Observations and comments about state government by State Representative Robert W. Pritchard.
February 10, 2014
In This Issue:
- Governor Can’t Face Reality
- Common Sense Slows Petcoke Rule
- Getting our Arms Around Tax Incentives
- Fastest Growing Jobs Not Always Highest Paying
- Taking Lessons from the Olympics
- Finally, from Athletes to Lame Ducks
Governor Can’t Face RealityOf course the Governor has excuses for why he needs five more weeks to prepare his FY15 budget. It is painfully obvious, however, he is afraid to tell voters before the primary election how much he needs to cut spending to balance the budget or that he wants to continue the current income tax rates. We all knew this day was coming when the income tax was passed with its provisions to roll back rates. If we were sincere about lowering the tax rate, the Governor should have been trying to reduce spending rather than fighting efforts to manage programs more efficiently, reduce fraud which has been estimated at over $1 billion, and help those who can to get off government programs.
I pointed out in debate that his Office of Management and Budget (OMB) and the Commission on Government Forecasting and Accountability (COGFA) testified earlier in the day as to their budget estimates for next year. Delaying the budget address and not revealing his fiscal priorities make it even harder on the House appropriations committees as they draft the budget by May 31. Waiting until March 26 delays the entire process, builds expectations in groups for more funding than is available and forces last minute decisions.
Another related consequence is that schools who must announce any reduction in teachers and staff by the end of March due to cuts in state funding have only a few days to make their decisions. You can hear my comments in opposition to the time delay on my website.
Common Sense Slows Petcoke Rule
In case you haven’t heard, the stockpiling of a petroleum refining byproduct in Chicago has been creating an environmental dust storm. The byproduct-called Petcoke-is stored in piles and the wind has been blowing dust across the neighborhoods somewhat similar to the plains states’ dust bowl of the 1930s.
The Governor wanted the Illinois Pollution Control Board to write emergency rules to stop the blowing but did not allow time for thoughtful solutions. The proposed rules created problems for other businesses and were not acceptable to the environmentalists. I joined a group of legislators in writing a letter to the Governor and Pollution Board urging them to use the normal rule making process and negotiate with environmental groups and businesses for the best solution.
Fortunately the Pollution Board has decided to take our advice, slowed the process and allow the groups to negotiate a solution similar to the process used in writing rules governing Fracking. I agree with the need to resolve the situation quickly and efficiently, but the production of Petcoke will grow in the future as refineries handle more of the tar sands oil. We need a solution that deals with increasing volume of this product and uses it-not just stores it.
Getting our Arms Around Tax Incentives
The House Revenue and Finance, and State Government Administration Committees continued their efforts last week to gather data about business tax incentives and what works to grow business and jobs in Illinois. Currently, Illinois provides $1.15 billion in business related tax incentives yet the state has one of the poorest records for job growth, business attraction and resulting economic growth. We frankly don’t know what we are getting for the investment either.
The committees have gathered lots of data about our incentives so far including what other states are doing to attract business and jobs. We will begin digesting that material next and will hear the conclusions many organizations have drawn about what works and what is a poor investment.
I have drawn a few conclusions from the material and testimony so far: there is no one incentive that works for every business and every incentive works for some industry or business. Also, taxpayers have every right to expect the cost of incentives for business to be outweighed by the increase in tax revenue from these jobs and business activity.
The Department of Commerce and Economic Opportunity (DCEO) uses incentives to enhance the natural advantages offered by Illinois and to counter the offers of other states. Their tools include job creation tax credits, research and development credits, and investment-based credits. They also use tax credits to attract business, close the deal, train the workforce for the business, and offer incentives to locate in economically depressed areas.
It seems that while DCEO has the tools, the state is not investing enough money compared to other states to make these programs work well. I encourage you to read the material that has been given the committee by the three main departments that have testified and share your own thoughts with me. These materials can be found at www.cgfa.ilga.gov and www.illinois.gov/dceo.
Fastest Growing Jobs Not Always Highest Paying
If you are seeking your first (or perhaps a new) career path, the Bureau of Labor Statistics just released some interesting numbers about pay levels and employment opportunities for various fields. Illinois had 5.8 million jobs in 2013 which is 1 percent more than the prior year but 150,000 less workers than five years ago.
