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* Jim Edgar…
“An unstable state government — and that’s what we have right now, very unstable — is a detriment to economic growth,” he said. “I mean, folks aren’t going to come to this state and make an investment if they think state government’s dysfunctional.”
Edgar, who is a senior fellow with the University of Illinois’ Institute of Government and Public Affairs, noted that no higher education budget is in force. He said the U of I has a lot of reserves and can cover costs for a while, but other institutions “are really getting into trouble. … I’m not sure how long that can go.”
“One of the strengths this state’s had for years is … a great higher education system,” he said. “I think that is in jeopardy now.”
When he was governor, Edgar said, CEOs of companies would tell him that they’d wanted tax breaks and lower workers’ compensation costs, ” ‘but most important, we want a stable, dependable state government. We want an education system that works. We want a good quality of life.’ “
* From the most recent Illinois Department of Employment Security press release…
The Illinois Department of Employment Security (IDES) announced today that Illinois’ unemployment rate in September declined to 5.4 percent and nonfarm payroll employment shed -6,900 jobs, based on preliminary data released by the Department and the U.S. Bureau of Labor Statistics (BLS). The state’s job numbers dropped for a fourth consecutive month, keeping Illinois below the national average. Based on the slower path recorded this year, IDES analysts anticipate that Illinois employment will not recover from the 2007-2009 recession until April 2017. The nation is currently 2.9 percent above its prior peak level of employment.
“Illinois businesses have added only 2,200 new jobs since the beginning of this year,” said Jeff Mays, Director, IDES. “It’s been six years since the recession and job growth is still dismal. We’ve got a long way to go before Illinois realizes real employment and economic recovery.”
* From an IDES press release in October of last year…
The Illinois unemployment rate fell in September for the seventh consecutive month to reach 6.6 percent while employers created +19,300 jobs, according to preliminary data released today by the Bureau of Labor Statistics and the Illinois Department of Employment Security. The data is seasonally adjusted.
The drop from 9.1 percent one year ago marks, for the second consecutive month, the largest year-over-year decline since 1984. The last time the rate was lower than 6.6 percent was in June 2008 when it was 6.3 percent. Also, there are +69,000 more jobs than one year ago.
“Unemployment rates continue to fall because private-sector employers are averaging more than 5,400 new jobs each month since the Illinois economy began to improve,” IDES Director Jay Rowell said. “Meanwhile, help wanted ads for full-time work continue to grow and indicate employers expect their need for more workers to remain strong.”
I’m not saying, I’m just sayin…
All emphasis added.
posted by Rich Miller
Wednesday, Oct 21, 15 @ 1:28 pm
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How to Kill Jobs and Influence Business to Halt: The Bruce Rauner Governorship, coming soon wherever books are sold.
Comment by Precinct Captain Wednesday, Oct 21, 15 @ 1:34 pm
Bu..bu..bu..Illinois has a lousy business climate…no jobs are being created…we must destroy unions…those must have been shame jobs created by Madigan and the shame businesses he controls…
Comment by D.P.Gumby Wednesday, Oct 21, 15 @ 1:35 pm
In reading that IDES press release from October of last year, how did we ever accomplish that with job-killing income tax rates of 5% and 7% and unions running wild giving their members rights and stuff? Prolly a typo. /s
Comment by Roamin' Numeral Wednesday, Oct 21, 15 @ 1:39 pm
Can these two statements by credible men both be correct?
Comment by Lincoln Lad Wednesday, Oct 21, 15 @ 1:42 pm
==“One of the strengths this state’s had for years is … a great higher education system,” he said. “I think that is in jeopardy now.”==
Rauner’s plan includes financial failure of Higher Ed.. When public entities fail, the private sect will make money from it. The private companies will take over the buildings, etc.. Private corps will turn some of the failed public colleges/universities into private for-profit colleges/universities. Sorry, I can’t find the link for this.
Comment by Mama Wednesday, Oct 21, 15 @ 1:51 pm
Can IDES answer this question: How many businesses (net) have left Illinois over the past 13 years?
Comment by 360 Degree TurnAround Wednesday, Oct 21, 15 @ 1:53 pm
Winning!
