By Jamey Dunn
Mattoon has dropped out of the revamped FutureGen 2.0 carbon capture project, which is intended to trap greenhouse gases from coal-fired electrical generation underground to slow global warming.
Mattoon was chosen in 2007 as the site for a first-of-it-kind “clean coal" power plant, which would sequester its carbon emissions underground and theoretically become a proving ground for a relatively untested technology. But politics and rising construction costs stalled the project, and many in the area had grown skeptical about whether the plant would ever be built.
Their skepticism was confirmed last Thursday, when U.S. Sen. Richard Durbin unveiled a new plan, dubbed FutureGen 2.0, which does not include the plant. Instead, the plan calls for an out-of-commission Ameren plant in Meredosia to be retrofitted for a new technology known as “oxy-burn,” which involves burning coal in pure oxygen. Carbon emissions from that plant would have been pumped through a subterranean pipeline and stored underground in Mattoon.
The American Recovery and Reinvestment Act allocated about $1 billion for coal research, which many assumed would go toward construction of the Mattoon plant. However, the U.S. Department of Energy estimated the construction costs could be as high as $2.3 billion.
Durbin said that during the time the plan has been on hold, private industry has started to test the technology that would have been studied there. So, he said there was no longer a strong enough justification for a new plant with such a high pricetag.
Durbin added, “So we had to find another way to create this opportunity for Coles County and Illinois, … one that fit into the existing budget.”
The new plan would have constructed a training center on or near the site where the Mattoon plant would have been built. Workers there would learn how to retrofit power plants for “oxy-burn” and build pipelines to transport carbon.
Angela Griffin, president of Coles Together — a county economic development group that has worked closely on the project —said that she first heard of the new plan when Durbin announced it on Thursday. She said an outpouring of public sentiment against the town’s potential involvement in the plan came soon after. The DOE gave Mattoon until Friday as the deadline for a decision.
Griffin sent a letter to Durbin today to inform him that the town would not be a part of the new plan. From the letter:
While I have nothing but the highest level of regard for the time and effort that you and the FutureGen Alliance expended to make this project viable, our challenges with FutureGen 2.0, as proposed by the Department of Energy, are too big to overcome.
I want to emphasize that the concept of carbon capture and sequestration has nothing whatsoever to do with the reasons we have chosen not to pursue what is known as FutureGen 2.0. As a citizenry, we embraced that technology and believe it to be a safe and practical approach to removing CO2 from the atmosphere.
The simple fact remains that we agreed to host what was presented as the world’s first near-zero emissions research and demonstration facility – the latest in power generation technology paired with underground storage for the facility’s greenhouse gas emissions. Hosting the original FutureGen was something this community embraced with great pride. Ours would be a distinct and honorable mission in an emerging scientific field. Mattoon was to be a focal point for smart, forward-looking solutions in a carbon constrained world.
Unfortunately, our role in FutureGen 2.0 does not support that effort. If FutureGen 2.0 moves ahead with the revised structure described today, it must be without Coles County.
Sen. Dale Righter, a Mattoon Republican, said that the people of the area have been disappointed by developments in the project before, so they are suspicious of the new proposal. “What [the DOE and Durbin] underestimated is that the local officials and their constituents, they have a memory.”
Righter said that promises of potential benefits to the area, such as job creation and the construction of training facility, seemed to be shaky, and residents were concerned that they would not pan out.
He said he would have preferred to have a public hearing on the issue, but the accelerated timeline and lack on a detailed plan made it difficult to bring the issue directly to the people of the area. “A public hearing means that you present what you know, and then you get the public’s input on it. It was tough to know what is real and what was fiction.”
However, Griffin said that no matter how much explanation was given, the town would not have signed on. “Not in this format. Time would not have changed the decision here. This project is not right for this community. … There is a feeling of betrayal, I think, from the residents. They had sacrificed a lot to partner on this project, and we felt we weren’t being taken seriously as a partner.”
Durbin said in a written statement that the plan will move ahead without Mattoon: “This week, I will ask the Department of Energy to solicit other Illinois communities to take on the role envisioned for Mattoon. Both my office and the Department of Energy have heard from a number of communities throughout the state expressing their interest. I wish cost overruns, project delays and rapid advances in science in other parts of the country had not necessitated a change in the FutureGen project. But we must face reality.”
Tuscola officials have voiced interest in taking Mattoon's place in the project. Tuscola was a runner-up for the original FutureGen plant.
Showing posts with label Federal stimulus. Show all posts
Showing posts with label Federal stimulus. Show all posts
Wednesday, August 11, 2010
Federal funds may require special session
By Jamey Dunn
As Gov. Pat Quinn tries to piece together a budget with billions in unpaid bills piling up, the federal government will be chipping in to help cover Medicaid and education costs. This new revelation could mean the General Assembly will have to hold a special session to dole out the education funds.
President Barack Obama signed a $26.1 billion spending package intended to preserve public sector and education jobs. The measure also extends an elevated Medicaid match — which works out to 62 cents on the dollar for Illinois instead of the usual 50 cents — that was set to expire at the end of the year. Illinois would likely get about $400 million for education and $550 million for Medicaid.
Officials at the Illinois State Board of Education believe that the General Assembly will have to return to Springfield to appropriate the federal dollars for education. From a newsletter written by State Superintendent Christopher Koch:
Illinois stands to receive an additional $400 million in federal education funding. We believe that if the spending measure becomes law, the Illinois General Assembly would have to come back to Springfield to pass a supplemental appropriation, and these funds would likely be distributed through General State Aid.
Quinn’s Office of Management and Budget and the legislative leaders are all reviewing the bill to determine if a special session is needed. Kelly Kraft, a spokeswoman for the governor’s budget office, said a decision could come by next week.
ISBE spokesperson Mary Fergus said the federal government estimated the money could save up to 5,600 education jobs in Illinois. She added that applications for the funds should be available to states in about a week.
