47 Comments - PublicServant - Monday, Dec 7, 15 @ 9:08 am: ===Gov. Bruce Rauner won’t even talk about crafting a state budget until his nonbudget demands are met. He breezed past the very real hardships created by the lack of a budget on Dec. 1, telling reporters. “We’ll take short-term pain for big long-term gain.”=== Translation: NonBudget Demands = Anti Union NonStarter Demands. Rauner authored the current impasse, and continues to do so. There will be no budget unless he drops his anti union demands. And when he flippantly says “We’ll take short term pain…”, what would that short term pain be that he’s felt? - Frenchie Mendoza - Monday, Dec 7, 15 @ 9:08 am: The other way to look at the issue — and the way I actually do look at it — is why does a governor choose to place all his (public, at least) emphasis on business owners? Yes, in the theory, they’re the ones “creating jobs.” But no, in (my experience and) reality: they prefer profits in their pockets over “additional jobs”. Or “paying a fair wage.” Another way to look at it — and the way I actually do look at it — is what does more good to society? Assisting a victim of domestic violence? Or helping business owners increase the amount of money in their wallet. Obviously, my choice is the former. The latter is simply how Rauner views the world. - Anonymous - Monday, Dec 7, 15 @ 9:14 am: Rauner doesn’t seem to comprehend the long-term pain and loss his short-term impasse is causing many individuals in this state. - Honeybear - Monday, Dec 7, 15 @ 9:17 am: -decidedly not pro-business laws.- I’d super appreciate if someone could elaborate on what Rich means by this. Forgive me if he did in his article. I’ve exceeded my free article allowance on Crains and couldn’t read the rest of the article. I was about to pounce but I am quite proud of myself that I stopped to get the facts first. I’m slowly learning. - Oswego Willy - Monday, Dec 7, 15 @ 9:21 am: ===As we all know by now, Gov. Bruce Rauner won’t even talk about crafting a state budget until his nonbudget demands are met. He breezed past the very real hardships created by the lack of a budget on Dec. 1, telling reporters. “We’ll take short-term pain for big long-term gain.”=== I found it amusing that Rauner points to “500 bills passed” and Rauner is a victim of lacking an understanding of the processes of the General Assembly. Further, this “passive” interest in Madigan… again, Madigan… needs January to arrive for the simple majority to arrive to pass budgetary, and turnaround agenda “gives”. Ugh. Governor, it’s YOU that need 71 to drop to 60, and you better make clear to your House Members, they will… they will be “Green”, including, possibly, the largest tax increase in Illinois history. “How can you say that?!” Well, the FY2015 “fix” will be cited when Madigan demands 47 GOP “Green”. Maybe as part of understanding the real problems, Rauner needs to completely understand this “passive” attempt to be “engaged” may be great to the public political image the governor wants, but… in governing, Rauner can and will demand his solutions to what he believes are the real problem(s), and Rauner can’t passively engage and say it’s up to Madigan, when Rauner must realize that the math is going to rely on the 47 GOP keys he controls, and Dunkin’s key he demands. Illinois needs a budget. Will it take kids coming home from Charleston, Macomb, DeKalb, Edwardsville, Carbondale… Champaign… for Rauner to realize “I’m killin’ Illinois, just killin’ this state”? - Frenchie Mendoza - Monday, Dec 7, 15 @ 9:21 am: @honeybear: I used this link to read the full article (found via a Google search on the title): http://www.chicagobusiness.com/article/20151205/ISSUE11/312059995/illinois-politicians-cant-fix-problems-unless-they-admit-what-needs-fixing - Frenchie Mendoza - Monday, Dec 7, 15 @ 9:23 am: Whoops — scratch that. Looks like you have to go in via Google to read the full article: https://www.google.com/#newwindow=1&safe=off&q=Illinois+politicians+can%27t+fix+problems+unless+they+admit+what+needs+fixing - Big Joe - Monday, Dec 7, 15 @ 9:27 am: Totally agree with both Public Servant and Frenchie M. Very well stated, and wold have been my point exactly. - Big Joe - Monday, Dec 7, 15 @ 9:35 am: Every intelligent person knows that the only way businesses will ad jobs is when the DEMAND for product increases, and only then. Making things nicer for the business, expense-wise, will only bring more profits to the owners, making them smile, and will not create more jobs. - wordslinger - Monday, Dec 7, 15 @ 9:37 am: –”We’ll take short-term pain for long-term gain.”