MOORE’S SUMMARY: A study from the Illinois Economic Policy Institute found that the Rebuild Illinois capital construction has resulted in a boost in economic activity that equals $1.79 for every dollar invested. A twin study examining the Illinois Tollway’s nearly-complete Move Illinois capital program estimates the return at just over $2 for ever dollar invested.

WHY IT MATTERS: The analysis from the left-leaning think tank puts some numbers behind the benefits of the programs, perhaps placating those frustrated with the familiar site of construction cones on state roads as well as the accompanying delays and toll and tax hikes to pay for the work.

The researchers’ methodology included direct effects such as construction spending, indirect supply chain effects and consumer spending by workers directly or indirectly impacted by the projects.

REBUILD: IDOT’s Rebuild Illinois plan passed in 2019 and was funded mostly by an increase in the state’s motor fuel tax from $0.19 to $0.38 per gallon. Annual inflationary increases have brought that to $0.483. Lawmakers also voted to increase vehicle registration and title fees and shift sales tax collected on gas to the road fund – the latter soon to be solely dedicated to funding public transportation.

These new funding mechanisms generated $2 billion in additional annual revenue in fiscal year 2021 and grew to $3.1 billion by 2025. They now account for 52% of the revenue generated by transportation funding sources.

Over six years, nearly $31 billion was spent via Rebuild Illinois, resulting in an average of about $9.2 billion in economic activity annually. It is responsible for the creation of 39,200 jobs, including 21,600 in the construction industry in that time. The report also estimated that the program has generated $169 million in local taxes and $231 million in state taxes annually.

The economic benefit multiplier was even higher in the Chicago region at $2 for every dollar invested, which researchers attributed to greater spending on public transportation projects in the region.

Major projects funded via Rebuild Illinois include the Interstate 80 rehabilitation and modernization through Joliet and Will County, the reconstruction of Interstate 39 and U.S. 20 near Rockford, the Interstate 57/Interstate 74 interchange reconstruction in Champaign County and the Interstate 270 bridge replacement over the Mississippi River in Madison County.

TOLLWAY: The report estimates that since 2012, the Illinois Tollway has spent $14.1 billion via the Moving Illinois capital program, resulting in $28.3 billion in economic output and $1.22 billion in state and local tax revenue. Moving Illinois is about 87% complete, the report says.

Major projects funded by the program include the $4 billion reconstruction of the central Tri-State Tollway from near Chicago O’Hare International Airport to 95th Street, the $2.5 billion Jane Addams Tollway widening and reconstruction project between Rockford and O’Hare, a $719 million project creating a full access interchange between Interstate 294 and Interstate 57 and the $3.4 billion project creating Interstate 490, which will create a western access point to O’Hare and connect Interstate 90 and Interstate 294.

The report says that the program demonstrates the importance of a dedicated revenue stream towards funding transportation, especially along some of the state’s most heavily traveled routes. They point to IDOT data showing 100% of the Illinois Tollway’s lane miles in acceptable condition compared to the statewide average of 76%. About 47% are listed as in “excellent” condition versus 35% for the rest of the state.

CONVENIENT TIMING: The report comes at a convenient time for the Illinois Tollway, which has proposed a new 15-year, $26.5 billion “Driving Connections” capital program. This would be paid for in part by a 45-cent increase in passenger vehicle tolls and 30% hike for for commercial vehicles. The Illinois Tollway is in the process of gathering public input about the proposed hikes.

If the new capital plan is approved, proposed projects would include the reconstruction of the Interstate 88/Interstate 355 interchange, a full interchange at Interstate 294 and Irving Park Road and the modernization of the I-294/Interstate 80 corridor.