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Rauner’s IDOT chief: Gas tax and registration fee increases are inevitable

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Illinois

* Interesting that this admission from Secretary Blankenhorn comes after the general election…

With nearly a decade having passed since lawmakers approved Illinois’ last major capital program, billions of dollars worth of deferred maintenance has racked up. […]

“We’re behind, to be perfectly frank,” said IDOT Secretary Randy Blankenhorn, one of the panelists. “We are not funding transportation as well as some of our neighbors and as our competitors. … I spend $250 a month on my phone. I spend $50 a month for water. This is the infrastructure of my life. It’s what I need to make things happen. And we’re spending 50 cents a day on transportation. And, honestly, it’s inadequate.”

To help fix the chronic funding problem, an increase in the state gas tax, which has not been raised since 1990, and vehicle registration fees will be inevitable, Blankenhorn said.

Blankenhorn said such an increase would provide “revenue necessary to maintain, enhance, modernize our system. That’s the conversation that we need to have.”

posted by Rich Miller
Thursday, Dec 6, 18 @ 10:14 am

Comments

The hostage taking of Rauner, there’s a new feel that honesty to what was ignored is spoken, and they all also know, those speaking, that these are things, not new truths, but a release of the truth already kniwn.

This state has problems that now either won’t be ignored to truth or held hostage for other means.

Comment by Oswego Willy Thursday, Dec 6, 18 @ 10:19 am
This is just helping him line up his next gig. Takes real courage to say it now.

Comment by near springfield Thursday, Dec 6, 18 @ 10:21 am
Blankenhorn: we left the new administration with a mess. By the the way your taxes are going up

Comment by Its like this Thursday, Dec 6, 18 @ 10:25 am
If the economy here is going to grow, we first need people to move here from the state of denial. Hopefully this will spur further movement
People from other states will follow when we get our house in order

Comment by Truthteller Thursday, Dec 6, 18 @ 10:28 am
Did he also say that having a state budget and paying the state’s bills are “inevitable?”

Comment by A 400lb. Guy on a bed Thursday, Dec 6, 18 @ 10:30 am
Spoken like a true patriot. Deny, lie, ignore before and during the election cycle and then come out with it. I wonder if anyone will remember this when they attack Pritzker over raining taxes?

LP, CZ, Sue and Steve these are your low/no tax, creatin’ bidness friendly environment guys talking about raising taxes.

What gives?

As a side note, over the last four years our roads have gone from poor to absolutely horrendous.

Comment by JS Mill Thursday, Dec 6, 18 @ 10:33 am
Profiles in Courage: Randy Blankenhorn /s

Comment by Steve Rogers Thursday, Dec 6, 18 @ 10:37 am
“Deferred maintenance” is such a weasel-word phrase. “Irresponsible neglect” is more clear and accurate.

Comment by wordslinger Thursday, Dec 6, 18 @ 10:37 am
There’s always a need for more revenue in Illinois. Illinois’ total state budget must go up every year. So, taxes and fees have to go up.

Comment by Steve Thursday, Dec 6, 18 @ 10:40 am
What type of phone and phone plan does he have?

Comment by Not Again Thursday, Dec 6, 18 @ 10:41 am
When he says “it’s inevitable” what is left to converse about?

Somehow I think we’ll see more of this making of the inevitable palatable by talking about it.

Comment by Touré's Latte Thursday, Dec 6, 18 @ 10:45 am
Is there anyway to take the sales tax on gas or a portion of it that currently goes to GRF and redirect it to infrastructure only spending?

Comment by Anonymous Thursday, Dec 6, 18 @ 10:52 am
What kind of phone does Blakenhorn have?

Comment by Marty Funkhouser Thursday, Dec 6, 18 @ 10:55 am
And you been IDOT Secretary for 4 years but did not work on the fix. GOOD YOUR ON YOUR WAY OUT wo have all know that

Comment by Anonymous Thursday, Dec 6, 18 @ 10:56 am
How many federal transportation dollars were lost because the CEO in Chief had to squeeze the beast? And, consolidating local units of government, i.e. townships, is not likely going to solve the infrastructure issues in the rural areas. Larger machinery, increased semi use for crop and livestock farming, and construction of clean energy projects like industrial scale wind and solar are taking their toll on roads and bridges that were never designed to carry such loads.