The biggest job growth over the past five years has been in the education and health services fields but they are also the lowest paid jobs on average according to the report. The Trade, Transportation and Utilities sector is the largest employer but it too is one of the lower paying sectors.
Equally troubling is the highest paid fields experienced some of the largest job loss-Construction, Financial and Business Services. The statistics suggest that when jobs are added in Illinois they are migrating from the higher paying sectors to lower paying sectors. This trend means Illinois tax revenues will grow slowly even with modest increases in the number of people working.
Taking Lessons from the Olympics
The Olympics have been on my mind lately not just because of the media attention but also for its connections with Illinois. You’re sure to hear that the Sochi Games are the most expensive Olympics ever, summer or winter. The facilities and games were budgeted to cost $12 billion but have skyrocketed to over $50 billion. Their leaders are a lot like those in Illinois who don’t know how to live within a budget.
Then there is the physical activity of the Olympics and the role that plays on winning gold medals and living healthy lives. Our Illinois healthcare providers are trying to reduce the cost of healthcare by helping our citizens exercise more, lead healthier lifestyles and eat more healthful foods just like Olympic competitors. At a meeting with area park districts last Friday we discussed how park districts, YMCAs and modern school physical education programs are teaming up with hospitals and clinics to get people to eat less, walk more, bike and hike for fun and exercise.
Lastly you will hear about a number of Illinois athletes who will be competing in Sochi over the next few weeks. Let’s wish them safe games and cheer them on as they represent our state and our country:
Ben Agosto – Chicago – US Figure Skating
Max Armstrong – Wildwood – US Curling
Russ Armstrong – Highwood – US Curling
Jesse Beckom III – Chicago – US Bobsled Skeleton Foundation
Megan Bozek – Buffalo Grove – US Hockey
Amy and Matt Brown – Deerfield – US Curling
Jason Brown – Highland Park – US Figure Skating
Chris Chelios – Chicago – US Hockey
Lisa Chesson – Plainfield – US Hockey
Joni Cotton – Mount Prospect – US Curling
Kendall Coyne – Palos Heights – US Hockey
Michaela Damas – Chicago – US Bobsled Skeleton Federation
Shani Davis – Chicago – US Speed Skating
Kevin Deeren – Chicago – US Curling
Julie Denten – Northbrook – US Curling
Leslie Earls – Lake Bluff – US Curling
Aja Evans – Chicago – US Bobsled
Lana Gehring – Glenview – US Speed Skating
Mike Glasder – Cary – US Ski and Snowboard
Gracie Gold – Chatham – US Figure Skating
Brian Hansen – Glenview – US Speed Skating
Theron Johnson – Wheaton – US Bobsled Skeleton Federation
Tim Kelly – Rockford – US Curling
Jonathan Kuck – Champaign – US Speed Skating
Emery Lehman – Oak Park – US Speed Skating
Patrick Meek – Northbrook – US Speed Skating
Ann Swisshelm – Chicago – US Curling
Finally, from Athletes to Lame Ducks
This past week Republicans introduced a constitutional amendment to eliminate the traditional lame duck sessions of the Illinois General Assembly by moving up the date of inauguration. These sessions between the general election and the inauguration of legislators have been used to pass unpopular legislation with the votes of outgoing legislators-so called lame ducks– who don’t have to fear voter retribution anymore for their actions.
Rather than negotiate good legislative solutions and convince the public of their merit, legislative leaders in the “dark of night” push through unpopular concepts like the income tax increase, gaming expansion and certain reforms. HJRCA 43 would prohibit the retiring General Assembly from convening or acting on legislation after an election unless a special session is called with the joint approval of the Governor and the four legislative leaders.
Skeptics will bet that this legislation won’t receive even a hearing in the House but that shouldn’t stop legislators from trying. Lame duck sessions are an insult to voters and should be stopped.
I will be traveling around the district this week to see the various ways citizens share their love and kindness. Happy Valentine’s Day.
Bob
District Office 815-748-3494 or E-Mail to bob@pritchardstaterep.com
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