Comment by Chicago 20 Wednesday, Oct 21, 15 @ 1:54 pm
Yeah. Illinois had been on a tear last year with job creation. Yeah. Now there is a big bump in the road. Are these things cyclical? Absolutely. Right or wrong, do chief executives get the blame for a poor economy? Absolutely. Do I think that if the governor was truly concerned about governing that these numbers would be better? Maybe a little, but not much. But… the longer the hostage crisis goes on, the more it effects those numbers down the road.
Comment by Ducky LaMoore Wednesday, Oct 21, 15 @ 1:56 pm
Rauner believes that employers only care about bottom line costs, and since he’s bought, flipped, stripped, rolled over and bankrupted more than a few businesses - he thinks he knows more about running a business than business people.
Comment by VanillaMan Wednesday, Oct 21, 15 @ 1:59 pm
To the deleted commenters who both magically had the same off-topic idea within moments of each other: Stay on topic or find somewhere else to comment.
Comment by Rich Miller Wednesday, Oct 21, 15 @ 2:03 pm
With Governor Rauners cuts in Child Care Assistance Program, many, many child care Teachers have been laid off. And Many, Many families have quit there jobs to go on welfare because they cannot afford Child Care without some assistance.
Comment by Reality Check Wednesday, Oct 21, 15 @ 2:05 pm
The “spin” is interesting but Illinois is NOT an attractive destination for many reasons. Edgar is stating the obvious folks, the current situation hurts those efforts……and his salary current or earned via pension contributions he made in the past is not withstanding and has no place in the point of the discussion
Comment by Ghost of Ernie Banks Wednesday, Oct 21, 15 @ 2:05 pm
Roamin, they knew the 5% tax was ending.
Right now the biggest obstacle to private sector job growth is not tax rates; it’s lack of a plan to deal with the incredible pension liabilities and lack of faith in the willingness and integrity of the “Pirates of Springfield and City hall” to solve the problems through any means.
The general perception I’ve seen in the big/medium size business community is that they’re willing to open service businesses here that they can close up easily when things go to heck. No one wants to invest in immobile infrastructure. They’re willing to access the well educated young labor market in central Chicago and some suburbs, but they’re not going to invest in factories or owned office space.
In the real estate market, Illinois has lost about 2 million people flattening demand that’s not going to come back. I’m divesting myself of any Illinois real estate I have left in Illinois, because it’s not coming back.
There are “hot” neighborhoods, of course, but overall the future prospects are not good.
If Illinois had legislatures like in Michigan, Indiana, Minnesota, Wisconsin and Iowa, people and businesses might have faith that the problems are soluble.
With Illinoisans electing folks like the GA cabals of Madigan, Cullerton and Rahm and Chicago alderman, however, the roots of corruption and piracy run too deep to risk investment without a LOT of cash incentives up front.
Sad but true. We get the government we deserve (and elect).
Comment by Arizona Bob Wednesday, Oct 21, 15 @ 2:05 pm
Ok, try this. If the U of I has plenty of reserves, would it not be in the best interests of higher education throughout the state to forgo state support til actually needed? Needier universities like Eastern and both SIU can definitely use the help, thereby creating a healthy business climate.
Comment by Blue dog dem Wednesday, Oct 21, 15 @ 2:11 pm
Under Bruce Rauner, 17,100 fewer private sector jobs were created between January and September than were created during the same period under Pat Quinn?
Becase Madigan, rite?
– MrJM
19,300 (01/14-09/14 new jobs)
- 2,200 (01/15-09/15 new jobs)
= 17,100
Comment by @MisterJayEm Wednesday, Oct 21, 15 @ 2:12 pm
Bdd, you’re still off topic.
Comment by Rich Miller Wednesday, Oct 21, 15 @ 2:12 pm
Arizona Bob,
The ==plan to deal with the incredible pension liabilities== requires money to pay it back. Tax revenue.
The ==lack of faith in the willingness and integrity of the “Pirates of Springfield and City hall” to solve the problems through any means== is because we’ve got a vulture capitalist for a governor that is hell bent on destroying unions, and won’t negotiate the budget in good faith.