– The “pain” is quantifiable and measurable. What are the projections for the “gain?” Fiscal? Economic? Jobs? Big businesses don’t undertake major changes without giving them a thorough scrubbing and justifying them with real, fact-based projections. Let’s see those. We’re already full-up on meaningless slogans and weasel-words from this administration. - Anon - Monday, Dec 7, 15 @ 9:39 am: ===Illinois needs a budget. Will it take kids coming home from Charleston, Macomb, DeKalb, Edwardsville, Carbondale… Champaign… for Rauner to realize “I’m killin’ Illinois, just killin’ this state”?=== OW, I’m not sure that’s how Rauner thinks. Everything that I’ve seei, publicly at least, indicates that he does not seem concerned with the concept of a civil society or even the suffering of those that depend on the state or those that do the state’s business. If he actually thinks this is a negotiation where creating pressure or a crisis strengthens his hand he probably thinks that the universities shutting down and sending students home would just create more pressure on the Democrats to bend to his will rather than see it as any reflection on his poor performance as a governor. He and his office have repeatedly made false or misleading statements about non-consequential things like phone calls to other legislative leaders or really generic statements that can make it sound like meetings happen when there aren’t meetings, and they use the official stationary to insult and berate legislators that otherwise may have been friendly towards significant portions of the governor’s agenda. I think that hoping that a further descent by the state into fiscal chaos will cause Rauner to suddenly care about doing his job well is optimistic. Our best bet for a tax increase might be a court order after the state defaults on general obligation bonds, our if our comptroller winds up being jailed for contempt of court. - illini - Monday, Dec 7, 15 @ 9:46 am: Honeybear - I get maxed out with some sources myself from time to time. A friend suggested that by deleting my “history” I could start fresh. Works for me with the BND and the Southern. - Juvenal - Monday, Dec 7, 15 @ 10:01 am: === The Democrats refuse to see the damage they’ve done to this economy with their decidedly not pro-business laws. === Which laws are those? Because I remember Democrats’ reforming McCormick Place, reforming work comp, voting to pump billions into our economy through a capital plan, protecting tax loopholes, passing a temporary corporate tax hike that was much smaller than it could have been, reforming telecom laws to AT&T’s liking, reforming energy laws to ComEd’s liking; passing fracking laws backed my the mining industry, passing major pension reform twice that placed most of the price tag on workers. If you were to compare the lists side-by-side of all of the major legislation passed between 2003 and 2014, Rich…I think you will say that the business community did pretty well. - Oswego Willy - Monday, Dec 7, 15 @ 10:01 am: ===OW, I’m not sure that’s how Rauner thinks. Everything that I’ve seei, publicly at least, indicates that he does not seem concerned with the concept of a civil society or even the suffering of those that depend on the state or those that do the state’s business.=== Then why all the “U-Turns” Why have Lance tweet about state employees getting paid, or Lisa Madigan in court? Why push for the funding of the “current fire raging” instead of “Hanging In There”? Then the cities hosting state universities lose students, and the schools are looked as laughing stocks in the academic circles they find themselves, Rauner will take notice, and Lance will tweet, trolling Rep. Lang probably, that anyone but the Governor owns the closing of the state’s universities. … then… another U-Turn will be seen. Let’s not forget the Owl’s Tweet and what Sandack believes - Honeybear - Monday, Dec 7, 15 @ 10:03 am: Thanks for the tips everyone. I’ll probably try to read it on my phone at lunch. Nothing is working. Here’s the gist of what concerned me. It’s the Republican assertion that Democrats are anti-business. I would have you know that under Democrats there were thousands of EDGE, TIF, Enterprise Zone sweatheart deals made that TOTALLY robbed the coffers of our