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.


* *** LIVE *** Gov. Rauner's Champaign speech
* U of I: No constitutional right to a faculty position
* Today's number: 1 hour
* Why We Need A Strong Civil Justice System: The civil justice system gives everyone a fair chance
* Simon Institute releases study of 2014 campaign
* The little guys are winning
* Chicago testing snub could cost state as much as $1.17 billion
* Poll: Emanuel 42, Garcia 18, Fioretti 10, Wilson 7, Walls 2
* Rauner hires experienced hand as legislative director
* Firing up the Democrats' base
* 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

          
        * Guess which smartphone took these photos (Vol. 7) (Update: answer within!)
        * Outlook enters preview stage for Android
        * How Samsung might dial-down bloat on TouchWiz for the Galaxy S6
        * 1Password's update highlights the difference between two-step and two-factor verification
        * With $1.75M In Funding, MaestroIQ Promises Smart Recommendations For Mobile Marketers
        * Office for Android preview ends with official availability of the apps
        * Swipe Raises $6.5M To Combine Tinder And Photo Sharing Clichés Into Something Cool

        * Nintendo’s YouTube Revenue-Sharing Policy Is Here — With Lots of Strings Attached.
        * Facebook Place Tips Will Surface Useful Information Based On Location
        * Imgur Can Now Convert Videos to GIFV (the Higher Quality GIF Format)
        * Popcorn Monsoon Puts The Fun In Pop… corn
        * News Flash: Twitter Co-Founder Jack Dorsey Still Loves Twitter
        * SwiftKey For Android Now Has Full Chinese Language Support
        * FCC votes to define broadband as 25 megabits per second or higher

        * What else is returning with Gordon Beckham?
        * The unlikely return of Gordon Beckham's unfortunate offseason tradi...
        * Viciedo designated for assignment to open roster spot
        * White Sox reunite with Beckham on one-year deal
        * White Sox reunite with Beckham on one-year deal
        * White Sox sign Gordon Beckham; designate Dayan Viciedo for assignment
        * White Sox reunite with Beckham on one-year deal

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


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

        Archives
        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


        * Gov. Rauner to give speech outlining Illinois c.....
        * 1871 3.0 already is in the works..
        * McMillan excited to work with Killeen, Gov. Rauner..
        * Rauner hires experienced hand as legislative di.....
        * Advocates For Poor Hoping Rauner Will Step Up F.....
        * Chamber: QC Flight to D.C. still on..
        * Governor Rauner to preview State of the State a.....
        * Analysis: Support of Income Tax Hike Doomed Qui.....
        * Medical Marijuana Dispensary Application Open i.....


        * Bradley player arrested on misdemeanor charges at strip club
        * Illinois professor who lost job offer after tweets sues
        * Prosecutors say Chicago hospital officials bribed doctors
        * Federal trial postponed in Illinois needles-in-meat case
        * Will County settles lawsuit with wrongly accused officer
        * Gov. Rauner to give speech outlining Illinois challenges
        * Former SIU-Edwardsville worker accused of lying during probe
        * Man found guilty of murder in 2013 shooting at gas station
        * 2 plead guilty to criminal neglect of Edwardsville woman
        * Trial opens for 2 accused of desecrating Illinois cemetery

        * Springfield lawmakers want oversight commission to monitor 10th Street rail promises
        * Springfield gaming terminal up 46 percent in 2014; revenue hits $1M
        * Springfield gaming terminals up 46 percent in 2014; revenue hits $1M
        * Rauner among nation's top donors in 2014 elections
        * Lawmaker proposes bill to ban convicted terrorists from teaching
        * Police reform bills spurred by recent deaths, racial unrest
        * State's tax revenue from video gambling more than doubles
        * Report: Illinois marijuana market could reach $36M in 2016
        * Rauner: 'Right to work zones' are first-year priority
        * Rauner previews 'right to work zones' as first-year priority

        * Wall Street throws a farewell party for McD's Don Thompson
        * Professor who lost University of Illinois job offer sues
        * Illinois professor who lost job offer after tweets sues
        * McD's move erodes ranks of black CEOs
        * In a high-tech world, this retro toy entrepreneur is veering analog


          * CTU's Karen Lewis says 'We have other places we can fight'
          * Potentially thousands of Palatine, Fremd students get nude email
          * As Romney weighs '16 bid, some past donors in Chicago commit to Jeb Bush
          * Steven Salaita sues U. of I. over lost job
          * Woman admits false rescue call, then denies guilt after court
          * 'Squirrel truth' ads debut on CTA
          * Steven Salaita sues U. of I. over lost job
          * Cops: Charges filed in September shooting
          * 4 middle school students facing charges following 'sex party'
          * Chicago Public Library will offer 3 locations for WiFi lending program