Also, comparisons state by state of vehicle fees:
http://www.ncsl.org/research/transportation/registration-and-title-fees-by-state.aspx

Comment by Anon221 Thursday, Dec 6, 18 @ 10:57 am
The Leaking Underground Storage Tank Fund raises over $60 million/year to cover part of the costs incurred by tank owners and operators to address leaks. It’s a penny a gallon. Advanced math tells me that a nickel or a dime a gallon tax will raise $300-600 million a year.

Comment by Lefty Lefty Thursday, Dec 6, 18 @ 11:06 am
>To help fix the chronic funding problem, an increase in the state gas tax, which has not been raised since 1990, and vehicle registration fees will be inevitable, Blankenhorn said.

After which, Blankenhorn called on Rauner to fight for this to be done in the lame duck session and demonstrate one more time that Rauner was indeed the leader Illinois needed, who took the slings and arrows and made the unpopular calls to get the state on the right track. /s

Comment by Earnest Thursday, Dec 6, 18 @ 11:07 am
Must have missed the presser where Blankenhorn called on his boss to do any of this.

Nice to see the SJR, BGA and lameduck Rauner administration working on a tax hike.

Comment by Leigh John-Ella Thursday, Dec 6, 18 @ 11:17 am
=your low/no tax, creatin’ bidness friendly environment guys talking about raising taxes.==

You’re still working in education, right? Hard to tell these days.

To the post…

Automobiles are heavier and more fuel efficient these days, so it makes sense to raise the fuel tax. Maybe they can index the tax against average car weight or MPG in the future.

That said, Illinois is one of the few states that charges sales tax on gas. All combined, the state tax revenues derived from fuel puts us firmly in the top 10 nationwide. So that 19 cents per gallon comment is a bit misleading.

==As a side note, over the last four years our roads have gone from poor to absolutely horrendous.==

So potholes prevail?

Comment by City Zen Thursday, Dec 6, 18 @ 11:25 am
=There’s always a need for more revenue in Illinois. Illinois’ total state budget must go up every year. So, taxes and fees have to go up.=

LOL, this what happens when revenue to pay the bills isn’t raised when it should be raised. Deferring always costs more. But you keep on keeping on, I am sure a conestoga wagon was good enough for you.

Comment by JS Mill Thursday, Dec 6, 18 @ 11:26 am
The NCSL data posted above is interesting. Wisconsin, Michigan, Indiana, Missouri, and Indiana all impose a surcharge on electric and hybrid vehicles, likely to offset the loss of gas tax money. On the other hand, Illinois offers a hefty discount on those registrations. Of the border states, only Iowa discounts them, but the state website indicates you needed to own the car prior to 1/1/2014.

Comment by Anon324 Thursday, Dec 6, 18 @ 11:28 am
===Illinois offers a hefty discount on those registrations===

Illinois power plants produce 50 percent more electricity than Illinois consumes.

Comment by Rich Miller Thursday, Dec 6, 18 @ 11:30 am
==All combined, the state tax revenues derived from fuel puts us firmly in the top 10 nationwide==

So what? Everybody knows (or should know) that the capital infrastructure in this state are in a horrible state of disrepair.

Also, you ever been to other countries? Where my wife is from they pay the equivalent of $8 or $9 a gallon for fuel. So, I always giggle when someone from the US complains about gas prices.

Comment by Demoralized Thursday, Dec 6, 18 @ 11:36 am
I’m going to chuckle at some of these comments in a couple of years when taxes are higher, unemployment is higher, when large companies move more and more workers to other states and retirees move to Florida more than they already do.

