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* Tribune…
Chicago was a finalist to score General Electric’s corporate headquarters — and 800 jobs — but the state’s pension crisis and the condition of Chicago’s public schools helped remove it from the running, sources close to the selection process told the Tribune on Wednesday.
On Wednesday, GE announced it would move its headquarters from its longtime home in Fairfield, Conn., to Boston.
Mayor Rahm Emanuel “did a good job” and “worked hard at presenting the case for Chicago” and Illinois Gov. Bruce Rauner “did a fantastic job,” one source said.
Many factors went into the decision, including a strong presence and thousands of employees GE already has in Connecticut, Massachusetts and New York, the source said.
* I’m sure this little factoid (unmentioned by the Trib) from the Boston Globe had absolutely nothing whatsoever to do with it…
The decision by GE to move its headquarters — and deliver about 800 jobs — from suburban Connecticut to the Seaport District follows a feverish campaign by Massachusetts officials, who beat out New York, Providence, and several other cities.
City and state officials are offering what could be one of the richest incentive deals in the state’s history — together valued at as much as $145 million — to lure the company here.
A generous offer like that from Illinois and Chicago would’ve been sharply attacked in this current political climate, to say the least.
* Also…
But GE officials pointed to Greater Boston’s concentration of elite universities and nimble tech firms as the main draw.
“We want to be at the center of an ecosystem that shares our aspirations,” chief executive Jeffrey R. Immelt said in a statement.
GE’s new TV ad campaign is really an employment recruitment tool aimed at tech grads. And, unlike us, Massachusetts and Boston aren’t starving their universities and taxing the cloud, not to mention making a general mess out of everything with a protracted political war.
So, perhaps if this state’s leaders weren’t fighting so much, some of those pension and school issues could’ve been addressed and perhaps GE would’ve been more amenable to moving here. Notice, the GE sources didn’t mention the prevailing wage and “right to work.” A stable political climate may have also made a big economic development package possible.
* Even so, there’s also the regional issue mentioned above. GE already has lots of employees fairly near Boston, and when GE Healthcare announced its headquarters move to Chicago this week, the company’s existing regional presence ranked high…
GE Healthcare announced Monday it will move its global headquarters from the United Kingdom to Chicago.
The company said the move would be effective early this year and is designed to move the top leadership for its health care business “closer to operations in Chicago and Milwaukee, while remaining near an international transportation hub.”
GE Healthcare, which employs about 6,000 people in Wisconsin and 51,000 worldwide, had total revenue of $18.3 billion in 2014.
* Look, I don’t doubt that pensions and schools were in the mix. But I also don’t doubt that a less dysfunctional political system could’ve made those issues far less important. Could we have still scored the GE headquarters? I don’t know. Regionalism concerns were definitely working heavily against us.
Whatever the case, this ought to be a wakeup call. The state needs to get moving again.
End. The. War.
*** UPDATE *** Greg Hinz…
Emanuel and Rauner personally met with GE brass, both here and on the East Coast. The state offered $50 million in Edge tax credits. While there were doubts at the beginning that GE would really consider moving its HQ to the Windy City despite having numerous business lines in this area, “they were totally blown away” after a meeting here in September, one insider says.
But during that meeting, Rauner said some things about soon ending the state’s budget wars. Accounts differ, but some say he effectively promised action within a few months.
He obviously hasn’t delivered. Shortly thereafter, the McDonald shooting flap erupted, and Emanuel “lost all of his clout in Springfield, at least for now,” says one insider with firsthand knowledge of the situation.
Did that make a difference in GE’s decision?
Chicago was in it until late fall, says one source familiar with the search process. “It was the entire budget picture between Chicago and the state,” the source says. “CPS was a big concern of theirs.”
“It absolutely was not the city’s situation,” counters another. “The business atmosphere of the city was a huge plus.”
