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* Hannah Meisel at the Daily Line takes a deep dive into the newly proposed capital bill…
RTA Chair Kirk Dillard, a former GOP state senator from Hinsdale, told The Daily Line Friday that mass transit should get approximately one-third of all transportation dollars, and suggested unions who are weighing in on the process would be smart to advocate for more money for mass transit.
“The building trades — electricians, ironworkers, carpenters — ought to take note if they want full employment, 85 percent of new construction within the last decade took place within half a mile of mass transit,” Dillard said. “The best possible investment for organized labor is mass transit.” […]
[Local 150 spokesman Ed Maher] said he wouldn’t be surprised to see mass transit’s funding figure increase as the capital bill moves through the legislative process. […]
But one of the larger tax increases is on alcohol. Under Friday’s framework from the governor’s office, the state would raise $120 million per year by increasing the liquor gallonage tax on beer and cider from the current 23.1 cents to 27.7 cents, from the current $1.39 on wine to $2.05 and from the current $8.55 on distilled liquor to $12.60.
Pat Doerr, the managing director of the Hospitality Business Association of Chicago, told The Daily Line Friday that the proposed tax hike would take Chicago’s already highest-in-the-midwest tax on booze to even new heights roughly after a trifecta of tax increases at the state, county and city levels within the last 12 years.
Lots more in there, so click here.
* Senate Republican Leader Bill Brady seemed upbeat on Friday, but one of his members was definitely not…
Republican Sen. Dan McConchie of Hawthorn Woods said he was “shocked” at the administration’s capital proposal, which he said doesn’t reflect what he’s heard in hearings and closed-door meetings.
“I’m not sure of anybody in my party that could support a package of this size with those taxes that are laid out there like that,” he said.
Pritzker’s outline includes doubling the state gas tax to 38 cents per gallon from 19 cents; tiered increases in vehicle registration fees based on the vehicle’s age; a $250 annual registration fee for electric vehicles; a $1-per-ride tax on ride sharing; and a 7% state tax on cable, satellite and streaming service.
Other taxes being discussed include a new 6% tax on daily and hourly garage parking, a 9% tax on monthly and annual garage parking, and an increase in taxes on manufacturers and importing distributors of beer, wine and spirits.
* Related…
* Pritzker Proposes Massive Building Plan, And The Tax Increases To Pay For It: Reaction from interest groups was generally positive on the spending side, but with reservations about taxes. “One particular concern in the governor’s plan is the reliance on a new media streaming tax for non-transportation construction,” Illinois Chamber of Commerce President Todd Maisch said in a statement. “The Chamber believes this will be an unreliable foundation for funding because it will be complex, unpopular and possibly unconstitutional.”
* Gov. Pritzker Includes $1B For I-80 Upgrades In Proposed Budget: This news may mean that I-80 won’t need to become a toll road after all.
* “Rebuild Illinois”: Gov. Pritzker’s $41.5 billion capital spending plan in the making: Senator Dave Koehler (D-Peoria) says the new plan is exciting, but he hoped it could have come sooner to allow more work to be done on roads and bridges. “We’ve kind of missed the construction season this year. We should have done this in February if we were going to actually be relevant to this year,” said Koehler. “But it’s important we do it right, we do it thoroughly.”
* Health leaders ask for safety net hospital funding in the capital bill: “Our safety net hospitals and our community health centers across the state do not have the resources to make capital improvements to transform our delivery systems to address the breadth of health care needs that exist today.” Larry McCulley, Chair of IPHCA’s Board of Directors.
* Illinois road plan would mean tax spike booze, streaming media services: Associated Beer Distributors of Illinois President Bob Myers said he was surprised by the proposed increase, which the organization opposes. “Everybody just looks at the state tax, but if you take into consideration the city of Chicago tax, and the Cook County tax, those folks in that area are paying 61 cents per gallon for their beer, so you add another 4.6 cents per gallon and obviously everybody is paying more,” Myers said.
posted by Rich Miller
Monday, May 20, 19 @ 9:47 am
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How can you be a Climate governor when you propose the largest pollution increase in the state’s history?
