MPC opposes expansion of motor fuel tax - Metropolitan Planning Council

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MPC opposes expansion of motor fuel tax

A letter to Gov. Rod Blagojevich arguing that his proposed expansion would place a significant financial burden on the rail industry, which provides more than 117,000 northeastern Illinois jobs, and would jeopardize the progress made in untangling freight

The Honorable Rod Blagojevich
Governor
State of Illinois
James R. Thompson Center, 16 th Floor
100 W. Randolph Street
Chicago, IL 60601

Dear Governor Blagojevich:

The Metropolitan Planning Council (MPC) would like to voice its opposition to the proposed expansion of the motor fuel tax to include non-farm, off-highway motor fuel usage. The rail industry, an $8 billion regional shipping industry that employs over 117,000 Chicagoans, would be particularly hard hit if this proposal became law.

Currently, users of Illinois’ highway system pay the motor fuel tax for improvements to the system. MPC has traditionally supported user fees and continues to believe these types of revenue sources are best for needed capital improvements. However, the proposed revenues collected from non-farm, off-highway users would be directed to the general fund and not earmarked for transportation investments. This is an indefensible use of transportation revenues during a time when many transportation needs remain unfunded.

We also believe that the proposed tax on the rail industry is counterproductive to the unprecedented rail plan (CREATE) that has been developed by the rail industry, Illinois Department of Transportation, Metra, and Chicago Department of Transportation. CREATE is a plan your office has embraced and publicly supported. Relieving freight congestion in the metropolitan Chicago region has many benefits besides improved freight movements. CREATE will contribute to improved commuter service, air quality, and community livability, as well as provide economic development opportunities along several city and inner suburban industrial corridors. MPC is a strong supporter of the CREATE program and urges you to remain committed to making this project a reality.

Thank you for listening to our concerns on this proposed tax.

Sincerely,

John Gates, CEO, CenterPoint Properties and Chair, Metropolitan Planning Council Board of Governors

MarySue Barrett, President, Metropolitan Planning Council

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