Illinois Senate President John J. Cullerton announced today that the Senate will be in session beginning at noon on Tuesday, Dec. 13.
That’s understandable. The Senate wants to see what the House does on Monday before they return. If the House fails to approve a tax cut package, there’s no sense for the Senate to be in town.
A big Downstate manufacturer is now seeking the same Illinois income tax incentives sought by Sears Holdings, according to several sources close to the legislative negotiations. The development came as Speaker Mike Madigan summoned the Illinois House to a special session next Monday.
Sources identified the Downstate company as Edwards County-based Champion Laboratories, one of the world’s largest makers of filters for industry and vehicles. Two key legislators said they believed Champion would hire additional workers in Illinois, if the tax incentives were approved. Voice mail messages left for a Champion Lab’s spokeswoman were not returned Tuesday evening.
Madigan’s summons to House members said the Revenue Committee would convene at the State Capitol Monday at 10 a.m. Sources said no final deal had yet been reached. But they hoped one would be ready for an up or down vote by the time legislators returned to Springfield.
Intense negotiations continued behind the scenes Tuesday on a series of proposed tax law changes. After discussing a possible move to Indianapolis with that city’s mayor last Friday, executives of CME Group were still hopeful that Illinois would grant them the same tax treatment it accords virtually every other corporation. Other companies are taxed only on what they sell in Illinois, not on their sales in other states or countries. If applied to CME Group, those rules would cut about $85 million annually from its Illinois income tax. CME Group is the corporate parent of the Chicago Mercantile Exchange and the Chicago Board of Trade.
Champion just bought another company and will likely be moving jobs to southern Illinois if this tax deal is approved.
As states have struggled to balance their budgets by cutting services, laying off workers and raising taxes, a study to be released on Wednesday suggests that many profitable Fortune 500 companies have not been paying as much in state corporate income taxes as the average levied on American companies, with some big firms paying none at all in recent years.
A few companies, including DuPont, reported paying no state corporate income taxes from 2008 to 2010 even as they reported profits, according to the study, which was conducted by Citizens for Tax Justice and the Institute on Taxation and Economic Policy, nonprofit research organizations in Washington that advocate a more progressive tax code. (A spokeswoman for DuPont said that she had not seen the study, but that “DuPont complies with all tax laws and regulations” wherever it operates.) […]
To gauge how much Fortune 500 companies are paying in corporate income taxes, the study looked at the 265 of them that are both profitable and disclose their state tax payments. It found that 68 reported paying no state corporate taxes in at least one year between 2008 and 2010. All together, the study found that the companies reported $1.33 trillion in domestic profits from 2008 to 2010, but paid states only about half of what they would have if they had paid at the average corporate income tax rate of all states — reducing their state taxes by some $42.7 billion.
Matthew Gardner, the executive director of the Institute on Taxation and Economy Policy, said that state corporate-tax collections have dwindled for several reasons. Many states calculate their taxes based on federal corporate taxes, so some recent federal corporate tax breaks have lowered their collections. Other states have granted their own tax breaks to try to promote economic development, or to lure companies from other states. Companies, meanwhile, have grown adept at reducing taxes and finding tax shelters.
A Milwaukee-based temporary staffing company has laid off nearly 500 employees in Illinois, blaming the high cost of the state’s workers’ compensation system.
An executive of Parallel Employment Group said Tuesday that the company cut jobs in Illinois because it wanted to lower its workers’ compensation costs.
Kirk La Du, executive vice president of operations, said the company, which also operates in Wisconsin and New York, incurred 87 percent of its total workers’ compensation costs in Illinois. The state accounts for about 35 percent of its revenues, he said.
“The only reason we are downsizing is competitive issues related to workers’ compensation,” La Du said. “It seems foolish to us to continue operating in a state where workers’ comp made it difficult to make money.”
The “vast majority” of Parallel’s temporary roster will be reassigned to Andrews & Staff Force Inc., a staffing firm with multiple Chicago-area locations, Mr. La Due said.
• The Chicago Transit Authority reported to the state it might eliminate 93 jobs as a result of a leaner 2012 budget
• Ameren Energy Generating Co., a St. Louis-based electric power distributor, will shed 53 jobs at its power plant in Meredosia, the Central Illinois town near the Illinois River. The plant was selected as the site of FutureGen 2.0, a project in conjunction with the U.S. Department of Energy’s clean-coal power program that the company claimed would bring 900 jobs to the area. But Ameren said it’s pulling out of the project.