Says a third insider, “Any shot that Chicago did have disappeared when Rauner couldn’t deliver on his promise.”
posted by Rich Miller
Thursday, Jan 14, 16 @ 8:46 am
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Rauner decided to suspend EDGE. Not Madigan. Not the Democratic supermajority (sic). Not Quinn. Or Blago.
Rauner.
Comment by Henry Francis Thursday, Jan 14, 16 @ 8:52 am
Well, at least we know it wasn’t the weather. My extended family is from Boston. The weather there is absolutely terrible.
Comment by Cassandra Thursday, Jan 14, 16 @ 8:58 am
Boston’s outer beltway has been a high tech mecca going back over 30 years. I’m sure that was part of the appeal.
Comment by RNUG Thursday, Jan 14, 16 @ 8:59 am
To the Post,
At some point everyone pulling on the same side of the rope will make sense to all involved, all at the same time.
The preposterous grandstanding to point to the negatives will never be seen as helpful, no matter the messenger of a self-inflicted negative spotlight.
The refusal, of all involved, to see Chicago and the state of Illinois as one destination, and not two separate warring factions, is one of the largest failures of leadership throughout the entire state.
No one wins when gleeful handwringing continues, accompanied by negative remarks about Illinois from any of her leaders about about any region in this state.
Enough.
Comment by Oswego Willy Thursday, Jan 14, 16 @ 8:59 am
Rauner: Because…Madigan.
Comment by Wensicia Thursday, Jan 14, 16 @ 9:00 am
Lots of Democratic history in Boston and MA. Hopefully Rauner didn’t do his forest for the trees routine and help ruin this with his hyper-partisanship.
Corporate higher-ups get turned off by that schtik.
Comment by Austin Blvd Thursday, Jan 14, 16 @ 9:00 am
GE has significant operations all around New England. We did well to get the Healthcare. And as pointed out, nothing about RTW, workers’ comp, or prevailing wage factors into this kind of HQ deal.
Comment by walker Thursday, Jan 14, 16 @ 9:00 am
They pointed to elite universities — with Rauner’s desire to kill universities, we certainly to not score well there. How many others will pass us by because we can’t provide the educated workforce they need?
Comment by ash Thursday, Jan 14, 16 @ 9:01 am
Chicago was a longshot to begin with, in my opinion this is a non-story. I don’t see the Tribune talking about why Texas, Indiana, Florida, or Arizona didn’t get the bid either. I’m sure many of these employees have family on the east coast and a spouse who also has a job.
Comment by Almost the Weekend Thursday, Jan 14, 16 @ 9:04 am
So happy the the campaign to denigrate Illinois is succeeding. Years of misrule is wonderful approach to making Illinois uninviting. Destroy a world class university and make sure that the funding for Chicago is inadequate and it won’t be long before no business will wish to locate here.
At least Quinn for all the problems was trying to make the state better, and was having some slow success. Cant wait until the gov. outsources state government because it doest work.
Comment by Niblets Thursday, Jan 14, 16 @ 9:04 am
Gee, if we just would have adopted term limits then GE would be here. Our economy would be Boomin’ again! Same goes for every single point on the Turnaround agenda. Disagree? Then quantify it. With data. Finally.
Comment by out of touch Thursday, Jan 14, 16 @ 9:04 am
Companies usually do things that are in their financial interest. MA offered the best financial deal and will get 800 more taxpayers. Illinois (and Chicago) did not match, and lost out. The other issues cited are fluff and PR.
Comment by Junior Thursday, Jan 14, 16 @ 9:05 am
January 27, 2016 could be the start of the end, but I have the feeling that only more artillery will be fired and more trenches dug by both sides as the “civilian” casualties continued to mount.
Comment by Anon221 Thursday, Jan 14, 16 @ 9:06 am
Look, if you’re inclined to move your company to Boston, the Illinois executive obsessed with defeating an Irish-Catholic Democrat probably wasn’t going to deliver an attractive sales pitch anyway.
