Sept 07
Senate Approves a Capital Budget and Casino Expansion; Mass Transit Would Receive One-Year Loan
After years of falling victim to political wrangling, the Senate finally approved a long-awaited capital plan on September 18 that allows the state to spend nearly $25 billion in state, federal and local dollars on critical infrastructure projects over the next six years. The capital plan, however, is contingent upon a more controversial bill that authorizes three new casinos: a land-based casino operated by the City of Chicago and two new riverboats at unspecified locations. The legislation also increases gaming positions by 6,000 slots at existing riverboats.
The massive gaming legislation not only serves as the lynchpin for the capital plan, it also gives the RTA a $200 million loan that should hold the mass transit system together until June 2008, buying legislators more time to reach a long-term funding solution. The RTA had also recently agreed to accept a $91 million cash advance from the Governor to prevent the Authority from slashing services and increasing fares in order to keep them whole until at least the beginning of November.
The Senate was also scheduled to act on legislation that would offer mass transit a more long-term, stable source of revenue. The Senate’s legislation, like the House’s version, proposed to increase the sales tax in the Cook and collar counties, as well as imposing a real estate transfer tax in Chicago. Unlike the House’s legislation, however, the Senate version altered the make-up of the RTA board to favor the suburbs, which ultimately, Chicago Mayor Daley opposed. Consequently, the legislation failed to even receive a vote in committee, which, coupled with the House’s inability to muster enough votes for passage earlier this month, places any long-term solution for mass transit funding still beyond reach.
Despite the Senate’s action on the capital budget, the future of that budget remains in question, as the House Speaker has indicated that the House will not act on Senate’s capital/gaming plan.
To read more of the highlights of the capital/gaming plan, click here.
To read more about the Senate’s action, as well as the RTA’s decision to accept a short-term loan from the Governor, click on the following links:
The Minnesota Bridge Collapse: A Wake-up Call for the Nation’s Infrastructure Needs
The collapse of Minnesota’s Interstate 35 bridge struck a national chord, not only for the tragic loss of life, but because the incident highlighted just how dire the nation’s infrastructure needs have become. Experts have long warned that much of America’s infrastructure is reaching the end of its lifespan and is simply unable to keep pace with expanding transportation needs. Addressing many of the critical infrastructure needs, both at the state and federal levels, however, has often fallen victim to political gamesmanship.
A Wall Street Journal editorial written shortly after the bridge collapse called on Congress to back away from its “earmarking” ways and implement a new way of thinking when it comes to road funding. An opinion piece written by national security expert Stephen Flynn for Popular Mechanics took a slightly more scathing route, claiming that Americans have simply “squandered [our] infrastructure legacy.” Read the full WSJ editorial and PM opinion piece.
The Reason Foundation has also produced several studies on the status of our nation, as well as individual states’ infrastructure needs. A study released in June 2007 by the Foundation measures the performance of state-owned roads and highways from 1984 to 2005 in 12 different categories, including traffic fatalities, congestion, pavement condition, bridge condition, highway maintenance and administrative costs, to determine each state’s ranking and cost-effectiveness. According to the study, Illinois ranked 33rd in the nation in the overall performance ratings. The study also shows that one of Illinois’ best ratings was for deficient bridges (9th). Incidentally, Minnesota ranked above Illinois in that area (5th).
To view the full report, as well as other interesting reports on this area, please click on the following links: