Don't Look Now, But Illinois Has Another Deficit
From Crain's Chicago Business
We all have read a lot in the past few years about Illinois' two major financial deficits. There is a large mismatch between sustainable operating revenues and costs for existing programs—this is our structural deficit, which is on the order of $6 billion per year. And Illinois has an immense pension deficit, estimated to be greater than $100 billion.
But there is a third fiscal deficit facing Illinois that largely has been ignored: the lack of funding for the state's physical infrastructure. In a report by the University of Illinois Institute for Government and Public Affairs, I estimate that this infrastructure funding deficit may be as large as $31 billion. That is, to maintain our state's roads, bridges, water and wastewater systems, school buildings and so forth, Illinois would have to devote $31 billion more to the effort than they previously have been doing.
To put that figure in perspective, the entire state general revenue budget last year was around $33 billion.
This estimate only includes infrastructure managed by the state itself, not its autonomous agencies such as the Illinois Tollway, the Regional Transportation Authority, the Chicago Transit Authority or any Illinois local governments. Including these entities increases the infrastructure funding deficit by billions.
Why is this deficit important? Economists agree on the importance of a vital and well-maintained infrastructure to overall economic health. Illinois' excellent and long-standing system of highways, railroads and airports have helped drive the state's economic success for over 150 years and given it an advantage over other states.
By failing to maintain, replace and improve its infrastructure, Illinois limits the productivity and income-earning ability of its businesses and workers. This ultimately will lead to a lower standard of living for future generations.
Read more in our daily News Update...
From Crain's Chicago Business
We all have read a lot in the past few years about Illinois' two major financial deficits. There is a large mismatch between sustainable operating revenues and costs for existing programs—this is our structural deficit, which is on the order of $6 billion per year. And Illinois has an immense pension deficit, estimated to be greater than $100 billion.
But there is a third fiscal deficit facing Illinois that largely has been ignored: the lack of funding for the state's physical infrastructure. In a report by the University of Illinois Institute for Government and Public Affairs, I estimate that this infrastructure funding deficit may be as large as $31 billion. That is, to maintain our state's roads, bridges, water and wastewater systems, school buildings and so forth, Illinois would have to devote $31 billion more to the effort than they previously have been doing.
To put that figure in perspective, the entire state general revenue budget last year was around $33 billion.
This estimate only includes infrastructure managed by the state itself, not its autonomous agencies such as the Illinois Tollway, the Regional Transportation Authority, the Chicago Transit Authority or any Illinois local governments. Including these entities increases the infrastructure funding deficit by billions.
Why is this deficit important? Economists agree on the importance of a vital and well-maintained infrastructure to overall economic health. Illinois' excellent and long-standing system of highways, railroads and airports have helped drive the state's economic success for over 150 years and given it an advantage over other states.
By failing to maintain, replace and improve its infrastructure, Illinois limits the productivity and income-earning ability of its businesses and workers. This ultimately will lead to a lower standard of living for future generations.
Read more in our daily News Update...