Comment by Roamin' Numeral Wednesday, Oct 21, 15 @ 2:13 pm
As somebody pointed out on CF last week, Governor Rauner’s businesses aren’t exactly typical. How many people do they employ? What infrastructure do they use? How does the education system affect his employees?
He could do HIS personal business in a State that has an unstable State government, so he’s not really feeling the effects, business wise, of the budget impasse.
But what business would want to move to Illinois if they thought State government was controlled by inflexible, narrow-minded people?
Comment by Streator Curmudgeon Wednesday, Oct 21, 15 @ 2:15 pm
This will just be spun as a reason we should support the Runaground Agenda and won’t be seen as being a reflection of the poor governing choices Rauner has made. When you control the media, you control the masses.
Comment by CharlieKratos Wednesday, Oct 21, 15 @ 2:17 pm
Sorry Rich, I am just so darned mad at both parties being accountable for this mess i can’t focus.
Comment by Blue dog dem Wednesday, Oct 21, 15 @ 2:17 pm
How many of the lost jobs are due to Caterpillar laying off workers caused by the economic downturn in the mining and oil industries?
Something that the governor has no influence over is the world wide economy. While he talks a good line, there isn’t much he can do.
Comment by Huh? Wednesday, Oct 21, 15 @ 2:20 pm
Lol, more of the same crap. Tax increases without reform and spending cuts will do nothing but further our stagnation in both population and job growth.
Illinois still has to recover almost 150,000 jobs from the last recession (two recessions ago). This state is an economic basket case. And all people can come up with is more taxes and more taxes.
Comment by Tone Wednesday, Oct 21, 15 @ 2:21 pm
===And all people can come up with is more taxes and more taxes.===
That big tax cut in January didn’t seem to do much of anything.
Comment by Rich Miller Wednesday, Oct 21, 15 @ 2:23 pm
More taxes, more jobs.
Lower taxes, jobs disappear. Child care disappears. Social supports disappear. A balanced budget disappears.
Governor Rauner, time to take note.
Comment by Pandora Wednesday, Oct 21, 15 @ 2:23 pm
When the economic powerhouse of Illinois, namely Chicago, seriously (I think) intends to remove $.5 billion from its economy in property taxes plus additional taxes, fees, fines, etc. to exclusively support government pensions, this is an indication that the canary in the coal mine is going on life support.
The issue is not whether Gov. Rauner is evil, egomaniacal, an enemy of the poor, the middle class and all other things revered by one group or another. The issue is whether the long festering problems can be cured by a medicine that will not kill the patient.
Comment by Cook County Commoner Wednesday, Oct 21, 15 @ 2:24 pm
For those of you that want to bash Edgar, or say “that was then and this is now” I would encourage you to re-visit Greg Baise’s comments from August 2015:
“I applaud the governor for his ardent support of business reforms that the business community supports very strongly. But ultimately, we need to get a budget, a balanced budget, so our businesses — manufacturers included — understand that this state is finally getting its act together,” he said.
Comment by out of touch Wednesday, Oct 21, 15 @ 2:25 pm
“Can these two statements by credible men both be correct?”
————-
Can’t really tell. There’s an ongoing ‘discussion’ (more of a food fight, IMO) over what is called the Business ‘Birth/Death’ model used at the federal level by BLS (Bureau of Labor Statistics).
It’s basically a ‘black box’, and nobody outside of BLS has been able to figure out how they get their numbers.
But fairly recently (last 3-4 months), there been credible statistical evidence emerging which is at substantial variance with BLS numbers. In other words, the entrepreneurial growth post 2009-2010 isn’t anywhere near as positive as BLS models has been calculating over the last 5+ years.
Also, pay attention to this:
http://www.zerohedge.com/news/2015-10-20/september-jobs-report-was-even-worse-us-states-lost-total-22000-jobs
It’s possible both gentlemen could be right, as there appears to be statistical differences out there that do not appear to be easily explainable.
