POLITICS
The state's infrastructure is in need
of repair. But how can we pay for it?
by Charles N. Wheeler III
From Chicago's century-old Loop El structure, through the infamous west suburban Hillside Strangler and the crumbling 19th century brick sewer lines in some downstate cities, to the leaky roof and rusty plumbing in a southern Illinois schoolhouse, it's no secret the state's infrastructure is aging and aching, sorely in need of repair.
Less clear is how much must be done to refurbish the physical underpinnings of the state's economy, or how to pay for improvements needed to move Illinois into the 21st century.
Some answers should be forthcoming by May 1, though, when an infrastructure task force appointed by Gov. George Ryan is to report on the state's capital needs and offer funding choices for consideration this spring.
As they await its recommendations, Ryan and lawmakers might do well to mark the remarkably similar counsel, offered almost a century apart, by Chicago's most fabled city planner and by Illinois' most prolific builder. Should their words be heeded, the "Fund for Illinois' Future" Ryan envisions will eclipse Build Illinois, the $2.3 billion plan for economic development and infrastructure improvement that Gov. James Thompson considers one of the most significant accomplishments of his 14-year tenure.
Since its enactment in 1985, Build Illinois has financed more than a thousand projects in every corner of the state, mostly new housing, highway improvements, sewage treatment plants and college classrooms. In fact, Ryan's proposed budget for fiscal year 2000 includes $107 million for ongoing Build Illinois work, eight years after Thompson left office.
"Make no little plans,
they have no magic to stir
men's blood."
Daniel H. Burnham
"Bigger is better."
James R. Thompson
While loathe to offer political advice to Ryan - "he's the master" -Thompson believes state needs and legislative realities warrant an ambitious program. "Bigger is better," he said in a recent interview. "You need to get the largest coalition possible, so you need the largest program possible to bring everybody in." By covering a wide variety of infrastructure needs and encompassing all regions of the state, Ryan's program would attract support from diverse interest groups and votes from legislators of both parties, Thompson reasons.
Certainly, there's no dearth of needed projects. Consider, for example, just three major concerns of Build Illinois:
Transportation. Illinois needs some $4 billion more over the next five years to keep up with highway repairs and build needed roads, transportation officials say. Mass transit, meanwhile, faces a $3 billion gap by Regional Transportation Authority reckoning.
Education. Chicago school officials say they need $3.5 billion for repairs and new construction, while the price tag for suburban and downstate school districts tops $7 billion over the next decade.
Environment. More than $2 billion is currently needed to protect public health at Illinois waterworks, according to the most recent U.S. Environmental Protection Agency report. Almost $11 billion is needed for Illinois sewer systems and waste-water treatment plants.
While some lawmakers argue that such infrastructure needs should be paid for with current revenues, Thompson disagrees. "I don't think pay as you go works," Thompson says. "You'd have horrendous competition for too few dollars."
Instead, long-term projects should be financed through bonding, he believes, as long as the improvements paid for with borrowed money last at least as long as the time required to retire the bonds.
Nor is state borrowing overextended: In fact, measured as a percent of personal income, general obligation debt has declined over the last five years.
Ryan, too, favors bonding. The state's aging infrastructure is "not only a challenge - but an opportunity," he said in his budget address. With interest rates at their lowest levels in years, Ryan says that now is the time to devise new programs for bonded improvements. "I am confident we can still find appropriate revenue streams to back a significant enhancement to our state's capital budget."
As Ryan noted, the major issue in
|
