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JBT starts rolling out her proposals

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Illinois

After being criticized for months for having no ideas, Judy Baar Topinka unveiled her jobs plan today. It includes disbanding the agency formerly known as DCCA, instituting a statewide enterprise zone and implementing a manufacturers tax credit for jobs created.

Topinka, the state treasurer, also called for a “New Jobs Now” tax credit for established employers. They would get a credit equal to 50 percent of the payroll taxes for any new jobs. The credit would jump to 75 percent if the jobs offer health care, retirement and other benefits.

She also said she would disband the state Department of Commerce and Economic Opportunity. Many of its duties would be assigned to other agencies and its job-creation role would be taken over by an Illinois Jobs Partnership consisting of 15 members from business, organized labor and local economic development agencies.

The Illinois Manufacturers’ Association joined Topinka at the announcement and endorsed her proposals. IMA spokesman James Nelson said the state has 678,000 manufacturing jobs — down 200,000 since 1998.

The campaign’s executive summary can be found here (pdf file). Take a look and tell us what you think.

posted by Rich Miller
Wednesday, Jul 12, 06 @ 1:47 pm

Comments

Do tax credits work?

Are tax credits fair to small business? Are large businesses the primary beneficiary of these gov’t subsidies?

If small business creates most of the jobs, why would your job growth scheme use tools that primarily help big business but do little for small business?

Comment by Carl Nyberg Wednesday, Jul 12, 06 @ 1:58 pm
But it’s pronounced “Throat Wobbler Mangrove.”

Realizing this is a business publication, I nevertheless have to ask, â€œWhatâ€™s she thinking?â€ Crainâ€™s reports (Topinka proposes business tax credits for job creation) that State Treasurer Judy Baar Topinka wants to eliminate the Department of Commerce and Economic Opportunity â€“ and put a business group in its place? To create manufacturing jobs? Let the same sector that has spearheaded privatizing government functions â€“ and weâ€™ve seen how well THAT works â€“ and who are responsible for the cozy-sounding term â€œoutsourcingâ€, and put them in charge of inducing the creation of jobs in the state? Please. If she wants â€œIllinois to make things againâ€ she should focus on 21st century technology and the education required to take advantage of it, instead of gauzy visions of the Industrial Revolution redux. While the Governor may not get much right these days, at least heâ€™s asking the right question.

Comment by Mr. Luxury Yacht Wednesday, Jul 12, 06 @ 1:58 pm
Sounds good to me and now we hear Oklahoma is getting an auto plant.We need to rebuild our industrial base if we are going to get thes kind of jobs.

Comment by DOWNSTATE Wednesday, Jul 12, 06 @ 2:06 pm
What Carl said.

Comment by Just Another Wacko Liberal Wednesday, Jul 12, 06 @ 2:15 pm
I didn’t get the same thing that Carl did out of her press release in terms of this only helping larger businesses.

It may have been smart to throw an ethics related clause into the portion dealing with the 15 governor-appointed members of the committee (or whatever it was called). Perhaps not being allowed to appoint anyone who as an individual or a company has donated more than $5000 or $10000 to the governor’s campaign.

Also, I would have included some geographic requirements for the committee.

All in all, I like it as a starting point.

Comment by Wildcat Wednesday, Jul 12, 06 @ 2:23 pm
I like it from the standpoint that it is something new and different. It is tough to judge how well it will work. I just hope this isn’t just a campaign promise. That is one reason a lot of people don’t like Blago. So if she can improve the job situation, and really do it, good for her.

Comment by Lovie's Leather Wednesday, Jul 12, 06 @ 2:29 pm
Wow, a plan and it seems decent at worst. At least this is an honest plan and onot one to get Stufflebeam out of the race. Plus, this actually has a legitimate shot at working for its purpose. No one time crackhead sell offs.

Comment by Rico Shakman aka Wumpus Wednesday, Jul 12, 06 @ 3:16 pm
Not impressed.

Comment by Greg Wednesday, Jul 12, 06 @ 3:47 pm
Great idea. I believe this will bring business and jobs to Illinois.

