Some in Southern Illinois are accusing state legislators of taking the low road in a new bill that diverts money from the shared construction accounts to a public transit initiative upstate.

New legislation signed into law last week aims to restructure transportation administration in Chicago and surrounding counties by creating the new Northern Illinois Transit Authority.

The NITA consolidates the Chicago Transit Authority, the Metra rail service and Pace bus service, bringing public transportation in Cook County and its five surrounding counties under one administrative umbrella.

Funding the NITA comes from an increased regional sales tax in the six counties it serves as well as proposed tollway revenue measures.

The other two funding mechanisms are what have some in downstate Illinois nervous. 

An existing gas sales tax and 90 percent of the interest gained from the Illinois Road Fund and State Construction Account Fund will now be used to finance the newly-created NITA.

Proceeds from the existing tax on the sale of gas – not to be confused with the state’s motor fuel tax – had been directed to the state’s general fund, in some cases used to supplement the Road Fund. 

With the bill becoming law, those revenues are now “dedicated to transit,” which is expected to raise approximately $860 million for that purpose, according to a press release published last Tuesday by Gov. JB Pritzker’s office.

While no money is being taken away from the two construction funds, the 90 percent from the interest growing in those accounts now allocated for NITA are expected to bring in some $200 million. 

Senate Bill 2111 was introduced as a way to raise $1.5 billion to finance public transit for the Chicago area.

According to a Dec. 16 Capitol News Illinois report, with the requirement that all federal COVID-19 funds be spent by the end of calendar year 2025, the prior transit authorities would be facing a $230 million deficit in 2026 – with that figure ballooning to just shy of $1 billion by 2028.

The consolidation of departments, redirection of certain revenue, modified toll road fee schedules  and addition sales taxes planned for cities and counties within NITA jurisdiction are purported to stave off what was could have been a 40 percent reduction to those transit services.

“This new law not only averts the cliff but preserves affordability and makes transit safer and more reliable,” Pritzker said of the bill, with many state Democrats approving the legislations’s final form.

Originally, proposals included a tax on streaming services, package deliveries, event tickets or unrealized capital gains from billionaires’ investments.

Illinois Republicans universally rejected the bill’s premise – calling it a “bailout” – although some conceded the lack of taxes on those who may never use the services the bill funds.

Prior to the bill being signed Dec. 16, Rep. Regan Deering (R-Decatur), explained his mixed reception of the funding changes.

“I am happy that my constituents aren’t going to be stuck with ridiculous taxes,” Deering said in October. “But I just can’t continue to vote for a piece of legislation that screws them anyway.”

Locally, State Sen. Terri Bryant (R-Murphysboro), condemned Pritzker’s signing of the law.

“Governor Pritzker’s decision to sign Senate Bill 2111 is a direct slap in the face to downstate Illinois,” Bryant said in a Dec. 16 press release. “This law sweeps hundreds of millions of dollars from the sales tax on motor fuel, money intended to support roads and bridges across our communities, and hands nearly all of it to Chicago.”

Monroe County Engineer Aaron Metzger was more guarded in his assessment of the bill’s impact to his territory.

While he did describe the bill’s redirection of the interest as “robbing the Road Fund” during a report to the Monroe County Board on Nov. 19, he added it was too early to see what the eventual impact will be on how the Illinois Department of Transportation funds its projects.

Metzger also responded to a request for comment on the matter earlier this month, pointing out there is much confusion and misinformation circulating about the bill, which at the time had not yet been signed by Pritzker. 

Metzger included a communication he received from a colleague which “best described” the bill.

“While there are not direct impacts to local public agencies, it is assumed there will be indirect impacts,” the message stated, adding that many relevant parties “currently do not know how these changes will affect the Multi-Year Program recently published by IDOT.”

While the downstate impact is yet to be seen, speculation from upstate business owners implied the increased taxes and tolls will not only hurt upstate residents, but may also impact tourism if the Chicago area becomes known as an overly-expensive place to visit. 

As far as fuel tax increases statewide, the motor fuel tax on gasoline and diesel will increase by $0.013 this summer, going up from $.0470 per gallon to $0.483 per gallon on July 1, with the increase raising the tax on diesel to $0.558 per gallon

Per Illinois law, motor fuel taxes are adjusted annually on July 1 by the increase in the Consumer Price Index.

In addition to the motor fuel tax, Illinois consumers also pay a sales tax on motor fuels – separate from the “motor fuel tax,” with the interest from these revenues being diverted to NITA. 

In a double-dip of sorts, the tax is slightly higher than the $0.013 motor fuel tax increase since this tax is assessed on both the price of the fuel and the added motor fuel tax.

In January 2019, the motor fuel tax on gasoline was $0.19 per gallon – a 154 percent increase over seven years

In 2024, the Tax Foundation calculated that the total tax on gasoline paid by Illinois consumers was $0.665 per gallon, the second highest in the nation.