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No new Illinois jobs from first high-speed rail project?

Friday, Jul 23, 2010 - Posted by Rich Miller

* On Tuesday, Gov. Pat Quinn’s office sent out a press release touting all the new jobs created with a $98 million dollar high-speed rail project…

Governor Pat Quinn today announced that construction will begin in early September on the Chicago to St. Louis high-speed rail route. An agreement between the Illinois Department of Transportation (IDOT) and Union Pacific Railroad will allow upgrades to be made on an initial 90-mile segment of Union Pacific track to prepare it for high-speed rail. The $98 million dollar project is funded through the federal American Recovery and Reinvestment Act (ARRA) and will support an estimated 900 jobs.

“Today’s announcement will create hundreds of jobs and is a major step towards making high-speed rail a reality in Illinois,” said Governor Quinn. “When the corridor is completed, travelers will be able to move from Chicago to St. Louis in under four hours, making Illinois the high-speed rail hub of the Midwest.”

Trouble is, no jobs may be created at all, particularly for Illinoisans

All of a $98.3 million federal grant for high-speed rail will go to the Union Pacific Railroad, and there are no assurances that anyone in Illinois will get a job as a result, under an agreement between the railroad and the Illinois Department of Transportation. […]

But Union Pacific will procure all labor under the contract with IDOT announced this week, and the labor will be provided under the railroad’s existing labor agreements. The contract also says the $98.3 million will go to the railroad to install concrete ties and new rail on an 89-mile segment between Alton and Springfield and between the capital city and Lincoln, and the railroad alone will own the improvements. […]

“I think it’s pretty transparent that that they’re talking about people who are currently gainfully employed,” said [Brad Schaive, business manager for Laborers Local 477 in Springfield], who worked as a Union Pacific conductor in the 1990s. “They’ll bring in their own rail crews — it’s almost all automated by machine now. You’ll see a lot of out-of-state people come in and put the rail in and leave.”

Schaive said his office hasn’t received any calls from anyone interested in hiring workers for high-speed rail construction.

Oy.

* And speaking of jobs, Pat Quinn’s running mate Sheila Simon visited Rock Island to tout a successful local business that’s doing well in the recession. But she heard something she may not have expected

Evans Manufacturing knows about the tough times in Illinois. The longtime Rock Island business is bouncing back from the recession. Orders are up 50% from last year, but the state’s financial instability and political mishaps are turning off other business growth.

“Some people are hesitating to make investments, make strong commitments, because of this situation,” said Stephanie Acri, president of Evans Manufacturing. “The sooner it becomes stable, the better off I think we all are.”

Above all else, businesses want stability. Quinn’s administration and Illinois politics in general are not in any way stable. Ms. Simon needs to take that message back to the governor.

* Also speaking of jobs, the federally funded state jobs program might not be all it’s cracked up to be

On Tuesday, Gov. Pat Quinn announced that more than 22,000 people have secured jobs through the Put Illinois to Work employment program.

Count LaWanda Banks among them.

Through the program, the resident of Chicago’s West Lawndale neighborhood worked five weeks for ABM Security, logging more than 190 hours.

Now, if she could just get paid.

The state isn’t paying these workers for four weeks after they get hired, which seems odd considering many of them are in desperate need for employment. The woman in this story had some additional paperwork problems and her first check arrived about a week late. She also didn’t receive a weekly bus pass promised by the program. She could no longer afford the commute, she said, so she quit.

* Back to Gov. Quinn, who has been touting government actions instead of making many campaign appearances of late. His use of the state plane for campaign-related purposes is an issue that won’t go away

Despite making two campaign-related stops during a trip to southern Illinois earlier this week, Gov. Pat Quinn Thursday brushed aside suggestions that he reimburse taxpayers for the use of the state plane.

“That’s totally ridiculous,” Quinn said during an interview on WFLD television.

On Monday, the Chicago Democrat flew on the state plane for an official government event with Southern Illinois University officials. Later, however, he met with supporters at a restaurant in Marion where Williamson County Democratic Party officials said fundraising activity for Quinn’s gubernatorial bid against Republican Bill Brady was discussed.

Quinn also visited the Williamson County Democratic Party headquarters, where he shook hands with precinct workers and gave a short speech.

Illinois Republican Party Chairman Pat Brady, who is not related to Bill Brady, said Quinn should not mix state business with campaign events.

“I think it needs to be looked into,” Brady said. “It just baffles me.”