As Gov. Pat Quinn tries to piece together a budget with billions in unpaid bills piling up, the federal government will be chipping in to help cover Medicaid and education costs. This new revelation could mean the General Assembly will have to hold a special session to dole out the education funds.
President Barack Obama signed a $26.1 billion spending package intended to preserve public sector and education jobs. The measure also extends an elevated Medicaid match — which works out to 62 cents on the dollar for Illinois instead of the usual 50 cents — that was set to expire at the end of the year. Illinois would likely get about $400 million for education and $550 million for Medicaid.
Officials at the Illinois State Board of Education believe that the General Assembly will have to return to Springfield to appropriate the federal dollars for education. From a newsletter written by State Superintendent Christopher Koch:
Illinois stands to receive an additional $400 million in federal education funding. We believe that if the spending measure becomes law, the Illinois General Assembly would have to come back to Springfield to pass a supplemental appropriation, and these funds would likely be distributed through General State Aid.
Quinn’s Office of Management and Budget and the legislative leaders are all reviewing the bill to determine if a special session is needed. Kelly Kraft, a spokeswoman for the governor’s budget office, said a decision could come by next week.
ISBE spokesperson Mary Fergus said the federal government estimated the money could save up to 5,600 education jobs in Illinois. She added that applications for the funds should be available to states in about a week.
Tuesday, July 06, 2010
Illinois weatherization program doubles
By Jamey Dunn
Illinois’ weatherization program upgraded twice as many homes in the past year after putting federal stimulus funds to use.
The Weatherization Assistance Program has been around since 1976 and operates in all 50 states. The program uses federal funding to make the homes of low-income residents more energy efficient. Common improvements made through the program are sealing windows and doors, adding insulation and upgrading heating systems.
The Illinois program has stepped up its efforts with $240 million in funds from the American Recovery and Reinvestment Act to be spent from 2009 to spring 2012. Last year, more than 17,000 households benefited from the program, up from 8,000 the previous year.
According to Dalitso Sulamoyo, president and chief operating officer of Illinois Association of Community Action Agencies, the new money has created 500 jobs. The association is working with the state to implement the program. Sulamoyo added that weatherization saves households more than $400 annually on average. Efficiency is increased from 15 to 30 percent, compared with costs before weatherization.
But once the federal money runs out, the new jobs may dry up as well. Sulamoyo said his organization hopes the higher funding level will be extended past 2012.
“[President Barack Obama’s] goal is to actually keep growing the program. And so we’re hoping with the success that we’ve showing in Illinois, and hopefully with other states, that Congress would continue to fund the program, so that we don’t have to reduce the production.”
However Congress has yet to bend to pressure from the states to continue elevated levels of stimulus funding to education and Medicaid.
Larry Dawson, deputy director of the Illinois Department of Commerce and Economic Opportunity, says the program got off to a slow start because of some administrative delays. But he says Illinois is now second in the country for the number of residences weatherized this year.
Fred Bates, a Springfield resident whose house is being weatherized through the program, said he found out about the opportunity through the Low Income Energy Assistance Program because of his high utility bills, which he said ran more than $1,000. Bates said he thinks new insulation, along with other improvements, will make a big dent in his costs. Workers weatherizing his home also found a small gas leak, which has since been repaired.
“We were heating the outside more than we were the inside. Now, summertime, you’ve got the air conditioning unit on and it cools down but you have to keep it on for so long. So I can’t imagine what my bill is going to be,” Bates said.
Assessors for the program say they often find dangerous conditions such as gas leaks and high levels of carbon monoxide due to faulty heating units.
A family of four earning up to $44,000 is financially eligible for the program. Before making repairs, assessors perform energy audits to determine which improvements will save the most money in ratio to the initial investment needed.
Illinois’ weatherization program upgraded twice as many homes in the past year after putting federal stimulus funds to use.
The Weatherization Assistance Program has been around since 1976 and operates in all 50 states. The program uses federal funding to make the homes of low-income residents more energy efficient. Common improvements made through the program are sealing windows and doors, adding insulation and upgrading heating systems.
The Illinois program has stepped up its efforts with $240 million in funds from the American Recovery and Reinvestment Act to be spent from 2009 to spring 2012. Last year, more than 17,000 households benefited from the program, up from 8,000 the previous year.
According to Dalitso Sulamoyo, president and chief operating officer of Illinois Association of Community Action Agencies, the new money has created 500 jobs. The association is working with the state to implement the program. Sulamoyo added that weatherization saves households more than $400 annually on average. Efficiency is increased from 15 to 30 percent, compared with costs before weatherization.
But once the federal money runs out, the new jobs may dry up as well. Sulamoyo said his organization hopes the higher funding level will be extended past 2012.
“[President Barack Obama’s] goal is to actually keep growing the program. And so we’re hoping with the success that we’ve showing in Illinois, and hopefully with other states, that Congress would continue to fund the program, so that we don’t have to reduce the production.”
However Congress has yet to bend to pressure from the states to continue elevated levels of stimulus funding to education and Medicaid.
Larry Dawson, deputy director of the Illinois Department of Commerce and Economic Opportunity, says the program got off to a slow start because of some administrative delays. But he says Illinois is now second in the country for the number of residences weatherized this year.
Fred Bates, a Springfield resident whose house is being weatherized through the program, said he found out about the opportunity through the Low Income Energy Assistance Program because of his high utility bills, which he said ran more than $1,000. Bates said he thinks new insulation, along with other improvements, will make a big dent in his costs. Workers weatherizing his home also found a small gas leak, which has since been repaired.
“We were heating the outside more than we were the inside. Now, summertime, you’ve got the air conditioning unit on and it cools down but you have to keep it on for so long. So I can’t imagine what my bill is going to be,” Bates said.
