The state of the State

By SHELLEY DAVIS

AS OF MAY 1, the financially ailing Regional Transportation Authority (RTA) has managed to squeeze by three anticipated shutdown dates, but can't hold out indefinitely. The General Assembly has only opened debate but not the state's pocketbook in attempts to solve the system's long-term money problems.

It is a case of political hopscotch with no one able to keep his pebble in the box. And, without a good aim, the game will never end. Even Gov. James R. Thompson's long-awaited transportation program was washed away in a storm of protest coming from both House Republicans and Democrats. Now Democratic Senate President Philip Rock has taken everyone back to square one with a scaled-down version of Thompson's plan, which would tax the gross receipts of oil companies. Rock's tax bill passed out of committee in the Senate April 30. That puts him on about square 3.

The problem is that no one besides the leaders is willing to step in and play the game. The rank-and-file realize that jumping on one foot is a precarious posture to present to the home crowd. There is a strong likelihood they could trip and get bruised or, worse yet, end up politically disabled.

There is no doubt that the RTA is an explosive issue with a no-win situation. Just as the passage of the state income tax had a deadly effect on the career of former Gov. Richard B. Ogilvie, the formation of the RTA ended the legislative career of former House Speaker W. Robert Blair, who pushed hard for its creation. And because 1981 is reapportionment year, the RTA is perceived as even more deadly. Add to that the fact that 59 members of the House are certain to lose their seats in 1983, and you have 177 public servants who are fearful of the perilous odds, knowing that in this game it only takes one misjump and it's over.

More is at stake, however, than just mass transit in northeastern Illinois. The entire state Road Fund is in need of extra dollars. As Rock has said, it is not enjoyable to propose new taxes or to increase existing ones. He has already admitted that his political career could be jeopardized by the introduction of his transportation funding package in the Senate. It is clear, however, that no funding solution can be found in these budget-tight times that will not either include a new tax or increase old ones. And, the only place the bill for a tax increase can be sent is to the people who elect the legislators.

Thompson finally tried to turn all the transportation funding talk into legislative action on March 24 when he outlined his plan to solve the Road Fund dollar pinch. The solution was a gross receipts tax on the oil companies — a tax Thompson said was perfect because everyone hated it. It is also ideal because the governor has stressed that he wants to avoid any general tax increase. The gross receipts tax would be viewed by the public as a tax on the big, evil oil companies despite the fact that the companies would eventually pass that increase on to the consumer.

Presented as a package of seven bills by Speaker George Ryan (R., Kankakee), the governor's proposal received over 200 amendments after several day-long, late-night and weekend hearings. Two of the amendments, proposed by Minority Leader Michael Madigan, presented the Democrats' alternative and differed from Thompson's bills in both structure and allocation formula (see "Legislative Action," May Illinois Issues). However, Madigan's amendments, along with Thompson's package, never received full House attention after the first of the seven bills failed to receive 89 votes. Ryan tabled the package, pushing it into legislative limbo.

Noting that the House was at a "loggerhead," Rock finally threw in his pebble and introduced his own proposal April 22 in the hope of getting the game going again. It coincided with an early morning pow-wow at the Mansion where the governor reportedly used "harsh" words concerning the legislators' inaction on transportation. Like the Thompson package, Rock's proposal hinged upon a 5 percent gross receipts tax on oil companies. Rock's version, however, would only be applied to fuel products, not the entire range of other goods made from petroleum. Rock also proposed raising the automobile registration fees for small cars from $18 to $30 and for large cars from $30 to $45.

The only other funding proposal still alive in the chambers is former House Speaker William A. Redmond's plan introduced in January. Incorporating many of the solutions to road funding that have been tossed around the Statehouse for years, Redmond's proposal mirrors Thompson's initial transportation budget plan. It would reinstitute a state subsidy to the RTA; increase "sin taxes" on alcohol and cigarettes; and change the gasoline tax from pennies per gallon to a percentage per gallon.

Thompson has abandoned this earlier plan and acknowleged that tradi\tional user taxes are no longer sufficient to generate adequate revenue for Illinois' diverse road system. The revenues from the taxes just cannot keep up with inflation. The current motor fuel tax, for example, has stopped growing as a revenue source and, in fact, has started to decline.

The gross receipts tax, because it is a tax on income, should continue to grow. As Thompson points out, it is easily collected, easily allocated and touches everyone. Plus, it is only one tax. With the current reluctance to pass any nex taxes, Rock said he doubts the legislature would vote for a package that contains a dozen different taxes. But even if the new revenue source isn't in the form of a gross receipts tax, Rock says he is willing to tax anything that will be approved by the General Assembly and raise sufficient revenue.

2/June 1981/Illinois Issues

A final decision on transportation must be made whether it occurs before June 30 or in a rumored special session this summer or early fall. Despite a slip-of-the-tongue made after the State Chamber of Commerce meeting in April, Thompson is steadfast in his refusal to extend short-term, interim financing to keep the RTA moving. This strategy is no doubt a gubernatorial weapon designed to force the legislature to end the transportation standoff before disaster strikes.

It is a political reality in this state that the lines are strictly drawn between Chicago, the suburbs and down-state. But these lines may become blurred if trains and buses stop running and bridges and roads start crumbling. And as Thompson has said, if action isn't taken soon, each region may miss its turn at the "last, best chance" to get what it wants for roads and mass transit. The number of players in this game is limitless. But politicians are the ones who are taking the risks right now. And in the old game of hopscotch the winner is the one who can make the big jumps with the least mistakes. □

8/June 1981/Illinois Issues