* Related and a roundup…

* Quinn’s Office: No Medicaid Boost Equals Cuts: Illinois Gov. Pat Quinn’s office is, for the first time, acknowledging that the state may not get $750 million from Washington for the neediest families in Illinois. The so-called FMAP money — Federal Medical Assistance Percentage – has been tied up on Capitol Hill for months as states lobbied the federal government to extend the increased Medicaid reimbursements set to expire Dec. 31.

* Will lawmakers take more furlough days?: Steve Brown, spokesman for the Illinois House Democrats, said he was unaware if any of their members plan to. But, he said, House Speaker Michael Madigan has said he’ll talk to Quinn and lawmakers about the idea. Senate Republican spokesman Mark Gordon he doesn’t know of others, either.

* Study Aims to Find Best Way to Break Great Lakes-Mississippi River Link

* Quinn coming to Moline Friday to make funding announcement

* Metro East transit funding announced

* Money headed to Galesburg’s Amtrack station to renovate facility

* Quincy to get $6 million in state money to build ‘transit/Amtrak intermodal terminal’

* Quinn Defends Use of State Plane

* Quinn Mixing Bill Signings With Campaigning?

* State wants private firm to run Illinois Lottery, boost sales

* Field of Nightmares - the 2010 Gov Races

* Daley: “I’ve Never Had to do Fundraising”

* Higgins leading Mussman in 56th campaign contributions

* GOP has fundraising edge in Decatur-area races that are expected to be expensive

* State law: Newspapers’ public notices to appear online: Starting in December 2012, Illinois newspapers that print public notices — such as public hearing announcements or dates and details of real estate auctions — will also have to post them on PublicNoticeIllinois.com.

* Controversial new law aims to protect pedestrians: Illinois motorists must come to a complete stop for pedestrians in crosswalks, under legislation signed by Gov. Pat Quinn on Thursday. The measure requires a full stop even if the crosswalk doesn’t have a stop sign or traffic light.

* Coroner fees could rise under new state law

* Illinois drivers buckling up more than ever: DOT

* Quinn signs 2 pet-related bills: One of the laws signed Thursday requires the addition of a bitter flavor to antifreeze and engine coolant sold in Illinois. The other prohibits the private ownership of primates as pets.

* Jacobs bill to increase radiation safety measures signed into law

* How State Lawmakers Could Lead On Climate Change

* Budget boost probably won’t restore Collinsville pre-k

* SJ-R: FOIA process needs to move at faster pace

       

26 Comments
  1. - Montrose - Friday, Jul 23, 10 @ 9:58 am:

    The Put Illinois to Work story is a bit unfair. They have one anecdotal story of an admittedly bad mistake and that is blown up to say the program is not working?

    I am not going to defend the 4 week delay in payment, but it feels like folks have a pre-determined conclusion in their head - that the state cannot effectively run a program like this - and then search for stories to back it up. 22,000 people in jobs since April is nothing to sneeze at, and Quinn and IDHS should be given some credit for pulling it off.


  2. - cassandra - Friday, Jul 23, 10 @ 10:05 am:

    It’s hard to tell how much of Illinois’ businesses’ uncertainty is due to local conditions and how much to the regional and national economic malaise. The housing market is still wobbly in many parts of the country, many jobs which were lost may not come back, the actual costs of health care reform are uncertain, many economists believe federal taxes will have to go up to deal with the deficit, and so on.

    A lot of the problems are not state pols’ fault. But as long as they go around taking credit for the job creation that is occurring, much of it with federal and state tax monies, even if they had little to do with it–it’s our money, after all–they set themselves up to take the hits too, even the responsibility. Many citizens probably believe that the government can fully revive the economy. It can’t, as we have seen clearly in recent years.


  3. - Publius - Friday, Jul 23, 10 @ 10:05 am:

    How about the people getting terminated due to their contracts “expiring”?


  4. - downstate hack - Friday, Jul 23, 10 @ 10:06 am:

    900 phantom jobs from the high speed rail project? $98 million for a very profitable freight railroad?
    No wonder the voting public is angered.


  5. - Angry Chicagoan - Friday, Jul 23, 10 @ 10:21 am:

    The lack of stability in Illinois is a message that both Republicans and Democrats need to learn. The only people who have been responsible in this whole episode are the only people who have put forward the legislation to balance the budget and clear the arrears, namely liberal Democrats.


  6. - DuPage Dave - Friday, Jul 23, 10 @ 10:27 am:

    Put Illinois to Work was hobbled from the beginning with poor leadership, inexplicable delays and mediocre management.