• Syms Corp., the Secaucus, N.J.-based parent company of Filene’s Basement LLC, will shed 107 jobs when it closes Filene’s Basement stores on State Street and Michigan Avenue. The company declared bankruptcy in early November, after putting itself up for sale in May but finding no buyers.
• Tinley Park Mental Health Center in the south suburbs reported that it will close and eliminate 180 jobs, according to the state. But a budget deal last week would allow the facility to remain open through next June, according to the Department of Human Services.
• Roscor Corp., an audio and multimedia wholesaler in northwest suburban Mount Prospect, will lay off 102 employees, according to the report. Mitch Roston, the company’s co-owner, said the number of eliminated jobs was closer to 85 and that the company maintains between 35 and 40 employees. He said Roscor is suffering in the poor economy and will undergo a restructuring.
• General Automation Inc., a north suburban Skokie-based manufacturer, will shed 65 jobs in a company consolidation. A company human resources employee declined to comment.
• USA 3000 Airlines, a small Newtown Square, Pa.-based carrier that operates at O’Hare International Airport and flies mainly to Mexico, warned of a possible layoff of 86 employees in the event of a company sale. A representative did not return a call for comment.
• Computer Sciences Corp., a computer programming company in west suburban Oakbrook Terrace, will eliminate 79 jobs due to poor business conditions.
* Let’s start with the winners from yesterday’s nominations. Keep in mind that there are no appeals here. All decisions are final, so don’t waste your time complaining in comments because I’ll just delete you.
I have to heartily endorse Ross Isaac’s, not only for being the best food in town but for also attracting a slew of legislators every night. If you get a table at the back, working your way through that place saluting and shaking hands is like a scene out of Goodfellas (without the mobsters, of course).
A few weeks ago I took a Sun-Times editor out to dinner. I knew that if I took her to Ross Isaac’s she’d have a memorable night, and, of course, she did, and so did I. The restaurant is outside the “sandbox,” but the owner is extremely session-friendly. Delicious food, great crowd, prompt waitstaff, solid owner. You cannot ask for more than that. Ross Isaac’s is tops. Go there.
* Runner-up goes to Sebastian’s Hideout (down in the basement). “Wizzard of Ozzie” nominated it for best bar, but the Hideout is also a a fine restaurant…
Basement at Sebastian’s. Feels more like a political hangout than anywhere in Springfield and a lot of work gets done there.
Sebastian’s Hideout is what Norb Andy’s used to be, but with far better food. Try the potato soup. Heaven. Also, the firefighters love it and I love me some firefighters.
I’ve found myself spending more time at the Sangamo as I get older. It has become my default bar. Yes, there are the occasional snooty townies, but they do keep out the riff-raff - I know this because I was almost kicked out a few years back. One must maintain one’s composure. Also, it’s currently the place for “leader watching.” Madigan and Cullerton are semi-regulars at the club’s restaurant. And you won’t find better service anywhere this side of Chicago.
The place is packed seemingly every night during session. Mostly lobbyists and staff, but a few legislators too. I think most members probably prefer the more reserved grill room at the Sangamo Club or the Hideout at Sebastians. My vote is for JP Kelly’s though for top notch service and stiff cocktails.
I always know I can find somebody at JP Kelly’s when I’m desperate for a story. Everybody goes there.
Note to the new Boone’s Saloon owners: You need one good year under your belt and you’ll be a serious contender next time around. And I haven’t been to this bar since the new owners took over, but a nomination by “Old School” was so intriguing that I have to award it an honorable mention…
Bar: Scandals, not everyone goes there but the people who do are the people you want to lobby.
I’m gonna have to check it out.
* OK, now, on to today’s nominations…
* Best Springfield hotel
* Best place for lunch near the Statehouse
Make sure to explain your nominations. Sincere intensity counts far more than the number of nominations. Also, make sure to nominate in both categories. Thanks.
* The hearing starts back up this morning at 10 o’clock. Blagojevich will likely testify near the beginning. He’ll be sentenced later today. A list of the counts against Blagojevich is here.
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[Password protection removed since others have picked up on the story.]
