The Issues
STATE
While the legislature passed and the Governor signed a comprehensive capital funding program last spring, the work has been limited because revenues to support the bond sales are coming in very slowly. This fall, during the veto session the General Assembly approved a measure (SB 1265) that would enable existing road fund monies to be used as debt service for the new highway bonds that were to be financed out of the Capital Projects Fund. This will enable the highway bonds to begin to be issued, but raises the real possibility that the highway fees that were raised under the capital bill this past spring will be used for non-highway projects of the Capital projects Fund. In addition, the veto session "fix" doesn't address transit bonds, which remain unsold.
Fix the Capital Bill
The Capital program has been signed into law, but the work is just beginning.
Revenues to fund the comprehensive capital bill are coming in slowly and may be lower than estimated.
The state’s general revenue fund can’t currently (or in the foreseeable future) support the debt service for the transit bonds that were approved as part of the mini-capital program. (Transit bonds have yet to be issued for either the jump-start or comprehensive capital programs due to lack of revenues to support the bonds.)
Other issues that will require legislative involvement are a natural fall-out of the way the bill was structured.
-Additional bond authorization is necessary in order to fund many of the projects already appropriated as part of the capital agreement. This will require another super-majority vote of the General Assembly.
-Even with the Jump-Start and Illinois Jobs Now bonds, the FY 2010-15 average annual highway program, adjusted for inflation is less than even the pre-Illinois First program level.
-Because the new capital program is funded exclusively through bonds, it will drop precipitously in FY 2015 when the bonds are gone. (By FY 2015, state funding for the highway program will be so limited that the state will no longer be able to match regular federal formula funds, much less any new earmarks which the upcoming federal authorization legislation may provide.)
-Local roads received a $500 million boost over a five-year period, but all of these funds are bond funds and will disappear by FY 2015.
-Transit funds are likewise from bond proceeds and their funding will disappear by FY 2015.
-The deposit of the highway user fee increases that represent part of the funding for the new capital program into the Capital Projects Fund represents the biggest diversion of highway user fees since the inception of the user fee concept.
FEDERAL
Transportation Reauthorization
The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) authorizes the Federal surface transportation programs for highways, highway safety, and transit for the 5-year period 2005-2009. The current legislation expired September 30, 2009. The federal highway and transit programs reauthorization debate is in full swing with several proposals being developed. To learn more about the transportation reauthorization issues and proposals, click here.
Recommendations for the 2009 Transportation Authorization developed by TFIC
Start Us Up USA Chicago Rally
Darick Franzen from Plote Construction, Inc. speaks on key issues regarding the federal authorization at the Start Us Up USA Chicago Rally. Great job, Darick!
State lawmakers push for high speed rail
Illinois State lawmakers lobby in Washington D.C. for high-speed rail.