state. Sheesh, as Rich says, I would wager that Dems wrote the book on corporate/governmental corruption and insider dealing. It’s Progressives that don’t like corporations! Anyway, I’m looking forward to reading the article. - Anon221 - Monday, Dec 7, 15 @ 10:10 am: Rauner, I’m sure, is sleeping very well. After all, the Mansion has a new roof. Doesn’t matter about other citizens of Illinois, they just need to learn to live without more government. Take the local property tax issue. It gets frozen at the state level, and the locals have more freedom to figure out how to fill the gaps in their own. Voilà, local control! (Heavy snark throughout!) - Norseman - Monday, Dec 7, 15 @ 10:11 am: Data driven governance is a goal we need to strive for. - Mama - Monday, Dec 7, 15 @ 10:11 am: “We’ll take short-term pain for big long-term gain.” In Rauner’s mind, exactly when does short-term become long term, and how much pain is to much pain for Rauner to back off his political demands before he will sign the budget the Dems passed last Fall? - Lucky Pierre - Monday, Dec 7, 15 @ 10:12 am: The fact that lawmakers have to offer Edge credits, TIF and Enterprise zone sweetheart deals to their friends who give them campaign money is an acknowledgement that Illinois is not competitive. Small business is where most jobs are created. They cannot afford lobbyists and are bearing a much higher tax (property especially) and regulatory burden (think tort reform and workers comp) than neighboring states. Democrats refuse to acknowledge their is any issue here and mock those who are concerned about this. - ChicagoVinny - Monday, Dec 7, 15 @ 10:18 am: I own a small tech consulting business with offices in IL and MA. Since we’re all desk bound worker’s comp is a nonissue for me. The only proposal I’ve heard that would really harm my business is a services tax. What’s much more harmful is the unpredictability surrounding the budget issues in Springfield and Chicago. It’s hard enough to attract tech workers to Chicago as it is, without trying to convince folks no it’s not a post-apocalyptic murder hole which is going to be completely broke tomorrow. This is not to gloss over the real problems - but having our Governor constantly badmouthing Chicago and IL to the outside world is not helping. So maybe can the rhetoric and get to work on the budget? - walker - Monday, Dec 7, 15 @ 10:26 am: ==What are the projections for the “gain?” Fiscal? Economic? Jobs?== They proudly “hold these truths to be self-evident.” Very dangerous when it causes one to ignore real-world evidence to the contrary, and to claim that factual justifications or projections are unneeded. If there is a case to be made, it would be nice to see it laid out in detail. But it ain’t gonna happen; it usually doesn’t in our political world. - Norseman - Monday, Dec 7, 15 @ 10:31 am: walker, excellent comment. - Honeybear - Monday, Dec 7, 15 @ 10:32 am: - Small business is where most jobs are created. - Right on the money Lucky. Right on the money. I’ve been that on this very blog. We need to pour DCEO effort almost entirely into the small and medium size “Gazelle” businesses of our state. They will pull us out of this. NOT the large businesses getting MILLIONS in tax breaks. I am totally about Main street and NOT Wall Street. - Lucky Pierre - Monday, Dec 7, 15 @ 10:38 am: Walker can you post some links to the “real world evidence to the contrary ? I see no factual justification or projections from you just a tired defense of the status quo . It would be nice if you laid out yours and the Democratic leaders solutions to economic development in detail. Ain’t gonna happen. - wordslinger - Monday, Dec 7, 15 @ 10:52 am: –The fact that lawmakers have to offer Edge credits, TIF and Enterprise zone sweetheart deals to their friends who give them campaign money is an acknowledgement that Illinois is not competitive. – “Competitive” with whom in what? Try to past Day One of Econ 101. Texas hands out about $19 billion a year in business tax incentives. Is that because their “business climate” is so bad? - Elo Kiddies - Monday, Dec 7, 15 @ 10:53 am: The governor has said he will support a temporary tax increase, but only of he gets permanent structral changes. How long is temporary? Past 2018? - Lucky Pierre - Monday, Dec 7, 15 @ 11:02 am: Wordslinger please link to all the articles that proclaim Illinois does have a competitive business environment for small