By Jamey Dunn
A transportation and business group is proposing what it says is a more specific plan than Gov. Pat Quinn’s proposal for major construction plans for roads, bridges and transit.
Sen. Martin Sandoval, a Cicero Democrat and chairman of the Senate Transportation Committee, came out in support of the Transportation for Illinois Coalition’s proposed capital plan today. The coalition claims the plan calls for more state money than Gov. Pat Quinn’s proposal for a capital plan, but almost $10 billion less than the coalition says the state should be investing in its infrastructure.
According to a 2006 study commissioned by the Transportation for Illinois Coalition, the unfunded need for Illinois transportation projects exceeds $23 billion. That number has not been adjusted for inflation. Linda Wheeler, a transportation consultant for the Transportation for Illinois Coalition, said the findings mirror the Illinois Department of Transportation’s estimates of the unmet needs.
In an attempt to be more realistic about the state’s budget restraints, the coalition has since pared that number down to a $13.5 billion “minimally adequate” plan. Michael Kleinik, Transportation for Illinois Coalition co-chair, said, “There is little money for expansion in this proposal, but it does bring us closer to where we need to be.”
Wheeler said that Quinn’s proposed budget is not specific enough about how much state money would go toward transportation and that it uses some creative accounting techniques. She said that some of the money that is listed as highway funding actually would go toward debt service on bonds.
Sandoval said he wants to fund the alternative plan with a motor-fuel tax increase, which he said has support in the Senate. However, he said he supports a higher increase than a version proposed in the House, which seeks an 8 cents per gallon increase. Sandoval said that he thinks there is little to no support for Quinn’s proposal to spend part of the money from an income tax increase to fund a capital plan.
While Sandoval had the backing of business groups, labor unions, transit officials and transportation experts, he was the only legislator making a pitch for the coalition’s proposal.
Sandoval urged swift action to hammer out a plan that could find enough votes to pass. “We are at a crossroads literally and figuratively here in Illinois, and if we don’t get it right today, I don’t know if we ever will.”
Many of the speakers who addressed the Senate committee this morning raised concerns that too much squabbling in Illinois over a capital plan could hurt the state’s image in Washington, D.C. and possibly damage its ability to seek increased federal funding in the future.
“It’s not lost on me, and I think it’s not lost on anyone in Washington who follows what’s going on in the states, that Illinois has struggled to come to terms with what it needs to do in the long term,” said Janet Kavinoky of the U.S. Chamber of Commerce. “But, the longer you debate and discuss and struggle with who’s going to invest in what, and who’s going to get credit for what, … it appears chaotic.”
Showing posts with label Motor fuel tax. Show all posts
Showing posts with label Motor fuel tax. Show all posts
Tuesday, April 21, 2009
Friday, March 27, 2009
Transit and taxpayers
By Bethany Jaeger
Mass transit advocates say Gov. Pat Quinn’s proposed capital program needs an overhaul and relies on “fuzzy math,” and they look to an increase in the state’s motor fuel tax to help pump more money into transportation projects.
Quinn said this week that he wants to see the start of a capital program approved by the legislature by April 3. “I think it should be for roads, bridges and public transit. We shouldn’t forget that one of the key things of reducing our reliance on petroleum and foreign oil is having good public transit, as well as improving our roads and bridges.”
Yet, his proposal to provide about $4.6 billion for mass transit systems over five years doesn’t satisfy Chicago-based civic organizations. They said that Quinn’s plan relies more on federal funds and matching grants, including only about $1.5 billion in new state spending for transit.
“It’s not even enough money to cover the basic maintenance and repair needs to keep the [Chicago] region’s transit network in its current condition, much less to upgrade the transit network,” said Brian Imus, state director of Illinois Public Interest Research Group. He joined leaders of Chicago Metropolis 2020 and the Metropolitan Planning Council today in a teleconference.
Given the economy, a business and labor-based group called the Transportation for Illinois Coalition recently reduced it’s request for transportation infrastructure from $23 billion over five years to $13.5 billion over five years, but that would only fund a “minimally adequate, maintenance- and safety-focused program.”
