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* The EDGE tax credit program, which is often described as Illinois’ most effective tool to attract and retain large companies, expires at the end of this month. Greg Hinz looks at the finger-pointing…
Rauner’s office declined to comment officially but suggested on background that, rather than deal with Madigan and his demands, a legislative-led effort like Althoff’s new bill would get further. […]
“Their feigning concern about sitting down and negotiating is pretty remarkable for an administration that’s supposed to be filled with pro-business people,” [Madigan spokesman Steve Brown] said in an interview. […]
“The Edge program has been the executive branch’s leading job creation program for years,” [Senate President John Cullerton’s] office said in a statement. “Gov. Rauner didn’t ask for it to continue during the past session or seek legislation to do so. Illinois’ economy relies on our ability to keep and add good-paying jobs . . . (and) the Senate president is committed to working with the governor” on that.
[GOP Sen. Pam Althoff], whose legislation is not yet available on the General Assembly’s website, said it would include reforms, including Rauner’s policy of limiting Edge credits to net new and not retained jobs.
She declined to speculate on why nothing happened this year but conceded, “The focus has been on the lack of a budget for a long time. I just think (Edge) is one of the things that fell through the cracks.”
Althoff is probably right. The impasse war may have distracted the leaders from renewing this tax program. And now everybody wants to blame the other side.
posted by Rich Miller
Tuesday, Dec 20, 16 @ 12:34 pm
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This is a great opportunity to let these corporate welfare deals fade into our history.
It’s impossible to find any study that can demonstrate these special deals are worth the cost.
Spend the money on infrastructure or job training, not a special tax break for the favored company large enough to demand it.
And if we don’t offer them by law, then the companies won’t ask for them.
It would be great if all of our economic development officials focused on programs and benefits that were of general benefit to all growing companies, not focused exclusively on throwing tax breaks on a few particular companies.
Comment by Dan Johnson Tuesday, Dec 20, 16 @ 12:39 pm
Why don’t we save our money and let Trump land us manufacturing jobs deals with little more than a tweet? Worked for Indiana, didn’t it?
Comment by illini97 Tuesday, Dec 20, 16 @ 12:39 pm
This shows more poor management coming from both sides. There could be a dark horse that could win in 2018 because of “things falling through the cracks”. EDGE tax program works!
Comment by Rocky Rosi Tuesday, Dec 20, 16 @ 12:42 pm
I imagine some Superstar is getting ear-holed for letting EDGE “fall through the cracks.” I don’t think the Rauner crew meant to start taking themselves hostage.
EDGE is a big bowl of candy for governors to pass out, “creating jobs” for guv- flacks to write gushing press releases as to how dreamy their boss is.
Whether they’re worth the investment…. is there a reliable, independent, cost-benefit analysis anywhere?
Comment by wordslinger Tuesday, Dec 20, 16 @ 12:46 pm
Althoff says, “The focus has been on the lack of a budget for a long time.”
Judging by the way things are in Illinois today, I question the credibility of her comment. The focus has been on everything but the budget.
Comment by illinoised Tuesday, Dec 20, 16 @ 12:48 pm
Nope… Not it. DCEO is so gutted that they couldn’t get their act together. They’ve been working on an EDGE replacement for months. But you can’t do a whole heck of a lot with only a handful of people. Not only that but I think they have only three people working on EDGE total. I wonder how many people used to be assigned to it to ensure compliance and accountability? You can’t function without people helping to run the program. But then Rauner never liked EDGE anyway. Jim Schultz rauners former director called EDGE, “very distasteful” and that “It doesn’t make sense to me. I’m a taxpayer. We aught to be disclosing this information” for details read the Trib article about it. Rauner suspended the program I thought.
Regardless it didn’t work at getting jobs. The Trib analysis states that and we doled out millions.
Let it die
Comment by whatevs Tuesday, Dec 20, 16 @ 12:53 pm
There’s no way that the EDGE program expired due to lack of awareness. Eligible businesses would be calling the Superstars day and night to remind them of the pending expiration. This is yet another example of collateral damage that is resultant from hostage-induced gridlock. My bet is that the Governor and his Superstars didn’t want to make the “ask”, either because they didn’t want to make a “give” or they didn’t want yet another ding on the “corporate welfare” front that would coincide with the Exelon bailout.
Comment by c'mon, man Tuesday, Dec 20, 16 @ 1:00 pm
It really isn’t the General Assembly’s job to keep track of the expiration dates for executive branch programs in statute. That’s why each agency has a legal and legislative staff, and the Governor has a legislative office.
The fact that no one even introduced a bill means this is 100% on the Rauner administration. You can’t blame Madigan for this one Bruce.
Comment by ILPundit Tuesday, Dec 20, 16 @ 1:02 pm
The Edge program expired I think do to lack of of
success
It seemed to be a favorite of Pat Quinns. So it is toxic to Bruce.