Assessors for the program say they often find dangerous conditions such as gas leaks and high levels of carbon monoxide due to faulty heating units.
A family of four earning up to $44,000 is financially eligible for the program. Before making repairs, assessors perform energy audits to determine which improvements will save the most money in ratio to the initial investment needed.
Thursday, January 28, 2010
Illinois gets money for high-speed rail
By Rachel Wells
Illinois politicians will travel tomorrow by plane to Amtrak stations in Chicago, Alton and Bloomington to unveil a $1.2 billion American Recovery and Reinvestment Act award for Illinois high-speed rail improvements.
The funds -- part of a 31-state, $8 billion program -- will go toward rail improvements on the existing Chicago-St. Louis corridor. The improvements will allow trains to travel up to 110 miles per hour and will reduce travel time between the two cities to four hours, a one-hour decrease. The award will also help pay for an environmental impact study regarding the possible construction of a second track along the route and for the streamlining of train traffic near Chicago.
"The federal funding creates benefits for Springfield and the state of Illinois by creating thousands of jobs, increasing economic activity, boosting tourism and reducing travel time between Chicago and St. Louis by over an hour," Illinois Transportation Secretary Gary Hannig said in a news release.
Illinois requested $4.5 billion for rail improvements, more than half of the $8 billion appropriated for improvements throughout the country. President Barack Obama has proposed spending an additional $1 billion on high-speed rail for each of the next five years. The proposal requires congressional approval.
Here's how Illinois' $1.2 billion award breaks down:
• $1.1 billion for track construction and signal, station and rolling stock improvements. The work will allow for three to five daily round trips between Alton and Dwight to travel at up to 110 miles per hour.
• $1.25 million for a supplemental environmental impact statement concerning construction of a second track between Chicago and St. Louis capable of carrying trains traveling at up to 110 miles per hour.
• $133 million for construction of a multi-layered train intersection at Englewood. The project would eliminate delays by carrying commuter lines over tracks that now carry intercity passenger services and freight services.
Among the officials appearing on the tour will be Gov. Pat Quinn, Federal Railroad Administrator Joe Szabo and U.S. Sen. Dick Durbin. Although the route slated for improvement runs through Springfield, Durbin's hometown, officials will not be stopping in the capital city.
High-speed rail has been a topic of controversy in Springfield, where local leaders once threatened legal action if a second track was built on Third Street, where originally planned, but later agreed to an environmental impact study of an alternative track route. At one point the Illinois legislature got involved when House Speaker Michael Madigan, a Chicago Democrat, filed a bill that would have denied state funds for a second track along the Third Street route.
Durbin spokeswoman Christina Mulka said Springfield likely just didn't fit into the officials' schedules. "I wouldn't read anything into that," she said. "We're not trying to avoid the area; it's Sen. Durbin's hometown.
"He wants to see high-speed rail in Springfield, and he wants to see it done in a responsible way. ... He'll probably be in Springfield soon enough to talk about high-speed rail and a whole number of other issues."
Springfield city spokesman Ernie Slottag said he didn't connect the exclusion of Springfield to the controversy, nor did he expect a public protest had officials planned a stop in the city. He said the city is waiting to learn more specific details of the award.
Other Illinois towns have also expressed concern about how high-speed rail could change their communities. For more information about high-speed rail, see the November edition of Illinois Issues.
Illinois politicians will travel tomorrow by plane to Amtrak stations in Chicago, Alton and Bloomington to unveil a $1.2 billion American Recovery and Reinvestment Act award for Illinois high-speed rail improvements.
The funds -- part of a 31-state, $8 billion program -- will go toward rail improvements on the existing Chicago-St. Louis corridor. The improvements will allow trains to travel up to 110 miles per hour and will reduce travel time between the two cities to four hours, a one-hour decrease. The award will also help pay for an environmental impact study regarding the possible construction of a second track along the route and for the streamlining of train traffic near Chicago.
"The federal funding creates benefits for Springfield and the state of Illinois by creating thousands of jobs, increasing economic activity, boosting tourism and reducing travel time between Chicago and St. Louis by over an hour," Illinois Transportation Secretary Gary Hannig said in a news release.
Illinois requested $4.5 billion for rail improvements, more than half of the $8 billion appropriated for improvements throughout the country. President Barack Obama has proposed spending an additional $1 billion on high-speed rail for each of the next five years. The proposal requires congressional approval.
Here's how Illinois' $1.2 billion award breaks down:
• $1.1 billion for track construction and signal, station and rolling stock improvements. The work will allow for three to five daily round trips between Alton and Dwight to travel at up to 110 miles per hour.
• $1.25 million for a supplemental environmental impact statement concerning construction of a second track between Chicago and St. Louis capable of carrying trains traveling at up to 110 miles per hour.
• $133 million for construction of a multi-layered train intersection at Englewood. The project would eliminate delays by carrying commuter lines over tracks that now carry intercity passenger services and freight services.
Among the officials appearing on the tour will be Gov. Pat Quinn, Federal Railroad Administrator Joe Szabo and U.S. Sen. Dick Durbin. Although the route slated for improvement runs through Springfield, Durbin's hometown, officials will not be stopping in the capital city.
High-speed rail has been a topic of controversy in Springfield, where local leaders once threatened legal action if a second track was built on Third Street, where originally planned, but later agreed to an environmental impact study of an alternative track route. At one point the Illinois legislature got involved when House Speaker Michael Madigan, a Chicago Democrat, filed a bill that would have denied state funds for a second track along the Third Street route.
Durbin spokeswoman Christina Mulka said Springfield likely just didn't fit into the officials' schedules. "I wouldn't read anything into that," she said. "We're not trying to avoid the area; it's Sen. Durbin's hometown.
"He wants to see high-speed rail in Springfield, and he wants to see it done in a responsible way. ... He'll probably be in Springfield soon enough to talk about high-speed rail and a whole number of other issues."