To reach the $13.5 billion, it would take about a 13-cent increase in the state’s motor fuel tax, said Chicago Metropolis 2020 Vice President Jim LaBelle. The motor fuel tax has been 19 cents a gallon since 1990. If it were adjusted for inflation, it would be about 32 cents, he said.
Quinn, however, opposes the motor fuel tax increase. The idea has support from Senate President John Cullerton, and the House currently is considering HB 1, which would increase the tax by 8 cents a gallon.
LaBelle said his organization would support a motor fuel tax increase if it were accompanied by reforms to the way the state prioritizes construction projects and distributes the money. The group supports HB 2359, Rep. Kathy Ryg’s bill that we wrote about earlier this week. It would create regional transportation policy groups to advise the Illinois Department of Transportation when ranking projects.
Peter Skosey, vice president at the Metropolitan Planning Council, agreed with the need for a new planning process. “We for too long have spent our dollars based upon arbitrary geographies and political clout and less upon strategic investments.”
Watch whether Ryg’s measure combines with Rep. John Bradley’s 8-cent increase in the motor fuel tax to create a new revenue source, as well as a new way of distributing that money to transportation projects.
The state's TAB
By Jamey Dunn
The state’s new Taxpayer Action Board, created by Gov. Pat Quinn by executive order, held its first meeting today. The board plans to explore only ways to reduce spending, not ways to find new revenue sources, according to Tom Johnson, chairman of the new board and president of the Taxpayers’ Federation of Illinois. (He’s also a former director of the Illinois Department of Revenue during Gov. Jim Thompson’s administration.)
The board is supposed to make recommendations by May 22, nine days before the state constitutional deadline for the General Assembly to adjourn for the summer.
The board is charged with proposing ways to streamline government operations to save money, particularly for Medicaid, education, human services, as well as pensions and health care benefits for state workers.
The board is comprised of former lawmakers, policy experts, educators, business leaders, tax experts and individuals from health care and human services. Organizations such as the Metropolitan Planning Council and the Illinois Farm Bureau also have members on the board.
Jerry Stermer, Quinn’s chief of staff, said at the meeting that the board was formed to get a new perspective on the state’s deficit from people who represent their communities. “Maybe we’ve asked some of these questions before, but let’s ask them again. Let’s ask them in a different way, and let’s see if there are some redesigns, some reshuffling of the deck,” he said.
The state Senate also formed a special Deficit Reduction Committee, which issued a bare bones report with pages of testimony but few recommendations after four weeks of public hearings. See more here.
Mass transit advocates say Gov. Pat Quinn’s proposed capital program needs an overhaul and relies on “fuzzy math,” and they look to an increase in the state’s motor fuel tax to help pump more money into transportation projects.
Quinn said this week that he wants to see the start of a capital program approved by the legislature by April 3. “I think it should be for roads, bridges and public transit. We shouldn’t forget that one of the key things of reducing our reliance on petroleum and foreign oil is having good public transit, as well as improving our roads and bridges.”
Yet, his proposal to provide about $4.6 billion for mass transit systems over five years doesn’t satisfy Chicago-based civic organizations. They said that Quinn’s plan relies more on federal funds and matching grants, including only about $1.5 billion in new state spending for transit.
“It’s not even enough money to cover the basic maintenance and repair needs to keep the [Chicago] region’s transit network in its current condition, much less to upgrade the transit network,” said Brian Imus, state director of Illinois Public Interest Research Group. He joined leaders of Chicago Metropolis 2020 and the Metropolitan Planning Council today in a teleconference.
Given the economy, a business and labor-based group called the Transportation for Illinois Coalition recently reduced it’s request for transportation infrastructure from $23 billion over five years to $13.5 billion over five years, but that would only fund a “minimally adequate, maintenance- and safety-focused program.”
To reach the $13.5 billion, it would take about a 13-cent increase in the state’s motor fuel tax, said Chicago Metropolis 2020 Vice President Jim LaBelle. The motor fuel tax has been 19 cents a gallon since 1990. If it were adjusted for inflation, it would be about 32 cents, he said.