Comment by Anonymous Thursday, Dec 6, 18 @ 11:53 am
Gas taxes and registrations prolly will be raised, but consumers will seek cheaper prices whenever they can. Exactly like purchasing union produced goods and services.

Last Sunday, the wife and I took a little road trip into Missora. First bathroom break was right over the Cape bridge. Gas was 54 cents/ gal cheaper than at home. 17 of 19 cars were from the Land o Lincoln. Last pit stop on the road trip was the gas station before the Chester bridge. 15 out of 15 cars were from Illinois. Consumers say they want good roads. But not really.

Comment by Blue Dog Dem Thursday, Dec 6, 18 @ 11:58 am
==Also, you ever been to other countries?==

Like France?

Look, I’m on-board with raising the fuel tax. I just want it to be a smarter and more transparent tax than it is currently. Statements such as Blankenhorn’s that focus on one-half of the equation is not what I’d call transparent.

Comment by City Zen Thursday, Dec 6, 18 @ 12:05 pm
…to IDOT’s do-little, senior staff.

Comment by Sayonara Thursday, Dec 6, 18 @ 12:28 pm
I own a plug-in hybrid, and the last time I put gas in the tank was Feb (2018). I have driven almost 6000 miles on one tank of gas, and have over 1/2 tank left. I would be willing to pay for better roads through another mechanism.

Comment by Groundhog Day Thursday, Dec 6, 18 @ 12:31 pm
Blue dog dem gets it.

The real solution is to get rid of raunerites like Mr. Blankenhorn.

Comment by Anonymous Thursday, Dec 6, 18 @ 12:45 pm
Because I can be a nice person sometimes, I won’t be chuckling at this these comments when most of Florida is underwater because of human-caused climate change.

Comment by Cheryl44 Thursday, Dec 6, 18 @ 12:58 pm
=== To help fix the chronic funding problem, an increase in the state gas tax, which has not been raised since 1990, and vehicle registration fees will be inevitable, Blankenhorn said.===

How many Republican votes will there be to raise the gas tax and vehicle registration fee?

Comment by anon2 Thursday, Dec 6, 18 @ 1:01 pm
===How many Republican votes===

It will be a structured roll call.

Comment by Rich Miller Thursday, Dec 6, 18 @ 1:03 pm
Does anyone really think Madigan and Cullerton were going to give Rauner a big Capital Plan?

Comment by Fuel For the Fire Thursday, Dec 6, 18 @ 1:03 pm
===It will be a structured roll call.===

… with a purposeful want to be bipartisan allowing many to claim victory and hide those vulnerable.

I sure miss governing. This would be a sight for sore eyes.

Comment by Oswego Willy Thursday, Dec 6, 18 @ 1:07 pm
Blankenhorn never had much credibility in my book when he complained about a transportation system that required kids to be on a school bus for more than 2 hours per day. He wanted a transportation system that allowed his elderly mother to take an autonomous vehicle to the doctors office. He politicized the department much more than previous Secretaries of Transportation.

Rather than fight for the department, he rolled over on it.

So sayonara to blankenhorn, enjoy your 2 government pensions.

Comment by Huh? Thursday, Dec 6, 18 @ 1:14 pm
=You’re still working in education, right? Hard to tell these days.=

LOL, I was trying to speak “Rauner Speak”, maybe to high brow for you.

I’ll give you credit for showing up.

=So potholes prevail?=

So that is all you can think of? Bridges come to mind. Maybe the road surface has potholes but then there is the structure that needs some work.

Just for starters.

Comment by JS Mill Thursday, Dec 6, 18 @ 1:48 pm
Did the money get put back into the IDOT fund that was taken out early in Rauner’s dismemberment of Illinois???

Comment by oldhp Thursday, Dec 6, 18 @ 1:53 pm
===The real solution is to get rid of raunerites like Mr. Blankenhorn.===

He’s actually more of a Combine guy. /s

Comment by Six Degrees of Separation Thursday, Dec 6, 18 @ 1:53 pm
It will be one thing if the increase in taxes that are inevitable address the needs. I did not see a lack of roadwork this year as 294, 88 and 355 are all in some state of construction at various points, but I realize that’s a small sample.