Springfield city spokesman Ernie Slottag said he didn't connect the exclusion of Springfield to the controversy, nor did he expect a public protest had officials planned a stop in the city. He said the city is waiting to learn more specific details of the award.
Other Illinois towns have also expressed concern about how high-speed rail could change their communities. For more information about high-speed rail, see the November edition of Illinois Issues.
Thursday, April 02, 2009
"Trifecta" heads to the governor
The House on Thursday night nearly unanimously approved the $9 billion plan for federal stimulus funds, transportation projects and supplemental spending for state operations. The Senate approved the package earlier in the day. The spending plans now head to Gov. Pat Quinn’s desk, satisfying the governor’s request for the General Assembly to approve a small version of a capital plan for roads and bridges before lawmakers left on a two-week spring break.
House Republicans early in the day weren’t on board because it wasn’t clear how the money would be spent, said House Minority Leader Tom Cross. However, working with Quinn’s office throughout the day, he said his caucus finally got a list. “The governor was very helpful, both himself personally and his staff, in trying to make this happen,” he said.
“Today’s actions are a great example of what we can accomplish when we come together with a common purpose,” Quinn said in a statement.
Senate President John Cullerton, however, foreshadowed the difficulty in securing the three-fifths majority needed to do a larger capital program based on tax and fee increases later.
Cigarette tax advances
By Jamey Dunn
A timely example of that difficulty in advancing any tax increase occurred early in the evening. After missing the mark by one vote the first time, a $1 sales tax increase on each pack of cigarettes advanced through the Senate Thursday when a second vote was taken.
Senate Bill 44, which would phase the tax increase in over two years, had 29 in favor, 28 opposed and one voting present. It took a last-minute, closed-door meeting between Cullerton and House Speaker Michael Madigan before the vote was retaken, resulting in the 30 votes needed to pass. Twenty-six members still voted against it.
Cullerton said that the bill has support from Madigan and Gov. Pat Quinn, but he added that the close vote indicates a difficult road ahead for future tax increases. “This was the first bill that required people to actually vote for a tax,” he said. “And you can see it’s not easy for people to do that. Unfortunately, we’re probably going to have to do a lot more.”
The bill heads to the House, which will reconvene Friday morning. The Senate finished its business and headed home for spring break.
House Republicans early in the day weren’t on board because it wasn’t clear how the money would be spent, said House Minority Leader Tom Cross. However, working with Quinn’s office throughout the day, he said his caucus finally got a list. “The governor was very helpful, both himself personally and his staff, in trying to make this happen,” he said.
“Today’s actions are a great example of what we can accomplish when we come together with a common purpose,” Quinn said in a statement.
Senate President John Cullerton, however, foreshadowed the difficulty in securing the three-fifths majority needed to do a larger capital program based on tax and fee increases later.
Cigarette tax advances
By Jamey Dunn
A timely example of that difficulty in advancing any tax increase occurred early in the evening. After missing the mark by one vote the first time, a $1 sales tax increase on each pack of cigarettes advanced through the Senate Thursday when a second vote was taken.
Senate Bill 44, which would phase the tax increase in over two years, had 29 in favor, 28 opposed and one voting present. It took a last-minute, closed-door meeting between Cullerton and House Speaker Michael Madigan before the vote was retaken, resulting in the 30 votes needed to pass. Twenty-six members still voted against it.
Cullerton said that the bill has support from Madigan and Gov. Pat Quinn, but he added that the close vote indicates a difficult road ahead for future tax increases. “This was the first bill that required people to actually vote for a tax,” he said. “And you can see it’s not easy for people to do that. Unfortunately, we’re probably going to have to do a lot more.”
The bill heads to the House, which will reconvene Friday morning. The Senate finished its business and headed home for spring break.
"Trifecta" spending plan on its way - UPDATED
By Bethany Jaeger
UPDATE: The Illinois Senate unanimously approved the $9 billion package to release federal stimulus funds, state bonds for road and transit repairs and supplemental spending for state operations. Senate Minority Leader Christine Radogno applauded the "true bipartisan cooperation" it took to get there. The package now heads to the House, which can either accept or reject it. It won't be able to change it.
ORIGINAL POST: The Illinois Senate this morning advanced a spending plan worth slightly more than $9 billion that is designed to jump start the flow of state and federal dollars for construction plans, state operations and federal stimulus programs.
Democrats and Republicans in a morning Senate committee applauded the plan as a “good first step” toward a bigger capital plan for road and school construction projects, but that’s tied to a string of potential and controversial funding sources, including tax and fee increases.
Before hopping on board, Republicans sought a provision to ensure that the money would flow based on an existing five-year transportation plan, not based on political preferences. Senate Minority Leader Christine Radogno said during a morning committee that given the distrust between the legislative and executive branches during the last few years of former Gov. Rod Blagojevich’s administration, Republicans wanted assurances. This really kind of puts a public face on the private conversations that have been going on,” she said, adding that the plan was a “very good, positive step forward” for Illinois.
Senate President John Cullerton said: “We let the engineers decide, not the politicians. It has nothing to do with Blagojevich or past scores to settle. We’re just trying to do it on the square.”
For instance, $150 million would be doled out based on a traditional formula, where Chicago-area districts get 45 percent of the funding and downstate districts get 55 percent of that funding. Another sum of $450 million would be distributed based on an existing five-year plan for construction projects, which Illinois Department of Transportation engineers rank by another formula.
Labor groups represented by the AFL-CIO and some operating engineers support the plan; however, one Springfield-based chapter of the operating engineers union opposes it because the state-funded capital plan would only designate $8 million to the central Illinois district that includes Sangamon County. But Cullerton pointed out that the central Illinois district would get $54 million of federal stimulus funds.
