Kane County Revises Roadwork Plans Amid Budget Adjustments

Facing a multimillion-dollar budget shortfall, the Kane County Board has approved a budget of nearly $409 million, which utilizes approximately $6 million from its cash reserves to achieve balance. This budget features reduced funding allocations for various county departments, particularly impacting transportation, which is set to receive $7 million less than anticipated due to a reallocation of funds towards public safety initiatives.

The budgetary changes include a shift in revenue sources derived from the Regional Transportation Authority (RTA), which collects a 0.75% sales tax in Kane County and neighboring areas. According to Kane County Finance Director Kathleen Hopkinson, the county received just over $26 million from the RTA for fiscal year 2024, with nearly $20 million earmarked for transportation projects. Recently, the county board decided to reduce transportation funding by 25%, splitting available resources between public safety and transportation needs.

In response to the funding cuts, the board voted in October to increase the county’s motor fuel tax from five cents to eight cents per gallon. This adjustment is expected to generate more than $6 million annually once implemented. Despite this measure, the Kane County Division of Transportation (KDOT) is currently assessing how to adapt its maintenance and roadwork plans. The anticipated gas tax revenue will not be available until July 1, 2024, leaving KDOT with an estimated $5 million gap for fiscal year 2026.

KDOT Deputy Director Tom Rickert expressed concerns about the significant funding cut, which could lead to a $3 million annual shortfall for maintenance projects. This shortfall is expected to affect approximately 19 ongoing projects. The anticipated gas tax revenue will help bridge some of these gaps, but it will not solve the immediate financial issues.

In a last-minute effort before the budget passed, some county board members proposed reallocating additional reserve funds to transportation. However, this suggestion did not gain sufficient support. Rickert noted that, despite the challenges, KDOT’s situation has improved, as the forthcoming gas tax revenue will alleviate some financial burdens. Board member Vern Tepe, who chairs the Transportation Committee, stated that the gas tax increase will largely compensate for the funding lost to transportation, arguing that it provides a more stable funding source than the RTA sales tax.

KDOT’s budget is notably dynamic, as it is heavily dependent on long-term project funding, which varies annually. The department maintains a five-year plan outlining its anticipated expenses and projects. In light of the current financial constraints, KDOT plans to prioritize maintenance and safety projects over capacity expansions, which are considered the lowest priority due to their high costs and complexity.

For instance, an expansion project at Randall Road and Highland Avenue in Elgin, estimated to cost around $1 million, may be postponed beyond initial engineering plans due to funding limitations. Conversely, maintenance projects, such as those at I-90 and Randall Road, will likely take precedence.

Rickert emphasized the importance of careful planning to avoid starting projects that cannot be completed due to funding shortages. KDOT relies on securing grants, which often necessitate the county to invest its own funds, a challenge compounded by diminished revenues.

As KDOT navigates these financial hurdles, the department is committed to addressing maintenance needs and safety concerns while adapting its project list to align with available resources. Rickert highlighted the ongoing funding needs, projecting an almost $15 million shortfall for fiscal year 2028, despite previous allocations. The potential to regain some RTA sales tax funds remains uncertain, as the current reallocation of funds was approved for just one year.

Director Mike Zakosek stated that the department must focus on immediate needs while planning for the future. He acknowledged that predictability in funding remains a significant challenge, as KDOT continues to adjust its strategies to address both current and long-term transportation project funding.