Comment by Michelle Flaherty Thursday, Jan 14, 16 @ 9:06 am
Agree, we needed a new Governor to come in and build bridges to the other political party, who just happens to be the majority party in the legislature. Instead we got a Governor who from day one was confrontational and was looking for pick fights. The failure to move the state forward is hurting the state more than some of those turnaround agenda items will help. The Governor doesn’t see it that way though and the hole we are in gets deeper by the day.
Comment by The Dude Abides Thursday, Jan 14, 16 @ 9:08 am
Interesting.
Decades of pension underfunding and poor Chicago schools, 2 things Rauner had nothing to do with. Plus massive debts which inhibit our ability to provide financial incentives to corporations.
Thank you, Rauner predecessors, Cullerton and Madigan for this wonderful financial situation you have lead us to. End the war, find some compromise points, and get this state back towards a positive heading.
Comment by Anonymous Thursday, Jan 14, 16 @ 9:09 am
Rich:
Speaking of quantifying the turnaround agenda, has Rauner’s staff sent the data to you yet?
Comment by Dance Band on the Titanic Thursday, Jan 14, 16 @ 9:10 am
===Decades of pension underfunding and poor Chicago schools…===
Quinn made the pension payments.
Kinda blows all your hyperbole out of the water, right? Exactly right.
Comment by Oswego Willy Thursday, Jan 14, 16 @ 9:11 am
The True Believer by Eric Hoffer describes those individuals so convinced they are right they refuse to back down. I suspect the governor of Illinois is someone who fits the mold. For that reason, don’t expect The War to end anytime soon.
Comment by True Believer Thursday, Jan 14, 16 @ 9:12 am
Henry, Rauner has dished more than $100 million in EDGE credits as governor to the likes of highly profitable companies such as Amazon, ConAgra, Capitol One and CDW.
Like all politicians, you really have to pay attention to what he does, not what he says.
$145 million in corporate welfare, for 800 jobs, for a company that booked $148 billion in revenues and $15.2 billion in profits last year. That’s grotesque and insane.
Given, among other things, that state vehicles are getting repoed, we owe vendors billions, we’re begging utilities not to shut off the lights, water and heat, we’re cutting back Meals on Wheels for little old ladies and we’re fixing to shut down universities, I’m guessing that’s out of our price range at the moment.
Comment by wordslinger Thursday, Jan 14, 16 @ 9:12 am
I am always curious about the ROI the states/municipalities get on $145M investments like these.
Comment by James the Intolerant Thursday, Jan 14, 16 @ 9:13 am
“Sources close to the selection process” doesn’t necessarily mean they were GE sources. This could be from consultants with repeat business looking to curry favor for the next deal.
Comment by Andy Nymous Thursday, Jan 14, 16 @ 9:13 am
RNUG- the tech boom in Boston has been in the Waterfront area and in Cambridge the past 10-20 years. MIT and the hospitals (biotech), along with Harvard and the other universities, have been exceptionally successful in generating business ideas. The two cities have worked hard to allow development in neighborhoods to support the commercial developments, and provide amenities.
Boston has been helped by strong Congressional leadership fighting for grant funding for the hospitals and the Universities, fueling the inventions. The federal, state, and city political leadership works together with the business and educational leadership on the interplay of these initiatives.
Comment by Keyrock Thursday, Jan 14, 16 @ 9:16 am
I’m beginning to believe that Rauner’s only goal as Governor is to bust unions and decimate labor. If and when he achieves his goal he will resign.
Comment by Pacman Thursday, Jan 14, 16 @ 9:17 am
Emmanuel did a “good job” and Rauner a “fantastic job” in promoting this deal. So maybe it is time to tackle those structural and institutional problems in this state. We weren’t talking about 800 minimal wage jobs but higher salaries that could have paid taxes to grow our state.
Oh well and lame excuses won’t help.
Comment by Louis G. Atsaves Thursday, Jan 14, 16 @ 9:17 am
–…Illinois Gov. Bruce Rauner “did a fantastic job,” one source said.–
Did he tell you about the “Death Spiral?” The “100 years of corruption?”
