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Road fund diversions negatively impact
material suppliers and workers
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[DEC. 1, 2003]
SPRINGFIELD --
Southern Illinois has been hit just as hard as central Illinois
where road fund diversions are concerned, according to state Sen.
Larry Bomke, R-Springfield. Bomke attended the second hearing of the
Senate Republican Task Force on Transportation, in Robinson, and
learned that the impact on jobs and economic development in southern
Illinois is just as prevalent downstate as it is locally.
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"Through both hearings we have
confirmed that the diversion of road funds affects jobs and the
economy," said Bomke. "We have lost jobs in construction and in
transportation-related industries, and the problem will only get
worse as the state continues to divert money from road construction
to other areas of the budget."
Road fund diversions are
already taking their toll on construction industry jobs. Area
contractors and material producers are already feeling the loss of
road construction dollars in downstate communities.
Alan Shoemaker with Vulcan
Materials testified that the loss of construction work has
translated into a "trickle-down effect" on customers and employees.
For the first time in its history, the company, which operates
facilities throughout Illinois, has had to lay off employees during
peak construction season. Already, the company has suspended
operations at its Lincoln facility due to lack of construction
materials needed for the area.
Tom Kidwell with Howell Asphalt
out of Mattoon expects to hire 100 fewer union employees next
summer.
John Kavanaugh with Ambraw
Asphalt echoed Kidwell's concerns. His company employs 16 full-time
union employees and 24 union employees during peak construction
time. He fears the loss of road fund monies will affect his
company's ability to keep those jobs and for those employees to find
other work locally. "If we aren't paying these 24 individuals, there
is nowhere for them to go," Kavanaugh said.
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this article] |
Bomke is a chief sponsor of
legislation (Senate Bill 2099) to return the funds diverted during
this past budget cycle.
Reinstatement of the rolling
stock exemption has also caused some concerns for transportation
companies throughout Illinois. Bomke is also a sponsor of
legislation (Senate Bill 2101) that will reinstate the crucial tax
credit for trucking companies.
As a result of the tax imposed
by the Democrat-controlled General Assembly in July, many trucking
companies have made plans to leave Illinois.
Ron Hancock with Hancock
Carrier of Olney testified that he is making plans to headquarter
his company in Wyoming. Many other trucking companies are moving to
Iowa, Missouri and Indiana, after those states have actively pursued
trucking companies to leave Illinois and take advantage of
tax-friendly laws concerning trucking companies in adjacent states.
The committee also heard
testimony from Tom Dersch with Desrch Energies in Mount Carmel on
the impact of higher gas taxes on petroleum business in Illinois.
Gas taxes feed into the state's road fund.
A
final hearing will be in Des Plaines at City Hall, 1420 Miner St.,
on Tuesday, Dec. 9, at 10 a.m.
[News release from
Sen. Larry Bomke] |
