LIVE session coverage...
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Some encouraging economic news, but yet another corporate tax incentive is questioned

Tuesday, Jun 21, 2011

* Some good news

The economic recovery may have stalled in parts of the South and West hit hard by the housing bubble, but Rust Belt states, buoyed by a manufacturing comeback, have seen a steady decline in their jobless rates over the last year.

Of the 10 states where unemployment rates dipped the most from May 2010 to May 2011, Rust Belt states — Michigan, Indiana, Ohio, Pennsylvania and Illinois — account for half, according to Labor Department figures.

Locally, metropolitan areas in the five Rust Belt states accounted for 30 of the top 34 declines in regional unemployment rates since last year, as well.

* More good news

Chicago hoteliers are having their best year since 2008, as both occupancy and room rates are climbing thanks to increasing business and leisure travel.

The average daily room rate at Chicago-area hotels through May was $107.44, up 5.7% from $101.61 through the same period last year. The occupancy rate, meanwhile, stood at 56.8% compared with 54.3% through May last year, according to Smith Travel Research.

Seeing room rate and occupancies increase during the winter months is a strong indicator that the upcoming peak summer season won’t disappoint, says Brian Flanagan, president of Property Valuation Advisors Inc., a Chicago-based hotel appraisal and consulting firm.

* Even more

Last year, Illinois generated $29.3 billion in revenue from the tourism industry, an increase of more than $2.2 billion from 2009, according to tourism data from Quinn’s office. Illinois visitor numbers increased by 5 percent, to 84.7 million, according to the data.

* Some mixed news

Fewer leisure travelers came to Chicago last year, marking a low point for the city’s tourism in the past six years. But business travel perked back up.

A total of 38.1 million people came to Chicago in 2010, according to figures released Monday by Gov. Pat Quinn’s office. That was down 3.5% from 39.5 million visitors in 2009 and a 16.6% drop from 45.7 million in 2008. (Travel to Chicago peaked in the past decade in 2007, when 46.3 million people visited the city.)

Don Welsh, president and CEO of the Chicago Convention and Tourism Bureau, pins the drop on people reluctant to make day trips into the city.

“We’ve had a couple of spikes in gasoline prices, so in many cases, people will stay closer to home,” Mr. Welsh said.

But he says he is encouraged by the data showing the number of overnight visitors to Chicago rose 7.4% in 2010.

* But here’s yet another troubling report about a corporate tax incentive

A $64.7-million state deal last September to keep Navistar International Corp. in Illinois lacks a guarantee that the truck and engine maker won’t cut jobs here. […]

In its application for state tax credits, Navistar said it employed 3,100 workers in four Chicago-area locations but planned to pare that number to 2,200, while hiring 400 more “over the next several years.”

Because of efficiencies and “normal attrition,” it added, “it is anticipated that the current work number will be reduced by 15-20%.”

Don Sharp, Navistar’s chief information officer and the company executive who negotiated the deal, said local employment should rebound to “that 3,100 number or above” by the end of next year, spurred by the closing of a truck plant in Ft. Wayne, Ind., and other consolidation.

Asked yesterday about a similar incentive for Motorola, which allowed it to reduce its state workforce by 800 people and still retain its $100 million tax package, Quinn said the proposal was a good one and added “They’re not going to be cutting back.”

Quinn also talked about reports that Sears is shopping around for a new headquarters. Listen…

- Posted by Rich Miller        


16 Comments
  1. - Yellow Dog Democrat - Tuesday, Jun 21, 11 @ 8:16 am:

    Two words: “Clawback provisions.”


  2. - Dan Johnson-Weinberger - Tuesday, Jun 21, 11 @ 8:23 am:

    A drop in day trip leisure travel because if high gas prices? Another reason for taxpayer investment in high speed rail. When we buy affordable mobility for the people, they will travel.


  3. - Plutocrat03 - Tuesday, Jun 21, 11 @ 8:31 am:

    Another example of why the government should not be in the business of picking and choosing the winners in business.

    They simply do not have the skill set to make sensible choices and protect the public. They would likely be putting together a plan to save the buggy-whip and whale oil industries of those industries were still around today.


  4. - Cincinnatus - Tuesday, Jun 21, 11 @ 8:51 am:

    “Last year, Illinois generated $29.3 billion in revenue from the tourism industry, an increase of more than $2.2 billion from 2009…”

    All those D lawmakers that bailed from their own duties?


  5. - Cincinnatus - Tuesday, Jun 21, 11 @ 8:52 am:

    “Another reason for taxpayer investment in high speed rail. When we buy affordable mobility for the people, they will travel.”

