary of Findings and Conclusions

Illinois FIRST is a major step toward providing needed transportation funds.

Business Leaders for Transportation believes major investments in transportation infrastructure are vital to the Chicago region's continued prosperity. We commend the Governor and members of the General Assembly for having the courage to get us on the right track.

Illinois FIRST is generating dramatically increased resources to make transit competitive.

For FY 2000 - 2004, Illinois FIRST increases transit funding for northeastern Illinois by $2.03 billion, or 60 percent, to $5.3 billion.
Illinois FIRST provided the matching funds and political momentum to obtain an unprecedented federal funding commitment of $832 million for the top five "new start" transit projects requested by the Chicago region.

Illinois FIRST is reducing the serious backlog of deficient roads and bridges.

For FY2000–2004, Illinois FIRST increases the state highway program by $3.7 billion, or 54 percent, to $10.5 billion. IDOT fully committed $1.9 billion in FY2000, a 67 percent increase over FY1999. First year projects in northeastern Illinois include rehabilitation or replacement of 103 bridges, reconstruction or resurfacing of 219 miles of roads, and 70 traffic congestion and safety projects.
Illinois FIRST increases the local road program by $430 million, or 17 percent, to $3.0 billion over five years.
IDOT reports that Illinois FIRST dedicates 77 percent of highway funds toward fixing the existing system. This is consistent with the policy of Business Leaders for Transportation that funding priority should be given to maintenance and reconstruction of the road and rail system.

Despite the size of the Illinois FIRST investment, many significant transportation needs remain unfunded.

Years of underfunding led transit agencies to defer system maintenance, worsening infrastructure conditions. In addition to the planned rehabilitation of the Brown Line and the Douglas branch of the Blue Line, the rest of the CTA system needs to be improved to a "state of good repair" so transit riders can have reliable service.
New transit service is needed to provide access to suburban business and employment centers.
Even after Illinois FIRST, almost 2,400 miles of roads and 850 bridges will be in need of repair. Repaving and patching roads are no substitute for total reconstruction. Unless roads are rebuilt once they have reached the end of their useful life, frequent repairs mean more delays and congestion for drivers, time away from family, declining air quality, and threats to our region's economic productivity.
Financial forecasts through the year 2020 show that, even with Illinois FIRST, our region needs additional funding to ensure that needed infrastructure for the growing population is built and maintained.

Better planning is needed.

When Illinois FIRST expires in 2004, the state must be prepared to act once again to provide the financial resources needed to ensure that repairs to our roads and transit systems are not stopped dead at a red light.
We need to plan for the most cost-effective transportation investments. Metropolitan Chicago has a plan for transportation improvements through 2020, soon to be updated and extended to 2030. The transportation plan of the region should be based on integrated land use plans, and development that is transit-supportive should be encouraged. By targeting balanced development, we have a historic opportunity to use transportation investments to spur reinvestment in existing communities.

Additional information on Illinois FIRST results is needed.

Transportation agencies need to develop and provide improved information to ensure that stakeholders, media and the public can easily assess the impact of Illinois FIRST. Data should enable comparison of project results with program objectives.

Business Leaders for Transportation will continue to monitor the implementation of Illinois FIRST.

We want to ensure that limited funds are spent in ways that support efficient transportation and balanced growth. Business Leaders for Transportation will issue occasional progress reports on Illinois FIRST and looks forward to receiving additional information from IDOT, RTA and the transit agencies demonstrating progress in achieving Illinois FIRST objectives.

Illinois FIRST Program Summary: Highways

Prior to Illinois FIRST, existing revenue from state highway user fees, enacted in 1989, supported a five-year state highway program of $6.8 billion. An increase in vehicle registration fees and the highway bond authorization in 1999 provided increased resources of $3.7 billion.

The state highway program through the Illinois Department of Transportation (IDOT) for FY 2000 to 2004 is $10.5 billion and includes $1.6 billion for local roads. This is in addition to funds that municipalities receive from the state for transportation investments.

Of the $10.5 billion, 45 percent is committed to northeastern Illinois. And, of the $8.9 billion that is available for IDOT highway projects, 77 percent will be used for system preservation and modernization. Only 23 percent will pay for additional lanes and new roads.

In conjunction with the increased motor vehicle registration fees, the allocation of existing motor fuel tax revenue to local governments was raised from 41.6 to 54.4 percent. This provides an increase of $435 million — from $2.6 billion to $3.0 billion — to be programmed by cities and counties for local roads.

In total, Illinois FIRST adds $4.1 billion for state and local road improvements, bringing the total to $13.5 billion in state and local road assistance. This substantial investment program ensures that by 2004, 85 percent of the state's highways will be rated in "good" to "excellent" condition. The remaining backlog of unfunded repairs will be almost 2,400 miles of roads and 850 bridges.

Illinois FIRST Progress Report on Year 1: IDOT FY 2000

IDOT's $10.5 billion five-year Illinois FIRST road program committed $1.9 billion in FY 2000, its first year. This represents an increase of 67 percent over the FY 1999 program of $1.14 billion. IDOT reports that funds for the first year, which ended July 30, 2000 have been fully committed to contracts, advertisements, or consultant agreements.

IDOT's preliminary report, issued upon request to Business Leaders for Transportation, indicates that the first year benefits in Northeastern Illinois include the rehabilitation or replacement of 103 bridges, reconstruction or resurfacing of 219 miles of roads, and 70 traffic congestion and safety projects, including traffic signal upgrades, grade crossing protection improvements, and intersection reconstruction. IDOT is well on its way to reducing the serious backlog of deficient roads and bridges.