Given how the governor constantly describes Illinois as some dystopian hellhole that can only be saved by a Messiah like himself, I’d love to hear his “sales pitch” when he’s trying to land business.
Comment by Anonymous Thursday, Jan 14, 16 @ 9:17 am
Maybe we can convince President Obama to run for Governor next time… I mean he straightened out or national economy with the Republicans fighting him all the way. Just think what he could accomplish with Democratic super majorities… Let the outrage begin!!!
Comment by Triple fat Thursday, Jan 14, 16 @ 9:19 am
If anyplace was seriously in the running, it was Arizona. GE has a presence there stretching back over more than half a century. I suspect that was their #1 or #2 choice before financial incentives were weighed.
Comment by RNUG Thursday, Jan 14, 16 @ 9:20 am
Let’s not kid ourselves it had everything to do with the incentives package that they offered them. I’m super glad we didn’t get it. We don’t need another hole in the dike draining away tax revenue. Plus I don’t think we were ever really going to get this one anyway. Yet another DCEO failure. I wonder if they even knew GE was considering coming. Rahm knew, the Governor knew, didn’t mention DCEO or Schultz. But Rich is right, this would have gotten flak for giving out incentives when the ship is going down.
Comment by Honeybear Thursday, Jan 14, 16 @ 9:20 am
The time to get started on that “concentration of elite universities” was 1636.
Illinois probably never had a shot but nice of “sources close to the selection process” to weigh in on our troubles.
Comment by LizPhairTax Thursday, Jan 14, 16 @ 9:21 am
The loser is Connecticut.
What did they do to lose GE?
This international corporation left their longtime home - why?
The fact that Chicago was “in the beauty pageant” mix along with Boston, Providence and perhaps Fairfield, and fails to convince GE to move here, doesn’t mean we failed anymore than when we lost to Rio de Janeiro even after Barack Obama personally flew to Europe to make our sales pitch.
This is what is distressing - we are not being productive enough to be effective, thanks to a governor who has not done his job. Promise us whatever he wishes, as governor, Bruce Rauner is delivering worse than nothing. He was elected to fix our problems, yet his “solutions” have not only failed to fix our problems, he has made them worse.
Procedures matter, not just end results, in many vital organizations like governments. Rauner might have had profitable results for him financial portfolio crushing a business acquisition and shaking it up - but governments are more important. We own our government, not him. When he treats our government like one of his businesses, he lowers it from having a vital function for all citizens, down to a profit/loss Excel spreadsheet. That would be like if a church minister took the Holy Bible and turned it into a South Park episode, in order to sell commercial television ad space.
What he is doing, should not be done, even if he believes the end result would be better than what we had before. We don’t go to doctors for a cure, in order for him or her to prescribe a treatment that kills us. We should not go to a governor who prescribes treatments that harm us.
Governments are supposed to work for us. Serve us. Using tax dollars collected. For a governor to take that duty and apply policies that harm us, is inexcusable. Rauner’s policies are harming the people supporting our government, our communities, and our families. He knows this. He doesn’t seem to either believe us, or not care.
I wouldn’t recommend that GE, or anyone interested in relocating to Illinois, do so until we have a governor who knows what his responsibilities are and respects them enough to compromise on what is doable, listens to those of us who are hurting, and stops “shaking up” Illinois.
Comment by VanillaMan Thursday, Jan 14, 16 @ 9:21 am
Junior at 9:05,
I suspect you are closest to the truth on this entire matter. Not unlike the “chase” for NFL teams led communities to offer all types of taxpayer funded infrastructure and incentives, we face the same dilemma here.
Do you want to offer up “taxpayer funded” financial incentives to lure a company to your community/county/state? It can become a self-defeating exercise, as you leverage the future in hopes that a company might deliver economic success.
