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According to GasBuddy, local prices in some areas of Illinois
have dropped to as low as $2.99 per gallon.
Despite these declines, Illinois Policy Institute analyst Dylan
Sharkey said the impact on state revenue is minimal.
“Road fund revenue in Illinois is not an issue. The state
regularly brings in more than it spends in terms of the road
fund,” said Sharkey. “Illinoisans see it every year, on July
1st, they noticed their gas taxes go up automatically.”
Sharkey noted that Illinois doubled its gas tax in 2019, and
state lawmakers maintain substantial reserves, currently around
$3 billion, while continuing to discuss additional revenue
measures.
“In state taxes alone, Illinoisans pay about $0.48 a gallon in
taxes. We’re the second highest in the nation, behind only
California, so motorists are paying plenty when it comes to
transportation costs in Illinois,” said Sharkey.
Sharkey explained that falling gas prices could give lawmakers a
reason to revisit a mileage tax, a proposal that has been
discussed in Illinois for the past several years.
“A lot of the concerns from lawmakers focus on the rise of
electric vehicles and the claim that they aren’t paying their
fair share for road maintenance, which isn’t true,” said
Sharkey. “Electric vehicles pay higher registration fees each
year, including an annual EV fee, so the idea that they aren’t
contributing to the road fund is simply incorrect.”
Sharkey suggested that attracting more drivers to Illinois could
naturally increase revenue, but the state faces net
outmigration, which reduces the number of drivers on the roads.
“That would create more revenue because you'd have more drivers
and more people buying cars here,” said Sharkey. “If you make
Illinois a more attractive state to move to, that would solve
the issue on its own. But Illinois has the opposite problem.
Because of net outmigration, we have fewer drivers on the same
roads. So, of course, they're going to say there's an issue
because you're losing drivers to other states.”
The Chicago Transit Authority is facing a fiscal crisis, with a
significant budget shortfall projected for 2026 as federal
COVID-19 relief funds expire. Some studies suggest that lower
gas prices can lead to decreased public transit ridership.
“The road fund can be used for any transportation expenses, so
trains and buses are included in that $3 billion they could
spend, Sharkey noted. “They should use the money they already
have before asking for more.”
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