Comment by Judgment Day (on the road) Wednesday, Oct 21, 15 @ 2:26 pm
==The drop from 9.1 percent one year ago marks, for the second consecutive month, the largest year-over-year decline since 1984.==
Some context…that 9.1% was the 3rd worst in the USA at that time. So I hardly call our ascension from the bottom of the unemployment rankings to a still-below mid-level rating a bragging point. Rather, we should ask how it got so low to begin with?
Comment by nixit71 Wednesday, Oct 21, 15 @ 2:29 pm
If unemployment numbers are down to 5.4 from 6.3 and we only added 2200 jobs that means that A WHOLE HELL OF A LOT of people gave up looking for work. It’s not over folks. It’s getting worse. All the while DCEO is really bringing in the jobs right? We used to get regular updates about companies moving here. Is it all doom and gloom from DCEO or are we making headway? Their communications person needs to get on the ball. All we hear of DCEO is about the EDGE tax people that they gave millions too. What’s up with the enterprise zones? I guess the applicants don’t get theirs, huh. For a business man (Rauner) hiring another business man (Schultz), they sure can’t seem to do any business. Maybe I’m wrong. But how would I know. All I hear of is failures. Where are DCEO successes?
Comment by Honeybear Wednesday, Oct 21, 15 @ 2:30 pm
And the longer we wait to raise taxes, the higher they will need to be. Even if we were able to set the tax rates at 5% and 7% on 1-1-16, that would not get us out of the hole anytime soon, with all of our liabilities.
We may have to set the personal income tax rate at 6.25% and the corporate income tax rate at 8.75%. That should get things going in the right direction.
Cue right-wing angst in 3 … 2 … 1…
Comment by Roamin' Numeral Wednesday, Oct 21, 15 @ 2:30 pm
Former Gov. Edgar continues to speak the truth. And, the concerns about the future of higher education in this state are indeed scary. My daughter is a junior in high school and she will not be applying to any public colleges/universities in Illinois because their finances are too unstable. And, I know other parents who feel the same. U of I may have the financial means to hang in there but many (most?) of our other public universities don’t. Once prospective faulty and students stop considering our public schools, it’s a downhill course. And, I think the loss of private sector jobs re-enforces the fact that the longer this state remains in crisis the harder it will be to bring in new jobs. At some point, in the not too distant future, job growth will be zero.
Comment by Former Hoosier Wednesday, Oct 21, 15 @ 2:31 pm
“Illinois still has to recover almost 150,000 jobs from the last recession”
Between September 2013 and September 2014, Illinois gained 69,000 jobs.
How are things this year?
I wonder what changed?
– MrJM
Comment by @MisterJayEm Wednesday, Oct 21, 15 @ 2:32 pm
- Tone - Wednesday, Oct 21, 15 @ 2:21 pm:
Lol, more of the same crap. Tax increases without reform and spending cuts will do nothing but further our stagnation in both population and job growth.
Illinois still has to recover almost 150,000 jobs from the last recession (two recessions ago). This state is an economic basket case. And all people can come up with is more taxes and more taxes.
Quick question: How many of those 150,000 jobs were due to demographics?
How would our state be affected if we were to tax retirement?
Comment by Try-4-Truth Wednesday, Oct 21, 15 @ 2:36 pm
It would be helpful for some state official to quantify the cost of Bruce Rauner’s budget approach in terms of unemployment benefits received by all those laid off from agencies that were dependent on state appropriations.
Comment by Austin Blvd Wednesday, Oct 21, 15 @ 2:36 pm
Right.
27 states reported job losses in September, including Michigan, Missouria, Minnesota, Iowa, Indiana, and Ohio.
These are all because of the instability caused by Illinois’ budget.
Ok
Comment by Waucondan Wednesday, Oct 21, 15 @ 2:46 pm
“27 states reported job losses in September, including Michigan, Missouria, Minnesota, Iowa, Indiana, and Ohio.”
“Illinois businesses have added only 2,200 new jobs since the beginning of this year”
– MrJM
Comment by @MisterJayEm Wednesday, Oct 21, 15 @ 2:50 pm
That’s right, MisterJayEm.
Including -4,800 in January, -2,200 in March, -5,600 in June, -800 in July, -5,200 in August, and -6,900 in September.
Who knew that illinois’ budget impasse began in January?? And that it caused Missouri to lose 16,500 jobs in September.
