August 13, 2005 - The President came to Illinois to put his signature on the $286 Billion highway spending bill. He picked a Caterpillar plant as a back drop. Jobs, he said, was the objective of this massive spending program in time of war. Every Congressman and Senator got something for his constituency. Illinois made out quite well, but then it does have Speaker Dennis Hastert. It was a grand celebration of bi-partisan pork but nobody saw the Elephant standing behind the President. At least nobody admitted seeing the beast.

No one denies that the spending will mean jobs and profits for the highway industry. No one denies that the spending will stimulate an economy that needs stimulation. No one denies that America’s transportation infrastructure is in dire need of maintenance and modernization. Those benefits of the elephantine spending measure are right out in the open as is amount of federal dollars that will have to be borrowed to pay for it. None of that is hidden.

The Elephant sitting in the living room that no one is talking about is called taxes. Every federal dollar comes with a string attached. In order to get that federal dollar states and municipalities must commit local tax dollars to the project. They are called matching funds and they come from local and state taxes. Taking advantage of increased Federal Highway funds will require a proportionate increase in state and local spending.

The federal government has an advantage. There is no restraint on deficit spending at the federal level; on the ability of Congress to pass the cost on to our grandchildren. State and local governments don’t have that luxury. Meeting the matching fund requirement to take advantage of the pork barrel projects will mean that state and local governments will have to increase state and local taxes now – not when the 30 year bonds come due. That is the Elephant that no one is talking about; not the President, not Speaker Hastert; nor any Democrat. It is a bi-partisan silence where the politicians announce they are bringing home the bacon but not mentioning where the eggs are going to come from.

Included in the bill is a favorite project of our local representative – a multi-million dollar combination park and ride facility and tax payer operated day care center to serve employees at the University of Illinois and a privately developed research park adjacent to the campus. It is no accident that the developer is a major contributor to the Republican Party and our Congressman. The project will require the University and local municipalities to come up with matching funds. Their already strapped budgets can’t stand the strain without tax increases.

Congressman Timothy Johnson came to the Congress after having served as a city councilman and state legislator. Speaker Hastert followed a similar route to Washington. They know the ropes and they know what it means to spend money to get money. They know that local and state taxes will have to be increased. That is where this bill gets in your pocket. That is the Elephant in the living room.