The COVID-19 pandemic kept people at home for about two months and while the economy isn’t completely open for business, it’s moving in that direction.
During the peak of stay-at-home orders during the pandemic, demand for gas went way down – people didn’t commute for work or travel for entertainment. And that means gas tax revenue cratered too – the state can’t collect taxes on goods that aren’t being bought. That could have lasting ramifications for road projects in Illinois.
“We're reevaluating revenue projections, but the exact implications for Illinois won't be known for a while,” said Paul Wappel with the Illinois Department of Transportation.
Wappel said there are other factors putting pressure on the state’s road budget. During the crisis, the state delayed renewals on vehicle registrations.
“Motor vehicle registrations factor as much into our overall funding picture as motor fuel tax and the secretary of state's office is extended by 90 days, the expiration date on them,” he said. “So that's something else that the department will be weighing as well.”
That means money from that source will be coming in a bit later than expected this year – but it should be coming eventually, and that means the state will be able to rely on the money.
“We certainly understand that motor fuel tax receipts are going to be down, but it remains to be seen by how much or for how long,” Wappel said. “At this time, nothing is being delayed or cut, but we are certainly examining the possibility of moving the anticipated start dates or projects in the coming years.”
The state-wide order restricting business and leisure activities expired on May 29 as the state moved ahead into Phase 3 of Gov. J.B. Pritzker’s reopening plan. State budget forecasters will have a better idea of the impact on the gas taxes as people, and the economy, return to normal activities.
The most recent report from the state’s Commission on Government Forecasting and Accountability said driving was likely to return to pre-pandemic levels.
“Driving was down over 60% for the State of Illinois and the City of Chicago and remained about 40% to 50% down through most of April in both the U.S. and Illinois,” according to the report. “However, throughout May, the number of routing requests has increased steadily and has basically returned to the level seen prior to the outbreak.”