Quinn, however, opposes the motor fuel tax increase. The idea has support from Senate President John Cullerton, and the House currently is considering HB 1, which would increase the tax by 8 cents a gallon.
LaBelle said his organization would support a motor fuel tax increase if it were accompanied by reforms to the way the state prioritizes construction projects and distributes the money. The group supports HB 2359, Rep. Kathy Ryg’s bill that we wrote about earlier this week. It would create regional transportation policy groups to advise the Illinois Department of Transportation when ranking projects.
Peter Skosey, vice president at the Metropolitan Planning Council, agreed with the need for a new planning process. “We for too long have spent our dollars based upon arbitrary geographies and political clout and less upon strategic investments.”
Watch whether Ryg’s measure combines with Rep. John Bradley’s 8-cent increase in the motor fuel tax to create a new revenue source, as well as a new way of distributing that money to transportation projects.
The state's TAB
By Jamey Dunn
The state’s new Taxpayer Action Board, created by Gov. Pat Quinn by executive order, held its first meeting today. The board plans to explore only ways to reduce spending, not ways to find new revenue sources, according to Tom Johnson, chairman of the new board and president of the Taxpayers’ Federation of Illinois. (He’s also a former director of the Illinois Department of Revenue during Gov. Jim Thompson’s administration.)
The board is supposed to make recommendations by May 22, nine days before the state constitutional deadline for the General Assembly to adjourn for the summer.
The board is charged with proposing ways to streamline government operations to save money, particularly for Medicaid, education, human services, as well as pensions and health care benefits for state workers.
The board is comprised of former lawmakers, policy experts, educators, business leaders, tax experts and individuals from health care and human services. Organizations such as the Metropolitan Planning Council and the Illinois Farm Bureau also have members on the board.
Jerry Stermer, Quinn’s chief of staff, said at the meeting that the board was formed to get a new perspective on the state’s deficit from people who represent their communities. “Maybe we’ve asked some of these questions before, but let’s ask them again. Let’s ask them in a different way, and let’s see if there are some redesigns, some reshuffling of the deck,” he said.
The state Senate also formed a special Deficit Reduction Committee, which issued a bare bones report with pages of testimony but few recommendations after four weeks of public hearings. See more here.
Monday, March 23, 2009
Countdown to capital begins
By Bethany Jaeger and Jamey Dunn
Gov. Pat Quinn wants at least a portion of his statewide plan for major construction projects approved by the General Assembly before April 3. That’s the last session day scheduled before legislators are supposed to head home for a two-week spring break, and Quinn reportedly said today that he thinks they should bypass spring break to work on a capital plan.
The $26 billion plan, called Illinois Jobs Now, eventually would fund infrastructure, mass transit, railroad improvements, new school buildings, housing, conservation projects, and water treatment projects. Two new projects also would include an airport near Chicago’s south suburbs and the construction of the first veterans’ home within Chicago.
The proposed funding mechanisms, as usual, spark controversy. If Quinn’s budget plan were approved, vehicle-related fees would help fund road and bridge construction. (Driver’s license fees would increase from $10 to $20; license plate fees would go from $79 to $99; and vehicle registration fees would rise from $15 to $30.) Mass transit projects would be funded by title transfer fees, which would increase from $65 to $105.
Plans to build new schools, then, would be funded by shaving a portion of tax revenues typically given to local governments.
In addition to federal stimulus money, Quinn also proposes using about $150 million a year from the state’s dedicated Road Fund. That would allow the state to bond/borrow money to pay for projects specifically for roads and bridges.
That’s one portion of a capital plan that could be done by April 3. Senate President John Cullerton said it could be realistic for the legislature to approve increasing the amount the state may borrow for the purposes of kick-starting a road program and tapping into federal matching funds.
The part of the capital plan that will take the longest to negotiate is other sources of funding, especially if it's intertwined with an attempt to increase the state income tax rate or motor fuel tax rate. For instance, Cullerton said he still supports the idea of increasing the state’s 19-cent tax on each gallon of motor fuel, which hasn’t changed since 1990. He describes the motor fuel tax as a traditional way to pay for roads, and because it’s a so-called user fee, people could adjust their lifestyles if they didn’t want to pay more. (Senate Democrats are working on a plan that would increase the tax by about 16 cents, while the House is considering a bill to increase the tax by 8 cents.) According to Cullerton, an 8-cent increase could generate $500 million.