Comment by Ok Monday, May 20, 19 @ 9:57 am
I vote Republican for reasons that aren’t fiscal in nature, but I wonder how Republicans think things get paid for? The state only brings in so much revenue, if you want things that don’t fit in that budget, you need more revenue. Do I want to pay more taxes? Of course not, but I also don’t want failing infrastructure and a dilapidated state. Stuff costs money. Republicans need to realize that every tax increase isn’t inherently bad.
Comment by Hal Monday, May 20, 19 @ 10:01 am
–How can you be a Climate governor when you propose the largest pollution increase in the state’s history?–
Do you get about riding a flatulence-free donkey or something?
Comment by wordslinger Monday, May 20, 19 @ 10:03 am
–I vote Republican for reasons that aren’t fiscal in nature, but I wonder how Republicans think things get paid for? –
Letting Democrats and perhaps a few Republicans make the tough votes.
If you’ll recall, during the Rauner administration, not paying for goods and services — effectively borrowing from unwilling vendors — was the strategery.
Comment by wordslinger Monday, May 20, 19 @ 10:12 am
===85 percent of new construction within the last decade took place within half a mile of mass transit====
Interesting but I wonder how this is calculated. I doubt it’s by square foot because those huge warehouses built up and down the expressways are nowhere near mass transit.
Comment by Been There Monday, May 20, 19 @ 10:14 am
“I wonder how Republicans think things get paid for”
Deficits don’t matter-Dick Cheney
Reagan sent the federal deficit into the stratosphere.
It is the biggest con job of all time, successfully plied, that Republicans are fiscally astute.
Comment by efudd Monday, May 20, 19 @ 10:21 am
“expressways are nowhere near mass transit.” Maybe they’re counting the once-a-day Greyhound bus?
Comment by Skeptic Monday, May 20, 19 @ 10:28 am
Also, they want to spend $1 billion to rebuild just 16 miles of I-80 because of truck damage.
How about we have the trucks pay for that?
Comment by Ok Monday, May 20, 19 @ 10:32 am
–“expressways are nowhere near mass transit.”–
What do you call those trains running in the middle of and along the sides of the expressways?
Comment by wordslinger Monday, May 20, 19 @ 10:34 am
Last time I checked, most (all?) buses drive on roads, so the roads vs. transit figures aren’t as cut and dry as they appear on paper.
Plus, the overwhelming majority of the road money is going to repairs and rehab, not expansion. I’d love to see critics provide a list of roads they don’t think are worth maintaining anymore.
Comment by grand old non-partisan Monday, May 20, 19 @ 10:36 am
looks like I need to stock up on booze when I’m coming back from Wisconsin
Comment by foster brooks Monday, May 20, 19 @ 10:38 am
Mass Transit is usually defined as transit with an exclusive fixed guideway, which means rail or “bus rapid transit” and excludes bus routes sharing lanes with general traffic. I too would be interested in seeing how the 85% figure was derived; also knowing that it costs multiple times providing housing and office space in the Loop and nearby as compared to the rest of the state, if they are talking value rather than square footage.
Comment by Six Degrees of Separation Monday, May 20, 19 @ 10:52 am
“Plus, the overwhelming majority of the road money is going to repairs and rehab, not expansion. ”
Reread it… “enhance”, “expand”, etc. That is expansion
Comment by Ok Monday, May 20, 19 @ 10:56 am
===What do you call those trains running in the middle of and along the sides of the expressways?===
I’m talking about those mega warehouses off of I55 out in Bolingbrook, Joliet, etc. There are millions and millions of square feet of space built in the last decade.
Comment by Been There Monday, May 20, 19 @ 11:06 am
And I should point out I am not against funding for mass transit. I definitely think it should be funded more. And I agree that it is a catalyst to other development. It’s just that 85% seemed high.
Comment by Been There Monday, May 20, 19 @ 11:09 am
BGA just did a great story on the role of transportation pollution…
https://www.bettergov.org/news/in-illinois-cars-and-trucks-top-coal-as-biggest-global-warming-contributor
Comment by Ok Monday, May 20, 19 @ 11:19 am
“Reread it… “enhance”, “expand”, etc. That is expansion”
First off, I said the majority - not all. Of course there are some expansion projects in there. But not many.
And “enhancements” are not expansions. They are design updates to improve safety and/or efficiency of existing lane capacity. In some instances, they are projects that actually reduce capacity (ie, “complete streets” projects).
