* Gov. Pat Quinn’s proposal to shutter several state facilities and eliminate 2,300 jobs will cost the state $250 million in economic activity, according to a new report by the University of Illinois…

Those figures are based on economic impact statements for just eight of the 14 prisons, mental institutions and other facilities Quinn wants to close. When more reports are filed, the total impact could be significantly higher. For instance, closures planned in Centralia and Joliet will cost another 600 jobs just in state layoffs.

When the Democratic governor laid out his budget plan in February, he mentioned only the government jobs that would be lost. He estimated that figure to 2,300 state jobs at all 14 facilities combined.

But the new impact statements, which he is required to file before closing state facilities, also include estimates of the “ripple” effect on nearby communities.

For example, closing the “supermax” prison in Tamms would mean 295 state employee layoffs — and a ripple effect of 43 jobs lost in the community, such as grocery store clerks or car mechanics. The economic impact would be more than $32 million, the report says.

* More on the ripple effect…

ccording to a report submitted to the General Assembly, the governor’s plan to shutter the super-maximum-prison at Tamms would have an economic impact of over $32.8 million in the southern Illinois region.

The studies, conducted by researchers at the University of Illinois, noted that closing the all-female prison in Dwight would have an impact of $53.7 million.

* And some people think the report missed some things…

Larry Vaupel of the Greater Livingston County Economic Development Corporation, said the study doesn’t count the impact of closing Dwight on surrounding counties. He said the report also doesn’t reflect vendors and contractors who would lose income if the prison closes.

“It grossly underestimates the impact on the area,” Vaupel said.

* And while the state struggles to stay afloat, the CEO of Sears Holding is living large…

Sears Holdings Corp. CEO Lou D’Ambrosio’s total pay in fiscal 2011 was nearly $10 million, according to company filings.

He received $930,769 in base salary; a $150,000 bonus; just more than $8 million in stock awards, and $852,037 in travel-related compensation for a total 2011 pay package of $9.9 million, according to a company proxy filed this afternoon with the Securities and Exchange Commission.

“Other compensation” includes about $793,000 toward “personal use of chartered aircraft” between Chicago and the Philadelphia area, the site of Mr. D’Ambrosio’s principal residence.

He also received more than $3,600 for commuting costs in Sears-provided vehicles; just under $30,000 for temporary housing near Sears’ Hoffman Estates headquarters, and more than $18,000 in “tax gross-ups” that cover any personal tax liability Mr. D’Ambrosio may incur from the travel allowances.

* Chuck Goudie tries to put this revelation into some context…

Sears’ new CEO could be called the $10 million man. That isn’t unusually high pay for a big company boss these days, but there are a few aspects of Lou D’Ambrosio’s eight-figure compensation that are notable. […]

Last year, Sears threatened to move its headquarters from Hoffman Estates — and with it more than 6,000 jobs along with a century of ties to metro Chicago. Governor Pat Quinn and the General Assembly handed Sears a $150 million tax credit that prompted the firm to call off the moving vans.

Despite fourth quarter earnings down 50 percent, 62 additional store closings this year and 100 layoffs just last month at headquarters, Mr. D’Ambrosio has been handsomely paid - $9.9 million that includes a base of $930,000, a signing bonus of $150,000 and $8 million in stock awards, according to federal SEC filings.

But the SEC records reveal another interesting payment to D’Ambrosio, who lives in Philadelphia. To get to work in Hoffman Estates, D’Ambrosio had to fly and drive. For the plane and automobile travel he was reimbursed $803,000 last year alone.

That sum is 400 times more than the average Chicago commuter spends to get to work, and Chicago’s commuting cost is already highest in the nation.

* Statement from Gov. Quinn’s office…

The Governor certainly doesn’t approve of that [the $800,000 travel expense for CEO to get to work.]

However, the package you speak of, which passed the General Assembly with a bipartisan vote and support from all four leaders, pertained specifically to Sears Headquarters - it kept the 6,000 jobs that currently exist at the headquarters here in Illinois. This also has an large multiplier effect Sears headquarters creates a direct economic impact of $1.5 billion and supports thousands of additional jobs in Illinois. The package also ensured a private investment by Sears of $300 million in Illinois, at a time when Ohio was offering Sears a far more lucrative investment package.

In addition, the Governor secured tax relief for working families as part of this package. In fact, he said he would not sign any bill if tax relief for working families was not part of the package. Governor Quinn’s efforts resulted in an annual $105 million dollars in targeted relief for low-income working families through a boost in the Illinois Earned Income Tax Credit and also an increase in the value of the personal exemption. Improving Illinois EITC will help almost 1 million Illinois families.

We are watching Sears carefully and will hold them accountable to live up to their commitment as part of the package. If there is any violation in the agreement on their part- if they did not meet their investment and jobs numbers, for example- the incentive would be eliminated.

Bottom line is that the Governor had a decision to make when it came to whether or not to sign this bill. Save the jobs- or let them go to a state that was offering three times the incentive as Illinois had proposed. He decided to protect thousands of Illinois jobs and hundreds of millions of investment in Illinois while also increasing tax relief to working families.

*** UPDATE *** From Sears…

If you add the cost of his commuting and related expenses to his salary and bonus, you will see that this is not out of line with his peers at other major companies (Fortune 100 CEOs, CEOs in Chicago or retail CEOs). In addition, Sears Holdings won’t receive a dime from the state if we don’t make investments in our HQ facility and campus. We are required to invest $300 million over the 10-year period or $30 million per year to receive our annual benefit (max of $15 million per year). And, any funds we receive back from local property tax due to the extension of the EDA are a reimbursement for monies we already spent on local infrastructure.

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