CHICAGO — The Illinois State Toll Highway Authority is losing its two board members with public finance backgrounds — including William Morris, who opposed a planned rate hike — just as the agency prepares to embark on a $12 billion capital program that relies on $4.8 billion in borrowing.
Gov. Pat Quinn late Monday announced sweeping changes to a handful of boards, many addressing a backlog of 1,000 vacancies he inherited from his predecessor. He overhauled the state gaming board while also making changes to the makeup of the pollution control board, racing board and toll authority.
At the toll authority, he reappointed several members but did not reappoint Morris or Maria Saldana, a former public finance banker who was tapped to serve as the director of the new Cook County Bureau of Economic Development earlier this year. Saldana could not be reached immediately to comment on whether she had asked to leave the board or had hoped to be reappointed.
Quinn also replaced Morris, a retired public finance banker who had served as financial advisor to the state and Chicago-related issuers. Morris and Saldana were appointed by Quinn in 2009 to fill out unexpired terms that expired earlier this year. The governor named Morris to the liquor commission board. Quinn also chose not to reappoint a suburban mayor.
A statement from Quinn announcing all the board changes said the new members of the tollway authority would “bring important legal, construction and financial expertise that is essential for the tollway’s continued and anticipated growth.”
One new member works for a commercial bank and another was a chief financial officer for a suburban park district, but none have the lengthy public finance resumes or understanding of tax-exempt borrowing as Morris or Saldana.
Morris said he was disappointed and proud of his service that included vocal opposition to a steep toll increase to support the new capital program.
“The administrators of the tollway had grown uncomfortable with my questions and likely did not support my reappointment,” he said in a statement to his supporters. “They were upset with my opposition to the 87.5% toll increase which will go into effect on Jan. 1, 2012.”
Morris was the sole vote against the toll increase at the board’s August meeting. He offered an alterative plan that relied on a smaller, incremental increase but the agency countered that the plan was not viable. Morris more recently was pushing the tollway’s finance team to include in its next request for underwriting proposals a provision taking some points away from firms that had agreed to settlements or faced sanctions for bad conduct.
“There is still work to do and I hope the new board will keep on the right track,” Morris said.
“We appreciate the hard work and dedication of all of our outgoing board members, including Director Morris. We enjoyed working with him and wish him well at the State's Liquor Control Commission,” tollway authority spokeswoman Wendy Abrams said.
The agency unveiled the plan in July, saying it was needed to relieve congestion in the Chicago area, create jobs and spur economic growth. Officials said the projects would eventually create at least 120,000 jobs and generate $21 billion in economic activity.
The plan is a follow up to the authority’s $6.1 billion program launched seven years ago that relied on $3.6 billion of bonding. The tollway wrapped up debt for that program in 2009, and nearly 85% of projects are complete. The congestion-relief capital plan that introduced electronic tolling to Illinois relied on an increase in tolls paid by cash users and commercial traffic.
Debt service on existing bonds has a priority claim on toll and system revenues after the authority’s operating expenses. The agency has exhausted its borrowing capacity under the current toll structure and would not be able to maintain a two-times debt service coverage ratio considered critical to its double-A level ratings.