    Out of deference and respect for Rich, I’ll let this opportunity pass.


  6. - VanillaMan - Tuesday, Jun 21, 11 @ 9:28 am:

    Re: High Speed Rail
    Newsflash!
    People who can not afford $5 gas can not afford high speed train tickets, parking costs or the taxes required to build a white elephant. Someone somewhere is going to have to earn back some money in the real world.


  7. - Angry Chicagoan - Tuesday, Jun 21, 11 @ 10:36 am:

    If we focused upon quality improvements to existing services — for example, changes to Metra that would speed up trains and increase frequency and lower operating costs — that would be a huge incentive for people to take more trips into the city. While I’m all in favor of high-speed rail, this isn’t an HSR issue; it’s an urban mobility issue, and both politicians and Metra leaders, not to mention CTA, have for years been startlingly unambitious about our local rail system or any kind of marketing, land-use planning etc. to boost its use. When Salt Lake City has more frequent off-peak commuter rail than we do and more new miles of line (transit and commuter) under construction than we’ve done in the last three decades, it puts Chicago’s recent efforts in sorry perspective. Settling for hourly off-peak service on high-capacity, purpose-built, grade-separated passenger routes like Metra Electric and UP-N is especially embarrassing.

    And, by the way, HSR won’t work viably unless it has fast and frequent urban transit networks to connect to. They understand that not just in Europe but in places like California, whereas we’re in the embarrassing situation of having by far the largest intercity rail station in North America without a direct subway connection.


  8. - wordslinger - Tuesday, Jun 21, 11 @ 11:20 am:

    What’s with the Tea Partiers and the Pavlonian foaming at the mouth about trains, anyway?

    Geez, someone says “trains” and they go nuts. Did Roger Ailes have a bad experience on the NYC to Washington Acela one time?


  9. - Cincinnatus - Tuesday, Jun 21, 11 @ 11:26 am:

    If the Acela wasn’t the only profitable AMTRAK line in the US, then there would be something else to talk about. It would appear that the only way intercity rail makes sense is if you have high-density urban areas, like the NE corridor, Japan and Europe. There is absolutely no economic justification for government subsidies of high speed rail other than the feel-good instincts of some people. High speed rail saddles taxpayers with endless costs.


  10. - Yellow Dog Democrat - Tuesday, Jun 21, 11 @ 11:54 am:

    === Another example of why the government should not be in the business of picking and choosing the winners in business. ===

    Tell that to the “capitalists” feeding at the government trough. It’s a long list.

    They scream “free market” until you take away their taxpayer subsidies, then they scream even louder about “job losses” and “the common good.”


  11. - Cincinnatus - Tuesday, Jun 21, 11 @ 12:28 pm:

    They ain’t ALL conservatives, YDD. Look only to the recent vote, bipartisan at that, to eliminate the ethanol subsidy.

    Pull the subsidies and tax breaks for all corporations and other entities (yes, mortgage deductions included) and let the chips fall where they may.

    What many people, including conservatives, have seem to forgotten is that failure is part of the capitalistic process. We are propping up to many failed systems. This stifles innovation and growth, and without growth, we will have stagnant employment.


  12. - wordslinger - Tuesday, Jun 21, 11 @ 12:38 pm:

    –Pull the subsidies and tax breaks for all corporations and other entities (yes, mortgage deductions included) and let the chips fall where they may.–

    Why? To what end? What does ideological purity get you?


  13. - Cincinnatus - Tuesday, Jun 21, 11 @ 12:41 pm:

    Economic growth.


  14. - wordslinger - Tuesday, Jun 21, 11 @ 12:47 pm:

    Says you. Eliminating mortgage deductions is the path to economic growth? By what obtuse, untried but seductively simple theory?


  15. - wordslinger - Tuesday, Jun 21, 11 @ 12:55 pm:

    –Pull the subsidies and tax breaks for all corporations and other entities (yes, mortgage deductions included) and let the chips fall where they may.–

    Cincy, just so I’m clear on your Universal Theory, raising taxes on EVERYONE is the key to economic growth?


  16. - Cincinnatus - Tuesday, Jun 21, 11 @ 1:23 pm:

    You assume the tax rate would remain the same under my proposals. I do not.


Sorry, comments for this post are now closed.


