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Unions, biz groups oppose governor’s gas tax freeze

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Illinois

* Aside from the usual complaining from the usual types who all seem to be using the same words in their objections to the new budget proposal, there are some legit critiques by folks who actually have an influence over the legislative process. For instance, this was sent today by Operating Engineers Local 150. Subscribers saw it earlier this week…

While Local 150 supports the Governor’s plan to seek tax relief for families during these difficult times, providing that relief by raiding $135 million from Illinois’ road fund is not a responsible option.

Only a week ago, we saw a bridge collapse in Pennsylvania, and there are currently more than 2,000 structurally deficient bridges in Illinois. Our state is only beginning to make progress on this, and now is not the time to start writing IOU’s for our critical infrastructure.

When 80 percent of Illinois voters passed the Safe Roads Amendment in 2016, they made clear their opposition to political interference with the road fund. Investing in the safety of our infrastructure is popular with voters of every political stripe in Illinois, and voters overwhelmingly disapprove of diverting money from the road fund.

There are ways for the Governor to accomplish his goal without short-changing the road fund, and we look forward to engaging in a meaningful dialogue with his office in the days to come to find solutions that provide relief without compromising safety or economic competitiveness.

* The co-chairs of this group are the director of the Chicago Laborers District Council and a top exec with the Illinois Asphalt Pavement Association…

The Transportation for Illinois Coalition, an umbrella organization of business, labor and infrastructure groups that advocates for federal and state transportation funding, today issued the following statement in response to Gov. Pritzker’s proposed Fiscal Year 2023 budget plan:

“We are concerned about the Governor’s proposal to skip the expected small increase in the state’s motor fuel tax this summer, as part of his plan to provide tax relief in the upcoming budget year.

We understand the desire to address drivers’ concerns with current high gas prices. But this change – skipping an expected increase of 2.2 cents per gallon scheduled for July 1 – will save the average driver a maximum of less than $1 per fill up.

While those savings will take a long time to make a difference in the daily commute for drivers, the $135 million in revenue loss to the state’s Road Fund will be more significant and long lasting.

For many years, Illinois diverted money intended for road and bridge construction into other needs and allowed revenues to fall short of inflation, creating a huge backlog of billions of dollars in infrastructure needs. In 2019, we worked with the Legislature and Gov. Pritzker to increase the state’s motor fuel tax to begin to address the backlog, and to tie the tax in the future to a cost-of-living increase each summer to keep up with increasing construction costs.

Taking $135 million out of the planned construction program now will have a more significant impact over several years, as projects that could be planned with those funds will be delayed. At the same time, revenues will not keep up with rising inflation-driven construction costs. It also could create a political temptation to skip future scheduled small tax increases that will worsen our funding problem.

We encourage the Governor and Legislature to carefully consider this change and weigh whether the small relief for consumers will be worth the larger costs to the state’s infrastructure system – costs that we all pay.”

* The Illinois Chamber chimed in with its support for organized labor’s position…

We support the Governor’s proposals that will temporarily lessen the tax burden on Illinois taxpayers, but we believe that his proposed array of tax cuts needs to be revised. Of greatest concern is the Governor’s call to disregard a bipartisan commitment to adequately fund our vital transportation infrastructure. We join our friends in labor in expressing our concern that the Governor’s proposal on the gas tax is an end run around the transportation lockbox amendment.

* Statement by Jordan Abudayyeh earlier this week…

The Governor looks forward to presenting a fiscally responsible balanced budget that uses one time revenue to ease the unique burden of inflation on working families. The road fund is incredibly healthy with projects moving forward on time and on budget and the FY23 budget proposal will not be a hindrance on projects moving forward this year.

posted by Rich Miller
Wednesday, Feb 2, 22 @ 1:38 pm

Comments

I know it happens with many Gov and Mayor offices, but it would be nice if this group would listen to outside experts. Other people have good ideas also. Please listen.

Comment by Gov Wednesday, Feb 2, 22 @ 1:44 pm
I really don’t care what one special interest group thinks of this idea. 150 will survive just fine if this freeze happens. They need to remember that pigs get fat and hogs get slaughtered. The lockbox was a huge victory for them. They should just say thanks and keep quiet for a while.

Comment by 47th Ward Wednesday, Feb 2, 22 @ 1:54 pm
Got me wondering where these bridges might be in my neck of the woods. On this site you can look up by Congressional District or view the whole state report for Illinois. https://artbabridgereport.org/state/profile/IL

Comment by Anon221 Wednesday, Feb 2, 22 @ 1:54 pm
==Got me wondering where these bridges might be in my neck of the woods. On this site you can look up by Congressional District or view the whole state report for Illinois.==

I looked at the report for the Springfield area (the 13th and soon-defunct 18th). Surprised that nothing from Sangamon County is on that list, considering the bad quality of roads (pavement-wise) and poor highway infrastructure layout throughout the city of Springfield and much of the area (including here in Chatham).

Comment by NonAFSCMEStateEmployeeFromChatham Wednesday, Feb 2, 22 @ 1:59 pm
Funny, I don’t see taxpayers opposing the gas tax freeze

Comment by Seaver41 Wednesday, Feb 2, 22 @ 2:15 pm
IL Chamber jumped in with unions? Made my day lol

Comment by walker Wednesday, Feb 2, 22 @ 2:19 pm
This is how it goes form all sides: “We like the tax cuts, but don’t cut the services we value.”