Federal stimulus funds will distribute money for everything from weatherization to education. However, the plan advanced by the Senate today would take some money out of the portion that would have gone to public education and use it for state operating expenses. Then the state would use incoming federal stimulus funds to eventually backfill the amount for education. According to Sen. Donne Trotter, chief budget negotiator for the Senate Democrats, education, in the end, would come out about even. That is, after all, the intent of the federal stimulus, he said.
“The stimulus package was never intended for us to grow anything. It was to ensure that we didn’t have to cut anything, and that’s what we’re utilizing those dollars for.”
The full package now heads to the full Senate, where a vote is expected this afternoon. If approved, it would head to the House later today or tomorrow.
Here are some more highlights of the “trifecta,” dubbed by Trotter:
Federal stimulus funds = $6.7 billion
Read more in Illinois Issues this month.
$3 billion state bonding program for transportation projects
Supplemental spending for FY09 operating budget = $109 million
UPDATE: The Illinois Senate unanimously approved the $9 billion package to release federal stimulus funds, state bonds for road and transit repairs and supplemental spending for state operations. Senate Minority Leader Christine Radogno applauded the "true bipartisan cooperation" it took to get there. The package now heads to the House, which can either accept or reject it. It won't be able to change it.
ORIGINAL POST: The Illinois Senate this morning advanced a spending plan worth slightly more than $9 billion that is designed to jump start the flow of state and federal dollars for construction plans, state operations and federal stimulus programs.
Democrats and Republicans in a morning Senate committee applauded the plan as a “good first step” toward a bigger capital plan for road and school construction projects, but that’s tied to a string of potential and controversial funding sources, including tax and fee increases.
Before hopping on board, Republicans sought a provision to ensure that the money would flow based on an existing five-year transportation plan, not based on political preferences. Senate Minority Leader Christine Radogno said during a morning committee that given the distrust between the legislative and executive branches during the last few years of former Gov. Rod Blagojevich’s administration, Republicans wanted assurances. This really kind of puts a public face on the private conversations that have been going on,” she said, adding that the plan was a “very good, positive step forward” for Illinois.
Senate President John Cullerton said: “We let the engineers decide, not the politicians. It has nothing to do with Blagojevich or past scores to settle. We’re just trying to do it on the square.”
For instance, $150 million would be doled out based on a traditional formula, where Chicago-area districts get 45 percent of the funding and downstate districts get 55 percent of that funding. Another sum of $450 million would be distributed based on an existing five-year plan for construction projects, which Illinois Department of Transportation engineers rank by another formula.
Labor groups represented by the AFL-CIO and some operating engineers support the plan; however, one Springfield-based chapter of the operating engineers union opposes it because the state-funded capital plan would only designate $8 million to the central Illinois district that includes Sangamon County. But Cullerton pointed out that the central Illinois district would get $54 million of federal stimulus funds.
Federal stimulus funds will distribute money for everything from weatherization to education. However, the plan advanced by the Senate today would take some money out of the portion that would have gone to public education and use it for state operating expenses. Then the state would use incoming federal stimulus funds to eventually backfill the amount for education. According to Sen. Donne Trotter, chief budget negotiator for the Senate Democrats, education, in the end, would come out about even. That is, after all, the intent of the federal stimulus, he said.
“The stimulus package was never intended for us to grow anything. It was to ensure that we didn’t have to cut anything, and that’s what we’re utilizing those dollars for.”
The full package now heads to the full Senate, where a vote is expected this afternoon. If approved, it would head to the House later today or tomorrow.
Here are some more highlights of the “trifecta,” dubbed by Trotter:
Federal stimulus funds = $6.7 billion
- $1.7 billion to pay down the state’s Medicaid bills, including an enhanced federal reimbursement rate of about 61 percent for 27 months.
- $500 million for high-speed rail.
- $300 million for a Chicago-area project to reduce freight and vehicular traffic congestion.
- $285 for Amtrak improvements.
- $40 million for transit.
Read more in Illinois Issues this month.
$3 billion state bonding program for transportation projects
- $2 billion bonded from the dedicated Road Fund to repair roads and bridges.
- $1 billion bonded from the state’s general fund for transit maintenance projects.
- $150 million for emergency pothole repair on state and local roads.
- $40 million for Chicago-area transportation agencies to release funds that previously were suspended under a previous capital program.
Supplemental spending for FY09 operating budget = $109 million
- $363 million to reopen closed historic sites through June 30.
- $25 million for services for women and children, capturing more federal matching funds.
- $20 million for flood relief.
- $10 million for line-of-duty awards.
- $6.7 million for court reporters.
Tuesday, March 03, 2009
FutureGen confusion
By Jamey Dunn
With speculation running rampant about how federal stimulus funds will be spent, it seems that Illinois lawmakers and the U.S. Department of Energy may not be on the same page when it comes to FutureGen, a one-of-its kind project slated for Mattoon that got the kibosh at the last minute in late 2007.
Supporters of the near-zero-emission power plant that would use Illinois coal say they are waiting on Energy Secretary Steven Chu to sign the record of decision, a statement that says the plant has met all required environmental standards for construction. “I think this is the best project to move quickly in coal research, good for Illinois, good for the United States and the world,” said U.S. Sen. Dick Durbin, who appeared in Springfield last week. “And so what we’re looking for is [Secretary Chu’s] signature on something called a record of decision. And if he would sign that document, we’d be ready to move forward. And so I’m going to do everything I can to urge him to do so.”
Meanwhile, John Grasser, a spokesman for the department’s Fossil Energy Division, says the project has been restructured, so the record of decision no longer matters. “The original FutureGen does not exist right now as a federal project. The record of decision is moot.”
Regardless of the record of decision, FutureGen is eligible for the $1 billion in grants included in the stimulus package for fossil fuel research. The money could be given to one project or split up over several. Chu could hand it out as he sees fit, or several projects may be given the opportunity to compete for the money. According to a timeline on the federal stimulus Web site, agencies must start reporting on these competitive grants by May 20. Even if FutureGen got all the funding, it would not be enough to cover the plant’s estimated $1.8 billion dollar price tag.
