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Vaught: Plenty of money for capital plan

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* OK, so despite what we’ve been told, there’s money available for all of this year’s capital plan. Good…

Construction across Illinois is not in danger of stopping, or even slowing down this summer.

Gov. Pat Quinn’s administration says there are billions of dollars available for road, bridge, and school construction despite a legal challenge to the law the pays for it all.

There had been some question as to whether Illinois had all it needed to move ahead with the second summer of construction that is to come from 2009’s $30-billion public works package.

On Tuesday Quinn’s budget manager, David Vaught, said Illinois has close to $2 billion in the bank and still has another $5 billion in construction bonds to sell.

* The revelation took some legislators by surprise…

State Rep Rich Brauer, R-Petersburg, said if Illinois has $2 billion in the bank then why was there ever talk of missing a summer construction season.

“We have not had any discussion about construction in so long, but I am kind of surprised that there is that kind of money just laying around.”

State Rep Dan Beiser, D-Alton, is in charge of the House Transportation committee. He said Vaught’s comments are the first he’s heard about $2 billion in the bank. That’s all the more reason, Beiser said, to let the court take its time with the legal challenge.

“I think we can now wait on the courts,” said Beiser.

* Video of Director Vaught…

posted by Rich Miller
Wednesday, Apr 6, 11 @ 5:25 am

Comments

Was it Cullerton that was warning the construction projects could come to a stop so he could try to pass a cigarette tax hike?

Comment by Old Milwaukee Wednesday, Apr 6, 11 @ 7:44 am
Cullerton was correct. $2 billion will not cover the planned IDOT construction season, let alone the other capital projects planned for this year. The sale of the proposed bonds is waiting because Vaught and the Quinn finance folks know that there will be no buyers in the bond market while the program remains under a legal cloud.

Comment by phocion Wednesday, Apr 6, 11 @ 8:01 am
Strange. Cullerton is the only person making that argument. He must be smarter than everybody else.

Comment by Old Milwaukee Wednesday, Apr 6, 11 @ 8:16 am
OK, how are you going to sell $5 billion in bonds when the funding source to pay them off is tied up in court? Talk about your sub-prime lending market. Sure that’ll bring it a GREAT interest rate.

Comment by piling on Wednesday, Apr 6, 11 @ 8:30 am
Yeah. Right. The budget directors word is gospel. LOL.

Comment by John A Logan Wednesday, Apr 6, 11 @ 8:36 am
“State Rep Dan Beiser, D-Alton, is in charge of the House Transportation committee. He said Vaught’s comments are the first he’s heard about $2 billion in the bank.”

Failure to Communicate? In IL?

Comment by sal-says Wednesday, Apr 6, 11 @ 8:52 am
One thing to remember is that a lot of the capital construction projects are funded primarily with federal dollars, and capital is simply matching at 105 or 20%. So “money in the bank” may be referring to federal formula or earmark $ that will be reimbursed upon expenditure. Somebody needs to chase the shell game to get the true picture here.

Comment by Six Degrees of Separation Wednesday, Apr 6, 11 @ 9:00 am
–The sale of the proposed bonds is waiting because Vaught and the Quinn finance folks know that there will be no buyers in the bond market while the program remains under a legal cloud.–

Although some pledged revenues are in question, buyers don’t care. They’re general obligation bonds. They’d sell in a New York minute, as have the previous issues.

Comment by wordslinger Wednesday, Apr 6, 11 @ 9:03 am
And we still don’t have a clear answer. CDB — the building agency — says they’re out of money for campus construction. But the budget wizards say everything is great. Again, is Vaught saying CDB is wrong? Is CDB admitting they were wrong and agreeing they’ve got plenty of money?

Comment by piling on Wednesday, Apr 6, 11 @ 9:27 am
It sounds like CDB freelanced their testimony without checking in with the Governor’s office. Otherwise, why the discrepancy? Aren’t they (Vaught and Underwood) supposed to be on the same team?

Comment by Capra Corn Wednesday, Apr 6, 11 @ 9:39 am
For many construction projects, a larger amount is obligated when the bonds are released. This ensures the money is there to complete the project. Many projects take several years to complete, and up to five if you take into account the design phase as well. Some projects only spend 10% in the first year. With the sporadic bond sales we have had, CDB is probably being conservative.

Comment by Scottish Wednesday, Apr 6, 11 @ 10:07 am
I personally wouldn’t trust anything Vaught says. I have little confidence in him. Somebody needs to determine why CDB and OMB are not on the same page here.

Comment by Demoralized Wednesday, Apr 6, 11 @ 10:08 am
Demoralized said,

“Somebody needs to determine why CDB and OMB are not on the same page here.”

They both report to Paddy, don’t they? That would explain the confusion…

Comment by Cincinnatus Wednesday, Apr 6, 11 @ 10:19 am
- They both report to Paddy, don’t they? That would explain the confusion… -

Cat’s CEO had some pretty high praise for Paddy, but I imagine you’re far more qualified to judge him. I noticed you didn’t have too much to say on that topic yesterday, but I’m glad you’re back to your old self today.

Comment by Small Town Liberal Wednesday, Apr 6, 11 @ 11:16 am
Please, Paddy wouldn’t know his road grader from a back hoe.

Comment by piling on Wednesday, Apr 6, 11 @ 12:17 pm
If by “Paddy” you mean the Governor of Illinois, I do not quite understand why he would need to know a road grader from a backhoe. Perhaps I misunderstand the Constitutional duties of the head of the Executive Branch…

Comment by soccermom Wednesday, Apr 6, 11 @ 12:32 pm
Paddy might not know a road grader from a back hoe but he would have no problem saying he supports the road graders one month and then the next month sign a law making road graders illegal. Back hoes would be exempted from layoffs for an endorsement and some cam Kahn cash. Cause that’s how Quinn rolls.

Comment by Fed up Wednesday, Apr 6, 11 @ 4:00 pm
The next person who calls the governor “Paddy” is gonna be banned for life. Enough. It’s demeaning and insulting. Stop it.

Comment by Rich Miller Wednesday, Apr 6, 11 @ 4:01 pm
To the complainer I just deleted: My blog, my rules. Follow them or go elsewhere.

Comment by Rich Miller Wednesday, Apr 6, 11 @ 4:07 pm
==They both report to XXXXX, don’t they? That would explain the confusion…==

Touche

Comment by Demoralized Wednesday, Apr 6, 11 @ 4:34 pm
I certainly welcome Rich’s call for civility regarding Governor Quinn and will look forward to this civility in future threads about Senator Kirk, State Senator Brady and many, many others.

Comment by Cincinnatus Wednesday, Apr 6, 11 @ 5:13 pm
Cincinnatus, if someone used an ethnic slur against either of those guys, I would issue the same sort of warning.

Comment by Rich Miller Wednesday, Apr 6, 11 @ 5:16 pm