Governor Blagojevich’s proposal will invest over $6 billion in capital
projects across Illinois, maximizing use of approximately $3 billion
in federal funds, and state revenues realized through cost savings, economic
growth and new initiatives.
Capital Program Update · On April 6, 2006, the Illinois State Senate considered:
Senate Amendment 1 to SB 3053 that provided:
$2.325 billion authorization for Transportation Series A bonds to fund road construction
$425 million authorization for Transportation Series B bonds to fund public transit
$606 million authorization for Higher Education
Senate Bill 668 that provided:
$1 billion authorization for the School Construction Fund for school construction projects
We cannot let the opportunity to build new roads and bridges, construct new schools, fund public transportation and more importantly, help Illinois working families pass us by.
Addition to existing project lists:
Senate Amendment 1 to Senate Bill 3053 will also allow the state to fund projects at public universities like:
Renovating Lincoln Hall at the University of Illinois at Urbana Champaign
Renovating the Stevens Building at Northern Illinois University
Constructing the Performing Arts Center at Western Illinois University in Macomb
Equipping the Fine Arts Center at Eastern Illinois University
Constructing the first phase of Western Illinois University’s Riverfront Campus
in the Quad Cities
I. ROADS
$2.325 billion increase in Transportation A bond authorization
Funds for new road projects and to bring in more than $1.5 billion for key projects in the federal transportation bill
II. PUBLIC TRANSIT
$425 million increase in Transportation B bond authorization
Matches $1.7 billion in federal funds for Illinois’ public transit districts
III. SCHOOL CONSTRUCTION AND SCHOOL MAINTENANCE PROGRAM GRANTS
$500 million for the School Construction Program
$50 million for the School Maintenance Program
Roads
ROADS
To increase opportunities and encourage job creation throughout the State of Illinois, Governor Rod Blagojevich has proposed a new capital bond program that would authorize $2.325 billion of Transportation A Series bonds appropriated over a six-year period from FY06 through FY11. The new highway projects associated with the bond program have been selected based on their inclusion in the federal transportation bill, their ability to meet regional needs, create necessary transportation infrastructure and drive economic development. The capital investment will provide over 140,000 jobs – increasing opportunities for Illinois’ workforce and their families, and combined with federal funds, providing over $3.8 billion for projects in our State.
The bonding initiative, combined with strong balances in the State’s Road Fund, will allow the State to maintain its aging infrastructure, continue its commitment to the safety of Illinois’ roads and bridges and focus on system expansion. This plan maintains our commitment to the State’s Multi-Year Highway Program and allows us to maintain Illinois as the transportation hub of the nation.
2006 New Bond Program
Provides funds for State road projects both in the Multi-Year Program and those identified as new bond initiatives necessary for system growth and expansion.
Brings in over $1.5 billion for projects identified in the federal transportation bill Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users or SAFETEA-LU and allows the State to maximize use of federal formula dollars
SAFETEA-LU
The federal transportation bill, SAFETEA-LU, was signed into law in 2005 and contained over 300 earmarks that when matched, will provide over $1.5 billion for highway projects in Illinois. The complete list of earmarks along with the amount allocated to each project in the federal bill is contained in this document.
The federal transportation bill, Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, or SAFETEA-LU, provided Illinois $1.7 billion dollars for public transit that will be appropriated in federal FY06-FY09. To match federal funds and secure these dollars, Governor Blagojevich has proposed authorizing $425 million of Transportation B series bonds, which combined with the federal bill, will provide over $2.12 billion for public transit projects in Illinois and create an estimated 85,000 jobs.
Funds will be used to purchase buses and rail cars; build train stations, bus garages and rail yards; and reconstruct commuter rail bridges and elevated rail structures. Investments in our public transit system benefit Illinoisans through increased access to jobs, better services for disabled riders and low-income individuals, improved infrastructure, congestion relief, cleaner air and better amenities for the commuting public.
Potential Projects
Systems in Northeastern Illinois and Downstate have provided the Illinois Department of Transportation with tentative lists of projects that may benefit from the ability to match federal funds. Projects include:
Preliminary engineering on the Chicago Transit Authority’s planned Circle Line – adding a circumferential loop and connecting all CTA and Metra rail lines in Chicago
Modernizing and replacing Chicago Transit Authority railcars
Preliminary engineering on Metra’s STAR line connecting four Metra rail lines and providing direct access to O’Hare
Preliminary engineering on Pace’s plan to create a high-speed transit option along Cermak Road, 159th and Halsted Street
Funding for MetroLink light rail system expansion
New transit facilities in various Downstate public transit districts including:
o River Valley Metro; Bloomington-Normal; Springfield; Galesburg
New buses in various Downstate public transit districts including:
o Champaign-Urbana; Bloomington-Normal; Decatur; Peoria
Affordability
Consistent with past practice, the state match to federal dollars will be provided through the General Revenue Fund. Revenue collections in income and sales taxes continue to climb and exceed budgeted estimates. Mid-way through FY06, our revenue collections are more than double the estimates. This economic recovery, coupled with a 5.3% unemployment rate and state-led efforts to reduce spending on non-essential services, will provide resources to offset debt service associated with the Transportation B series bond authorization.
School Program Grants
SCHOOL CONSTRUCTION AND SCHOOL MAINTENANCE PROGRAM GRANTS
To meet the unfunded obligations of the State and help school districts address their needs, Governor Rod R. Blagojevich wants to dedicate $500 million for the School Construction Program and $50 million for the School Maintenance Program, building new elementary and secondary school facilities across the state and helping school districts complete necessary construction projects. Moreover, these investments will create an estimated 7,000 jobs in communities throughout the state.
$500 million for the School Construction Program
o Approximately $149 million to the 24 school districts that in FY02 received the State’s commitment yet remain unfunded
o Approximately $350 million to school districts located across Illinois that have expressed interest in School Construction Program grants, have applications on-file with the Illinois State Board of Education and meeting program requirements, will be selected to receive funds
$50 million for the School Maintenance Program
o The School Maintenance Program provides dollar for dollar matching grants for school maintenance projects
o The Program provides up to $50,000 in state dollars for the maintenance or upkeep of buildings and structures
Affordability
Illinois is experiencing a recovery in state revenues, tied in part to a growth in sales tax receipts since 2003 and the lowest unemployment rate since July 2001. This recovery, coupled with new revenues, will cover the annual debt service on bonds issued for School Construction and School Maintenance Program grants.
