The state of Illinois has been making significant strides in infrastructure development, with two major programs, Rebuild Illinois and Moving Illinois yielding substantial economic benefits. Recent studies have shed light on the impressive returns these investments are generating, providing a much-needed perspective amidst the familiar sight of construction zones and the associated delays.
The Illinois Economic Policy Institute conducted comprehensive analyses of these programs, revealing that every dollar invested in Rebuild Illinois results in $1.79 in economic activity. Meanwhile, the Illinois Tollway’s Moving Illinois program shows an even higher return of just over $2 for every dollar invested. These findings underscore the importance of infrastructure investments in driving economic growth.
The impact of Rebuild Illinois
The Rebuild Illinois plan, approved in 2019 has been a game-changer for the state’s transportation infrastructure. Funded primarily through increased motor fuel taxes and vehicle registration fees, the program has generated $2 billion in additional annual revenue by fiscal year 2026 growing to $3.1 billion by 2026. These funding mechanisms now account for 52% of the revenue generated by transportation funding sources.
Over six years, nearly $31 billion was allocated through Rebuild Illinois resulting in an average of about $9.2 billion in economic activity annually. The program has created 39,200 jobs, including 21,600 in the construction industry. Additionally, it has generated $169 million in local taxes and $231 million in state taxes annually.
The economic benefits have been particularly pronounced in the Chicago region where the multiplier effect reached $2 for every dollar invested. This surge can be attributed to the substantial spending on public transportation projects in the area.
Key projects funded by Rebuild Illinois include the rehabilitation and modernization of Interstate 80 through Joliet and Will County, the reconstruction of Interstate 39 and U.S. 20 near Rockford, the reconstruction of the Interstate 57/Interstate 74 interchange in Champaign County, and the replacement of the Interstate 270 bridge over the Mississippi River in Madison County.
The success of Moving Illinois
The Illinois Tollway’s Moving Illinois capital program has also made significant strides since its inception in 2012. The report estimates that the program has spent $14.1 billion resulting in $28.3 billion in economic output and $1.22 billion in state and local tax revenue. With about 87% of the program complete, its impact on the state’s economy is undeniable.
Major projects under Moving Illinois include the $4 billion reconstruction of the central Tri-State Tollway from near O’Hare International Airport to 95th Street, the $2.5 billion widening and reconstruction of the Jane Addams Tollway 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 provide a western access point to O’Hare and connect Interstate 90 and Interstate 294.
The program highlights the importance of a dedicated revenue stream for funding transportation infrastructure, especially along heavily traveled routes. According to IDOT data, 100% of the Illinois Tollway’s lane miles are 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.
Future prospects and public input
The timing of the report is opportune for the Illinois Tollway which has proposed a new 15-year, $26.5 billion “Driving Connections” capital program. This ambitious plan aims to further enhance the state’s transportation network and will be funded in part by a 45-cent increase in passenger vehicle tolls and a 30% hike for commercial vehicles. The Illinois Tollway is currently gathering public input regarding the proposed toll increases.
If approved, the new capital plan will 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. These projects aim to further improve the state’s infrastructure and drive continued economic growth.
