Chicago Area Planning Group Wants Infrastructure Sales Tax

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CHICAGO — An influential Chicago area planning agency will press state lawmakers to establish a regional infrastructure fund supported by a quarter-cent sales tax increase with its eye on financing transportation, water, and open space projects.

"Current funding mechanisms in Illinois are simply not adequate for the region to meet its infrastructure needs," reads a report from the Chicago Metropolitan Agency for Planning, which was discussed at a board meeting Wednesday. "CMAP is proposing creation of FUND 2040 to support prioritized infrastructure investments that help the region meet its goals for quality of life and economic prosperity."

The quarter cent sales tax increase in the six-county area would raise an estimated $300 million annually. The agency would direct funding to support transportation, water, and open space projects that promote the goals of the agency's long-range plan for the region, known as GO TO 2040.

The agency's report warns that the region's investment in infrastructure lags behind other urban areas, giving them a competitive economic edge. The CMAP board asked its staff in September to identify funding sources to support the group's long-range plan.

"While increased state and federal investment is critical, at best it is likely to meet only our maintenance needs," the report warned. "While this program is not intended to solve all of the region's anticipated needs, the funds would move a significant number of important projects toward completion while leveraging private and public funding sources. And the program will be an important down payment to help drive regional economic growth for years to come."

The projects receiving priority attention in the transportation sector would aim to reduce congestion, improve access to transit and jobs, and/or enhance the freight network. Open space and park projects would be funded that improve residents' access to recreation and enhance communities' livability. Stormwater projects that improve the region's ability to avoid flooding of communities, improve water quality and supply would be prioritized.

The agency announced on Wednesday its intention to build a coalition of business, labor, and civic labors to lobby the Illinois General Assembly to authorize the regional fund and tax hike. The group's aim would be to seize on what it believes is an opportunity to be included in a larger capital funding bill the General Assembly may tackle in its next session or in a tax overhaul Gov.-elect Bruce Rauner may pursue. The state's current $31 billion capital program is winding down.

While local transit agencies and local governments have clamored for help in meeting billions in unfunded needs, the higher sales tax could prove to be a tough sell, and any legislative effort faces a crowded agenda behind the state's pressing fiscal issues.

With rating agency analysts and investors paying close attention given the state's shaking finances, Rauner must present a fiscal 2016 budget early in the session that begins next year and decide whether to ask lawmakers to approve an extension of the 2011 income tax hike that partially expires Jan. 1. The governor-elect has said infrastructure funding is a priority, but hasn't said how he would fund it.

The planning agency acknowledged the tough task it faces. "A vote to increase revenues is politically challenging for legislators, which is why we plan to tie our proposal to a broader legislative activity, such as a new capital program or tax reform," the report read.

The planning board and its related policy committee help govern the region's long-term planning goals and renew the master plan every four years. The two hold sway over what transportation projects qualify for federal help through their inclusion and classification in the master plan.

 

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Transportation industry Infrastructure Illinois
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