    DHS staff were very strongly pushed to identify participants even though the jobs were temporary. Had the program been started sooner, more of the workers would have had time to prove themselves and perhaps be hired permanently, but the timing was apparently synched to the election cycle.

    Enjoying a furlough day today. Anyone else??


  7. - wordslinger - Friday, Jul 23, 10 @ 10:31 am:

    Well, there certainly is no shortage of economic instability around the world.

    What did Bernanke say the other day? “Unusually uncertain.” LOL, thanks a lot chief. Way to pump up the team. Is that like “Son of Irrational Exuberance?”


  8. - Montrose - Friday, Jul 23, 10 @ 10:32 am:

    *Had the program been started sooner, more of the workers would have had time to prove themselves and perhaps be hired permanently, but the timing was apparently synched to the election cycle*

    The program definitely should have been started sooner, but the timing was linked to the failure of previous leadership at IDHS taking advantage of these resources when they first became available through the recovery act. When Sec. Saddler came in, things got moving. Also, the money runs out September 30th (unless the feds extend it), so saying it is all a political decision is inaccurate.


  9. - VanillaMan - Friday, Jul 23, 10 @ 10:41 am:

    High speed rail is a boondoggle


  10. - cermak_rd - Friday, Jul 23, 10 @ 10:43 am:

    I guess I don’t see a problem with Union Pacific employees doing the work. OK, it might not directly employ Illinoisians, but these folks are going to need to sleep and eat somewhere while they are here working. They also may need haircuts, sundries, and entertainment.


  11. - So. Il Chairman - Friday, Jul 23, 10 @ 10:47 am:

    I was at the Williamson County restaurant and no, I repeat no fundraising was discussed. Somebody needs to get their facts straight. Families of soldiers killed in action were honored, everyone ate, and the gov left with the families to go to the Miner’s stadium. The families were honored again at the game. Get the facts straight please


  12. - Truth monger - Friday, Jul 23, 10 @ 10:52 am:

    Most of the job creation press releases sent out by Quinn are lies. Why is anyone surprised. Quinn and Deputy Governor Vaught really believe that they can headline their way to the election.


  13. - 3 beers to Springfield - Friday, Jul 23, 10 @ 11:06 am:

    IDOT knows the railroad can do this job much quicker, more efficiently, with less red tape and at lesser expense than state government. The job creation comes on the back end. Having a higher speed rail connection will enhance St. Louis, Greater Chicago, Bloomington-Normal and Springfield as places to work, live and visit. And construction will include purchase of rails, ties, rock and hauling jobs for area truckers and contractors.


  14. - dave - Friday, Jul 23, 10 @ 11:07 am:

    Most of the job creation press releases sent out by Quinn are lies.

    Interesting statement… got any evidence to support it?

    Deputy Governor Vaught

    Who?


  15. - DuPage Dave - Friday, Jul 23, 10 @ 11:16 am:

    Vaught is Director of GOMB (Governor’s Office of Management and Budget). The Deputy Governor title has been used from time to time (I think Edgar was fond of it) but it has no real duties.

    So far as I know Vaught has not been given that honorific.

    But he could afford to buy it !!


  16. - Retired Non-Union Guy - Friday, Jul 23, 10 @ 11:27 am:

    Some of that “high speed rail” work between Springfield and St. Louis (roughly speaking) has already been done by UP; they were going to do it anyway regardless of the source of the funds to support their increased freight plans. One of my friends worked on it. Right now he’s laid off … and hopefully he’ll be recalled when some of the money reaches UP. So do we count him as a new job or a saved job?


  17. - Loop Lady - Friday, Jul 23, 10 @ 11:49 am:

    Rich, I’m not sure why you need to go negative in any respect when it comes to Quinn pushing thru high speed rail wether or not it creates IL based jobs…employees of the project will spend money here while they are building it, it will enhance community development where stations are located, and boost tourism…I guess it’s easy to sit on the sidelines and wax negative…BTW, I am not on a state computer and am on vacation all you state employee heel nippers…


  18. - Vole - Friday, Jul 23, 10 @ 12:11 pm:

    All the stimulus funds for high speed rail should have been spent in a part of the US that could support a “real” high speed rail. What they are calling high speed rail in Illinois is a joke. And it won’t mean squat if the trains don’t run on time or get stuck sitting on the sidelines in Chicago. Corporate welfare is all this plan is here.


  19. - True HSR fan - Friday, Jul 23, 10 @ 12:38 pm:

    Let’s lay out the truth about IDOT’s miserable little efforts at not-very-high-speed rail:

    220 miles per hour service is feasible and fiscally viable, because trains at that spped compete effectively with cars and planes. The Asians and Europeans proved this a long time ago. That’s why states like California and Florida are building true HSR service. That’s why domestic and foreign investors are getting ready to invest in those states’ efforts.