* *** UPDATED x1 *** This just in... Denny Hastert indicted
* What Isn’t Exelon Telling You about Its Corporate Bailout Legislation?
* *** UPDATED x1 *** Question of the day
* SUBSCRIBERS ONLY - Update on lobbying the executive branch
* Afternoon thought
* Today's illustrative tweet
* On the bright side...
* "Always bet on nothing"
* More on strike preparedness
* Workers' comp reforms go down in flames
* Ask the Insurance Industry “Where’s the money?”
* Today's quotable
* An ever-widening war
* Back to the future?
* Why Illinois Needs The Low Carbon Portfolio Standard
* Keep calm and... Oh, nevermind
* *** LIVE *** Session coverage
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Good morning!
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Xiaomi Mi store opens its virtual doors June 1
        * Big surprise: Android Pay coming your way
        * Google I/O 2015: The story so far
        * The Week in iPhone Cases: Carry your iPhone hands-free with Rokfrom’s latest belt holster
        * Google Photos’ Unlimited Free Storage Could Clobber Apple’s Expensive iCloud
        * Brillo takes Android deeper into your homes
        * Android M is here: app permissions, doze mode, USB-C

        * The Minimum Wage Required to Rent a Two Bedroom Apartment In Each State
        * Everyone should be familiar with their bodies.
        * The IoT and the Needs of Business
        * Hyperloop developer wants riders to try the service for free
        * Become a Stronger Leader by Asking Yourself These Three Questions
        * Google to store an unlimited number of photos and videos for free
        * Google+ chief: Big changes are ahead

        * Two days on the basepaths with the White Sox
        * White Sox slip past Blue Jays in 10 innings
        * Robertson loses Donaldson matchup, gets win
        * Shark positions White Sox for timely win
        * White Sox 5, Blue Jays 3 (10 innings): Wacky win
        * White Sox, Orioles set for makeup doubleheader
        * White Sox slip past Blue Jays in 10 innings

        ...............


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        May 2015
        April 2015
        March 2015
        February 2015
        January 2015
        December 2014
        November 2014
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Children's Safety Expo to Promote Health and Sa.....
        * Right-to-work loses in Illinois house, heads fo.....
        * Senate bill would give Chicago a casino and 7 y.....
        * Hastert statue shelved at Illinois Capitol..
        * Massive expanded gambling plan could be part of.....
        * Illinois lawmakers aim to spare youth programs .....
        * Madigan says he's on track to pass spending pla.....
        * Despite meetings with suburban lawmakers, are m.....
        * District 303 approves one-year contract with te.....


        * Latest on Hastert: Indictment doesn't identify recipient
        * Ex-US Speaker indicted over $3.5 million in payments
        * Effort to expand Illinois gambling likely pushed into summer
        * Illinois man cleared of 1999 murder freed from prison
        * Illinois Lawmakers vote Rauner lawsuit reform proposal
        * Duckworth: Democratic 2016 Senate primary hurts Kirk
        * Prison inmate indicted for murder in 2008 cold case
        * Northern Illinois man's body to be exhumed in 1948 cold case
        * Official: US Steel not idling Granite City mill as planned
        * Planned ND oil pipeline still needs OK from many landowners

        * Body camera rules, other police reforms approved by Illinois House
        * Effort to expand Illinois gambling likely pushed into summer
        * Springfield-area unemployment at seven-year low in April
        * April unemployment rates fall in all Illinois metro areas
        * Illinois Senate to consider plan for new casinos in Chicago, elsewhere
        * Report: Rauner's education secretary paid with funds from state agency facing cuts
        * Records show Rauner's edication secretary paid under IDHS
        * Records show Rauner's education secretary paid under IDHS
        * Portion of Illinois' same-sex marriage law to sunset soon
        * Gay conversion therapy ban clears Illinois Senate committee

        * Walgreens chairman says company never planned to leave U.S.
        * Allstate seeks to follow Google as CEO mulls selling driver data
        * Review: Ramen Takeya
        * Northwestern Memorial, KishHealth in talks to affiliate
        * GOP's Obamacare fix is no fix, actuaries argue


          * Owner 'extremely upset' after video catches dog walker kicking beagle
          * Program will let kids hospitalized at Lurie 'play' with shelter pets
          * Four injured in shootings across Chicago
          * Ex-House Speaker Hastert charged with evading currency rules, lying to FBI
          * New alderman not relishing marijuana store by Superdawg
          * 30 ejected from motel after kerfuffle over waffle
          * Bulls fire coach Tom Thibodeau
          * Charges in July slaying of man whose son was killed days earlier
          * Illinois National Guard soldiers to deploy to Kuwait
          * Another man cleared of murder in Lake County, could walk free Thursday


