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.


* Rauner wouldn't move police and fire to 401(k)
* Question of the Day
* Keep calm, and Scribble on
* Quinn raises what Rauner contributes
* Assume everyone is wearing a wire, and stick with your friends
* Morning Shorts
* 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

          
        * Ad Company Tremor Video Now Offers Automated Campaign Optimization Across Screens
        * Possible Google+ redesign shown in leaked images
        * Travel gear, HBO, Passbook, and Amazon buys some comics
        * YouTube app update brings live video to Chromecast
        * See how Elena photographed for Nokia in Puerto Rico
        * Report: Yahoo hoping to woo Apple away from Google
        * Google+ posts could become ads for some pages

        * The Designer and Drummer's Rocking Workspace
        * Users Report Cortana Having Problems Setting Alarms
        * Microsoft Discounting Windows XP Support For Enterprise
        * Jasper Wireless lands $50M to connect the internet of things to mobile networks
        * Google Develops Algorithm That Can Decipher Its Own CAPTCHAs
        * They may be filled with trolls, but comments still have value — and they could have even more
        * Streem Offers Unlimited Cloud Storage and Streaming for $20/Month

        * Following up: Avisail Garcia waits for spring training
        * Robin Ventura vents about replay system after unsuccessful challenge
        * Big chill: Alexei motors home on walk-off error
        * Unlike previous seasons, Alexei catching fire
        * Ventura not pleased call at first base stands
        * White Sox 2, Red Sox 1: A win for the pitchers
        * Big chill: Alexei motors home on walk-off error


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

        Archives
        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


        * Extra Extra: Lake Shore Drive Re-Opened After S.....
        * Durbin banks more than $6M for 2014 Senate bid..
        * Rauner wouldn’t move police and fire to 401(k)..
        * Revised gaming bill pitched at hearing..
        * Arlington racetrack: Half the slots won’t cut it..
        * Gambling Supporters Propose Casino In Thompson .....
        * Opponents of Murray center closure win round in.....
        * Chicago casino plan draws more support at hearing..


        * Chicago casino plan draws more support at hearing
        * New warden named for Menard prison
        * Illinois-Chicago, faculty union reach agreement
        * ComEd seeks rate hike to help pay for Smart Grid
        * Durbin banks more than $6M for 2014 Senate bid
        * Lake Shore Drive reopened after suspicious package
        * Addiction experts: Cuts could hurt drug treatment
        * Topinka reports $125,000 in Illinois income
        * Inmate charged in Rockford lawyer's 2008 death
        * Dress codes: Where should schools set limits?

        * Lt. Gov. Simon to raise sex assault awareness
        * Report: Big cuts to state aid for schools if tax expires
        * Legislative hearing on Chicago casino begins
        * Chicago casino plan draws more support at legislative hearing
        * Simon: Illinois farmers markets should accept LINK
        * Bernard Schoenburg: Battle on for GOP state party post
        * Quinn promotes autism awareness at Brookfield Zoo
        * Broadcaster Samuelson named to Illinois Racing Board
        * Tough tax votes loom for lawmakers
        * Statehouse Insider: It’s spring break time!

        * Chicago casino plan draws more support at hearing
        * UIC, faculty union reach tentative labor contract
        * Burger King hamburger gets a chicken makeover
        * Astellas Pharma to pay $7.3M settlement in drug marketing case
        * Bloomberg plans $50 million gun control network


        * Turnaround for  struggling schools worth the upheaval
        * Lake Shore Drive reopens after package forces closure
        * Even casual marijuana use can alter the brain, new study shows
        * Priest reinstated after inquiry finds abuse claim unfounded
        * Faculty union says it has tentative agreement with UIC
        * Man held without bail for alleged sexual assault in Boystown
        * UIC, faculty union reach tentative agreement
        * Man held without bail for alleged Boystown sexual assault
        * Lake Shore Drive begins reopening after package forces closure


        * Sinaloa cartel associate brought to Chicago to face charges
        * Cops who saved kids from fire: 'You just have to do what you need to do'
        * Professor charged with sexual assault of former student
        * Two teens charged with trespassing at Sandburg High School
        * Cops: 2 dogs attack boy, 9, in East Chicago
        * 2 Board of Review analysts sentenced to prison for bribery
        * 2 Board of Review analysts sentenced to prison for bribery
        * Latest casino expansion proposal aims for Quinn backing
        * Naperville trucking company wins ruling to return to road
        * Wife of Villa Park man who died after swan attack files suit