Comment by Downstate Thursday, Jan 14, 16 @ 9:22 am
Dead on mark, Rich. There’s no question that fixing the broken IL revenue system (with reasonable cuts and efficiencies, always yes to that) to make clear that the state is committed to paying down its debt, adequately funding eduction, making judicious investments for the future, etc. would be effective ways to immediately improve the state’s business climate and economy. Moody’s would applaud, credit ratings would improve right away, debt expense would drop right away. Contrast this with the uncertain benefits of the T-agenda that would take years to be realized if they ever are.
You’re right, the current impasse and our dysfunctional political system overall prevent rational policy in IL. This is a fundamental disadvantage that has to be overcome if we are to compete against forward-looking states like MA. BTW, MA is another state with a constitutionally flat income tax, but set at 5.25% (except short-term capital gains taxed at 12%). So, it has a similar framework to IL, except rates are set so that income tax is the main state and local revenue source. MA is also a state that knows the value of higher education.
Comment by X-prof Thursday, Jan 14, 16 @ 9:23 am
===I’m beginning to believe that Rauner’s only goal as Governor is to bust unions and decimate labor.===
Oh, it’s Rauner’s ultimate goal, that’s true. It’s up to Labor to save themselves it seems.
Comment by Oswego Willy Thursday, Jan 14, 16 @ 9:23 am
Taxing the cloud? I was unaware of Chicago
having that tax. I don’t think that was a factor
because they could have easily moved to Naperville
or some other location along I-88.
Comment by DuPage Thursday, Jan 14, 16 @ 9:24 am
This was always moving to Boston.
Comment by Chicagonk Thursday, Jan 14, 16 @ 9:25 am
–…structural and institutional problems in this state.–
Little early for drinking games.
Comment by wordslinger Thursday, Jan 14, 16 @ 9:26 am
The ROI: $145 million to attract 800 employees equals $181,250 per employee. If those 800 employees made an average of $240,000 per year, that $145 million could be paid back in State taxes in 20 years, at the current Illinois State rate of 3.75%.
Comment by Say It Ain't So!!! Thursday, Jan 14, 16 @ 9:29 am
It’s not surprising that both sides of the political divide would spin this story their way. If the short-term or long-term political situation in Illinois and Chicago were really a factor, the health care unit would not have been allowed to come here.
Comment by Junior Thursday, Jan 14, 16 @ 9:30 am
The main structural problem in Illinois is the budget deficit. Fix that and we instantly become more stable and attractive. Improvement, however, does not create the kind of opportunity our governor seems to want.
That’s not saying we don’t need change, but the things he is prioritizing and the people being hurt by his methods are unconscionable.
Comment by Earnest Thursday, Jan 14, 16 @ 9:32 am
“They pointed to elite universities — with Rauner’s desire to kill universities, we certainly to not score well there. How many others will pass us by because we can’t provide the educated workforce they need?”
Chicago’s best public university is UIC ranked #62 as best public university (US News rankings). Boston’s best universities are all private. Boston doesn’t have a public u in the top 100. I’ll be surprised if Bruce can destroy private universities too.
Comment by Jose Abreu's next homer Thursday, Jan 14, 16 @ 9:33 am
===So maybe it is time to tackle those structural and institutional problems in this state.===
Great - Louis G Atsaves -
Let’s see the ROI on the Turnaround Agenda, recently promised to be delivered to Rich.
What are those measurables?
I also want to see the 60 and 30 Rauner cobbled together that are being held up from voting the Turnaround Agenda.
If Rauner has the votes, then show those Dems…
Comment by Oswego Willy Thursday, Jan 14, 16 @ 9:35 am
Word - all the deals you mentioned (except ConAgra) were EDGE deals that were approved by Quinn and Rauners team sat on them for months not knowing what to do with them. They finally decided to approve them themselves sometime in April - but prior to Rauner’s suspension of the program.
As to ConAgra, while they have an approved deal it is only because - cough cough - ConAgra had started discussing the move with the administration back in January, prior to the suspension. And while ConAgra has their EDGE deal, they will not be able actually use any credits earned until after there is a budget. So they say . . .
