Ill. Chamber Backs Transportation Modernization Plan

The Illinois Chamber of Commerce backed a transportation modernization program, HB 3823, introduced Wednesday evening by Representative André M. Thapedi, D-Chicago, to raise $2 billion in annual revenue offset with pro-consumer and pro-business reforms. The bill phases out the state sales tax on motor fuel with consumers realizing a combined 15 cent per gallon Motor Fuels Tax increase. The sales tax swap eliminates a state tax on motor fuel, narrows the price gap between Illinois and neighboring states, and will create consumer savings when gas rises above $2 per gallon. While the Chamber does not take tax increases lightly, Illinois must act now to improve and invest in our infrastructure system to ensure the state remains the transportation hub of North America. The bill includes:

Annual funding of:

  • $600 million for IDOT
  • $240 million for local governments (a 40% increase over today’s funding)
  • $672 million for transit capital expenses
  • $20 million for the Grade Crossing Protection Fund to fund better rail/highway grade crossings
  • $2 million for construction trades training for disadvantaged populations

Bond funding of:

  • $4 billion to IDOT to accelerate bridge improvements
  • $1 billion for other needs (ports, federal grant match for local governments, transit)

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