Press Release - Monday, May 10, 1999
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RYAN PRAISES FORMATION OF 'ILLINOIS FIRST' COALITION
CHICAGO -- Governor George H. Ryan today thanked key business officials, labor leaders, environmentalists and key representatives of the state's education community for creating the Illinois FIRST Coalition to help generate support for the governor's proposed public works program.
Illinois FIRST is a sweeping, $12 billion public works program that will rebuild and expand the state's roads and highways, renovate mass transit systems, repair and enlarge schools and meet the varied needs of local communities.
"The members of the Illinois FIRST Coalition know, as I do, that we must repair and re-tool the state's schools, roads, mass transit systems and water systems if our economy is going to continue to grow and prosper," Ryan said. "This program will cost less than $1-a-day, and in return we'll be able to rejuvenate classrooms all over Illinois, repair crumbling roads, ease traffic congestion and help keep our natural resources clean.
"I applaud the members of the Illinois FIRST Coalition for their commitment to advancing Illinois in the next century."
Illinois FIRST -- a Fund for Infrastructure, Roads, Schools & Transit -- will be the largest and most expansive public works program in the history of the state, dwarfing previous efforts to meet critical infrastructure needs. Ryan unveiled the five-year initiative during a speech May 4 to a joint session of the General Assembly and asked legislators to enact the proposal this spring before the scheduled May 21 adjournment.
"Illinois FIRST reaches into every corner of our state. It addresses needs that are urban, suburban and rural," Ryan said. "It presents us with the opportunity to prepare our state for the future. And it gives us the chance to make sure that we leave our children a better Illinois than the one we inherited."
To finance this initiative, the governor is seeking legislative approval for $621 million in new revenues from the state's vehicle registration fees for automobiles, light trucks and large trucks; vehicle title transfer fee and the state's tax on alcoholic beverages.
The main components of Illinois FIRST are:
The Transportation 21 Plan: A $4.1 billion supplement to the state's existing surface and air transportation program for roads, rail and air infrastructure.
The Transit 2000 Plan: A $4.1 million allocation for bus, rail and other mass transportation infrastructure needs in Northeastern Illinois and other cities with established transit districts.
The Classroom 21 Plan: A $2.2 billion allocation to the state's existing school construction fund.
The Fund for Illinois' Future: A $1.6 billion allocation for projects in local communities to bolster the state's economy, promote a clean environment and improve the overall quality of life throughout Illinois:
Financing for the four component funds will be accomplished through a combination of state, federal and local resources. The State of Illinois will increase its current bond debt by $4.3 billion. In addition, the state will allocate $2 billion for projects that can be funded on a pay-as-you-go basis over the next five years. In all, the state's funding commitment will total $6.3 billion.
That commitment will allow state government to leverage $3 billion in available federal construction funds that currently are not available for Illinois projects because the state lacks the appropriate federal matching dollars. The state's resource commitment also will allow the RTA to sell $1.6 billion in bonds for needed mass transit projects in Northeastern Illinois.
Local governments, primarily school districts, will be asked to contribute $1.1 billion in matching funds toward the Classroom 21 Fund, a requirement of the existing school construction fund program.
The governor also outlined a revenue package that will provide $621.8 million in funds annually to support the spending program.
In suggesting a combination of new revenues, he noted that none of the proposals affect the state's income or sales tax rates or increase the state's motor fuel tax.
"In my estimation, the cost to each person is far less than the benefits we can create," Ryan said. "Illinois FIRST will not endanger our credit rating, will not take money away from schools and social services and will not deflate our strong economy. Illinois FIRST will create jobs and keep people working now -- and make our economy stronger in the future."
Ryan proposed a $48 increase in the annual vehicle registration fee for cars and light trucks, which currently stands at $48 for most vehicles. Ryan noted that even with these increases, Illinois will rank 31st among the states in the total cost a motorist must pay to register a vehicle.
Among the seven Midwest states, Illinois ranks 6th for the total state and local fees motorists must pay each year to register their vehicles. This increase will generate $398.4 million annually.
Ryan proposed a 15 percent increase in yearly registration fees paid by the owners of large trucks, the cost of which varies along a sliding scale. These increase will generate $43 million annually. The owner of a 50,000-pound truck would see their annual registration rate change from the current $1,228 to $1,412. The owner of an 80,000-pound truck would see rates change from the current $2,232 to $2,566. The proposed new rates are close to the national average for large truck fees and below the rates charged in Virginia, California, North Carolina and New York.
The governor is seeking a $37 increase in the $13 fee charged to transfer a vehicle title from one owner to another -- a boost that will generate $118.4 million annually.
The final piece of the revenue package is an increase in the state's liquor tax -- the first in 30 years -- that will raise the state rates on beer, wine and distilled spirits to the national median and generate $62 million a year.
The rate for distilled spirits will change from $2 per gallon to $3.25 per gallon, which is the national average rate. With the change, consumers will pay a total of 65 cents in state taxes on a bottle of whiskey.
The rate for beer will change from 7 cents per gallon to 18.5 cents per gallon, which is the national average rate. With the change, consumers will pay a total of 10 cents in state taxes on a six pack of beer.
The rate for low-alcoholic content wine will change from 23 cents per gallon to 73 cents per gallon. The rate for high-alcohol content wine will change from 60 cents per gallon to 73 cents per gallon. In each case, consumers will be paying the national average rate in Illinois, or a total of 15 cents in state taxes for a bottle of wine.
Bob Haisman........................Illinois Education Association
Ron Gidwitz..........................Illinois State Board of Education
Max McGee..........................Illinois State Board of Education
Joe Cipfl...............................Illinois Community College Board
Keith Sanders.......................Illinois Board of Higher Education
James Stukel........................University of Illinois - President
Paul Vallas...........................Chicago Public Schools - CEO
Dr. David Eblen....................Illinois Association of School Boards
Don Turner...........................Chicago Federation of Labor, President
Dennis Gannon....................Chicago Federation of Labor, Secretary/Treasurer
Mike O'Neill..........................Chicago & Cook County Building Trades Council, President
Jerry Williams.......................Amalgamated Transit Union 308, President
Isiah Thomas........................Amalgamated Transit Union 241, President
Paul Nowicki.........................Burlington Northern
Steve Mitchell.......................Illinois Coalition
Tom Thornton.......................Illinois Coalition
Michael Kearney...................Illinois Development Council, President
Norman Walzer.....................Illinois Institute for Rural Affairs
Christine Jeffries...................Naperville Development Partnership
John Swanson......................Northeastern Illinois Planning Commission, Acting Director
Roger Carmach....................Western Illinois Tourism Development
Lance Pressl........................Civic Federation
Arnold Weber.......................Civic Committee of The Commercial Club of Chicago
Beth Ruyle...........................South Suburban Mayors and Managers Conference
Mary Sue Barrett..................Business Leaders for Transportation
George Ranney...................Chicago Metropolis 2020
Jerry Roper..........................Chicagoland Chamber of Commerce
Jeff Mays.............................Illinois Business Roundtable
Elizabeth Perino...................Federation of Women Contractors
Greg Baise...........................Illinois Manufacturers' Association
Dave Vite.............................Illinois Retail Merchants' Association
Dennis Whetstone...............Illinois Chamber of Commerce
Mike Payette........................Union Pacific, VP/Government Affairs
Jonathon Pearlman..............Evanston Chamber of Commerce
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