Highlights of the status and benefits for Northeastern Illinois include:

Hillside bottleneck. At the end of Phase I improvements in FY 2001, travel time through the bottleneck will be reduced from 20 minutes to an estimated three or four minutes. Work in FY 2001 will allow eastbound vehicles from Interstates 88 and 290 exiting at Mannheim Road to completely bypass the current bottleneck on the Eisenhower. Cost: $97.5 million, construction only.

Stevenson Expressway reconstruction. Cost: $567 million (state share of $29 million for FY 2001 & $65 million FY 2002 - 2005). Currently underway.

Borman Expressway / Interstate 80 (From Interstate 94 to the Indiana State Line) reconstruction and add lanes. Cost: $299 million

Dan Ryan Expressway / Interstate 94 (From 31st Street to Interstate 57) reconstruction. Cost: $547.5 million. Currently under design and Phase I study.

FY 2000-2001 arterial improvements. These projects would not have been completed without Illinois FIRST.*

US 30 (Larkin Avenue to Cass Street). Additional capacity will alleviate congestion and facilitate traffic movements through the City of Joliet. FY 2001 cost: $8.6 million
US 45 (IL 137 to IL 176). Modernization of traffic signals and implementation of signal timing will result in less vehicle emissions as well as less congestion on arterial roadways. FY 2001 cost: $15.7 million
Illinois 59 (111th to 143rd Streets). Additional capacity and signal work on this section of roadway will alleviate congestion and serve as the main arterial to western DuPage County. FY 2000-01 cost: $27.5 million
Wacker Drive Reconstruction (Randolph Street to Michigan Avenue). This project will prevent the shutdown of a critical transportation linkage for the interstate system feeding into Chicago's downtown, providing access to high-density commercial development and an effective traffic bypass for the congested surface road system. FY 2001 cost: $154.9 million
Highway investments for economic development projects.
The Ford Motor Company Plants and Supplier Campus (Southeast Chicago). IDOT access improvements will help to realize the project's retention of 2,000 jobs and creation of 1,000 jobs. Cost: $41.2 million
Joliet Arsenal Redevelopment (Railroad Intermodal Facility). IDOT access improvements will support the project's 8,000 new jobs. Cost: $51 million
Future arterial improvements (FY 2002-05) that would have happened without Illinois FIRST.
US 20 (Rohlwing Road to Walnut Street) reconstruction. Cost: $40 million
US 41 (South Lake Shore Drive) reconstruction: Cost: $93.4 million
Illinois 22 (Lake County) add lanes/bridge replacement: Cost: $160 million
Illinois 58/72 (Western Schaumburg Triangle) add lanes. Cost: $22.7 million
Illinois 64 (IL 53 to Villa Avenue) add lanes/signal timing: Cost: $34.4 million
Illinois 83 (Lake-Cook Road to IL 68) add lanes/signal timing: Cost: $7.8 million
Illinois 31 Algonquin bypass. Cost: $38.1 million

The information is a precursor to a more detailed assessment of the FY 2000 accomplishments to be published in November in IDOT's annual For the Record report.

Illinois FIRST Program Summary: Northeastern Illinois Transit Program

Illinois FIRST granted the Regional Transportation Authority (RTA) the ability to issue $1.6 billion in capital improvement bonds. Although RTA revenue supports these bonds, the state reimburses the RTA for the debt service on $1.3 billion.

These new bonds are called Strategic Capital Improvement Program (SCIP) II Bonds and are added to a 1989 RTA original SCIP Bond program of $500 million, which have been fully committed.

Illinois FIRST also provided IDOT with the ability to bond approximately $540 million for statewide transit programs. With IDOT bonds and other IDOT grants, the RTA expects approximately $430 million in additional state funds, which will match federal grants through FY 2004.

The total new assistance of approximately $2 billion increases RTA's FY 2000– 04 capital program to $5.28 billion.

The program is allocated as follows: CTA, $2.87 billion (54.4 percent); Metra, $2.11 billion (40 percent); and Pace, $294 million (5.6 percent).

Transit in Northeastern Illinois, although receiving substantial support through Illinois FIRST, is still in need of additional funding. The RTA estimates an additional $3.6 billion is needed for system preservation and expansion for FY 1999–2003.

Illinois FIRST Progress Report on Year 1: RTA FY 2000

RTA and the service boards are at a historically high level of funding stemming from Illinois FIRST and the federal TEA-21 program.

For FY 2000, RTA is currently estimating that it has $831 million to spend, with $423 million allocated for the CTA, $365 million for Metra, and $43 million for Pace. Unlike IDOT, RTA's fiscal year tracks the calendar year.

For FY 2000, RTA and its service boards will spend their capital funds primarily on upgrading and replacing the existing system.

The CTA is spending the majority of its funds on bus rolling stock (31 percent) and rail rolling stock (29 percent). The next largest percentages of funds are dedicated to repairing and improving track (11 percent) and working on the Blue Line/Douglas branch and the Brown Line/Ravenswood (9 percent).

Metra is spending 44 percent of its first year funds on rolling stock. The next largest amounts are to be spent on stations (14 percent), track work (12 percent) and extensions (11 percent).

Pace will spend 72 percent of its funds on buses, paratransit vehicles and vans for its vanpool program, with the next largest investment (15 percent) in support facilities and equipment.

State law requires that the transit agencies stay below a $350 million unobligated ceiling, before the RTA can issue bonds. As of July 31, 2000 the unobligated balance stood at $309.7 million, below the $350 million maximum. In June, the RTA issued its first $260 million allowance of bonds. As of September 6, 2000, $136 million of the money had been granted to the transit agencies.

Business Leaders for Transportation actively promoted the need for transportation funding legislation from 1997 until Illinois FIRST was enacted in 1999.

For more information on Business Leaders for Transportation, a coalition of businesses and business associations, please contact Karyn Romano, Metropolitan Planning Council Transportation Director, at 312.863.6005.