SPRINGFIELD, Ill. (WAND) — A new tax led by state Senate Democrats would help save the Chicago and Collar County transit fiscal cliff that could cause the loss of thousands of jobs.
The tax would put a $1.50 flat fee on all retail deliveries with a motor vehicle. This would impact Amazon deliveries and DoorDash orders. Known as the climate fee, 80% of the fund will go to Chicago area transit, with the other 20% going to Downstate public transportation.
State Sen. Donald DeWitte (R-West Dundee) said this bill needs more work.
"So we're going to force the entire state, from Waukegan to the Quad Cities to Bloomington and Springfield all the way to Cairo Illinois, [they] are now going to be on the hook to generate revenues to solve these problems created in Chicago," DeWitte said.
State Sen. Ram Villivalam (D-Chicago) has been working on Chicago transit reform and funding during this years session. To offset the tax that will be put on Illinoisan, Villivalam significantly increased the funding for Downstate transit, giving $200 million to Downstate public transportation.
Villivalam said that DeWitte's comments were a "gross characterization of the legislation."
"Why [increase funding for Downstate]? Because even though I represent Chicago and suburban Cook, that we need transformational investment in transit for across our state," Villivalam said.
The money will be going to local transit systems across Downstate Illinois, but no specifics on which projects, programs or cities will get the additional funds.
Since this was a subject matter hearing, the bill was not voted on and still in committee. The transit budget must pass before May 31 to avoid the Chicago and Collar County transit fiscal cliff.
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