By: Clark Kaericher, Vice President of Government Affairs and Andrew Cunningham, Manager of Legislative Relations at the Illinois Chamber of Commerce
Background: Illinois has a history of slowly sliding from one transportation infrastructure crisis to another. In 2009, Governor Pat Quinn signed Illinois Jobs Now!, a $31 billion dollar capital plan that was the first capital construction plan in 10 years to address infrastructure in dire need of repair. The program created more than 400,000 jobs and repaired over 10,000 miles of roads. Transportation proponents and legislators slapped themselves on the back for a job well done.
Ten years later, no major new infrastructure funding had passed, and the state’s roads and bridges were once again crumbling. The 2019 spring session began with considerable anticipation around the need for a capital bill to fund the much-needed improvements. In extended session, the House passed SB 1939 (Hoffman) and SB 690 (Rita). These bills contained both horizontal (roads) and vertical (buildings) projects, as well as several pro-business reforms advocated by the Illinois Chamber. This legislation at $45 billion was nearly 50% greater than the 2009 bill. Critically, the 2019 bill outpaced the Consumer Price Index (CPI) and the National Highway Construction Cost Index (NHCCI) from the bill a decade earlier. This bipartisan investment into infrastructure has already improved our roads and bridges in addition to the economic stimulus it provided during a global pandemic.
While the Illinois Chamber applauds the Governor and the General Assembly for passage of the 2019 capital bill, the state cannot continue this cycle of massive funding, gradual decay, crisis and repeat. 21st century commerce demands a robust transportation network and the time to start discussing the next capital bill is now. Accordingly, the Illinois Chamber would like to begin discussing the next capital bill with an emphasis on the crucial question of funding sources. The Illinois Chamber and other transportation advocates want to end this dysfunctional funding cycle and call for a new capital bill in 2024.
Principals and Assumptions:
1. We cannot wait another decade for a bill. We must end the cycle of massive funding, gradual decay, crisis and repeat. We must act sooner as it would be catastrophic to wait another decade. The Illinois Chamber calls for a bill by 2024.
1. The gas tax alone will not work this time. The 2019 bill was largely funded by a doubling of the motor fuel tax (MFT), which the Chamber supported as it was the most expeditious way of raising the necessary funding to restore our infrastructure. However, a new capital bill can not rely on future gas tax increases for a variety of factors.
- The 2019 bill indexed the motor fuel tax to CPI. As a result, motorists will likely see an additional increase every year. We should not further add to this burden on taxpayers.
- Gasoline powered vehicle usage is on a long, slow, inexorable decline. This is due to a variety of factors, the gradual adoption of electric vehicles and the pandemic induced shift to remote work among the foremost reasons. Major motor vehicle manufacturers have announced a shift to all electric vehicles in the next decade and this will only hasten the decline of MFT revenues.
2. Accordingly, we must look at other sources of funding. The Chamber is conducting a study into transportation funding processes of the future. Some of the options being evaluated include:
- Canadian Private Public Partnership model
- Oregon’s vehicle mileage tax (VMT)
- Taxes or fees on public electric charging stations
- Increased user fees in the form of tollways
3. An increase focus on all methods of transportation. The Illinois Chamber supports the funding of our integrated transportation system that includes roads and bridges but also the waterways and aviation. Both airports and ports need much more funding than the state has provided in prior transportation bills. Therefore, a new capital bill will prioritize all sectors of Illinois’ dynamic transportation system.
Conclusion: The time to act on a new capital bill is now. Improvements to Illinois’ critical infrastructure should be seen as a persistent endeavor for elected leaders, not a once-in-a-decade stopgap. To achieve this, we need new funding sources and active planning between stakeholders. The product of a 2024 capital bill will be greater infrastructural integrity, economic stimulation in the form of jobs and increased commerce, and innovation in the sectors of transportation.
###