Comment by grand old non-partisan Monday, May 20, 19 @ 11:20 am
==85 percent of new construction within the last decade took place within half a mile of mass transit
Interesting but I wonder how this is calculated.==
It’s from the MPC report based on square footage of commercial construction:
https://uploads-ssl.webflow.com/5ba52f91e783e250be30249b/5bce32659dc40a1fdbae9711_transit-means-business.pdf
Comment by City Zen Monday, May 20, 19 @ 11:26 am
Fun with numbers
Current Tax JB’s Tax %Change
Beer $0.2310 $0.2770 19.9134%
Wine $1.3900 $2.0500 47.4820%
Booze $8.5500 $12.6000 47.3684%
Makes Kenosha’s Brat stop more than just a place to grab Spotted Cow !
Comment by Donnie Elgin Monday, May 20, 19 @ 11:28 am
Donnie Elgin: And your solution is…?
Comment by Skeptic Monday, May 20, 19 @ 12:12 pm
=looks like I need to stock up on booze when I’m coming back from Wisconsin=
=Makes Kenosha’s Brat stop more than just a place to grab Spotted Cow !=
Ouch. Now that you guys are on record I am sure JB will give it a rethink /s
Comment by JS Mill Monday, May 20, 19 @ 12:25 pm
===the role of transportation pollution===
Just as the trend of shutting coal-fired power plants continues, so will the electrification of the transportation fleet. Aviation and freight rail will likely lag motor vehicles in alternative energy adoption. When the last bond payment is made on Governor Pritzker’s capital plan, the motor fleet will be much different than today…helping solve one problem while creating another, as dependent as the plan will be on motor fuel revenues.
Comment by Six Degrees of Separation Monday, May 20, 19 @ 12:43 pm
==Fun with numbers==
There is no fun when you round percentages to the ten thousandths of a percent.
Comment by City Zen Monday, May 20, 19 @ 12:52 pm
==Skeptic==
Admittedly biased as hell here, but those alcohol tax hikes would make beer, wine, and spirits in Illinois generally, and Chicago specifically, the highest “sin” taxes in America.
(Granted there’s probably some small bible belt city that’s probably higher but I’ve never been able to find it).
Generally I would argue a good policy goal is NOT to have the nation’s highest taxes on anything. Especially after a decade of (largely unsubsized by EDGE or TIP grant) growth in large and small beer, wine, and liquor industry employment with the boom in breweries and companies like MillerCoors and Beam Suntory moving or expanding here.
The inevitable diesel tax to pay for road infrastructure in this bill is going to inevitably drive wholesale alcohol prices higher anyway, let’s just let beverage alcohol take one tax hit this time around.
Comment by CHicago Bars Monday, May 20, 19 @ 1:01 pm
And as posted elsewhere, more fun with numbers:
Calendar year 2018 alcohol “sin” tax collections in Illinois:
State of Illinois: $295,784,020
Cook County: $38,185,885
Chicago: $33,239,921
The brewers, distillers, vintners, and especially the alcohol consumers of Illinois are already paying a mighty bushel of taxes.
Comment by Chicago Bars Monday, May 20, 19 @ 1:14 pm
==“I’m not sure of anybody in my party that could support a package of this size with those taxes that are laid out there like that,”==
So what can you support? Would you like it to be paid for with fantasy money?
We like a capital plan. We just don’t like that we have to pay for it.
Comment by Demoralized Monday, May 20, 19 @ 2:40 pm
I don’t mind paying a few more cents per beer in taxes even though it does add up in my case. But a friend use to own a liquor store and when the county upped their tax one year I figured it would be around a quarter a case. But the next time I went I was paying over a dollar more per case. I asked my friend why that was and he said that’s the best time to raise prices. He just blames the whole increase on the goverment.
Comment by Been There Monday, May 20, 19 @ 3:57 pm
Last week commenters enthusiastically supported adding another buck to the cigarette tax, doubling the state tax, but they are less supportive of lesser hikes in alcohol taxes. I guess it depends whose recreational drug gets taxed.
Republicans can be expected to oppose the tax hikes, while lining up to get their share of projects paid for by revenues they opposed.
Comment by anon2 Monday, May 20, 19 @ 4:11 pm