Gamblers needed to bankroll state's construction plan
SPRINGFIELD - With one of the state's most-populated counties saying "no" to video gambling and others considering similar prohibitions, it prompts the question of what wholesale rejection might mean to the state's massive construction spending plan that's to be financed in part by prospective gamblers' losses.
One leading critic says it's not too late to fix the problem and is open to a variety of other taxes and possibly other gambling to fill the hole and keep the $31 billion road, bridge and school construction plan on schedule.
DuPage County Chairman Bob Schillerstrom, a Republican, pushed his county to prohibit video poker in unincorporated areas earlier this month and has made it the cornerstone of his campaign for governor. He's now traveling the state to urge others to do the same.
"It was a mistake and we need to come up with a new revenue source," Schillerstrom told reporters last week.
Schillerstrom said if lawmakers are set on using gambling, he'd rather see more slot machines at existing casinos and gambling sites rather than video gambling permeating neighborhood restaurants and bars.
He also said lawmakers should consider a gasoline tax increase, and he would be open to discussing raising alcohol taxes and vehicle fees even higher to get video poker off the table.
"We could talk about those things, too," Schillerstrom said, while reiterating his opposition to taxes that would negatively affect businesses.
Aside from video gambling, the current construction financing calls for higher alcohol taxes starting next month and an increase for drivers licenses, vehicle registrations and other auto fees.
For example, the cost of a license will triple to $30 and vehicle registrations go up $20 to $99. There'll be another 2.6 cents in taxes on a six-pack, 13 cents on a bottle of wine and 80 cents on a fifth of whiskey.
But the current governor, Democrat Pat Quinn, has said he doubts every community will do the same as DuPage and notes he fought to have a local opt-out included in the video gambling law.
"We'll see what happens," Quinn said when asked what would become of the construction plan if no one gambles on video poker. "There's other sources of funding. We shouldn't overreact."
The added gambling, alcohol taxes and vehicle fee money will be used to pay off the financing of the projects over the next couple decades. Quinn said the annual payments are roughly $1.2 billion.
Video gambling is counted on to provide $300 million once up and running. But state regulators have warned it could take a year to have a system in place, a delay that gives the rest of the state time to weigh the newfound gambling option but also downplays the immediate significance of DuPage County's vote.
In addition, the state doesn't borrow all the money at once. The construction plan is a six-year program and the borrowing tends to come in phases.
Ironically, it was Republican leaders who pushed Democrats to include video gambling in the final deal. Democrats control both the House and Senate but, at least in the House, needed Republican votes to approve any borrowing plan. Several Democratic leaders initially wanted a gasoline tax hike as part of the funding, but gambling emerged as a more politically viable alternative.
Schillerstrom said his message to the Republicans who wanted video poker is the same as to the Democrats who agreed to include it: "It was a mistake."
That said, if video gambling becomes a reality elsewhere in Illinois, he said DuPage County would not hesitate to accept projects it helps finance.
"Yes, we're definitely going to accept projects through the capital bill," Schillerstrom said, noting that hundreds of thousands of DuPage residents will still pay higher alcohol taxes and vehicle fees. "We obviously contribute a substantial amount of money through other revenue sources."
<p class="factboxheadblack">How it's being funded</p> <p class="News">The state's share of the $31 billion construction spending plan amounts to $16 billion, with federal and local money covering the rest. Here's how the state comes up with roughly $1.2 billion a year to cover the financing for the next 20 years.</p> <p class="News">• $150 million from the road fund, which primarily gets money from gasoline taxes.</p> <p class="News">• $322 million from vehicle fees including:</p> <p class="News">- Certificate of title fees increase from $65 to $95 </p> <p class="News">- Transfer of registration fees increase from $15 to $25</p> <p class="News">- Passenger and truck B registration fees increase from $79 to $99</p> <p class="News">- Drivers' license fees increase by $20 to $30.</p> <p class="News">• $162 million from alcohol and candy taxes:</p> <p class="News">- Candy to be taxed at 6.25 percent rather than 1 percent.</p> <p class="News">- 2.6 cents more per six pack of beer</p> <p class="News">- 13 cents more per bottle of wine</p> <p class="News">- 80 cents more per fifth of whiskey</p> <p class="News">• $300 million from video gambling</p> <p class="News">Source: State Web site, legislative documents, Daily Herald reports</p> <div class="infoBox"> <h1>More Coverage</h1> <div class="infoBoxContent"> <div class="infoArea"> <h2>Stories</h2> <ul class="links"> <li><a href="/story/?id=314131">Town by town, critics fight video poker in Illinois <span class="date">[8/17/09]</span></a></li> </ul> </div> </div> </div>