Warren Ribley, new director of the Illinois Department of Commerce and Economic Opportunity, says that FutureGen has a good chance to receive funding, partially because the project has potential to stimulate the economy almost immediately.
With speculation running rampant about how federal stimulus funds will be spent, it seems that Illinois lawmakers and the U.S. Department of Energy may not be on the same page when it comes to FutureGen, a one-of-its kind project slated for Mattoon that got the kibosh at the last minute in late 2007.
Supporters of the near-zero-emission power plant that would use Illinois coal say they are waiting on Energy Secretary Steven Chu to sign the record of decision, a statement that says the plant has met all required environmental standards for construction. “I think this is the best project to move quickly in coal research, good for Illinois, good for the United States and the world,” said U.S. Sen. Dick Durbin, who appeared in Springfield last week. “And so what we’re looking for is [Secretary Chu’s] signature on something called a record of decision. And if he would sign that document, we’d be ready to move forward. And so I’m going to do everything I can to urge him to do so.”
Meanwhile, John Grasser, a spokesman for the department’s Fossil Energy Division, says the project has been restructured, so the record of decision no longer matters. “The original FutureGen does not exist right now as a federal project. The record of decision is moot.”
Regardless of the record of decision, FutureGen is eligible for the $1 billion in grants included in the stimulus package for fossil fuel research. The money could be given to one project or split up over several. Chu could hand it out as he sees fit, or several projects may be given the opportunity to compete for the money. According to a timeline on the federal stimulus Web site, agencies must start reporting on these competitive grants by May 20. Even if FutureGen got all the funding, it would not be enough to cover the plant’s estimated $1.8 billion dollar price tag.
Warren Ribley, new director of the Illinois Department of Commerce and Economic Opportunity, says that FutureGen has a good chance to receive funding, partially because the project has potential to stimulate the economy almost immediately.
Thursday, February 19, 2009
Prepare for the stimulus
By Bethany Jaeger, with Jamey Dunn contributing
Jack Lavin prefers not to be called this state’s “stimulus czar,” but his first two days on the job as Gov. Pat Quinn’s chief operating officer (corrected) have been dominated by projections of the amount of money Illinois will capture from the $787 billion federal stimulus package.
But Lavin also responded to concerns that his appointment could be clouded by his past ties to former Gov. Rod Blagojevich and convicted felon Tony Rezko. Rezko was one of the people who recommended Lavin for his previous job as director of the Illinois Department of Commerce and Economic Opportunity during Blagojevich’s administration. Lavin and Quinn reportedly have been friends. Lavin pointed to his record. Here’s what he had to say:
Lavin testified to a special Senate committee this evening that Illinois could receive about $7 billion for programs and state operations, as well as about $2 billion for transportation-related and capital projects.
While the National Governor’s Association and the National Conference of State Legislatures ranks Illinois 6th in the nation for the amount of money it's estimated to receive in stimulus funds (projected to be about $8.8 billion), it’s clear that the incoming money won’t stretch far enough to cure the state’s $9 billion budget deficit next fiscal year. Estimates also are very fluid and vary.
The anticipation of the federal funds sparks a few concerns among legislators. 1) Lawmakers fear that the essentially one-time stimulus funds will build expectations and a false sense of hope that the state could maintain the increased funding levels once the federal money runs run out. 2) It’s widely acknowledged that the stimulus money could help, but it’s not even close to the amount of money that the state and service providers need to completely heal from the recession and consecutive years of deficits. 3) State agencies, particularly the Illinois Department of Transportation and the Illinois Environmental Protection Agency, are concerned about having enough staff on hand to handle stimulus-funded projects. Both said they could hire temporary workers or consultants to get through increased work load.
Lavin said while those concerns are valid, the stimulus package is designed to plug budgetary holes and avert layoffs, particularly in education. And then, in theory, as the state’s economy begins to recover, the state would be able to pay for some of these ongoing costs and new programs. (Some of the stimulus money will help expand or fund existing programs by using existing funding formulas, while other portions will create new programs.)
Higher education officials also expressed the concern that the $2 billion in stimulus funds could lead to a game of shuffle. Judy Irwin, executive director of the Illinois State Board of Higher Education, said there’s a possibility that money could be cut from education in the state budget to make up for shortfalls in other state operations, and then the federal stimulus money would be used to fill in the cuts to education. If that happened, schools would end up not getting much more money than they do now, she said.
Republicans and Democrats voiced concerns that schools in their home districts are expecting large funding increases that they may never see. “The frustration is that there really isn’t going to be a lot of money. …While it looks like there’s a lot of money going to schools, it’s really not going to be there,” said Sen. Dave Syverson, a Rockford Republican.
We’ll have much more about the details of the stimulus funds and how the state decides to divvy up the money. In the meantime, here’s a quick list of highlights, provided by Lavin’s testimony. Also, the state on Friday will launch a stimulus-specific Web site: www.recovery.illinois.gov.
General stimulus highlights for Illinois
About $7 billion for programs and state operations, according to Lavin’s estimates.
That includes funding for existing programs, using existing funding formulas:
Jack Lavin prefers not to be called this state’s “stimulus czar,” but his first two days on the job as Gov. Pat Quinn’s chief operating officer (corrected) have been dominated by projections of the amount of money Illinois will capture from the $787 billion federal stimulus package.