business. Should be easy to find - RNUG - Monday, Dec 7, 15 @ 11:24 am: - Honeybear - Google ‘anonymous web browser’ - RNUG - Monday, Dec 7, 15 @ 11:25 am: == “We’ll take short-term pain for big long-term gain.” == Still waiting for those charts showing the projected long-term gain ROI … - walker - Monday, Dec 7, 15 @ 11:29 am: LP: Thanks for your concern. I’m neither “tired” nor defending “the status quo.” But will completely agree with you on one thing: the primary job creators, and those that need the most help by governmental action, (if available), are indeed established small businesses. The problem is that political actions are focused primarily on large ones. And lobbyists are almost entirely controlled by the giants. As to articles easily available, as you probably know, almost all thorough rankings of State-level business environments focus primarily on two segments: the large corporations, and entrepreneurial start-ups. Forbes recently ranked Illinois in the middle tier, neither the top 20 nor the bottom 20, for big companies, for all-in business environment. For entrepreneurs and start-ups, Illinois (or Chicago) is always in the top-five in Inc or the like. The problems and opportunities of established small and mid-sized businesses are usually ignored, all over the place. - wordslinger - Monday, Dec 7, 15 @ 11:56 am: LP, you’re just peddling shallow partisan arguments and presenting them as “economics.” Show me any Econ grad school course that treats states as economic units to be influenced greatly by shifts in state policies. That’s nonsense peddled by “job-creating” politicians and list-making media. As far as being “competitive” Illinois has a higher GSP and more small businesses than all but four states. Is Top 10% “competitive” for you, Dr. Friedman? - walker - Monday, Dec 7, 15 @ 11:57 am: Sorry. Erred in above comment. In the Forbes ranking, Illinois is neither in the top-10 nor the bottom-10 for overall business environment. - Dome Gnome - Monday, Dec 7, 15 @ 11:59 am: I’d just like to know how everybody will be able to get on the same page when they’re not even picking up the same book. - Rod - Monday, Dec 7, 15 @ 12:17 pm: Sen. Andy Manar is well schooled in President Cullerton’s reasonableness doctrine. Its very clear that if Governor Rauner’s proposed language allowing governmental entities in our state to limit public sector bargaining as a cost reduction proposal these public sector unions will be broken just like in Wisconsin. What is unclear about that? What doesn’t Senator Manar grasp about that? I believe the Senator got over a $100,000 in campaign contributions from public sector unions. I suspect the Senator understands if these public sector unions are destroyed he won’t get this money anymore. How difficult is all of this really? - Oswego Willy - Monday, Dec 7, 15 @ 12:21 pm: - Rod - With respect, IllinoisGO is designed for Raunerite interference in Democratic primary races. Are you saying only Unions are actively participating in Illinois politics, and further, the Citizens for Rauner, the Turnaround Agenda and IllinoisGO PACs monies is… pure? Ron Sandack was so spooked by Uihlein he became The Owl for security from Rauner. So… is the discussion on monies really going to hold the water of pure and impure pools? - Formerly Known As... - Monday, Dec 7, 15 @ 12:29 pm: The Child-Emperor Mike could not even agree on the proper speaking order with Saint Bruce after December 1’s public meeting. Godspeed agreeing on the ==real problems== - Anon221 - Monday, Dec 7, 15 @ 12:34 pm: New word of the stalemate- Persistence… http://northernpublicradio.org/post/governor-says-it-could-be-five-months-budget-passes “I am the most persistent rascal on the planet,” Rauner said. “I do not back down; I do not give up.” But Democrats also have been persistent. They won’t agree to any of the business-centered reforms Rauner’s pushed. As a result, Rauner says the stalemate will continue. “It looks now most likely January to April,” Rauner said. “‘Kay? Persistence. Persistence. Stay strong.” ****** If you heard the audio, his “Stay strong,” had a downbeat on it. But boy was he proud of being “wascally”. The sheer willfulness of saying “maybe April” by anyone in the Executive or Legislative branches is arrogance at the extreme. More patches will have to be placed on the Illinois budget quilt, while Rauner continues to grin and pull out his seam ripper. The budget process