The Governor is seeking $5 billion, which is an increase of $2.4 billion or 92% over Fiscal Year 2012 for new capital construction projects. During 2009 the General Assembly passed and the Governor signed the Illinois Jobs Now! capital program which was the first capital program in the state in over a decade since Illinois FIRST under the Ryan administration.  This bi-partisan plan was approved after years of effort and included $31 billion in capital projects throughout the State. 

This multi-year capital program included hundreds of projects such as construction, maintenance and general infrastructure improvements at schools - Pre-Kindergarten through 12 – community colleges and public and private universities, maintenance and resurfacing of roads and highways, construction and repair of bridges and overpasses, protection of natural resources, improvement of public transit, investments in energy and access to capital for economic development, affordable housing and health care infrastructure.

For the third year in a row, the Governor has asked the General Assembly for an expansion of the $31 billion Illinois Jobs Now! program.  This time though he proposes $3 billion in new capital bonding, without a new revenue source. 

The notable projects that the Governor has included in this $3 billion expansion of the $31 billion Illinois Jobs Now! program are as follows:

• $1 billion for the 21^st Century Schools Initiative including $120 million to state universities, $144 million to community colleges, $120 million for Higher Education STEM/Health buildings and labs and $616 million for Pre-K-12 schools for early childhood construction grants and innovative technology and green projects.
•  $1 billion for Clean Water Initiative to stabilize and improve drinking and wastewater infrastructure in the state.
• $1 billion in Renew and Repair funding for state facilities including safety and technology issues, upgrades to healthcare, accounting and public safety systems, state parks and campgrounds.

The budget does not provide any estimate of debt service on this proposed new $3 billion in bonds, nor any breakdown between authorizations for general obligation bonds and Build Illinois bonds (both of which would require a 3/5ths vote in each chamber).  Senate Republican staff estimates that if approved, debt service on these new bonds would peak at about $200 million a year.  Current capital debt service is expected to be $500 million next year from GRF and $330 million from the Road Fund.

To date, the State has spent about $4.5 billion in bonded funds on capital projects authorized in 2009.  About $1.2 billion in bond funds sit in the State’s bank accounts waiting to be spent on capital.  The State has sold $5.3 billion in bonds since 2009, and has approved authorization on the books to sell another $6.5 billion.  Total bonded projects in the 2009 program are expected to total $14 billion.

The State has sold $1.1 billion in capital bonds so far in FY12, and is expected to sell another $900 million this spring, for a total of $2 billion in FY12.  In FY13, the State expects to sell $2.3 billion in capital bonds, with that same amount in bonds sold in FY14 and FY15 as the peak years in the program, with declining amounts sold in subsequent years.

The Governor is also asking that the General Assembly authorize the remaining $4.3 billion in bond authorization from the original $31 billion Illinois Jobs Now program, though only 39% of the total spending has occurred so far.