Capitol Fax.com - Your Illinois News Radar » Some encouraging economic news, but yet another corporate tax incentive is questioned
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.


* Question of the day
* Group threatens suit over Senate tax hike
* *** UPDATED x1 *** Andersson warns of GOP revolt
* HDems examining Senate's plan, not their own
* IMA urges veto of Senate's workers' comp reform bill
* You gotta be kidding me
* Helping the medicine go down
* Yeah, this will help
* *** LIVE *** Session coverage
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Good morning!
* Pritzker attacks Rauner property tax freeze as "political stunt," outlines his own idea
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

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

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

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

...............
<


Loading


* Responsible Budget Coalition: Illinois needs re.....
* Audit panel reviewing state lease deal that som.....
* Illinois Budget Fight Could Affect 2018 Elections..
* House Dems discuss potential tax increase..
* Illinois House appropriations committees discus.....
* Illinois must make a budget first – then it can.....
* All options remain on table as budget talks con.....


* Illinois House continues debate over income tax increase
* House Democrats meet, discuss potential tax increase
* House Democrats meet, discuss potential tax increase
* Chicago says teen birth rates in city continue to fall
* Wreath-laying to honor servicemen at Chicago park
* 29-year-old Chicago-area man slain in Janesville, Wisconsin
* Indiana court takes up Lake Michigan property rights case
* Illinois State University cybersecurity program gets $3M
* AARP seeks senior community builders for awards
* U of Illinois trustees' retreat to address free speech

* Odds against Springfield casino after amendment blocked
* All options remain on table as budget talks continue
* Illinois farmers may soon be growing industrial hemp
* U of Illinois trustees' retreat to address free speech
* Big retirement payouts tiny part of big pension mess
* Big pensions tiny part of big pension mess
* Senate approves workers' comp changes
* Push for downtown Springfield casino taking shape
* Push for Springfield casino taking shape
* Push for smaller Springfield casino taking shape

* Like our roundup? Share it around.
* The place where media pain hurts most: Springfield
* For the GOP, it's all about the Benjamins
* Online lender Avant's reboot still hasn't yielded profit
* Mike Keiser knows where golf is alive and well. (It's not Illinois)


* ‘With-it’ audiences keep Sarah Silverman coming back to Chicago
* SUV drives onto sidewalk, damages gas meters in Back of the Yards
* Cadillac CT6 contends with world’s best luxury sedans
* Fire officials: Person shot on I-57 on Far South Side
* Police warn of South Side robberies
* Grand South Side project calls for Obama’s vision and values
* 2 wounded in Archer Heights shooting
* Police warn of armed robberies in Lincoln Park, Old Town
* Man wounded in South Side shooting
* 2-year-old girl struck by car, critically injured in Englewood


* All aboard: Joliet Rocket steamin' into town
* Cheap out: Five fun things to do for free
* Quigley says Russia probe is 'in its infancy'
* 15-year-old boy dead, 10 others wounded in city shootings
* Filmmaker Ken Burns turns eye to Vietnam War
* LINDA C. BLACK HOROSCOPES for 5/29/17
* A Memorial Day request: Hoist a glass for Red today
* 2 wounded in I-57 shooting
* Where are the new security measures Trump promised?
* A fix for national parks? How a risk to the environment could do some good


» Illinois Budget Fight Could Affect 2018 Elections
» New Lawsuit Accuses Imprisoned Former Speaker Of Sex Assault
» 17-Month Old Semaj Crosby’s Death Linked To Systemic, Family Failures
» 17-Month-Old Semaj Crosby’s Death Linked To Systemic, Family Failures
» Senate Passes Workers' Compensation Bills — Most Republicans Reject It
» State Week: Tax Hike Getting Cold Shoulder
» Popular Music Store Finds New Home On Navy Pier
» For West Side Students, Playing Outside Is Protesting Against Gun Violence
» Offline And On Paper: Chicago Teens Make Zines In An Ephemeral World
» Judge Refuses To Dismiss Murder Case Against Chicago Cop Who Shot Laquan McDonald


* Odds against Springfield casino after amendment blocked
* All options remain on table as budget talks continue
* Illinois farmers may soon be growing industrial hemp
* Our View: Remember the reason for Memorial Day
* Responsible Budget Coalition: Illinois needs revenue to thrive
* George Will: How to restore American self-reliance
* U of Illinois trustees' retreat to address free speech
* Bernard Schoenburg: Lawmakers taking heat, but is a charity announcement so bad?
* Big retirement payouts tiny part of big pension mess
* Statehouse Insider: Seems like we've been this way before


* Life remembered: Urbana icon 'an all-around good guy'
* 'Emotional' Memorial Day ceremonies slated today
* Those Who Served: Korean language put man in OSS
* There’s a slight chance of storms this afternoon, but Memorial Day should stay mostly sunny
* Parade, services part of Memorial Day in B-N, area
* Healing Rides rolls along, seeks more guests
* Area Calendar 5/29/17
* Daily Digest 5/29/17
* Sisters recall father's contributions to war effort
* Davenport flood update


* New Barcelona coach will inherit Messi_ and the team's flaws
* Navy parachutist dies during demonstration over Hudson River
* LEADING OFF: Trout gets checked, Price makes season debut
* Dillon earns 1st win at Coca-Cola 600
* Kushner's Russia ties questioned as Trump cites media 'lies'

* Batavia resident announces candidacy for 1...
* Teacher raised in Yorkville running agains...
* Protesters continue die-in at US Rep. Rand...
* Jim Walz Will Challenge Randy Hultgren for...
* PHOTOS: Protesters stage die-in at Randy H...
* US Rep. Randy Hultgren's office the scene ...
* Second Democrat announces bid to unseat Hu...
* Sweet: Hultgren, Roskam, Kinzinger avoid b...
* Local Republicans, Democrats praise appoin...
* Dems shift financial debate to spotlight T...

* Trump says he favors more money for health......

* 'Inexcusable:' Durbin, Duckworth slam HUD ......

* Losers!
* Illinois House Democrats threaten special education funding with HB 2808.
* Memorial Day; ‘yea’ or ‘nae’ for those who do their military service?
* A remarkably clear explanation of Illinois public pension issues.
* Distractions.
* Democracy in Chicago? It’s complicated.
* The Walgreen's on 95th & King Drive is closing
* Volunteers Needed For Windy City RibFest Beer Tents
* Broadway & Wilson Payless Shoesource To Close
* Fresh Harvest Market Opening Soon?


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* Xiaomi Mi 6c may already be in the works with Snapdragon 660 SoC and 6GB RAM
* U.S. Could Expand Tablet and Laptop Ban to All International Flights
* The company is struggling, but the LeEco Le Pro 3 phone is a steal at $250 from Best Buy
* This is apparently the Samsung Galaxy C10, the company’s first dual camera phone
* No more Moto Z2 Play question marks after this, and all the E4 specs are also leaked
* OPPO R11 leak has Plus, specs and cardboard cut-out models
* ARM debuts Cortex-A55, Cortex-A75 and Mali-G72 GPU

* White Sox call on Holmberg vs. Boston, Price
* Save 50 percent on MLB.TV this weekend
* Hansen fans career-high 15 for Kannapolis
* Sox bats back Gonzalez's perfecto bid
* Gonzalez gives 'mates 'perfect' thoughts
* Gonzalez gives mates 'perfect' thoughts
* Gonzalez retires first 18 Tigers in Sox win


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

Archives
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
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




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