Sen. Martin Sandoval, a Chicago Democrat who chairs the Transportation Committee in his chamber, agreed that an increase in the gasoline tax has support in the legislature and would fund a “robust” capital plan. He’s sponsoring SB 200, which doesn’t have language, yet, but could be used to advance a motor fuel tax bill.
Sandoval is one critic of Quinn’s capital plan because, he said, he’s concerned it would be unfair to Chicago. “Mass transit takes a huge hit at a time when we’re preparing for the Olympics, at a time when we’re trying to protect the environment, at a time when we’re trying to put people back to work. Gov. Quinn is going in the wrong direction when it relates to mass transit.”
Under Quinn’s proposed budget, the Chicago-area Regional Transportation Authority would lose $32 million in grants for operating assistance. Public transportation also would lose about $42 million, but that’s based on decreased sales tax revenues. Downstate transportation districts, on the other hand, would see an increase of about $24 million.
Jennifer Morrison, managing director of the Transportation for Illinois Coalition, said that her organization was encouraged by Quinn's emphasis on a long-awaited capital plan but that the funding for mass transit, highways and local roads would be “way too small to make any meaningful impact.” She added that the budget plan is “more than a little unclear” about which revenue sources would be designated to which projects.
While neither Senate Minority Leader Christine Radogno nor House Minority Leader Tom Cross supports Quinn’s fee increases, they said last week that they do hope to meet with the governor to work out a compromise.
Another part of the plan that will take a long time to negotiate is how the money would be distributed throughout the state. Not only could it differ depending on the source of revenue approved by the legislature, but it also could change if Democratic Rep. Kathleen Ryg of Vernon Hills has her say.
She wants the planning process to empower local stakeholders through various metropolitan planning organizations. House Bill 2359 would create a new advisory committee to the Illinois Department of Transportation when prioritizing road projects. Ryg said the new committee would help assure taxpayers and state officials that the limited amount of money available would be spent on the best use, particularly as a capital bill is drafted and new revenue sources are generated.
The recent appointment of Transportation Secretary Gary Hannig, a former state representative and budget expert for House Democrats, actually could help the measure advance. Ryg said this afternoon that she changed her bill from its original form in response to concerns expressed by Hannig shortly after his transition from the legislature to the state agency. Now Ryg's bill would ensure more representation for all areas of the state, including those that don't have metropolitan planning organizations.
Her bill also would change the way projects would get funded. Currently, engineers distribute money based on such factors as the condition of roads, the traffic flow and the population served. Ryg said her bill would fund the greatest maintenance needs first, and then the regional groups would advise the Transportation Department on other local needs. All areas of the state would be evaluated under the same set of new criteria.
Regardless of which revenue sources the General Assembly ultimately agrees upon, the influx of money has some legislators nervous about whether their districts will benefit. So watch for the concept in Ryg’s bill to serve as a potential “accountability” measure, meant to assure legislators that, at the least, their areas would be represented in the decision-making process.
Gov. Pat Quinn wants at least a portion of his statewide plan for major construction projects approved by the General Assembly before April 3. That’s the last session day scheduled before legislators are supposed to head home for a two-week spring break, and Quinn reportedly said today that he thinks they should bypass spring break to work on a capital plan.
The $26 billion plan, called Illinois Jobs Now, eventually would fund infrastructure, mass transit, railroad improvements, new school buildings, housing, conservation projects, and water treatment projects. Two new projects also would include an airport near Chicago’s south suburbs and the construction of the first veterans’ home within Chicago.
The proposed funding mechanisms, as usual, spark controversy. If Quinn’s budget plan were approved, vehicle-related fees would help fund road and bridge construction. (Driver’s license fees would increase from $10 to $20; license plate fees would go from $79 to $99; and vehicle registration fees would rise from $15 to $30.) Mass transit projects would be funded by title transfer fees, which would increase from $65 to $105.