* 4:31 pm - The House is coming back on Monday. No word yet on the Senate. [ADDING: I’m hearing maybe Tuesday for a Senate return.] From a memo sent by House Speaker Michael Madigan…
To: All House Members (District Office & Springfield Office)
Date: December 6, 2011
Re: House Session
The House will convene on Monday, December 12, at 12 noon.
The schedule will be:
Monday, December 12, 2011
10 am House Revenue Committee, Room 114
11 am House Republican Caucus
12 noon House convenes Floor Session
The House plans to convene and adjourn on Monday, December 12.
A spokesman for Senate President John Cullerton said that while he has not yet announced anything, “Tuesday is a good possibility.”
House Revenue Committee Chairman John Bradley, D-Marion, who has been leading negotiations on a big tax-break deal, said nothing yet is complete, but seemed to suggest that just a a few loose ends need to be tied up.
The fact that a session has been called “is not a bad sign,” Mr. Bradley said. “We want to get this done before the holidays and have some certainty.”
llinois lawmakers will return to session Monday to consider a series of tax breaks, hoping to head off departure of Chicago’s largest derivatives exchanges and a major retailer to other states.
Only a week ago, the state House of Representatives overwhelmingly rejected the measure, which would provide tax relief to CME Group Inc. (CME), CBOE Holdings Inc. (CBOE) and Sears Holdings Corp. (SHLD).
It isn’t clear whether legislative leaders and Democratic Governor Pat Quinn have reached agreement on how to present the legislation to the General Assembly. It is possible lawmakers will vote on each of the tax breaks individually, rather than grouped together in a large package.
“It’s a work in progress,” Quinn’s spokeswoman Brooke Anderson said Tuesday night.
* The folks at the Indiana Economic Development Corporation are making some bold claims these days. For instance, the Economist reports…
Katelyn Hancock, a spokesperson for the Indiana Economic Development Corporation, says her state has been in competition with Illinois 43 times this year to win new investment—and won 40 times.
Already this year, 16 companies moved all or a portion of their operations from Illinois to Indiana, which the IEDC estimates brought the state 1,500 new jobs and more than $305.1 million in investment.
* I asked Gov. Pat Quinn’s spokespeople for a response and they didn’t directly dispute Indiana’s numbers…
Governor Quinn is focused on creating jobs and working hard to make Illinois an even more attractive place to do business not only in the Midwest, but globally. The Governor has an aggressive long-term strategy for bringing quality jobs to Illinois, which includes innovation, exports and foreign investment, business-friendly legislation, and addressing infrastructure needs. And we don’t need to exaggerate our success; the proof is in the numbers.
According to the U.S. Labor Department, from October 2010 to October 2011, Indiana lost 12,400 jobs, a 0.4 percent decline in employment. Illinois added 60,500 jobs in that same time period. Illinois added 30,000 jobs in October, more than any other state. Since January 2010, Illinois has added 108,100 jobs ranking Illinois first in the Midwest in job creation. Illinois is home to 10 companies in the Fortune 100, 19 in the top 250 and 31 in the top 500. Indiana, by contrast, has five in the top 500. While Illinois’ corporate tax rate is at 7 percent, Indiana’s corporate rate is 8.5 percent - 20 percent higher than Illinois).
However, our competition isn’t Indiana, it’s India. The Governor is focused on making sure Illinois remains competitive on a global scale. We’re in a National recession, this is a national issue that every state is facing. The reality is that Midwestern states need to work together more, not less, to market the region to global visitors and business. An approach that focuses on picking off a neighboring state’s business is short-sighted and is a losing strategy for our region.
“Right to work” is not a strategy to achieve economic progress and create jobs.
* An Indiana news story from last month suggests the Hoosiers are prone to exaggeration…
In his zeal to sell Hoosiers on a right-to-work bill, House Speaker Brian Bosma, R-Indianapolis, appears to be playing fast and loose with the facts about job creation in Indiana.
Several times this week, Bosma has proclaimed Indiana “the envy of the Midwest in our job-creation efforts,” and said if Indiana enacted a right-to-work law it would “remove the last barriers to job creation” and “help the quarter of a million unemployed Hoosiers get back to work.”
But far from being best in the Midwest, data released Tuesday by the U.S. Labor Department shows Indiana is not creating jobs; it’s losing jobs.
From October 2010 to October 2011, Indiana lost 12,400 jobs, a 0.4 percent decline in employment. The only state to do worse was Georgia, a right-to-work state, which lost 27,900 jobs, or 0.9 percent of employment year-to-year.
Each of Indiana’s neighboring states — Illinois, Michigan, Ohio and Kentucky — all added jobs during that same period, including 60,500 jobs in Illinois and 48,900 jobs in Michigan.
None of those states has a right-to-work law.
* Indiana is so fervent about the idea of wooing CME Group that at least two towns are competing to host the company. Indianapolis is one, suburban Carmel is another…
CME Group appears to be the subject of a Nov. 3 letter from Carmel Mayor Jim Brainard. In it, Brainard offers $150 million in tax incentives, plus free land and expedited permits for an 800,000-square-foot headquarters, and a 425,000-square-foot “data center facility.”
* But despite the fact that the Board of Trade contributed heavily to Gov. Quinn’s campaign last year, Sen. Bill Brady has been an outspoken proponent of its tax cut…
State Sen. Bill Brady, R-Bloomington, says he believes a tax break deal to help CME Group, Sears and some small businesses can still be done by the end of the year.
The Illinois House overwhelmingly rejected the plan last week after the Senate passed the measure.
“I’ve had some discussions with some folks (in the House) that I’ve asked to step up and be leaders in the Chicago area to try to get this done,” Brady said.
You don’t see that too often in Illinois. So, whatever you think of the CME proposal, kudos to Brady.
The La Salle County Board will hold its January meeting at the Knights of Columbus Hall in Ottawa to accommodate those concerned about the plan to build a 315-acre sand mine next to the east entrance of Starved Rock State Park on private property.
If I ever leave here I hope never to return
If I get that van back, Man, the road I’m gonna burn
Right now my future’s in the hands of the boys down at Firestone
Stuck in Indianapolis feeling all alone
* I told subscribers a bit more about one of House Speaker Michael Madigan’s Democratic primary opponents this morning, and Greg Hinz adds to the story…
In a phone interview Monday evening, [Michele Piszczor] insisted she’s not a Republican plant, despite some indications to the contrary, but merely a recent college graduate who became “disgusted” at what she saw when she moved back home a few years ago. […]
That having been said, there’s been lots and lots of buzz about who sent Ms. Piszczor.
Like my report yesterday that Jim Edwards, a consultant who often works for Republicans, is chairing her campaign. (Ms. Pisczczor says Mr. Edwards is a “family friend.”) Or a report in Capitol Fax this morning that megabucks conservative activist Jack Roeser is bankrolling her. (Mr. Roeser was not available for comment.)
* I also talked to Jim Edwards today. He said that Roeser hadn’t yet committed to bankrolling Piszczor. But Jon Zahm, whom I quoted in my piece today, says he stands by his original quotes, which were that Roeser “is supporting” Piszczor.
Edwards chairs Piszczor’s campaign and also runs Roeser’s Illinois Republican Renaissance PAC (Roeser’s Family Taxpayers Network PAC has been dissolved).
That’s no mere coincidence.
* By the way, I concur with Greg’s belief (and laid out why to subscribers this morning) that the other two Democratic primary candidates are likely put-ups by Madigan to dilute Piszczor’s vote. They obviously knew Piszczor was circulating petitions. You can’t sneeze in that district without Madigan finding out about it. This, however, is troubling…
Since she started circulating her nomination petitions, Ms. Piszczor says her car tires have been slashed and its door beat in. “I’ve had city trucks going around my house at 1:30 a.m. and I wake up to find flat tires,” she says.
Then again, one of my tires was slashed while my car was parked in front of Madigan’s house one night many years ago, back when I briefly lived in the 13th Ward.
Hinz also reports that Piszczor hasn’t voted since 2008.
* You have to admit that it’s more than a little ironic that Speaker Madigan was repeatedly whacked in the media last year for allegedly putting up a Republican candidate against himself, and now a bunch of Republicans are backing an alleged Democrat against MJM.
* Let’s get this thing started. Your nominations, please…
* Best political bar in Springfield
* Best political restaurant in Springfield
Make sure to explain your answers. Remember, this is far more about intensity than raw numbers. Also, please nominate in both categories. Thanks much and have fun.
*** UPDATE 1 *** I just talked to a DuPage Republican who was told that the Walsh announcement will take place this Thursday. Stay tuned.