Simply incredible!
Comment by Waucondan Wednesday, Oct 21, 15 @ 2:57 pm
How many of those jobs and future job losses are due to human service agencies downsizing or shuttering their doors and letting staff go? How many jobs will be lost because those human service agencies are unable to provide the services that were enabling people to get and keep jobs?
Rauner’s list of deeds done continues to grow.
Comment by Aldyth Wednesday, Oct 21, 15 @ 2:57 pm
==We may have to set the personal income tax rate at 6.25%==
But can retirees afford it? Yeah, I went there…
Comment by nixit71 Wednesday, Oct 21, 15 @ 3:01 pm
“Illinois businesses have added only 2,200 new jobs since the beginning of this year,”
Congratulations Rauner voters. You got the change you wanted. You guys are total economic aces!!! Now be sure to spend 40 billion dollars running ads for the Turn-a-round Agenda because the truth is only found in political TV ads. Everyone knows that.
Comment by James Knell Wednesday, Oct 21, 15 @ 3:05 pm
Waucondan, it’s been ten months. Eventually, he owns the economy, fair or not.
Comment by Rich Miller Wednesday, Oct 21, 15 @ 3:09 pm
“If unemployment numbers are down to 5.4 from 6.3 and we only added 2200 jobs that means that A WHOLE HELL OF A LOT of people gave up looking for work.”
Yep, the labor force is shrinking. So is the population.
Comment by Tone Wednesday, Oct 21, 15 @ 3:09 pm
“These are all because of the instability caused by Illinois’ budget.”
Did someone make this claim? If so, it wasn’t me.
My claim is very simple and it is as follows: when he was a venture capitalist, Bruce Rauner was great at jettisoning jobs — but as Governor of Illinois he’s even better at it.
– MrJM
Comment by @MisterJayEm Wednesday, Oct 21, 15 @ 3:11 pm
Rich,
Illinois manufacturers have been laying off since July 2012, laying off 18,000 since then. In the meantime:
Missouri +3,100
Iowa +3,400
Wisconsin +13,200
Kentucky +14,700
Ohio +26,900
Indiana +32,900
Michigan +62,000
If only we could have had the FY ‘16 budget in place three years ago, this could have all been avoided!
Comment by Waucondan Wednesday, Oct 21, 15 @ 3:11 pm
I think Rauner is clearly taking a long-term approach. If things are going to be sustainable, we need spending reforms now, which will make the long-term jobs numbers look even better.
The ball is in Madigan’s court.
Comment by downstater Wednesday, Oct 21, 15 @ 3:13 pm
===Illinois manufacturers have been laying off since July 2012===
LOL
Try the 1970s.
Comment by Rich Miller Wednesday, Oct 21, 15 @ 3:23 pm
Seems like Rauner and the Illinois Policy Institute’s campaign to portray Illinois as a poor place to grow your business is working well. Kudos.
Comment by Dance Band on the Titanic Wednesday, Oct 21, 15 @ 3:25 pm
downstater: if the Governor’s long-term approach is so clear, how about explaining it to the rest of us. Feel free to be specific — unlike the Governor.
Comment by GA Watcher Wednesday, Oct 21, 15 @ 3:28 pm
That’s right, but none of these border states got the memo that we’re all throwing in the towel and hemorrhaging manufacturing jobs from here on out. Those crazies have gone and tried to grow those jobs back again.
Rauner owns that one, too. He needs to resend out the memo to remind them all of the “give up and take it” plan for Midwest manufacturing.
Comment by Waucondan Wednesday, Oct 21, 15 @ 3:35 pm
“I think Rauner is clearly taking a long-term approach.”
Pro tip: When something isn’t working and has no prospect of working in the foreseeable future, say you’re “taking a long-term approach.”
– MrJM
Comment by @MisterJayEm Wednesday, Oct 21, 15 @ 3:37 pm
Rich is right that in the public mind Governors “own” the economy, and it’s Rauner’s turn in the barrel.
In the real world what governors do has almost no impact on the overall state economy in the short term, and usually modest impact if ever. It’s a myth that is leveraged both ways.