Comment by Anon. Wednesday, Jul 12, 06 @ 4:01 pm
unlike greg, i thought it was a very nice package, well thought-out (the kind of thing that makes editorial boards go hmmmmmmmmm), slickly presented and quite professional. it’s what i *expect* from gop candidates, and this is the first time they have met that expectation. i thought the actual proposal itself was a little light (they’ve obviously gotten some think tank input, and i’m surprised that it didn’t use more documentation), but that’s just me…

Comment by bored now Wednesday, Jul 12, 06 @ 4:12 pm
Any tax credit for the creation of manufacturing jobs cannot be suffiently large enough to offset the tremendous wage difference between the U.S. and Asia and Mexico. The recent relocation of the Maytag plant from Galesburg to Renosa Mexico is a case in point. An average wage of $17 per hour in Illinois vs. $2.40 per hour in Mexico. Total annual wage difference > $54 million. It will have to be one hell of a tax credit to offset that difference!

Comment by one of the 35 Wednesday, Jul 12, 06 @ 4:34 pm
Bored now, here is your documentation…
https://www.1888932-2946.ws/judyforgov/E-Documentmanager/gallery/JobsforIllinoisPlan.pdf

Comment by Lovie's Leather Wednesday, Jul 12, 06 @ 4:49 pm
Very innovative proposal by Topinka. Getting rid of the DCCA is a good move. I especially like the idea of a 15 person board made up of business, labor , and local development groups. This brings all the key players to the table, who know the issues and have a stake in geeting things done right.

Comment by Lee Wednesday, Jul 12, 06 @ 4:51 pm
lovie: the plan itself was what i thought was light on documentation. instead of three+ blank pages, they should have had three pages of footnotes. the first four sentences could easily have been referenced. but i’m used to looking at these things, so i have something with which to compare…

Comment by bored now Wednesday, Jul 12, 06 @ 4:54 pm
Now we see why JBT waited to release a jobs/economic plan. This is a good plan, although I think the DCEO is actually a decent government agency. If JBT wins, I hope she spreads the 15 members out across the state. If not, important projects and prospective businessmen who want to land in Southern Illinois will be subject to ridicule and scorn from the Collar Counties and Chicago. But I can see JBT as someone who would actually keep a promise she has made to Southern Illinoisans. Rod is too late; his promises to anyone south of I-80 regarding jobs and the economy cannot be taken seriously during this election cylce.

Comment by Team Sleep Wednesday, Jul 12, 06 @ 4:59 pm
rich by the way, new poll out on rasmuessen on illinois gov.

Comment by ron Wednesday, Jul 12, 06 @ 5:08 pm
If you disband DCEO for the new “partnership” you still have to staff it with professionals who will market the State to attract new companies and jobs to IL and to help existing biz also. I think there are some 100 or less enterprise zones in the State now. One of the major incentives of these zones has been no sales tax for building materials on indutrial, commercial buildings being built or renovated. A friend benefited from that exemption. I don’t know what negative impact on state revenue a statewide enterprise zone would have but I noticed the JBT proposal for such a sales tax exemption would be limited to manufacturers. Sounds like the IMA wrote this proposal for JBT. It’s obvious there could be major improvements in what is in place now, but as we are moving away from a mfg. economy, does it make sense to concentrate so much on mfg.? I’m sure the IMA would say Yes.

Comment by Wile Coyote Wednesday, Jul 12, 06 @ 5:41 pm
Perhaps no one has noticed, but the biz boys pay next to no state income now. So a 50% credit does not seem to exciting.
BTW she refused to promise to rollback all the GRod fee hikes….that might go to well with the corp. types

Comment by Reddbyrd Wednesday, Jul 12, 06 @ 5:52 pm
Well, the current DCEO/ DCCA has been run into the ground, but if you abolish it, you’d still need something to do the same jobs it originally had. If everything is split off, where does the Illinois Film Office wind up? Where does Tourism wind up? What about coordinating regional efforts to attract specific businesses? I want to see more detail, but on the positive side, maybe they can stop the give-aways where a corporation gets all these give-aways to come and set up, then bolts for another state or country a couple years later without paying it all back.

And Rod’s plans?

Well, today he put out a press release touting that he’s going to power all state buildings in Springfield from wind power. The opportunity for a punch line there is… irresistable!

Comment by Gregor Samsa Wednesday, Jul 12, 06 @ 6:01 pm
A statewide enterprise zone? So, we’re going to let corporations move into Illinois and use all of our resources without paying taxes? That’s going to raise prices for Illinois residents!

