Illinois transportation project shutdown could cost millions per week, thousands of jobs

The American Road & Transportation Builders Association (ARTBA) Chief Economist Dr. Allison Premo Black says a “prolonged” shutdown of transportation projects in Illinois, which could be initiated by June 30 if the Illinois legislature does not approve a state budget, could potentially cost $345 million per week and put 43,000 related jobs at risk.

Two weeks ago the Illinois Department of Transportation said it would shut down project work by June 30 if the state legislature does not pass a budget by the end of the month.

Illinois Road & Transportation Builders Association (IRTBA) President & CEO Mike Sturino said then a shutdown could cost more than $3 million per day in direct costs alone, with an estimated 30,000 people being out of work across the state as a result. Sturino testified before the Illinois House of Representatives regarding the impacts of the shutdown on June 27.

Last year, New Jersey Gov. Chris Christie ordered a shutdown of state Transportation Trust Fund projects in reaction to a stalemate over legislation to raise the state’s gas tax. This covered more than 900 projects with an estimated value of $650 million.

ARTBA’s Black then forecast that shutdown could cost up to $1.3 million per day and affect 1,500 non-construction jobs and 1,700 construction jobs.

The Illinois shutdown would stop work on 900 highway and bridge projects valued at $2.2 billion. Black forecasts in the first week the shutdown would cost a minimum of $34 million and set as many as 11,000 highway, street and bridge contractor employees idle.

Other details from Black’s analysis of the shutdown include: