Chicago Metropolis 2020 and the Metropolitan Planning Council, two members of Business Leaders for Transportation, released an informed look at the proposed capital plan for Illinois.
Prepared by Chicago Metropolis 2020 & the Metropolitan Planning Council
What are the state’s transportation needs?
- According to the Northeastern Illinois Planning Commission, 1.9 million more people and 1 million more cars will call northeastern Illinois home by 2030. What the state needs now is carefully planned infrastructure investment that will keep the region moving and thriving. This includes, first, maintaining our current system and, second, making targeted system expansions and innovations to facilitate sensible growth.
- According to the Transportation for Illinois Coalition, the state needs $3 billion per year to maintain and widen congested roads. According to the Regional Transportation Authority (RTA), the agency needs $1 billion per year just to maintain the current transit system. To expand Illinois ’ transit system, our first defense against congestion, we will need at least a 20 percent match of the $7 billion authorized for 17 New Start projects in the federal transportation bill, SAFETEA-LU. Finally, the historic CREATE program still needs $1.4 billion to do the work that will maintain the Chicago region’s status as an international freight hub. In short, a bare bones one-year capital package that embraces our state’s “fix it first” policy would need approximately $4 billion, and one that moves forward on New Start projects and CREATE would add another $2.8 billion.
Does the governor’s capital proposal adequately address the state’s needs?
- The governor’s proposal is not based on an accountable and transparent planning process that invests our state’s precious funding in projects that will ensure Illinois ’ competitiveness in the decades to come. A well-planned proposal would prioritize projects that will redevelop existing communities and integrate transportation with land use plans.
- The governor’s proposal secures SAFETEA-LU dollars ahead of schedule, but fails to cover basic maintenance of the state’s transportation system. The RTA requires $1 billion each year just to maintain its system, but will fall short by $620 million annually under the current plan, which could cripple the agency in 2007. Without new revenues, RTA’s strategic plan for the region will not fund expansions developed by the service boards (e.g. Metra Star Line, CTA Circle Line) or by the counties (e.g. DuPage County Transit Plan).
How long does Illinois have to secure federal transportation funds?
- The state does not have to take action right away. Federal transportation funds will be available to Illinois until the federal government exhausts the full pot through appropriations and budget adjustments. Delaying a state capital bill would allow legislators to consider RTA’s strategic plan, currently in formation.
- The RTA’s 2006 budget includes sufficient match for the federal formula dollars.
- Consideration of a capital package in the fall 2006 legislative veto session would still allow the state time to take full advantage of federal funds.
Is the capital plan supported by new revenue?
- The current proposal relies upon existing gas tax revenue to pay off future debt. This approach would be irresponsible and ineffectual: gas tax revenue is not keeping up with increased travel or inflation, and expecting the money will be there to pay off tomorrow’s debt is unwise, given the state isn’t even raising enough to maintain today’s infrastructure. The strategy will only put us further in the red in the long run. An effective capital spending proposal needs a long-term strategy for fiscal sustainability. Illinois FIRST, the last state capital program, increased the motor vehicle registration fee to support transportation funding.
How does the current capital plan compare to Illinois FIRST, the state’s previous capital plan?
- The current plan proposes significantly less money for transportation infrastructure, and specifically shortchanges transit, our first defense against congestion. Illinois FIRST provided $3.7 billion for highways and $1.8 billion for transit over four years, a 2:1 ratio; the current plan would create $1.75 billion for highways and $425 million for transit, a 4:1 funding ratio.
Will the governor’s plan create more than 230,000 jobs, as advertised?
- This claim is disputed. The Springfield State Journal-Register recently published an article, “Governor's vows don't match state's formulas” (Jan 18, 2006), calling into question many of the assumptions behind those estimates.
- An infrastructure program is not just about creating jobs; it’s about keeping jobs we already have by making sure our region is a great place to live and do business. If we want to keep jobs in the region, we need to invest in well-planned infrastructure improvements that allow people and goods to move easily throughout the region.
Don’t we need a new state capital program?
- Illinois does need a new capital program – but we can’t afford to get it wrong. In 2003, congestion cost the Chicago region nearly $4.3 billion and endless hours of our lives. Chicago Metropolis 2020, the Chicagoland Chamber of Commerce, and Metropolitan Planning Council strongly recommend that any capital program adhere to the four guiding principles outlined in our “Guiding Principles for the Next State Transportation Capital Program.” The principles have been endorsed by the Illinois State Chamber of Commerce. They are available at www.businessleadersfortransportation.org .