Comment by Squideshi Wednesday, Jul 12, 06 @ 6:05 pm
First of all - Not a long term solution - I don’t think that Illinois can expect to be some mfg island that somehow bucks a global economic trend where jobs are going elsewhere. Am I the only one on here who is frustrated with just about every candidate promise nowadays becuase they all ignore the gorilla in the room that these “job plans” are bs? I would be curious to find out people’s opinions of whether a so-called “jobs plan” has ever really had sustained, provable results. This reminds me of Opportunity Returns, cut an agency (or just rename it and hire 15 “directors”). IN my opinion, any candidate has to focus on infrastructure which means fixing Illinois roads and schools and then making sure there’s enough money to keep them that way.

Comment by Mama Tried Wednesday, Jul 12, 06 @ 6:08 pm
We need some transportation diversity in Illinois. It doesn’t make sense to put all of our eggs into one basket. Let’s look into light rail and high speed rail, and give it the funding that it needs in order to really make it convienent for people. Couple that with improved urban planning, and we’ve got a winning combination! It’s time to stop building single-use, nonwalkable, bedroom communities, where people have to get on the roads and commute long distances to work.

Comment by Squideshi Wednesday, Jul 12, 06 @ 6:36 pm
Did Illinois try and get the google headquarters? 1,000 jobs gone to WI. Factories in Southern Illinois are closing the doors and moving to Ohio or another state, not to Mexico. So, what is Illinois not trying to do. And what happen to the 50,000 jobs that the Governor said he was going to create for Southern Illinois, that are permanent jobs, not temps?

Comment by dogwood Wednesday, Jul 12, 06 @ 9:40 pm
One of the 35

Most of the jobs fleeing Illinois are not going over seas. They are going to other states!

Comment by anon Wednesday, Jul 12, 06 @ 10:03 pm
Google’s going to Michigan, not Wisconsin. And they have a connection of U of M.
——

- Greg - Wednesday, Jul 12, 06 @ 3:47 pm:

Not impressed.

OUCH.

Comment by JJSpringfield Wednesday, Jul 12, 06 @ 10:26 pm
How many members of this proposed Illinois Jobs Partnership will be contributors to her campaign?

I’ll guess 15!

Comment by Anon Wednesday, Jul 12, 06 @ 10:57 pm
what I find most disturbing about her plan, aside from zero details, is that there’s no mention its fiscal impact (it won’t be free) and no indication of how she’ll pay for it. this could cost the state billions of dollars - and she says we can’t afford vets care and all kids? what happened to her fiscal prudence? I really hate to say this, but what’s she thinking? sorry, I couldn’t help myself.

Comment by a friend Wednesday, Jul 12, 06 @ 11:58 pm
The regional approach that DCEO launched in recent years is strong at face value. From what I understand, each region has posted some good results. But the reality facing Illinois is simply globalization. It is simply cheaper to manufacture out of country than it is to manufacture in the US (with a few sectors excluded, i.e. automotive industry). Illinois’ strength is its diverse economic base. While manufacturing has a strong history in Illinois, that in itself is not our state’s future. Illinois future all about innovation, innovation, innovation. That’s why the state must continue to invest in biotech, nanotech and other emerging industries.

Comment by anon Thursday, Jul 13, 06 @ 12:11 am
We need to privatize DCEO by turning most operations over to the Illinois Chamber of Commerce.

Innovation is great if you can patton it and collect royalties. However, research without development and exports severely limits real wealth creation/transfers.

The US can compete in manufacturing if we use robots to do most assembly work. The key is training more engineers to design and construct better quality products.

While robots don’t create as many jobs, we better get ahead of the curve before Asia comes on strong.

Comment by Anonymous Thursday, Jul 13, 06 @ 12:44 am
jobs? where is judy on the third airport?

Comment by Anon Thursday, Jul 13, 06 @ 2:24 am
After three years of carping, I feel bad about asking, but how does she plan to pay for the tax credits? Just not fiscally responsible.

Comment by Responsibility? Thursday, Jul 13, 06 @ 6:56 am
She’s gonna pay for it by raising your taxes. It is Robin Hood in reverse.

Comment by Bill from self-exile Thursday, Jul 13, 06 @ 7:21 am
Increasing the number of workers increases the state’s personal income base, increases sales taxes, new home creation, etc. How is that not fiscally responsible? Tax credits for job creation are investments, just like money spent on education.