Plans to build new schools, then, would be funded by shaving a portion of tax revenues typically given to local governments.
In addition to federal stimulus money, Quinn also proposes using about $150 million a year from the state’s dedicated Road Fund. That would allow the state to bond/borrow money to pay for projects specifically for roads and bridges.
That’s one portion of a capital plan that could be done by April 3. Senate President John Cullerton said it could be realistic for the legislature to approve increasing the amount the state may borrow for the purposes of kick-starting a road program and tapping into federal matching funds.
The part of the capital plan that will take the longest to negotiate is other sources of funding, especially if it's intertwined with an attempt to increase the state income tax rate or motor fuel tax rate. For instance, Cullerton said he still supports the idea of increasing the state’s 19-cent tax on each gallon of motor fuel, which hasn’t changed since 1990. He describes the motor fuel tax as a traditional way to pay for roads, and because it’s a so-called user fee, people could adjust their lifestyles if they didn’t want to pay more. (Senate Democrats are working on a plan that would increase the tax by about 16 cents, while the House is considering a bill to increase the tax by 8 cents.) According to Cullerton, an 8-cent increase could generate $500 million.
Sen. Martin Sandoval, a Chicago Democrat who chairs the Transportation Committee in his chamber, agreed that an increase in the gasoline tax has support in the legislature and would fund a “robust” capital plan. He’s sponsoring SB 200, which doesn’t have language, yet, but could be used to advance a motor fuel tax bill.
Sandoval is one critic of Quinn’s capital plan because, he said, he’s concerned it would be unfair to Chicago. “Mass transit takes a huge hit at a time when we’re preparing for the Olympics, at a time when we’re trying to protect the environment, at a time when we’re trying to put people back to work. Gov. Quinn is going in the wrong direction when it relates to mass transit.”
Under Quinn’s proposed budget, the Chicago-area Regional Transportation Authority would lose $32 million in grants for operating assistance. Public transportation also would lose about $42 million, but that’s based on decreased sales tax revenues. Downstate transportation districts, on the other hand, would see an increase of about $24 million.
Jennifer Morrison, managing director of the Transportation for Illinois Coalition, said that her organization was encouraged by Quinn's emphasis on a long-awaited capital plan but that the funding for mass transit, highways and local roads would be “way too small to make any meaningful impact.” She added that the budget plan is “more than a little unclear” about which revenue sources would be designated to which projects.
While neither Senate Minority Leader Christine Radogno nor House Minority Leader Tom Cross supports Quinn’s fee increases, they said last week that they do hope to meet with the governor to work out a compromise.
Another part of the plan that will take a long time to negotiate is how the money would be distributed throughout the state. Not only could it differ depending on the source of revenue approved by the legislature, but it also could change if Democratic Rep. Kathleen Ryg of Vernon Hills has her say.
She wants the planning process to empower local stakeholders through various metropolitan planning organizations. House Bill 2359 would create a new advisory committee to the Illinois Department of Transportation when prioritizing road projects. Ryg said the new committee would help assure taxpayers and state officials that the limited amount of money available would be spent on the best use, particularly as a capital bill is drafted and new revenue sources are generated.
The recent appointment of Transportation Secretary Gary Hannig, a former state representative and budget expert for House Democrats, actually could help the measure advance. Ryg said this afternoon that she changed her bill from its original form in response to concerns expressed by Hannig shortly after his transition from the legislature to the state agency. Now Ryg's bill would ensure more representation for all areas of the state, including those that don't have metropolitan planning organizations.
Her bill also would change the way projects would get funded. Currently, engineers distribute money based on such factors as the condition of roads, the traffic flow and the population served. Ryg said her bill would fund the greatest maintenance needs first, and then the regional groups would advise the Transportation Department on other local needs. All areas of the state would be evaluated under the same set of new criteria.
Regardless of which revenue sources the General Assembly ultimately agrees upon, the influx of money has some legislators nervous about whether their districts will benefit. So watch for the concept in Ryg’s bill to serve as a potential “accountability” measure, meant to assure legislators that, at the least, their areas would be represented in the decision-making process.
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