          * Chicago school board to consider charter relocations, renewals
          * Ex-US Speaker Hastert indicted on bank-related charges
          * Vets' best friend: Two veterans trekking cross-country with the dogs that 'saved their lives'
          * After pig farm raises a stink, Hoosiers debate rural-city divide
          * City planners and neighborhood residents map out Chinatown’s future
          * City planners and neighborhood residents map out Chinatown's future
          * Sheriff calls on feds to investigate Puerto Rican agencies that send addicts to Chicago
          * Illinois prisons director resigns 2 months after taking job
          * Nebraska repeals death penalty, but U.S. isn't quite ready to abandon it
          * Illinois moves to downgrade pot possession to a fine


          * Body camera rules, other police reforms approved by Illinois House
          * Effort to expand Illinois gambling likely pushed into summer
          * Springfield-area unemployment at seven-year low in April
          * Cinda Klickna: Threats do not equate to leadership
          * Report: Rauner's education secretary paid with funds from state agency facing cuts
          * Portion of Illinois' same-sex marriage law to sunset soon
          * Gay conversion therapy ban clears Illinois Senate committee
          * Changes made to Gov. Rauner's hiring-reform legislation
          * Bernard Schoenburg: Langfelder seeks diversity, but looks at 'interior' of appointees
          * Eugene Robinson: Stop logging our phone calls


          * LLCC names new Jacksonville director
          * IHSA Boys 1A Track and Field State prelims
          * SCRA hands out $1.54M in spring grants
          * Dennis Hastert, former Speaker, indicted
          * Illinois Lawmakers vote on Rauner lawsuit reform proposal
          * Senate sends Rauner higher-ed spending bill; veto likely
          * Carbondale man charged with first degree murder
          * Dennis Hastert,: former Speaker, indicted
          * Effort to expand Illinois gambling likely pushed into summer
          * Wind turbine zoning advanced in House


          * Ducks, Blackhawks roll into Game 7 in memorable conf. finals
          * Planned pipeline needs OK from many North Dakota landowners
          * Saints getting a first look at their defensive overhaul
          * Hastert charged with lying to FBI
          * Man is sixth person in Lake County since 2010 to have murder charges dropped

          * 2,000 jobs saved as Granite City Works get...
          * Harper's board expected to appoint newest ...
          * U.S. Steel decides not to close Granite Ci...
          * House Republicans that voted against Amtra...
          * Rodney Davis talks funding with Bloomingto...
          * 2,000 jobs saved as Granite City Works get...
          * Democrats hope for Hillary Clinton coattails
          * House Republicans that voted against Amtra...
          * Government buzzing over plight of bees
          * EDITORIAL: Partisan bickering could derail...

          * Senator Durbin to ITT Tech: Stop the Hypoc......
          * Will Democrats keep hammering the Kochs?...
          * Why thousands of members of the military w......
          * Dwight to get federal money for first-resp......

          * Duckworth sticks verbal shiv into opponent......
          * US Rep Duckworth says potential Democratic......
          * Duckworth: Democratic 2016 Senate primary ......
          * San Bernardino County gets $14 million fro......
          * Democrats face contested primaries in 2016......

          * Silent Movie Filmed In Uptown A Century Ago Rediscovered, Restored
          * Playing The Triangle
          * Illiana Tollway Approval Facing Legal Challenge From Environmental Groups
          * U.S. EPA Finalizes Clean Water Rule
          * Emanuel Seeks To Delay Police, Firefighter Pension Contributions
          * Ban On State Funded Abortions Debated In IL
          * Brookins' Ex-Aide Says Chicago Alderman Was Feds' 'Initial Target' (UPDATED)
          * Women protested against Gov. Bruce Rauner's proposed budget cuts on Thursday
          * Roughly 50 people attended a demonstration against Gov. Bruce Rauner's proposed budget cuts
          * Ald. Carlos Ramirez-Rosa (35th) speaks against Gov. Bruce Rauner's proposed budget cuts


          * Celebrate National 529 Day with a College Illinois!® Savings Plan - Enrollment Open Through June 1st
          * State Announces Business Resource Event Coming to Aurora - ‘Make a Connection’ networking and resource program promotes economic growth of small and diverse businesses
          * Gulf War Veteran Reports for Duty as IDVA Women Vets Coordinator, Vet Business Champion
          * Illinois EPA Pollution Prevention Interns begin Twelve Week Program at Illinois Facilities - Students find cost-effective approaches for reducing environmental impacts
          * Vietnam Veteran Confirmed as IDVA Assistant Director




              Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller