|
ILLINOIS
INFRASTRUCTURE RANKS HIGH, BUT STATE FINANCES POSE BIG THREAT
Illinois Policy Institute/
Noah Shaar
With an abundance of freight lines and
roadways, along with a reliable power grid, Illinois placed No. 1 in the
U.S. for infrastructure. But state finances are a threat, and political
pork needs to give way to projects that move the most people and goods. |
|
 In CNBC’s recent ranking of states for their infrastructure,
Illinois took the top spot.
Illinois’ history as the nation’s center for commerce and transportation makes
the ranking logical, but there is a warning to state political leaders that came
with the designation.
“But the state also has some serious infrastructure issues, including decrepit
roads and bridges, and public water systems badly in need of refurbishment. More
troubling: Illinois’ dismal balance sheet makes it unclear how the state will
handle the heavy burdens on its big shoulders,” CNBC wrote.
CNBC ranked each state by evaluating their roads, bridges, airports, utilities
and broadband, with points awarded for site availability and sustainability.
CNBC’s 2021 ranking of America’s 10 best states for infrastructure comes as the
U.S. Congress debates the Democrats’ infrastructure bill.
CNBC said the state’s reliable electrical grid averages 2 hours of power outages
annually. The electricity production in Illinois is among the best in the nation
because of Illinois’ diverse energy sourcing, generating more power from nuclear
energy than anywhere else in the nation.
CNBC also applauded Illinois for broadband connectivity: 89.3% of residents have
access to strong broadband.
Illinois ranked second in the nation in rail freight volume; Chicago hosts the
nation’s largest U.S. rail gateway. Illinois has the nation’s third-largest
interstate highway network. Among Illinois’ 119 airports and nine international
airports, O’Hare International processes the second-most flights of all airports
in the world.
Illinois leads the nation in the value of goods which travel through the state.
By road and train, over 1.2 billion tons of goods, valued around $3 trillion,
travel through the state. Another 2 million tons of cargo arrives by air, valued
at over $185 billion.
Despite its impressive size and scope, Illinois’s infrastructure is at risk. The
roads have deteriorated faster than they’ve been maintained: 21% of Illinois’
road are in unacceptable condition, according to CNBC. The rankings also listed
the public water system as a vulnerability in Illinois’ infrastructure.
[to top of second column] |
The infrastructure problems are aggravated by the
system used to choose projects. The state hasn’t directed funds to
projects which have the highest return to taxpayers. House Bill 253
could potentially help fix the state’s proclivity for pork over
purpose; the bill awaits Gov. J.B. Pritzker’s signature.
HB 253 was sent to Pritzker June 25. It changes the
process for choosing infrastructure projects, prioritizing the
projects that have the most benefit with the least cost. HB 253
would prioritize maintaining existing infrastructure over building
new.
No new funding would be allocated to roadways under the bill, but
existing funds would be directed toward priority projects rather
than the new roads and bridges politicians love for photo ops. Given
Illinois’s fiscal woes created by an unsustainable pension system,
controlling the cost of infrastructure is especially important.
The infrastructure rating was part of CNBC’s wider study of top
states for business. Illinois ranked 15th overall in that study with
dismal marks for its economy and its business friendliness. Each of
those factors ranked 48th in the nation.
Illinois fared worse when the Tax Foundation ranked states by
business tax climate in 2020, coming in at No. 35. Property taxes
ranked 48th and unemployment insurance taxes at 40th – before the
COVID-19 pandemic left the fund insolvent.
The state has been slow to recover from the COVID-19 pandemic
downturn, with unemployment at 7.2% while the U.S. as a whole is at
5.9%. Black Illinoisans in their prime working years have been
especially hurt, with 11.3% of them still missing from Illinois’
workforce.
Atop this sluggish recovery, state leaders passed the 21st
consecutive deficit budget despite adding $655 million in new taxes
on the state’s job creators.
Illinoisans may be able to rely on their electricity supply, but a
more robust workforce would better enable them to pay the light
bill.
 |
