By Greg Bishop/Illinois Radio Network

SPRINGFIELD – While preliminary numbers indicate the popularity of the so-called transportation lockbox amendment, a ratings agency says it’s a credit negative for Illinois.

Moody’s Investors Service says the amendment is a credit negative revenue constraint, potentially making it more costly for the state to borrow money. Moody’s Vice President and Senior Credit Officer Ted Hampton said that means the amendment does what it was intended to do – keep lawmakers from using transportation funds to fill budget holes elsewhere.

“However well intentioned, whatever the rationale is, we’d generally view as a negative because it reduces the flexibility to deal with problems as they arise,” Hampton said.

Hampton also said the amendment doesn’t take into account the state’s fiscal health. “There’s this long-running practice of not paying all the bills that come in so there’s a backlog, and so this may also have an impact on how the state addresses it’s unpaid bills,” he said. Hampton said Illinois has variety of fiscal issues on its plate, including growing unfunded pension liability more than $111 billion and a mounting backlog of unpaid bills nearing $10 billion.

Supporters of the amendment said it’s meant to keep lawmakers from dipping into funds collected through gas tax and other transportation fees. Opponents understood the opposition to sweeping funds but said transportation shouldn’t be prioritized over things like education and social services.
Hampton’s report says lawmakers could use some funds help address fiscal pressure from pension contribution demands and reduced income taxes.

The amendment is expected to be certified by the Illinois State Board of Elections within a couple of weeks.