If you want to add to one of the highest total tax burdens in the country, hopefully you’ll produce something. I’ll try to keep my expectations reasonable, as the already high tax burden seems to have gotten us very little.

Comment by SSL Thursday, Dec 6, 18 @ 2:13 pm
JS, would have thought MJM would have taken care of all the roads, bridges, etc.

He was first elected when I was a senior in high school. I’m 65 now.

But go ahead and think things have crumbled the last 4 years.

Comment by Anonymous Thursday, Dec 6, 18 @ 2:15 pm
SSL - Work on 294, 355 & 88 are funded by tolls you pay for using the toll road. The toll road is completely separate from IDOT.

IDOT gets funds from the MFT and federal government for work on its roads. The problem is that the MFT hasn’t been increased since the 90’s.

Comment by Huh? Thursday, Dec 6, 18 @ 2:25 pm
Rich, your point regarding Illinois selling excess electrical capacity is well taken, but I also think that Illinois should charge electric vehicle owners more for registration. If those owners don’t pay somehow, they just shift the tax burden to everyone else. I just don’t see how that’s fair.

Comment by Homer Simpson's Brain Thursday, Dec 6, 18 @ 2:43 pm
My bad on that one. I should know the difference in that funding. Thanks.

Comment by SSL Thursday, Dec 6, 18 @ 2:47 pm
===If those owners don’t pay somehow===

The state taxes electricity usage.

Comment by Rich Miller Thursday, Dec 6, 18 @ 2:49 pm
Is this the same IDOT that resurfaced a State road, only to have it resurfaced AGAIN a little over 12 months later, only to suddenly decide AFTER the 2nd resurfacing to dig up portions of the pavement to change the manhole covers/frames, and some kind of pipe run under the pavement? Who plans and signs off on this type of nonsense? Where has this boss been hiding for 4 years?

Comment by revvedup Thursday, Dec 6, 18 @ 2:51 pm
Who spends $250 a month on a cell phone?

Comment by Anonymous Thursday, Dec 6, 18 @ 3:03 pm
== Who spends $250 a month on a cell phone? ==

Someone with 5 or 6 phones on their plan using a bunch of data.

Comment by RNUG Thursday, Dec 6, 18 @ 3:07 pm
==I’ll give you credit for showing up.==

Now there’s the JS I know and love.

I’m a “low/no tax” guy? I’m for taxing retirement income. I’m for a progressive income tax that treats retirement income equally. I’m for expanding sales tax to either select services or all services, assuming the overall sales tax rate was lower. I’m for raising the motor fuel tax, just don’t pretend we don’t charge sales tax on top of that.

If a broadened tax base with increased and/or more consistent tax revenues makes me a “low/no tax” guy, then so be it.

Comment by City Zen Thursday, Dec 6, 18 @ 3:18 pm
Blankenhorn may have political connections, but he has always been a professional. In my view he neither a “Raunerite” nor a “Combine guy”. And I suspect he did his best to keep the agency and the transportation system running with an impossible boss. Cut him some slack.

Comment by kimocat Thursday, Dec 6, 18 @ 3:20 pm
==The state taxes electricity usage.==

Well I’ve done some research on this, and indeed you are correct.

Assuming a $.19 per gallon tax on motor fuel for gas powered cars (source: Illinois Dept. of Revenue) and an average fuel economy across the entire fleet of 17.2MPG (estimate from 2006 by the University of Michigan Transportation Research Institute) then
a driver will pay $1 in fuel taxes for every 90.53 miles driven.

A Tesla Model 3 with a 50-kWh battery is rated for 220 miles per full charge. Let’s assume it takes 50-kWh to charge the car from empty. The tax on electricity use is $.0033 per KWh for monthly use under 2000KWh (source Illinois Dept. Of Revenue). The Telsa driver will pay $.165 in tax to drive 220 miles. This comes out to 1,333.33 miles driver per $1 dollar in taxes paid.