Comment by Henry Francis Thursday, Jan 14, 16 @ 9:38 am
Say it ain’t - I am not familiar with the package in this case, but typically most of the incentive offered is the state giving a pass on taxes and fees they would otherwise not receive. Even if the state waives all taxes on the corporation, 800 employees will pay income tax, property tax, and sales tax. Rahm and Rauner are not exactly political friends, but each knows the math of these deals.
Comment by Junior Thursday, Jan 14, 16 @ 9:42 am
“The loser is Connecticut. What did they do to lose GE?”
It has a lot of the same problems IL has and ranked right up there with IL on the list of states people most wanted to leave in this 2013-14 Gallup Poll:
http://www.gallup.com/poll/168770/half-illinois-connecticut-move-elsewhere.aspx
Again, it isn’t ONLY taxes (the state to which GE is moving is called “Taxachusetts” for a reason) and it isn’t just bad winters either (some of the states people LEAST want to leave include New Hampshire and Maine, which are even farther north).
Comment by Secret Square Thursday, Jan 14, 16 @ 9:43 am
Those who say or believe that Emanuel or Rauner did a “good” or “fantastic” job, (which is baloney, btw) in drawing GE Healthcare to Chicago are cluelessly grasping at partisanship. Major companies relocate on a series of metrics that have very little to do with any personality. The truth of the matter is that Chicago’s, and specifically NOT Illinois’ numbers were better than GEH’s other choices. We weren’t competing with Milwaukee, we were competing with Atlanta, so this is an even bigger win, but for the city itself, in spite of and not in any way because of Rahm or Ruiner’s “leadership.”
Comment by Springfieldish Thursday, Jan 14, 16 @ 9:44 am
Sometimes the numbers of jobs only tell half the
story. High paid jobs tend to increase economic
activity as these employees buy housing, cars,
go to restaurants, and such. The goods and
services they buy then support other jobs.
Comment by DuPage Thursday, Jan 14, 16 @ 9:48 am
Does anyone think that it hurts Illinois’ cause to have a governor is perceived to have the combined personality of Donald Trump, Ted Cruz, and Rand Paul?
Comment by Austin Blvd Thursday, Jan 14, 16 @ 9:48 am
Willy - assuming you’re right that Rauner’s ultimate goal is to bust unions, why is he doing it? Personal animus? Helping himself (or his friends) financially? I could see busting the union as a way to lower expenses, but that would make lowering expenses the ultimate goal. Can you clarify for the class?
Comment by Junior Thursday, Jan 14, 16 @ 9:53 am
Bottom line, GE HQ wasn’t going to locate to Chicago, but it makes for good news fodder. GE Healthcare’s relocation TO Chicago is really more interesting. IF all of Walker’s reforms were so great, why not relocate to WI? GE Healthcare had stated on an NPR story that one of the reasons they moved from Great Britain to the States was to be closer to the majority of their employees.
http://www.bizjournals.com/milwaukee/blog/2016/01/ge-healthcare-didnt-contact-wisconsin-economic.html
Comment by Anon221 Thursday, Jan 14, 16 @ 9:55 am
-But GE officials pointed to Greater Boston’s concentration of elite universities and nimble tech firms as the main draw.-
University of Chicago? Northwestern? Come on now that’s some bullcrap. We’ve got two incredible elite universities.
Comment by Honeybear Thursday, Jan 14, 16 @ 9:55 am
WAR IS OVER! If You Want It – Happy 2016 from John & Yoko
– MrJM
Comment by @MisterJayEm Thursday, Jan 14, 16 @ 9:56 am
I do find it interesting that companies like GE want good schools and no pension crisis without paying the taxes that help fund things like schools and pensions.
Comment by Carhartt Representative Thursday, Jan 14, 16 @ 9:56 am
>> The main structural problem in Illinois is the budget deficit. Fix that and we instantly become more stable and attractive. Improvement, however, does not create the kind of opportunity our governor seems to want.