It seems like everyone conveniently forgets that taxes pay for government services. When he was on a school board Sen. Bailey raised property taxes to pay for the schooling everyone agrees we need, and, because the state did not provide the tax money, the school board did the responsible thing. He got to Springfield and was all about “tax cuts” without any consideration for the service cuts (or local tax increases) that would go along with those tax cuts. Now the Gov. Pritzker wants to toss around some tax cuts because he knows everyone likes them; of course, like all the other tax cutters, he neglects to mention the fact that that money would pay for much needed government services (in this case a huge backlog of road repair).

I would rather the Gov’s message be a bit more clear: He sees the need for a bit of relief, but it will result in putting off things people want. (Personally, I would rather they forgo any tax cuts and explain that the chance for relief went down the drain when the Amendment failed.)

Comment by Pot calling kettle Wednesday, Feb 2, 22 @ 2:19 pm
Talk about an out. Both unions and the chamber opposing. He can keep the gas tax freeze because it is popular. Or he can back off citing both business and labor. Lucky guy.

Comment by Ducky LaMoore Wednesday, Feb 2, 22 @ 2:21 pm
I’m sorry Jordan. It may not be a “hindrance” but the Constitutional Amendment doesn’t allow for road fund dollars to be siphoned off for other things, regardless of merit.

Sorry if the Constitution is a hindrance…

Comment by 4 percent Wednesday, Feb 2, 22 @ 2:23 pm
So many special interests, so little money.

Comment by Furtive Look Wednesday, Feb 2, 22 @ 2:28 pm
Wow, you mean they want someone else to foot the bill? I am shocked, shocked I say.

The governor seemed to imply that increased federal funding and efficiencies so far (projects finishing on time/budget) would make up for this. If that math holds up, I don’t think they have a left to stand on here.

Comment by Perrid Wednesday, Feb 2, 22 @ 2:31 pm
==there are currently more than 2,000 structurally deficient bridges in Illinois==

According to JB’s budget, the Road Fund is expected to incur $4.2 billion in expenses and will still have a cash balance at year end of $1 billion. The rebate amounts to a couple percentage points of the total budget.

Who knew such a tiny portion of the Road Fund was responsible for supporting every deteriorating bridge in the state?

Comment by City Zen Wednesday, Feb 2, 22 @ 2:43 pm
==Personally, I would rather they forgo any tax cuts and explain that the chance for relief went down the drain when the Amendment failed.==

So run completely counter to JB’s current marketing campaign of fiscal prowess and bring up JB’s sordid past with plumbing? Seems like a lose/lose to me.

Comment by City Zen Wednesday, Feb 2, 22 @ 2:47 pm
- 4 percent - Wednesday, Feb 2, 22 @ 2:23 pm:

The constitution doesn’t require a gas tax at all. Let’s get rid of that whole slate of fees. How do you like that?

Comment by Precinct Captain Wednesday, Feb 2, 22 @ 2:52 pm
4 percent, the amendment stops the GA from spending money from the “lockbox” for other stuff. A tax freeze would stop money from going into the lockbox in the first place. There’s no conflict here.

Comment by Perrid Wednesday, Feb 2, 22 @ 3:03 pm
Road Fund has $1.2 Billion in it and receives revenue daily. It can withstand the hit and nothing would be noticed other than some minimal interest not being earned on excess money sitting around doing nothing. Make a deal to restore funding when it gets under $200 million like GRF was yesterday.

Comment by AD Wednesday, Feb 2, 22 @ 3:18 pm
Anon221 - IDOT has a website that provides information about all the bridges in Illinois. If you are interested in a particular bridge, you ought to be about to locate it in the database. Once you locate the bridge, you can look at the bridge information report to see the how the bridge is rated.

https://apps.dot.illinois.gov/bridgesinfosystem/

Comment by Huh? Wednesday, Feb 2, 22 @ 3:36 pm
Don’t cut taxes on me, don’t cut taxes on thee. Cut taxes on that man behind the tree…

Comment by Friendly Bob Adams Wednesday, Feb 2, 22 @ 3:54 pm
Thanks Huh?… most helpful. There are some around here that are crumbling pretty badly. One overpass in particular south of Bloomington on the Towanda-Barnes Road. Lots of heavy farm equipment on that one during the seasonal work, too.

Comment by Anon221 Wednesday, Feb 2, 22 @ 4:07 pm
If the labor and business groups are that concerned about the loss of dollars to the Road Fund, they could push to move funding for AMTRAK, RTA, and PACE programs back onto GRF. Funding for those programs will be an $80m hit on the Road Fund in FY 23. All used to be GRF funded. This is the best and probably last chance to move these programs back to GRF.

Comment by Oldtimer Wednesday, Feb 2, 22 @ 7:32 pm
@Perrid, thanks for explanation. 150 wouldn’t be using press if they had a legal leg to stand on. Just a warning from 150, yeah we’re friends, but what have you done for me lately.

Comment by Rutro Wednesday, Feb 2, 22 @ 11:04 pm