*** UPDATE 2 *** As if on cue, the brand new press release…
Congressman Joe Walsh will make an important re-election announcement this Thursday at the Chicago Tea Party meeting. After spending the last week discussing his options with family, supporters, and party officials, Congressman Walsh believes the choice is clear.
Walsh stated “During my first year in office I upheld my campaign promise to do everything I could to rein in the mistakes that were made by the Obama Administration. From voting to repeal Obamacare, cutting spending, cutting taxes, and cutting the size of government, I have made it my mission to stop and roll back the damage that President Obama and Nancy Pelosi created. At the same time, I have also challenged my own party leadership when I think they did not go far enough. It is for that reason that I was one of only 22 Republicans who opposed the compromise that created the failed Super Committee.
I did not run for Congress to become part of Washington, I went to Washington to change the way Washington worked. It is why I have pledged to only serve three terms, it is why I turned down my health care and pension, it is why I sleep on my couch, and it is why I come home every single week and have hosted close to one hundred town halls.
During those numerous town halls I have heard from Republicans, Democrats, and Independents who feel as if both parties have failed them, and that Washington is out of control. Like me they feel as though their country is being taken away from them, and that it is time to be bold. Whether you call them tea party members or just frustrated, patriotic Americans, this group of individuals is growing. They are fed up and want change now. I can think of no better place to announce important news concerning my re-election than in front of these folks at the Chicago Tea Party meeting.
Tea Party Rep. Joe Walsh (R-Ill.)– who boycotted President Obama’s jobs speech, said Obama should “quit lying” and that the president “got no shame,” waited in line with his wife Monday at the White House for a photo with Obama and First Lady Michelle.
The Obamas are hosting a series of holiday parties and Monday was the night where members of Congress were invited to welcome the holiday season. Someone who was at the party tipped me that Walsh was there and was in the photo line.
Update 1 regarding the photo line.Justin Roth, Walsh’s chief of staff told me Walsh was at the White House holiday party but “most definitely” did “not take a picture with the president…did not meet him.”
Rep. Joe Walsh (8th), not one to steer clear of attention, remained curiously absent this week.
The freshman Republican said over the weekend he’d announce Monday which district he picked to run in for re-election. Monday came and went with no answer.
In September Walsh announced he would run against 14th District Rep. Randy Hultgren in the March primary. But rumor had it last week he may return to the 8th district, where he’d face Democrats Tammy Duckworth or Raja Krishnamoorthi.
“Part of me just doesn’t want to give the district to the Democrats,” the freshman Tea Party Republican said during a town hall meeting Saturday in St. Charles.
It’s not known when Walsh will come to a decision, and calls to his office Monday went unanswered.
* The DCCC sent out a press release late yesterday afternoon mocking Walsh…
Joke: How to Silence Congressman Joe Walsh?
Punch-line: Ask him where he’s running for re-election.
Although Congressman Joe Walsh (IL-08) claimed he would announce his future political plans today, he’s remained silent-a rarity for the cable-hungry Congressman who actually screamed at his own constituent. Last week, Congressman Walsh reportedly was mulling over running in the new 8th and 14th Congressional districts.
“Who knew that asking Congressman Joe Walsh about his favorite subject, himself and his political career, would elicit silence?” asked Haley Morris of the Democratic Congressional Campaign Committee. “Perhaps Congressman Walsh is starting to realize that redistricting lines aren’t the problem, it’s his track record in Washington as a deadbeat on jobs. No matter where Congressman Joe Walsh chooses to run, he will have to defend pushing an extreme, out of touch Republican Congressional agenda that ends Medicare and gives out more tax breaks to millionaires and Big Oil.”
I’ve tried reaching Walsh several times. No response yet.
* The hearing begins at 10 o’clock this morning. Blagojevich is not expected to be sentenced until tomorrow, but he could testify today. We’ll see. I’ll be posting stories and Tweets throughout the day. Apparently, there’s a crowd of reporters outside Blagojevich’s house as of early this morning, and we could have live video soon. A handy list of the counts against Blagojevich is here.
Blackberry users click here, iPad and iPhone users remember to use the “two-finger” scrolling method…
* I’ll post a Blagojevich-only live blog later this morning. Meanwhile, BlackBerry users click here, iPad and iPhone users remember to use the “two-finger” scrolling method…