Then (and I’ve beat this drum before I know) the main structural problem in this state today is the Illinois Constitution.
Look whatever happened in the past, the biggest problem today is a) we can’t control our spending where it’s going to be booming; b) we can’t control our taxation to capture where the revenue is really growing.
Busting all the union heads or slashing the state universities isn’t going to provide major “structural reforms.”
The biggest structural reform we need (and yes I know it wouldn’t help with the pensions anymore) is the Illinois Constitution itself. It’s got two really foolish provisions in it, and it’s doing this state a world of hurt right now.
Comment by ZC Thursday, Jan 14, 16 @ 9:58 am
- Junior -
The Decatur PowerPoint probably says it best. Throw in the Poison Pills in Raunerite legislation, and the “Yellow” buttons required by Rauner to HGOP members when the same bills are run without the damaging Union language.
If you have more specific questions, after doing your own research, have at them.
Comment by Oswego Willy Thursday, Jan 14, 16 @ 9:59 am
- Pacman - Thursday, Jan 14, 16 @ 9:17 am:
I’m beginning to believe that Rauner’s only goal as Governor is to bust unions and decimate labor. If and when he achieves his goal he will resign.”
Sad, but true. Obsessive political behavior may be a natural extension of venture capitalism, I suppose, but I have to believe the GE decision-makers knew what Rauner is doing here, and were dissuaded by it.
Comment by Independent retired lawyer, journalist Thursday, Jan 14, 16 @ 10:02 am
Austin - as long as we’re listing the charming…..Rahm is a known sweetheart of a guy. Lately he’s not been perceived well, to say the least.
Comment by Junior Thursday, Jan 14, 16 @ 10:08 am
Bruce Rauner, even if successful in ruining Labor, and even if Rauner defeats Labor’s push here in Illinois’ 2016 State House races… even then… Rauner won’t resign.
Plus, ole Slip and Sue is the insurance policy against impeachment, so thinkin’ Rauner would resign scares me like you wouldn’t believe.
Comment by Oswego Willy Thursday, Jan 14, 16 @ 10:08 am
Downstate Illinois desperately needs jobs. Much like the Boeing and ConAgra deals, all of Illinois would have had to pay for a deal that would mainly have a direct economic benefit for downtown Chicago.
15 years after Boeing moved its Headquarters to Chicago, it is still the #1 private employer in the State of Washington. Boeing also has more employees in 8 other states than it does in Illinois, and Boeing got how much money to move to Chicago?
Comment by deadguy Thursday, Jan 14, 16 @ 10:12 am
Willy - I asked your opinion on why you believe Rauner’s “ultimate goal” is to bust the unions.
Comment by Junior Thursday, Jan 14, 16 @ 10:13 am
===Boeing also has more employees in 8 other states than it does in Illinois===
That’s by design.
Boeing execs wanted to get away from their employees.
Comment by Rich Miller Thursday, Jan 14, 16 @ 10:13 am
“Quinn made the pension payments.
Kinda blows all your hyperbole out of the water, right? Exactly right.”
Ha, that’s funny. You’re right, there is no pension crisis created by decades of underfunding and skipped payments. That is all because… Rauner.
Comment by Anonymous Thursday, Jan 14, 16 @ 10:13 am
@Willy, there you go again using that “decimate” word to describe Rauner’s relationship with the many public sector unions of Illinois. 17 unions managed to reach an agreement and contract with Rauner without being “decimated.”
For those who think that Illinois was too perfect of a state for GE to move their HQ to, congratulations. For those who think that Illinois need not change a thing to attract more businesses and create more jobs in Illinois, congratulations. For those who think it is impossible for Illinois to create anything under the current political atmosphere, congratulations.
Don’t change anything. Nothing needs to be changed. Just click those glass slippers three times and chant: “Just pass a budget, do nothing else.”