Comment by walker Wednesday, Oct 21, 15 @ 3:37 pm
BLUE DOG, you misunderstand.
- Blue dog dem - Wednesday, Oct 21, 15 @ 2:11 pm:
“If the U of I has plenty of reserves, would it not be in the best interests of higher education throughout the state to forgo state support til actually needed?” Universities NEED reserves and they if no appropriation is forthcoming, such reserves as they have will soon go up in smoke. The point is not to rob Peter to pay Paul. We are at the rock bottom of government spending on higher ed already. Yeah there are some nickle and dime proposals out there, but they don’t really mean anything.
I know you know this, but for other readers, here goes: This state has abandoned its commitment to the original goals of the land grant colleges, which was to make social mobility a reality. We have shifted the cost of higher ed to the kids through tuition. Instead of a hand up, we give them a sack a bricks to carry. We need to pull a page from Alexander Hamilton and Abraham Lincoln: we need to tax wealthier citizens to empower young people to rise. That’s how American was built folks. If you don’t like it, move to a third world country where the wealthy have everything and everyone else gets nothing.
Comment by History Prof Wednesday, Oct 21, 15 @ 3:39 pm
Walker, good luck making that narrative stick. Maybe it sticks on capfax.
Good luck making that narrative stick.
New governor says we need a bunch of economic reforms because people don’t have jobs and are leaving the state.
Opposition party says we will do no reforms.
Economy continues to be terrible. Next recession looms.
Governor somehow owns the continued lack of jobs because the oppo party won’t pass a single reform and instead wants to serve up a fresh new tax hike.
Again, good luck making that narrative stick.
Comment by Waucondan Wednesday, Oct 21, 15 @ 3:48 pm
Yep, Waucondan, you’re most definitely #winning!
Comment by Rich Miller Wednesday, Oct 21, 15 @ 3:50 pm
Waucondan
At what point do you and the Governor cease being victims? I mean, the guy has spent 10 months playing one. Perhaps he might want to move to governing sometime soon?
Comment by Demoralized Wednesday, Oct 21, 15 @ 3:56 pm
I am with History Prof @ 3:39, education is a way up and should not be for only the wealthy. As a parent of a college student in Illinois I am extremely worried about what will happen this spring.
Comment by burbanite Wednesday, Oct 21, 15 @ 3:57 pm
Next recession looms.
This is the scariest thing. Illinois is an economic basket case that hasn’t recovered from the great recession let alone the previous one. What will happen to our state when the next recession comes, which may be sooner than we hope.
Reform is needed, the status quo has not worked. Increasing taxes alone will only make things worse. People are fleeing and it will only get worse.
Comment by Tone Wednesday, Oct 21, 15 @ 3:58 pm
==the status quo has not worked==
Up until recently the status quo involved robbing and pillaging the pensions. And no, that didn’t work. Raising the taxes years ago slowly to keep up instead of doing that would have kept, what, something like $5 billion a year from paying off what was taken? Isn’t that about the amount the Dem’s budget was over?
Comment by HangingOn Wednesday, Oct 21, 15 @ 4:13 pm
==the status quo has not worked==
The status quo included using pension payments to pay for state programs and services.
The governor is repeating the status quo by not paying the employer’s share of the state pension.
Comment by Enviro Wednesday, Oct 21, 15 @ 4:25 pm
Rich -
I won’t be surprised to learn from Emily Miller that the single biggest factor in the 2015 employment numbers is layoffs from human services agencies.
Wauconda -
How bad is Bruce Rauner?
Pat Quinn created ten times as many jobs as Bruce Rauner.
It really is that simple.
Comment by Juvenal Wednesday, Oct 21, 15 @ 4:40 pm
Juvenal,
The single biggest factor in the 2015 numbers is manufacturing. -12,500 ytd
Comment by Waucondan Wednesday, Oct 21, 15 @ 5:01 pm
Part of the reason Quinn lost is he made some hard decisions, unpopular with Unions, but he was trying to pay on the pension debt and did. We were making progress, now we are sliding into the abyss.
Comment by burbanite Wednesday, Oct 21, 15 @ 5:02 pm
Nicely done.
