News and Announcements

Governor Pritzker has proposed a 6-year, $41.5 billion capital plan, titled “Rebuild Illinois” that includes funding for both horizontal (transportation related projects) and vertical construction projects.  

The proposal released on Friday includes the following funding allocations for capital projects: 

• Transportation: $28.6 billion 
• Education: $5.9 billion 
• Deferred maintenance on state facilities: $4.4 billion 
• Environment and conservation: $1 billion 
• Broadband development: $420 million 
• Healthcare and human services: $440 million 
• Economic and community development: $711 million

The proposal also included proposed funding mechanisms that include a combination of bonding and $1.8 billion in new or higher taxes. 

• Raising the motor fuel tax by 19 cents per gallon
• Raising vehicle registration fees based on a tiered system: $199 for vehicles 3 years old or newer, $169 for vehicles 4-6 years old, $139 for vehicles 7-11 years old and $109 for vehicles 12 years and older (Projected $490 million a year)
• Raising the registration fee for electric vehicles from $34 to $250 per year (Projected $4 million a year)
• Raising the Real Estate Transfer Tax on non-residential properties from 50 cents per $500 to $1 per $500 (Projected $34 million a year)
• Raising liquor gallonage taxes (Projected $120 million a year)
• Capping the traded in sales tax exemption at $10,000 per trade-in transaction (Projected $60 million a year)
• Restructuring video gaming terminal tax (Projected $90 million a year)
• New state tax on ridesharing services (Uber, Lyft) of $1 per ride (Projected $214 million a year)
• New 7% tax on cable, satellite and other streaming services (Projected $150 million a year)
• Parking garage tax of 6% on daily and hourly garage parking and 9% tax on monthly and annual garage parking (Projected $60 million a year)

The plan released Friday also lists some of the proposed construction projects throughout the state. The Pritzker Administration has stated this proposal is a continued work in progress and all projects and funding mechanisms will continue to be debated with stakeholders. The proposals listed here will likely change as lawmakers and other interested parties continue to hash out the details of a final capital plan. We anticipate seeing the Governor’s capital plan introduced as legislation within the next couple of days. As a reminder, the Illinois General Assembly is scheduled to adjourn May 31st. Lawmakers have a lot of work to complete in the next eleven days. 
 

Yesterday's live webinar on Unfunded Pension Liability has been recorded and is now available in the Education section.