Comment by Mokenavince Tuesday, Dec 20, 16 @ 1:09 pm
c’mon -
Probably the former more than the latter. Exelon bailout was a pretty cut-and-dry issue with a tangible threat from Exelon. EDGE is a little more nebulous. The Dem’s counter would write itself - Gov prioritizes crony corporate welfare over the welfare of residents. Tactically, EDGE was destined to be a casualty of Rauner’s agenda.
Anyone remember when GHR signed the EDGE bill and Illinois was touted as a model for state economic development?
Comment by Downstate43 Tuesday, Dec 20, 16 @ 1:10 pm
I place a significant amount of blame for no bill or action in the last session on the business community i.e. the chambers of commerce. This is an issue they have advocated on behalf of in the recent past and should have known it was expiring. The Budget/Madigan-Rauner fight must have everyone distracted.
Comment by CLJ Tuesday, Dec 20, 16 @ 1:11 pm
I love Senator Althoff and I normally agree with her but:
a) We still found a way to deal with the Exelon monster.
b) EDGE is controversial enough that perhaps Rauner just wants it to die off and not talk about it. Just a thought.
Comment by Team Sleep Tuesday, Dec 20, 16 @ 1:12 pm
“Rather than deal with Madigan and his demands” vs rather than deal with Rauner and his (TA) demands.
Comment by Sir Reel Tuesday, Dec 20, 16 @ 1:13 pm
Wonder how this will impact the Rivian Automotive deal???
“Before Rivian makes a vehicle, however, a few things must be finalized: the company must buy the former Mitsubishi plant from Maynards Industries for terms that Rivian CEO RJ Scaringe said have been decided but are still secret — he called it an “all-cash” deal; Rivian and the Illinois Department of Commerce and Economic Opportunity must agree on state incentives; and other local taxing bodies must approve the abatement.”
http://www.pantagraph.com/news/local/education/heartland-board-oks-rivian-abatement/article_e1207689-323a-5a3e-a07b-635d9374fa65.html
Comment by Anon221 Tuesday, Dec 20, 16 @ 1:23 pm
Illinois would be better off with greater financial certainty and some business reforms. In other words, if both sides would come together and give a little, we would be better off than we would with the EDGE tax credit.
Comment by Ahoy! Tuesday, Dec 20, 16 @ 1:23 pm
Good. Shouldn’t we all agree that ending corporate tax favoritism is something that The GOP and Dems can agree on!
Comment by Real time Tuesday, Dec 20, 16 @ 1:46 pm
Absolutely outrageous. We have very few tools in the tool shed but they managed to let our biggest one disappear. When will Democrats start using things like this to punch the Governor in the nose and label the “Turnaround Agenda” for what it is: An ideological screed, not a recipe for turning around our economy.
Oh, and why the hell would you restrict it to new jobs and not retained jobs?? If a company leaves Illinois, those are lost jobs. This is madness.
Comment by Chicago Cynic Tuesday, Dec 20, 16 @ 2:58 pm
“Whatevs” and “Cmon Man” are both right. EDGE is/was on the radar at all times. Gov Office would never ask for it bc of their stated positions, but still uses it as it pleases.
Comment by Illinoisian Tuesday, Dec 20, 16 @ 3:01 pm
EDGE was a weak, noncompetitive tax credit that was micromanaged into the ground by DCEO bureaucrats. Let it die and let’s replace it with something more effective.
All of our neighboring states have tax credit programs that are either fully-refundable or transferable. EDGE was neither and most industry people I’ve met with view it as being an relic of the 1980’s.
Comment by sulla Tuesday, Dec 20, 16 @ 3:36 pm
EDGE used to be a well run, effective program. Now, recent record keeping requirements have been ignored. Inept staff is responsible for the lack of compliance.
Comment by One of the 35 Tuesday, Dec 20, 16 @ 3:52 pm
I thought the Governor was bringing a public private partnership del to replace EDGE?
Comment by DuPage Bard Tuesday, Dec 20, 16 @ 4:20 pm
It looks like this just got extended? Rauner signed the Senate Bill 1488 today.
Comment by Seats Tuesday, Dec 20, 16 @ 4:34 pm
SB1488 extended the tax credit for “the restoration and preservation of a qualified historic structure located in a River Edge Redevelopment Zone…” Not the EDGE program.
Comment by Southside Markie Wednesday, Dec 21, 16 @ 12:24 am
What happened to selling JRTC??!! Tick tock…tick tock..
Comment by Superstars Wednesday, Dec 21, 16 @ 12:35 am
Southside Markie: Thanks for clarifying that for me I figured I was missing something.
Comment by Seats Wednesday, Dec 21, 16 @ 1:03 am
This is what workforce collapse looks like.
Superstars are feckless. They bluster and blow and puff up. It’s experienced public servants who make it happen. Just like in the Navy you need competent Chiefs and a lot of sailors to get the ship underway or DO ANYTHING! Officers can bluster and blow but it doesn’t weigh anchor.
Comment by Honeybear Wednesday, Dec 21, 16 @ 7:15 am