Comment by Anon Wednesday, Oct 21, 15 @ 5:18 pm
Whoever wants to hyper-politicize our economic problems must acknowledge one thing: Bruce Rauner is a job killer. That’s right. See how that works? Live by the sword, get slashed by it.
Can we now begin to eliminate or assign a much lower value to a low state income tax being a factor of economic growth? The income tax dropped substantially at the beginning of the year, and the economy has been worse. Where are all the jobs and people who are supposed to flock here?
Comment by Grandson of Man Wednesday, Oct 21, 15 @ 7:29 pm
Tone, is that a nickname for a recording that just says the same meaningless talkiing points over and over, no matter the context?
The state income tax was cut last Jan. 1, by the way.
You understand that “increase” and “decrease” don’t mean the same thing?
Comment by Wordslinger Wednesday, Oct 21, 15 @ 10:21 pm
What exactly in Tone’s comments is not true? Do we really think spending reductions/reform should not be a part of the solution? The only remedy available is higher taxes?
Comment by The Whole Truth Wednesday, Oct 21, 15 @ 10:49 pm
History Prof-higher Ed should be affordable for all. But why are costs at a rate of inflation higher than healthcare over the last two decades. Simpletons like me, who had to put three kids through college saw our pay checks actually shrink, while compensation packages at state universities became grotesque. Sorry, but us common folk just don’t understand.
Comment by Blue dog dem Wednesday, Oct 21, 15 @ 11:15 pm
That IDES press release for September 2014 jobs initially said +19,300 jobs. That number was later revised to +2,900 jobs.
In addition, the payroll jobs number comes from one survey, and the unemployment rate comes from a different survey. So when Rowell says the payroll job creation is driving down the unemployment rate, he doesn’t know what he’s talking about.
Comment by Hawkeyes Thursday, Oct 22, 15 @ 7:16 am
Blue dog dem,
You ask, “Why are costs at a rate of inflation higher than healthcare over the last two decades.”
Short answer, they aren’t: the state just stopped picking up the tab. I feel your pain but you are blaming one of the other victims. Our salaries have not kept up with inflation for decades. And it all comes down to an unwillingness of the wealthy to pay taxes.
Yes there are some other drivers of costs. In the absence of state funding (now only 17% at ISU) tuition drives the universities; we HAVE to attract students. So dorms and gyms have to be state of the art. Students demand a whole suite of services. Whose fault is that? However you answer that, you can bet it ain’t the professors who see all that cash!
We have to accept subpar transfer credit; and now we have to accept a 3 on the AP exam. The effect is that we have to make our courses easier because otherwise students will get them “out of the way” in a cheap summer course at a community college — less money and less work. So in addition to paying more, you are getting less! It’s a race to the bottom.
And its all because the wealthy refuse to pay the kinds of taxes that built the university systems that built the middle class in the first place Now we just saddle kids with debt.
Comment by History Prof Thursday, Oct 22, 15 @ 10:04 am
The Whole Truth asks:
“Do we really think spending reductions/reform should not be a part of the solution? The only remedy available is higher taxes?”
Short answer: yes. The Governor has a line-item ammenditory veto. If there were meaningful budget cuts out there, he would have made them. This summer’s court orders and Rauner cave-ins on schools and pay state workers demonstrate conclusively that there simply are no such cuts out there. Unless you think closing the state or the Thompson center would be significant.
As for reform, we need to have the best public university system in the country and it has to be close to free. Students should only have to pay if they move out of state within 7 years, at which point loan repayment would commence. That, my friend, would bring more high wage jobs than busting the unions!
Comment by History Prof Thursday, Oct 22, 15 @ 10:16 am
The decline is probably due to two things:
1) The exodus of people and businesses from the State to states with better business climates. Rauner is trying to do something about this.
2) The dysfunctional and unstable government, which Rauner partially created.
That said, when Caterpillar announces layoffs or Mitsubishi closes up shop, they aren’t blaming the government shut down. They’re pointing to workers comp, unemployment insurance, and the lawsuit climate.
Comment by Political Animal Thursday, Oct 22, 15 @ 10:17 am