itself is now a POW of the election campaign cycle. We’re way past hostages now. - Rod - Monday, Dec 7, 15 @ 1:39 pm: No Willy the real issue here is Manar knows his self interest and the legitimate interest of his political party. Rauner and the Republicans know their self interest too. Senator Manar is playing the reasonable game acting as if what the Rauner agenda is with this proposal that has been posted on this blog repeatedly is not clear. Its just absurd, Rauner doesn’t have to ban public sector unions. If their bargaining rights are restricted and they can’t produce any results for their workers why belong to a union? Why pay into a PAC? Actually even in Wisconsin the public sector union weren’t banned, they just collapsed because they could not bargain and no one paid dues. Public sector unions in this state will be decertified if the Rauner proposal in the form its in passes. I mean can you really blame a county worker for not wanting to pay dues to a union that has no bargaining power. - Formerly Known As... - Monday, Dec 7, 15 @ 2:07 pm: ==We’re way past hostages now== +1 Wars and ==epic struggles== have ==victims==. Not ==hostages==. - Oswego Willy - Monday, Dec 7, 15 @ 2:12 pm: === Actually even in Wisconsin the public sector union weren’t banned, they just collapsed because they could not bargain and no one paid dues.=== Remember, trade unions under Rauner’s Turnaround Agenda will also face a fate where Collective Bargaining and Prevailing Wage are being attacked too. This isn’t just about public sector unions, that’s why I grabbed your comment. Local 150 for example supported Republicans very often. ===Public sector unions in this state will be decertified if the Rauner proposal in the form its in passes. I mean can you really blame a county worker for not wanting to pay dues to a union that has no bargaining power.=== Again, look at the attacks on Trade Unions with PW and Collective Bargaining. Why so many “yellow” on labor from House GOP members? It’s well beyond Manar. - VanillaMan - Monday, Dec 7, 15 @ 2:58 pm: Bruce Rauner is a guy who thinks a junk dealer is better than a mechanic for your car because it costs money to use a mechanic, while a junk dealer gives you money. The good thing though, is on the way to sell Illinois, Governor Rauner couldn’t pass up the chance to first sell our tires out from under us, keeping us from reaching the junkyard. - Springfieldish - Monday, Dec 7, 15 @ 3:50 pm: “….Rauner’s right that we need to do something about local property taxes and the workers’ compensation insurance program, which is too expensive for employers.” Are we allowed to ask for some data on the workmen’s comp issue, and not just bare rate numbers? All the data I have seen this morning points to Illinois being far closer to the rate norm than Indiana based on 2014 numbers, and our numbers have gone down since then.(http://www.nawcj.org/docs/Comparative_Law/Comparing_the_Premium_Cost_of_WC.pdf) If we’re going to get out of the tossing-grenades-from-one-trench-into-the-other mentality, I think we can start by questioning the validity of many of the governor’s oft-repeated assumptions. We’ve had nearly a year of his workmen’s comp baloney and not a single WC carrier step up and say “Yes, if these reforms are passed, rates will decrease by X percentage.” Until that time, can we please drop the whole, “workmen’s comp is killing Illinois business” banana show? Businesses move to Indiana because the average wage is lower, the cost of healthcare is lower, and property prices are lower. Those businesses are willing to accept poorer schools, lower-rated healthcare, dangerously decayed infrastructure, and some of the highest meth/oxy/heroin rates in the country. - Chicago 20 - Monday, Dec 7, 15 @ 4:20 pm: “On the other hand, Rauner’s right that we need to do something about local property taxes and the workers’ compensation insurance program, which is too expensive for employers.” Rich, please explain how Rauner is right on this, I can find no statistical evidence supporting your opinion. http://www.chicagotribune.com/suburbs/daily-southtown/opinion/ct-sta-kadner-taxes-st-0520-20150519-story.html The property tax con game in Illinois “Illinois relies more heavily on the property tax to fund public education than any other state. Despite a constitutional mandate that the state be the primary source of public school funding, it contributes less than 30 percent of