The Illinois Senate Capital/Gaming Plan: Highlights

SB 785: Capital Bonding Bill

• Increases the state’s bonding authorization by $10.2 billion, which includes an increase of $8.3 billion in the state’s General Obligation bonds and $2 billion in Build Illinois bonds.

• Authorizes bonding authority for 24 months after the effective date of the legislation for project approval purposes.

Passed Senate by a vote of 52-3-1

SB 1110: Capital Budget Bill

The capital budget authorizes the state to spend up to $25 billion (which includes accessing nearly $12 billion in federal dollars) on infrastructure projects that range in length from one to six years.  The capital budget provides for an FY08 expenditure of approximately $4.4 billion.  The following provides some of the project highlights authorized by this legislation:

Transportation:

• $750 million for statewide use (FY08 road improvement projects).

• $250 million for Build Illinois-related public infrastructure and other transportation improvement projects.

• $250 million to locals (counties, municipalities, and road districts) for transportation projects.

• $25 million for airport assistance/acquisition projects.

• $200 million for mass transit capital project purposes and expansion of services (specific to the RTA and all projects must be approved by the Governor).

• $200 million for RTA operating costs (this money is contingent upon HB 2035- the gaming bill- becoming law).

• $30 million for downstate mass transit systems’ operating costs (also contingent upon HB 2035 becoming law).

• $160 million for AMTRAK-related services.

Economic Development/Clean Energy Initiatives:

• $77.6 million for the development of a coal gasification plant (this includes $100,000 for preliminary planning/design/engineering of a pipeline to transport CO2 from the plant for underground storage purposes).

• $100 million for various economic development projects.

• $5 million for biodiesel production facilities.

• $17 million for the Fermi National Accelerator Laboratory.

• $13 million to Argonne National Laboratory.

• $60 million to the University of Illinois at Champaign/Urbana for the construction of a new Pedascale Computing Facility.

• $20 million for the construction of ethanol production facilities.

• $6 million for adding E-85 pumps to gas stations throughout the state.

• $5 million to provide energy efficiency investment loans to small businesses and manufacturers.

• $400 million for grants to local governments for economic development projects.

Education:

• Increases the FY08 education budget by approximately $304 million, which includes providing an additional $44 million for early childhood education and increasing the General State Aid foundation level to approximately $5,900 per pupil.

• $1.9 billion for school construction projects over the next three years, of which, $643 million is appropriated for FY08 (the first $150 million is to go toward funding the school construction projects still on the FY02 entitlement list).

• $585 million for higher education capital needs projects.

Agriculture/Natural Resources:

• Provides $2.6 million for Conservation 2000 projects.

• Provides $10 million for non-federal cost share of a Conservation Reserve Enhancement Program.

• Provides $7.8 million for water development projects (projects are specified in the legislation).

• Provides $10.3 million for dam and spillway improvements and construction.

• Provides $2 million for ecosystem rehabilitation, habitat restoration and other projects performed in cooperation with the Army Corps of Engineers.

Passed Senate by a vote of 58-0-0.

HB 2035- Casino/Gaming Bill:

The legislation is similar to the gaming legislation that was before the Senate in August.  The most significant changes in the legislation were requested by Senate Republicans and include adding provisions that require members of the Chicago Casino Development Authority to file personal/financial disclosures (members are also subject to Senate approval), as well as provisions that explicitly prohibit members of the Illinois Gaming Board from participating in political activities.

Highlights of the legislation include:

• Provides for a land-based casino in the City of Chicago and creates the Chicago Casino Development Authority to manage the casino.  (The City of Chicago has filed in support of the legislation, although Mayor Daley has expressed concern about the start-up cost associated with the casino- estimated at approximately $800 million).  The Authority is also given the power of eminent domain.

• Approximately 1% of the gross receipts from the Chicago casino must go towards helping economically depressed communities in Cook County.

• Increases the states riverboat casino licenses from 10 to 12 (the legislation does not specify where the additional 2 riverboats would be located).  The minimum bid for these licenses is $365 million, unless otherwise specified by the Gaming Board.

• Increases the state gaming positions by 6,000 at existing riverboats to be sold in blocks of 100 each.

• Alters the funding distribution for horse racing tracks to assist less successful tracks.

• Directs the State Comptroller to transfer $200 million from the State Gaming Fund to the RTA and its service boards, as well as $29 million for downstate mass transit operating costs.  (The legislation is not very clear on the RTA’s obligation to repay this loan.)

• The legislation did include provisions that would have exempted 3 riverboats along the state’s border- Alton, East St. Louis, and Rock Island - from the statewide smoking ban for the next five years; however, these provisions were removed prior to the final passage of the bill.

Passed Senate by a vote of 37-15-6.