          * Meet The New Springfield Area Arts Council Director
          * Court Rejects Request To Delay Pension Case
          * Art Beat: Pirates, Local Tunes & Movies Galore
          * Let's Talk Kids - "Golden Stories"
          * Jacksonville Girl Shares Story Of Brother's Death To Help Others
          * Rauner High On List of "Sugar Daddies Of State Politics"
          * Graying Illinois
          * Let's Talk Kids - "Reading To Babies"
          * House Rules Break Bipartisanship
          * "This I Believe" Essay Contest Deadline Is Jan. 29


          * Springfield lawmakers want oversight commission to monitor 10th Street rail promises
          * Our View: Dawdling on medical marijuana extends suffering for Illinois' severely ill
          * Stanford Levin: Nuclear power plant closures could hurt Illinois consumers
          * Bernard Schoenburg: Kaitschuk leaves pork producers to join Rauner team
          * Eugene Robinson: Hillary stands alone
          * Quote of the Day: Thursday, Jan. 29, 2015
          * Springfield gaming terminal up 46 percent in 2014; revenue hits $1M
          * Rauner among nation's top donors in 2014 elections
          * Lawmaker proposes bill to ban convicted terrorists from teaching
          * Police reform bills spurred by recent deaths, racial unrest


          * Iowa Senate panel advances early school start bill
          * Signing Day nearly here
          * Charles 'Chuck' Parks
          * Steven Salaita, attorneys discuss lawsuit against UI
          * Trial postponed for Belleville man in needles-in-meat case
          * Salaita files federal lawsuit against UI
          * Should 3 Madison County school districts be consolidated? Voters to decide on April 7
          * Voters to decide whether Madison County school districts will be consolidated
          * Chance of drizzle with falling temps this afternoon
          * Man, 48, dies after hit by car


          * AuctionWorks.com offers online bidding of luxury homes with local team
          * Elk Grove group sends 5,000 pizzas to Afghanistan
          * Crash closes Roosevelt Road at Fabyan Parkway in West Chicago
          * Vernon Hills woman denies setting garbage fire in park while out on bail on similar charges
          * Auburn opens 2015 Louisville schedule featuring 7 bowl teams

          * Shimkus votes to prohibit taxpayer funding...
          * Congressman visits WVC to talk bills, comm...
          * Subcommittee Continues Work Toward Pro-Job...
          * On 42nd Anniversary of Roe v. Wade, Shimku...
          * Shimkus Votes for No Taxpayer Funding for ...
          * Shimkus: 'We Need to Get This Monkey Off O...
          * 'More limited' TSCA measure expected in US...
          * Shimkus nominates two from Highland to ser...
          * Illinois congressmen urge NGA to construct...
          * Congressman Shimkus seeks Valentines for m...

          * Bill would end all restrictions on travel ......
          * Milbank: GOP misjudges Loretta Lynch...
          * Ark. senator joins colleagues to introduce......
          * Senators unveil legislation to lift all tr......
          * The Human Cost Of Taking Away The Presiden......

          * Senate panel approves Iran sanctions bill...
          * Senate panel approves Iran sanctions to ta......
          * Iran sanctions bill advances...
          * Coming up short...
          * Sanctions bill founders again on Obama vet......

          * Chicago Housing Activists Protest At Citibank To Save A Rogers Park 'Community House'
          * O'Hare Catering Workers Kick Off 'Nickel A Ticket' Affordable Health Care Campaign
          * State Rep. Been: College of Dupage board betrayed the trust of the community
          * State Rep. Breen: College of Dupage board betrayed the trust of the community
          * Aldermanic Candidate Forum In Chicago's 33rd Ward
          * Study: Several U.S. Corporations 'Fleecing' Uncle Sam, Spending More On CEOs
          * LaHood: Caterpillar prime example of need for right to work in Illinois
          * Lawmakers look to emancipate students in the Land of Lincoln
          * The Weekend In Chicago Rock
          * 5 of the top 50 donors to state races were in Illinois


          * IDHS reminds eligible workers to take advantage of free tax help and the Earned Income Tax Credit (EITC) - More than 30 sites offer free tax services Statewide
          * IEMA, American Lung Association Launch Health House - Radon Excellence Program in Savoy - Two Champaign builders coordinating with Heyworth radon mitigator in program to reduce radon-related lung cancer risks in new homes
          * One Confirmed Case of Measles in Illinois
          * Governor announces latest round of agency appointments
          * Rauner announces “Turnaround Team” - Stellar team to help turn Illinois around




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