the cost. That’s why property tax bills are so high in Illinois.” Tell me is Rauner going to have a revelation to suddenly perform his constitutional duties and have the State become the primary source of school funding to reduce property taxes, which is the overwhelming majority of our property taxes? If so, where will Rauner get the revenue to then properly fund the schools and their debts? Next up is Illinois worker’s compensation law which just had legislated reforms in 2011. The State’s own worker’s compensation committee 2014 annual report shows; http://www.iwcc.il.gov/annualreportFY14.pdf “Workers’ compensation costs are declining. Insurers reported a 19% decrease in total benefit payments (loss costs) between 2011-2015. The Workers’ Compensation Research Institute found that Illinois experienced the largest decrease in the average medical payment per claim among study states. The Oregon study found Illinois experienced the largest savings on workers’ compensation insurance.” WAGES Wages in Illinois are 6% above the U.S. average and 23% above the median of our neighboring states. AVERAGE ANNUAL WAGES Illinois $52,590 U.S. average $49,808 NEIGHBORING STATES - LARGE INDUSTRIAL STATES Michigan $47,131 New York $63,089 Missouri $43,066 California $57,111 Wisconsin $42,777 Texas $52,201 Indiana $41,660 Pennsylvania $49,077 Iowa $41,107 Florida $43,649 So, if everything else is equal, Illinois worker’s comp claims should be more because the wages are higher. Workers in Illinois earn 23% more than workers in the neighboring states, which not coincidently are “right to work” states. (With the sole exception of Missouri) This fact is repeated by the Illinois Trial Lawyers Association. https://www.iltla.com/illinois-vs-indiana-workers-compensation/ “Illinois is often compared to our neighbor Indiana when it comes to workers’ compensation costs for businesses. Unfortunately, it is not a fair or accurate comparison. Wages are the main driving factor when it comes to workers’ compensation costs. Workers compensation benefits (non-medical) are based on a worker’s average weekly wage and the weekly wage in Illinois is higher than in Indiana.” In conclusion, what Rauner is really fighting for Illinois workers to earn 23% less than what they make now, so our worker’s comp insurance costs will be about the same as our neighboring states, and to make Illinois more “business friendly”. But when Illinois workers make 23% less they will spend less at Illinois businesses and pay less in sales and income taxes while the State spends more on the EDGE program as the Hollywood studios resell their Illinois State Film tax credits to the highest bidder to cut their taxes. Rauner’s Turn around Agenda makes no economic sense, but then we are dealing with a private equity mentality of sell and destroy instead of design, plan and build. - Grandson of Man - Monday, Dec 7, 15 @ 6:06 pm: We have to our north Minnesota, where a $1.9 billion budget surplus has been reported. How’s that for fiscal responsibility? http://www.startribune.com/minnesota-budget-report-likely-to-show-robust-surplus/360367291/ Minnesota’s unemployment rate is 3.7%. http://www.deptofnumbers.com/unemployment/minnesota/ We’re not Minnesota, but that state proves that taxes can be raised on the wealthy, the minimum wage can be increased and worker protections can be strengthened for unions and women. We can look at Minnesota to see what may work in Illinois, to get ideas. - Blue dog dem - Monday, Dec 7, 15 @ 7:31 pm: Word, you referenced Texas doling out $19 billion in tax incentives. I kinda thought the Lone Star state was as corrupt as the Land O Lincoln! - Liberty - Wednesday, Dec 16, 15 @ 9:25 am: I’m with RNUG- where’s the beef? - RNUG - Monday, Dec 7, 15 @ 11:25 am: == “We’ll take short-term pain for big long-term gain.” == Still waiting for those charts showing the projected long-term gain ROI … - Just cant believe it. - Thursday, Dec 17, 15 @ 7:21 am: Rauner seems to be saying one thing then doing another…. money problems, not for his chosen few. Several state agencies seem to be able to find new money, to fund newly created administrative positions for a number of out of state individuals. I guess it is do as I say, not as I do…. this is sad, very sad the most unprotected, needy not receiving state services, when a new administrative position is created paying over $100,000 a year. Sorry, comments for this post are now closed.