Comment by Budget Watcher Thursday, Jul 13, 06 @ 8:04 am
“While robots donâ€™t create as many jobs, we better get ahead of the curve before Asia comes on strong.”

However, robots could manufacture products for export that would bring money to Illinois that can be used to create other local jobs, such as health care, education, and more research and development.

Comment by Anonymous Thursday, Jul 13, 06 @ 8:56 am
BW,
I think we have heard that argument somewhere before….. something about tax cuts for the rich reducing the deficit that didn’t exist before the tax cut and prosperity trickling down to the working class, etc..I bet wal-mart will be hiring even more below the poverty level employees if this takes place, which is not likely.
Businesses don’t need more help or another break. The rest of us do.

Comment by Bill from self-exile Thursday, Jul 13, 06 @ 8:58 am
Sounds like JBT wants us to live in a working state not a welfare I owe you my vote state.

Comment by DOWNSTATEI Thursday, Jul 13, 06 @ 9:23 am
geez, sounds like the blago’s campaign has several people assigned to the blogs today. I keep reading on here how this plan won’t work so I suppose the blago method of raising business taxes must be the way to spur growth.

funny how this state has been bleeding jobs since blago took office and so many people here think it’s sound policy. Look around the bordering midwest states; you know the ones that have been gaining jobs and new business. you will notice one thing! Those states lowered business taxes and who would have guessed it, they all have much better job growth numbers.

I guess those states should emulate a real savy job growth plan like raising taxes on business. Too bad the people running government in those states aren’t smart to figure this all out.

Comment by just watching Thursday, Jul 13, 06 @ 9:52 am
Well, it’s certainly no keno or asset-selling scheme.

I like it.

Comment by QueenB Thursday, Jul 13, 06 @ 10:01 am
just watching…

what topinka koolaid have you been drimking?

let’s look at the facts…illinois lost more than 200,000 jobs in the two years before blago took office, but the state has been creating far more jobs then it’s lost since 2003. and, according the the feds — not the state — the land lincoln led the midwest in job growth. also, maybe you missed president bush’s comments last week when he praised illinois’ booming economy, the low unemployment rate and how the state led all others in job growth in april.

not everyone on this blog needs to disagree with this admin 100 percent of the time just for the sake of doing so, or be accused of being a blago campaign staffer when in disagreement with what the majority has to say.

Comment by a friend Thursday, Jul 13, 06 @ 10:51 am
a friend, please don’t get so upset the staffer comment was siad tongue in cheek. I don’t understand why but I do realize that some die hard actually believe the stuff spewing from Blago and don’t need to be paid to defend his honor on here. And yes, I believe disagreements and discussions are healthy public discourse.

as far as the great job climate Illinois has I suppose we should give a great big hooray to Blago for an astounding April.

Illinois is 45th in job growth in the nation and any way you want to spin it it doesn’t matter 45th in the nation in job is absolutley pathetic.

Comment by just watching Thursday, Jul 13, 06 @ 11:17 am
just watching…agreed and appreciate your comments. I just believe that folks shouldn’t feel intimidated when voicing their opinions, whatever they may be.

as for jobs, and i’ll shut up after this, if the 45th placement is true that does suck. however, we’re there because illinois had to dig out of a deep recession that began long before blago got here, and according to the fed agency that tracks this info, the state has bounced back over the last two years in job growth and more recently on the unemployment figures. so, no one gov can take all the credit and no one should bear all the blame. national and global economic trends have far more influence over these things than what a gov can do in a matter of a couple of years. from my observation (not buying into all the partisan rhetoric), it seems like this admin has actually done more good than harm. did they get rid of loopholes/raise biz taxes (however you want to spin it)? sure. but, something like 60 percent of corporations in illinois don’t pay income taxes, plus they had record profits in illinois in 04. those facts speak volumes to me.

Comment by a friend Thursday, Jul 13, 06 @ 11:40 am
Duh!! Econ 101!!

Tax credits will only cost the state IF more jobs are created. If more jobs are created that means more people will be paying income taxes. More people making money means more people will be buying things and paying more sales taxes. More people making money means more homes and more property taxes so our schools and county governments can operate.

Comment by Econ 101 Thursday, Jul 13, 06 @ 9:59 pm