        * Illinois Senate Joins Push For U.S. Constitutional Convention
        * Study: Pre-K Education Provides For Economic Growth
        * The Vanishing Millionaire Tax
        * City Approves More Video Gaming Despite Upcoming Ordinance
        * Rutherford: Dismiss Sexual Harassment Lawsuit
        * Durbin Calls For A Return of 'Earmarks'
        * Quinn, Rauner At IEA Conference - Full Audio
        * FBI agents say indicted state rep took them to get bribe cash
        * McCarthy dismissive of crime research
        * Gas Station Owners Warn Against Fuel Tax Increase


        * Report: Big cuts to state aid for schools if tax expires
        * Comptroller Topinka reports $125K in income
        * Addiction experts: Illinois budget cuts could hurt drug treatment
        * Legislative hearing on Chicago casino begins
        * Their view: Remembrance in the cruelest month
        * 2015 tax rates still far from settled
        * House bill urges schools to make digital emergency plans
        * Chicago-only casino option to face opposition
        * Rutherford's lawyers ask judge to dismiss sexual-harassment lawsuit
        * GOP's Rauner raised $9M in first quarter of 2014


        * Granite City man charged in heroin overdose
        * Macoupin County Board blocks sheriff's hirings
        * LIVE Nike show at Krannert
        * Madison County approves land sale to Edwardsville for police, fire station
        * Sports Talk 4-16-14
        * Mother, daughter tea event canceled
        * MTD likely to take over rural transit
        * UI-Chicago, faculty union reach contract deal
        * New warden named for Menard prison
        * Illegal dumping increasing in metro-east


        * The 10th District money race
        * Aurora Democrat calls out IHSA
        * Lawyers: Ill. hazing law vague, unconstitutional
        * Ill. House OKs lower-cost hunting bill for seniors
        * Quinn’s running mate takes new consulting job

        * Lipinski seeks artistic submissions - The ...
        * Lemont VFW honors Vietnam veterans - Subur...
        * Lipinski Votes to Protect the Paychecks of...
        * Meet the 8 House Dems who don't co-sponsor...
        * Jeff Vorva's Editor's Notebook: In this ca...
        * Rep. Lipinski Honors Vietnam Vets on House...
        * Southwest Airlines Adding 9 Non-Stop Daily...
        * Lipinski Announces Southwest will Start Fl...
        * Lipinski Thanks Voters for Support in Unco...
        * Rep. Lipinski Joins Students from Lemont a...

        * Loading Koch Industries Website Too Many T......
        * Maryland and DC among worst for food aller......
        * Cleveland State University to reestablish ......
        * Convicted political boss Al Sanchez runnin......
        * Candidates make last filings for local, st......

        * Illinois Lt. Gov. Simon opposes pension le......
        * Dillard Odd Man Out on Pension Deal Reaction...
        * Sen. Mark Kirk sides with Rauner on pensio......
        * Governor's race infighting threatens pensi......
        * SCHOONERS - Home of Everyone's Favorite Be......

        * New Jersey Panel Could Call Christie To Testify
        * A Year After Background Check Defeat, Modest Goals
        * Ten minute drawing. Bob Fioretti.
        * Governor Quinn. Veto Rahm’s pension bill.
        * Former New York Mayor Bloomberg To Spend $50 Million In Anti-Gun Drive
        * Court To Weigh Challenge To Ban On Campaign Lies
        * Obama To Announce $600 Million U.S. Job-Training Initiative
        * Fed Survey: Growth Picks Up Across Most Of US
        * UIC Faculty Reaches Tentative Agreement With University
        * CTA Considering Two Red Line Extension Routes


        * Governor Quinn Releases First-Ever Illinois Bike Transportation Plan - Plan Formally Makes Bicycles Part of Illinois’ Long-Range Transportation Vision
        * IEMA, American Lung Association Announce Winners in Student Video, Poster Contests - Winning entries unveiled during IEMA’s 11th Annual Radon Networking Day
        * Governor Quinn to Address Small Business Advocacy Council Annual Meeting - Will Discuss His Proposals to Drive Small Business Development and Expansion
        * Governor Quinn Honors Jackie Robinson - Barrier-Breaking Baseball Player Was American Icon
        * Governor Quinn Urges Homebuyers to Act Fast and Take Advantage of Welcome Home Illinois Program - Program Offers First-Time Homebuyers Down-Payment Assistance and a 3.75 Percent Interest Rate on a 30-Year Fixed Mortgage




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