But Lavin also responded to concerns that his appointment could be clouded by his past ties to former Gov. Rod Blagojevich and convicted felon Tony Rezko. Rezko was one of the people who recommended Lavin for his previous job as director of the Illinois Department of Commerce and Economic Opportunity during Blagojevich’s administration. Lavin and Quinn reportedly have been friends. Lavin pointed to his record. Here’s what he had to say:
I worked for those two men. They made some bad decisions. I had no part in any of those decisions, and I think my track record at DCEO speaks for itself. And it was a track record of working with business leaders, labor leaders, local governments, local mayors, legislators on both sides of the aisle, the congressional delegation. If you ask them, they will all say that we treated people with respect and integrity. We returned their calls, and that’s just the kind of thing and the kind of collaboration and partnership that we had at DCEO that we need now across all agencies, and working with the legislature, to be on the road to economic recovery.
Lavin testified to a special Senate committee this evening that Illinois could receive about $7 billion for programs and state operations, as well as about $2 billion for transportation-related and capital projects.
While the National Governor’s Association and the National Conference of State Legislatures ranks Illinois 6th in the nation for the amount of money it's estimated to receive in stimulus funds (projected to be about $8.8 billion), it’s clear that the incoming money won’t stretch far enough to cure the state’s $9 billion budget deficit next fiscal year. Estimates also are very fluid and vary.
The anticipation of the federal funds sparks a few concerns among legislators. 1) Lawmakers fear that the essentially one-time stimulus funds will build expectations and a false sense of hope that the state could maintain the increased funding levels once the federal money runs run out. 2) It’s widely acknowledged that the stimulus money could help, but it’s not even close to the amount of money that the state and service providers need to completely heal from the recession and consecutive years of deficits. 3) State agencies, particularly the Illinois Department of Transportation and the Illinois Environmental Protection Agency, are concerned about having enough staff on hand to handle stimulus-funded projects. Both said they could hire temporary workers or consultants to get through increased work load.
Lavin said while those concerns are valid, the stimulus package is designed to plug budgetary holes and avert layoffs, particularly in education. And then, in theory, as the state’s economy begins to recover, the state would be able to pay for some of these ongoing costs and new programs. (Some of the stimulus money will help expand or fund existing programs by using existing funding formulas, while other portions will create new programs.)
Higher education officials also expressed the concern that the $2 billion in stimulus funds could lead to a game of shuffle. Judy Irwin, executive director of the Illinois State Board of Higher Education, said there’s a possibility that money could be cut from education in the state budget to make up for shortfalls in other state operations, and then the federal stimulus money would be used to fill in the cuts to education. If that happened, schools would end up not getting much more money than they do now, she said.
Republicans and Democrats voiced concerns that schools in their home districts are expecting large funding increases that they may never see. “The frustration is that there really isn’t going to be a lot of money. …While it looks like there’s a lot of money going to schools, it’s really not going to be there,” said Sen. Dave Syverson, a Rockford Republican.
We’ll have much more about the details of the stimulus funds and how the state decides to divvy up the money. In the meantime, here’s a quick list of highlights, provided by Lavin’s testimony. Also, the state on Friday will launch a stimulus-specific Web site: www.recovery.illinois.gov.
General stimulus highlights for Illinois
About $7 billion for programs and state operations, according to Lavin’s estimates.
That includes funding for existing programs, using existing funding formulas:
- $2.9 billion for Medicaid
- $2 billion for school aid
- $110 million for workforce investment programs (to help people get trained to take on another job)
- $276 million for “green” jobs and weatherization programs
- $935 million for rebuilding highways and bridges
- $371 million for transit assistance
- $260 million for wastewater and clean drinking water
- $222 million for public housing
- $24 for education technology
- $110 million energy programs, some of which can be used for operations and some of which can be used for capital
Tuesday, February 10, 2009
Belt-tightening begins
Gov. Pat Quinn started the process of trimming the fat, ordering all state agencies to further cut their budgets by 1 percent and hold the line on travel, equipment, contracts and hiring. Agencies already were operating on a 3 percent reduction under former Gov. Rod Blagojevich. “We have to make sure that state government is lean and cuts costs wherever it can,” Quinn said this afternoon in the Capitol. He estimated savings at “hundreds of millions” of dollars.
But lean state agencies could challenge the state’s ability to compete for federal transportation funds, according the Associated Press. It reported this afternoon that the Federal Highway Administration sent a letter to Quinn to warn that the Illinois Department of Transportation may be too understaffed to carry out major road construction projects.
Quinn said this afternoon that he had not seen the letter but that Illinois would do whatever it takes to ensure the ready-to-go projects are, in fact, ready to go.
After meeting with House Democrats in the Capitol this afternoon, Quinn reiterated his priorities of health care, education, transportation and public safety; however, he also sent the message to legislators to be prepared to take some tough votes, keep their wish lists in check and consider the fiscal context under which decisions will have to be made.
He also set the tone of a more cooperative budget-making process. Democratic Rep. David Miller of Lynwood said his approach is less antagonistic than it was under Blagojevich. “My opinion will be evaluated for its merits,” Miller said. “It will be looked at closely, and if there are ways that I can come up with trying to decrease the cost to the state, streamline efficiencies, then [Quinn will] be very, very open to it.”
But according to Rep. Julie Hamos, an Evanston Democrat, Quinn simply set the stage for some more belt-tightening and reforms. “We don’t know exactly what that means. Are we cutting programs, or are we raising taxes? He didn’t get specific, but he did talk about being very realistic this year and the tough choices facing us.”
She said the effort to build uniform understanding of the dire fiscal straights — a nearly $9 billion deficit next fiscal year — is necessary. “If we are going to take the very difficult leap to raise taxes, we are all going to have to be on the same team. And we’re going to have to sell it to the people.”
Other than watching for proposals to reform the state’s tax structure, also watch for alternative borrowing schemes. We’ll have more on that in the near future.
But lean state agencies could challenge the state’s ability to compete for federal transportation funds, according the Associated Press. It reported this afternoon that the Federal Highway Administration sent a letter to Quinn to warn that the Illinois Department of Transportation may be too understaffed to carry out major road construction projects.