    IDOT, on the other hand, opts to spend your tax dollars in a paltry effort at 110 mph service. Rather than build dedicated lines (which would create thousands of jobs), they give your money to private railroads, who then spend it to improve their private property. What a joke.

    And METRA is going to do the same thing with the money from state bonds.

    Why? Because the folks at IDOT and Metra and the governor’s office are more interested in serving the freight railroads than in serving the passengers. And that’s why they’re going to plow billions of dollars into improving the tracks of the Union Pacific with no assurance that passenger trains will even run on time.

    Last year, Quinn and IDOT killed legislation that would have created an independent body to attract iinvestors to build true high-speed rail service - like they’ve done in Florida.

    Maybe someone should investigate this clear misuse of public money. The last time I read it, the State Constitution said that public funds can’t be used to provide private benefit. I wonder what Bill Holland or Lisa Madigan would say if they were aske for an opinion. How much money has the UP and other railroads given to Quinn?


  20. - Anonymous - Friday, Jul 23, 10 @ 12:40 pm:

    “The only people who have been responsible in this whole episode are the only people who have put forward the legislation to balance the budget and clear the arrears, namely liberal Democrats.”

    What a joke!


  21. - JustaJoe - Friday, Jul 23, 10 @ 12:47 pm:

    Dumb project. No jobs. Issues with crossings. And it’s not even real high-speed rail.


  22. - Angry Chicagoan - Friday, Jul 23, 10 @ 3:33 pm:

    To all those denigrating high-speed rail as a boondoggle, I ask you this? Is the boondoggle high speed rail? Or is it the general condition of the government?

    Let’s put it this way. If the Illinois high speed rail project simply does what it says it’s going to — four hours from Chicago to St. Louis, increased frequency of trains — I’ll switch from driving to rail for downstate trips because, for the first time, rail will be faster than driving (not to mention competitive with flying). Even at 110mph. Even on conventional tracks.

    Our state government so far hasn’t even set a target for catching up on its bills, or reforming pensions, or meeting current liabilities. That’s the scandal. Not high-speed rail.


  23. - Cincinnatus - Friday, Jul 23, 10 @ 4:09 pm:

    Angry Chicagoan,

    If it would pay for itself, even after the subsidized upgrades to the infrastructure, I’d support it in a heartbeat. But do we really expect this train to be different than Amtrak that needs billions in annual taxpayer subsidies just to operate?

    I really don’t mind taxpayer funding of infrastructure projects. When we’re done paying the bill, at least there are tracks, bridges, and roads left behind. It’s these blackholes that I object to, and I am sure other taxpayers do too.


  24. - Rich Miller - Friday, Jul 23, 10 @ 4:13 pm:

    Cincinnatus, I think folks out in your neck of the suburbs would rather have subsidized transit like Metra than not, whether or not they drive to work. If they drive, all those extra cars would make their already miserable commutes worse. If they don’t drive, they’ll be stuck in that same traffic.

    Think of it as a small, shared, worthwhile price to pay.


  25. - Anonymous - Friday, Jul 23, 10 @ 4:36 pm:

    What no Blagojevich left a mess defenses? That’s a surprise. Oh wait see Montrose at 10:32 a.m., guess I spoke too soon.

    Quinn Administration puffing come from the top. From the Quinn man himself. If Quinn and his peeps want to take credit for everything from the sun shining to the creation of the air conditioning, then they need to take hits when deserved. And this puffery with the jobs stuff is worthy of hits. Every time Quinn’s lips start moving and his jawls start flapping I am reminded of the old Tom & Jerry cartoon about the white mouse not exploding, and the classic line DON’T YOU BELIEVE HIM!

    With all the Quinn Administration workers on this blog everyday, it’s a wonder how anything gets done by the administration. Hence all the puffery or smoke and mirrors? Now, some claim to be on vacation, but what about all the times when they weren’t claiming to be on vacation?


  26. - cermak_rd - Friday, Jul 23, 10 @ 5:43 pm:

    Amtrak doesn’t make a profit because it has the constraint of having to have and run depots in every little podunk town. Similar to the post office, you can either have universal service or you can have profitable service, you can’t have both and make it affordable to use. Yes, the PO is still affordable, but it would be much more so if it didn’t have to serve remote towns in Alaska or run Post offices in little towns of 1000 residents.


Sorry, comments for this post are now closed.


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