...continued Road fund diversions to general fund top $3 billion, lawmakers concerned

safe nor efficient.
   Although the diversion of road-related user fees and other revenues away from road-related needs is nothing new, both federal and state legislators say it's a trend that has continued for at least four consecutive fiscal years.
   And on a national level, Republicans aren't the only ones critical of Illinois' budgeting practices. U.S. Rep. Jerry Costello, a Democrat representing Illinois, says the systemic nature of the diversions not only threatens the state's ability to maintain its infrastructure but negatively affects Illinois' reputation as it lobbies for its fair share of federal transportation dollars.
   "The road fund diversions have happened in Illinois and a few other states," said Costello. "And in fact, the first time that it happened in Illinois, I wrote a letter to the governor (Democratic Gov. Rod Blagojevich) stating that I understand that there are many challenges to balance the state budget but you should not balance the general fund by taking money out of the highway trust fund."
   Costello says his job of stating Illinois' need for federal road and bridge money would be made easier if the state itself were properly allocating its own road and bridge funds.
   "While we are making arguments here in Washington that there is a need for increased (federal) spending in our state, we're seeing the state of Illinois and other states taking money out of the highway trust fund," said Costello. "So it is pretty hard to convince the federal government to appropriate money and to increase federal revenue to the states that are using their highway trust fund money for other general purposes. I am hopeful that the state of Illinois will be in a position - in the not too distant future - to pay that money back to the trust fund, because there are obligations that have to be met," he added.
   According to the Illinois State Comptroller's office, the biggest categories of highway user fee revenues being diverted to the general fund are those collected by the Secretary of State's office in driver's license-related costs and in other user-based fees. In fiscal year 2005, 25 percent of all Illinois transportation-related user fee revenues never reached the road and bridge fund. This percentage doubled since FY 2001.
   State Sen. Chris Lauzen, a Republican from Aurora, says road fund revenue diversions also took place under the previous administration of Gov. George Ryan, a Republican, but not to this extent.
   According to the Illinois Comptroller's office, in FY 2003, Ryan's final fiscal year as governor, a total of $471 million of user fee revenues were diverted from their intended destination - the state's road and bridges fund - into the general revenue fund.
   "It is true that in previous administrations that road and bridge fund diversions to the general fund occurred, but nothing to the extent of what we're seeing in the Blagojevich administration," said Lauzen. "It's wrong. It's a misappropriation. If you look at the total in millions of what this administration has diverted away from roads and bridges, we might not even need a capital program if these earmarked funds hadn't been diverted."

   A total of $2.15 billion has been diverted from the highway trust fund under the Blagojevich administration (FY 2004-2006), according to the State Comptroller. State Sen. David Luechtefeld, a Republican from Okawville, says the diversions of road monies are not the only concern.
   It's the governor's introduction of brand-new programs and the state's mounting unpaid bills, he says, that compound an already frightening financial scenario. Luechtefeld questions how the state can afford to launch new programs when it can't pay for existing needs. He adds that some of the monies diverted away from roads and into the general fund were reallocated toward new and expensive health and human services programs, such as All Kids.
   "A program like this All Kids (Blagojevich's new healthcare program covering every uninsured child in Illinois) is a lifetime commitment, whereas money for a road project is allocated one time toward that specific need," said Luechtefeld. "I've spent a good part of the time in my district, since the regular session finished, trying to work with people who aren't getting paid (by the state) now - pharmacists, hospitals, nursing homes and schools, to name a few. The state is six months behind in paying many of these people. Many are actually borrowing money because of it. Just on its bills alone, the state of Illinois owes $2 billion. There's no way Illinois can continue doing business like this."
   State Rep. Jay Hoffman, a Democrat from Collinsville and chairman of the Illinois House Transportation and Motor Fuels Committee, chose not to comment on the subject. State Rep. David Miller, a Democrat from Dolton and vice chairman of the committee, also declined to comment.
   Becky Carroll, spokeswoman for the governor's Office of Management and Budget, said the alleged road and bridge fund diversions do not exist.
   "By using the word 'diversions,' Republicans are insinuating that dollars for the roads are being used for purposes other than roads and bridges, and that's 100 percent false," Carroll said. "We have never ever at one time taken a penny of any fund's appropriation for any state special interest fund," she added.
   When questioned as to whether the Blagojevich administration has rerouted any transportation-tagged dollars into the general revenue fund, Carroll said such has not been the case.
   "Driver's license funds, gas taxes, you name it: We don't sweep it into the general revenue fund," she said. "With these assertions, Republicans are really trying to divert attention away from the fact that they have stood in the way and have fought this governor tooth and nail in passing a capital budget that would create tens of thousands of jobs and invest billions of dollars in economic development throughout the state. When it comes to their repeated allegations of road fund revenue diversions, Republicans are trying to paint a picture that doesn't exist. There is only one road fund, and we're not diverting money from it."

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