This is a huge discrepancy! Not only is a Tesla driver taxed less, he pays less for car registration, and he can drive 14.73 times further than a gas car driver for the same $1 tax. That is outrageous! I do believe my original point stands. Electric car owners are shifting the tax burden onto the rest of us!

Comment by Homer Simpson's Brain Thursday, Dec 6, 18 @ 3:36 pm
Electric cars are a very small number of total vehicles on the road, but with increasing uptake it is something that needs to be addressed. It’s also very regressive… Poor folks tend to have older, less reliable, and less efficient vehicles.

Comment by Anonymous Thursday, Dec 6, 18 @ 3:49 pm
Perhaps another thing to consider in the electric vehicle discussion is whether the tax on electricity usage goes to pay for roads. If not, there’s a gap.

Comment by City Zen Thursday, Dec 6, 18 @ 4:04 pm
===goes to pay for roads===

No, but semi-trucks are the real problem for roads. Cars, not so much.

Comment by Rich Miller Thursday, Dec 6, 18 @ 4:05 pm
@CZ, here I have had you wrong all of this time.
I do know that we have agreed on taxing retirement income.

Please accept my genuine apologies.

Comment by JS Mill Thursday, Dec 6, 18 @ 4:05 pm
=But go ahead and think things have crumbled the last 4 years.=

You do not read very well. Maybe you need to go back to high school for some phonics or something. here is what I rote:

=As a side note, over the last four years our roads have gone from poor to absolutely horrendous.=

The MJM stuff is working as well for you as it did for Rauner.

Comment by JS Mill Thursday, Dec 6, 18 @ 4:09 pm
===go back to high school for some phonics or something. here is what I rote===

I literally lol’d at that.

Comment by Rich Miller Thursday, Dec 6, 18 @ 4:12 pm
===But go ahead and think things have crumbled the last 4 years.===

We’re all trying to forget the Rauner years, you just want to absolve and forget the Rauner years.

Willful ignorance is not a great way to solve problems.

Comment by Oswego Willy Thursday, Dec 6, 18 @ 4:18 pm
City Zen, here’s your answer from 35 ILCS 640/2-9 regarding where the electricity tax money is deposited:

“Through June 30, 2004, each month the Department shall pay into the Public Utility Fund in the State treasury an amount determined by the Director to be equal to 3.0% of the funds received by the Department pursuant to this Section. Through June 30, 2004, the remainder of all moneys received by the Department under this Section shall be paid into the General Revenue Fund in the State treasury. Beginning on July 1, 2004, of the 3% of the funds received pursuant to this Section, each month the Department shall pay $416,667 into the General Revenue Fund and the balance shall be paid into the Public Utility Fund in the State treasury.”

TL;DR Every month $416,667 per month are deposited into the General Revenue Fund, the rest goes into the Public Utility Fund.

Comment by Homer Simpson's Brain Thursday, Dec 6, 18 @ 4:21 pm
Jusy saying. Old Blue charges his golf cart and fur cleaning shed with a very efficient home solar source. You heathens are leaving a heck of a carbon footprint with your Teslas and Denalis. BTW(how ya like that RNUG) i pay no taxes on my home produced tricity.

Comment by Blue Dog Dem Thursday, Dec 6, 18 @ 4:28 pm
–The state taxes electricity usage.–

I don’t believe any of the tax revenue from electricity usage by these vehicles using the roadways actually goes into the road fund.The mileage tax is now the most fair way to raise revenue to repair/ rebuild roadways.

Comment by Confused Thursday, Dec 6, 18 @ 4:30 pm
=I literally lol’d at that.=

He he

Comment by JS Mill Thursday, Dec 6, 18 @ 5:02 pm
= Illinois offers a hefty discount on those registrations=

Not so much. No IL discount on electric motorcycles like other states.

Also any state cost of veterans homes should be added to fuel tax since we created lots of vets waging war for oil.

Comment by Duopoly Thursday, Dec 6, 18 @ 5:31 pm