PI Original Adam Doster Thursday May 21st, 2009, 12:16pm

Capital Bill Makes Inroads

Yesterday, the Illinois Senate overwhelmingly approved an
almost $29 billion capital construction program, the first major
bi-partisan legislative initiative to move through Springfield in some
time. The program, if passed by the House and approved by Gov. Pat
Quinn...

Yesterday, the Illinois Senate overwhelmingly approved an almost $29 billion capital construction program, the first major bi-partisan legislative initiative to move through Springfield in some time. The program, if passed by the House and approved by Gov. Pat Quinn, would ramp up the state's investment in roads, bridges, mass transit, schools, parks, and other public projects while providing quality jobs across the state. "The train's rolling," Sen. Ira Silverstein (D-Chicago), chairman of the Senate Executive Committee, told the Tribune.

Building consensus around the funding mechanisms was the trickiest part of the negotiation process. In the end, Senate President John Cullerton and Minority Leader Christine Radogno agreed to expand gaming and adopt a mix of vice taxes and fee hikes. By legalizing video gaming machines in places where alcohol is served and hiring a private company to manage the state lottery and improve sales, lawmakers say they can raise just over $500 million annually. Taxes on liquor, beer, and wine would also jump slightly and sales taxes would be applied to previously-exempt items like soft drinks, candy, and select hygiene products. Finally, a host of vehicle fees -- driver's licenses, license plates, and vehicle transfers and titles -- would increase as well.

Sen. Martin Sandoval (D-Chicago), who had previously expressed concern that the state's surface transportation funding structure disproportionately benefits downstate residents, was pleased with the deal.

As the team at Illinois Issues notes, $3.5 billion of the money would go to new road and transit projects through discretionary spending, not the standard formula. “When it’s all said and done on roads," Cullerton told them, "it’s probably 50-50 throughout the entire state.” And Chicago-area mass transit will receive $1.8 billion -- $900 million for the Chicago Transit Authority, $810 million for Metra commuter rail, and $90 million for Pace suburban bus.

Of course, the need for infrastructure investment far outsizes this expenditure. A new report (PDF) by Illinois PIRG recommends investing $2 billion a year for the next 30 years in the state's mass transit system.

The revenue sources aren't perfect either. For instance, transit advocates supported a substantial bump in the state's gas tax, which hasn't been raised in 18 years.

Sens. James Meeks and Jacqueline Collins, both of whom represent African-American districts on Chicago's South Side, voted against the revenue package.  The Sun-Times has more from Meeks:

Sen. James Meeks (D-Chicago) ... characterized the package as a "white man's job bill."

Meeks has long contended that blacks and Hispanics are under-represented in labor unions, who figure to reap most of the "tens of thousands" of jobs Cullerton promised the capital plan would bring.

Illinois Issues reported yesterday that Cullerton said he plans to work with lawmakers to include funding for vocational programs that would teach manufacturing skills in minority and low-income communities.

On the affordable housing front, Quinn pledged at a rally last Sunday to include $100 million in the bill. While housing advocates are lauding the move, it still represents only 20 percent of the investment they'd like to see.  From a Housing Action Illinois press release:

“We told him [Quinn] that we were very, very appreciative of his leadership in increasing the amount of state funds for affordable housing in the capital budget from $25 million to $100 million. We also told him that we would keep working with legislators to try to build the political support necessary to secure $500 million for affordable housing in the capital budget,” said Nick Brunick, a leader with United Power for Action and Justice. 

Now all eyes move to the House, where Speaker Michael Madigan and the chamber will take up the measure. Spokesman Steve Brown told the State Journal-Register that while it might not move forward immediately, "we’re supporting the bill."

Gov. Pat Quinn is the bigger question mark. Given the bill's popularity -- and his desire to put people back to work -- it's unlikely Quinn would ever issue a veto. But he may use his pending signature to pressure lawmakers to support his state budget proposal. "I think senators shouldn't be voting on a capital plan until they take care of real, live human beings in the operating budget,” Quinn said yesterday morning.

Image used under a Creative Commons license by Flickr user SugarCreekPhoto.

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