Quinn said this afternoon that he had not seen the letter but that Illinois would do whatever it takes to ensure the ready-to-go projects are, in fact, ready to go.
After meeting with House Democrats in the Capitol this afternoon, Quinn reiterated his priorities of health care, education, transportation and public safety; however, he also sent the message to legislators to be prepared to take some tough votes, keep their wish lists in check and consider the fiscal context under which decisions will have to be made.
He also set the tone of a more cooperative budget-making process. Democratic Rep. David Miller of Lynwood said his approach is less antagonistic than it was under Blagojevich. “My opinion will be evaluated for its merits,” Miller said. “It will be looked at closely, and if there are ways that I can come up with trying to decrease the cost to the state, streamline efficiencies, then [Quinn will] be very, very open to it.”
But according to Rep. Julie Hamos, an Evanston Democrat, Quinn simply set the stage for some more belt-tightening and reforms. “We don’t know exactly what that means. Are we cutting programs, or are we raising taxes? He didn’t get specific, but he did talk about being very realistic this year and the tough choices facing us.”
She said the effort to build uniform understanding of the dire fiscal straights — a nearly $9 billion deficit next fiscal year — is necessary. “If we are going to take the very difficult leap to raise taxes, we are all going to have to be on the same team. And we’re going to have to sell it to the people.”
Other than watching for proposals to reform the state’s tax structure, also watch for alternative borrowing schemes. We’ll have more on that in the near future.
Friday, February 06, 2009
What governors are saying about the stimulus
Thanks to statehouse reporters across the nation, The Morning Call's John Micek in Pennsylvania provides a quick list of governors who are backing the federal stimulus package.
Gov. Pat Quinn is among numerous governors who wrote to President Barack Obama to support his plan. John also complied more state-specific data. Here's his post, including other journalists' descriptions about their governors' level of support:
Gov. Pat Quinn is among numerous governors who wrote to President Barack Obama to support his plan. John also complied more state-specific data. Here's his post, including other journalists' descriptions about their governors' level of support:
On Monday, a bunch of governors (of both parties) wrote to President Barack Obama to express their support for the Stim and to urge its passage. As expected, their ranks includes Gov. Ed. Other signatories were:
Gov. Arnold Schwarzenegger, California
Gov. Bill Ritter, Colorado
Gov. M. Jodi Rell, Connecticut
Gov. Jack Markell, Delaware
Gov. Charlie Crist, Florida
Gov. Patrick Quinn, Illinois
Gov. Chester Culver, Iowa
Gov. DeVal Patrick, Massachussetts
Gov. Jennifer Granholm, Michigan
Gov. Jon Corzine, New Jersey
Gov. David Paterson, New York
Gov. Ted Strickland, Ohio
Gov. Brad Henry, Oklahoma
Gov. Thedore Kulongski, Oregon
Gov. Jim Douglas, Vermont
Gov. Tim Kaine, Virginia
Gov. John deJongh, U.S. Virgin Islands
Meanwhile ... here's some more state-specific data.
ARKANSAS:
Gov. Mike Beebe (D) seems excited about the money, especially stuff he could spend on roads
FLORIDA:
Gov. Charlie Crist is in the vanguard of Republicans who have been actively lobbying on behalf of the Stim by doing national television interviews.
KANSAS:
Gov. Kathleen Sebelius (D) came up with a task force to figure out how to spend whatever money they get
LOUISIANA:
Gov. Bobby Jindal is opposed, but will use the $2.5 billion over two years to help offset budget cuts.
KENTUCKY:
Gov. Steve Beshear (D) seems pretty supportive
MARYLAND:
Gov. Martin O'Malley pulled back a budget with somewhere around $2 billion in cuts and Rainy Day Fund transfers in expectation of stimulus cash. Not clear if he's put it back yet in w/a supplemental correcting for stimulus dollars ...
MINNESOTA:
Gov. Tim Pawlenty and his amazing hair are against the stimulus, and say reckless spending will drive up the deficit. But yeah, he's put a placeholder in his state budget for the expected cash.
MONTANA:
Gov. Brian Schweitzer is trying to figure out how to spend the money.
NEVADA:
Gov. Jim Gibbons (R), facing a bear of a budget shortfall, sent a letter saying the $1.3 billion from the feds would help.
NORTH CAROLINA:
Gov. Bev Perdue is supposed to be at the House Democratic Caucus today promoting the Stim. From a press release: "Governor Perdue will urge congressional members to move quickly on a stimulus package that funds infrastructure and other economic development projects and that will put North Carolinians back to work as soon as possible."
OHIO:
Gov. Ted Strickland is counting on $3.4 billion to balance his upcoming budget.
SOUTH DAKOTA:
Gov. Mike Rounds doesn't want the Legislature to depend on the money to pass its budget.
TENNESSEE:
Gov. Phil Bredesen (D) is counting on the money in his budget, or it looks like he will
U.S. VIRGIN ISLANDS:
Gov. John deJongh Jr. is on Capitol Hill lobbying for it today (Friday).
UTAH:
Gov. Jon M. Huntsman (R) hedges a bit: "While we're not reliant on a federal bailout in order to balance our books, this could be considered a type of stimulus that we could benefit from."
VIRGINIA:
Gov. Tim Kaine ... total Kool-Aid drinker. He's DNC chairman. What's he gonna do? Say no? Also, his state is $3 billion the hole, and lawmakers are supposed to adjourn on Feb. 28.
WEST VIRGINIA:
Gov. Joe Manchin says "this country wasn't built on handouts. We didn't become leader of the free world by waiting on someone to give us a handout."
Nonetheless, Manchin's hand is extended, he submitted a list of scores of stimulus-qualifying, infrastructure-type projects totaling nearly $2.3 billion to the new administration.
WISCONSIN:
Gov. Jim Doyle (D) put off releasing his budget until he knows what’s in the stimulus
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