Comment by Louis G. Atsaves Thursday, Jan 14, 16 @ 10:17 am
$145,000,000.00 in Free Socialist Government Welfare Entitlements without any Revenue Offsets?
What kind of businesses do you run Bruce? Explains why they are all failures.
Comment by Jack Stephens Thursday, Jan 14, 16 @ 10:17 am
- Obsessive political behavior may be a natural extension of venture capitalism -
Honestly, I think obsessive behavior is more an innate personality trait and much harder to overcome. Also, Rauner was never a venture capitalist to my knowledge. I don’t favor the pejorative term, but vulture capitalist is more apt.
I agree with your main point.
Comment by X-prof Thursday, Jan 14, 16 @ 10:18 am
ZC - 1. We don’t WANT to control our spending. 2. What areas of revenues are growing that need to be “captured”?
Comment by Junior Thursday, Jan 14, 16 @ 10:19 am
It’s hard to make the case that GE not mentioning right-to-work and prevailing wage is somehow significant, but then infer that what actually was mentioned, pensions and the condition of the Chicago public schools, probably weren’t the sole basis for the decision. The pension crisis and eroding financial position of the school system are structural problems that began years ago. The pension crisis alone is the cause of much of Illinois’ financial crisis. The “political war” is a more recent occurrence. It’s unlikely that business leaders believed that everything was great and that Illinois was a terrific investment until a fight broke out over the budget in 2015. Business leaders understand fundamentals better than most. Illinois’ fundamentals have been heading south for years as noted by deteriorating bond ratings.
Comment by Illannoyed Thursday, Jan 14, 16 @ 10:25 am
Good stuff, Louis. The issues are much larger than one or two budgets, but it is a useful distraction from decades of problems.
Comment by Junior Thursday, Jan 14, 16 @ 10:28 am
===…there you go again using that “decimate” word to describe Rauner’s relationship with the many public sector unions of Illinois.===
Wanting to destroy collective bargaining and ending prevailing wage IS the decimation of Unions.
Rauner also wants Fair Share gone.
What’s next - Louis G Atsaves- you going to make a case Rauner is the “Friend of Labor”? lol.
Maybe - Louis G Atsaves - you need to read the Post yesterday on the AFL-CIO saying the same.
===Don’t change anything. Nothing needs to be changed. Just click those glass slippers three times and chant: “Just pass a budget, do nothing else.”===
Please, stop the Strawman Arguments. It reminds me you have no argument, no ROI in the Turnaround Agenda, abd Rauner doesn’t have 60 and doesn’t have 30…
… You have a Strawman
Rauner wants to decimate unions, the agreements will be far less once Prevailing Wage and Collective Bargaining are destroyed by Bruce Rauner.
Comment by Oswego Willy Thursday, Jan 14, 16 @ 10:29 am
Illannoyed - I think you’re right in general. But I doubt the state’s economic or political situation mattered either way in the GE case, given that a very large unit of GE just announced a move here from England.
I’m sure Emanuel and Rauner offered the best deal they thought they could to land GE. It just didn’t work out.
Comment by Junior Thursday, Jan 14, 16 @ 10:36 am
Did somebody mention killing Illinois universities?
http://www.edweek.org/ew/articles/2016/01/14/rauner-aide-blasts-university-cronyism-amid_ap.html
Comment by scholar athlete Thursday, Jan 14, 16 @ 10:37 am
-What areas of revenues are growing that need to be “captured”?-
Simple. Virtually all the growth in personal income has been going to the top 10%, especially the top 1%. These groups’ incomes are taxed at rates that are 2 to 3 times lower than those of middle and low-income taxpayers (when you consider our overall revenue structure of income, sales, and property taxes). Thus, IL’s revenue structure is very inefficient in capturing the state’s income growth where it actually exists.
Comment by X-prof Thursday, Jan 14, 16 @ 10:38 am
I fainted and hit my head, so it took me a little while to respond. There are big corporate headquarters in the Democratic northeast, and they’re relocating to other Democratic cities? Taxachussetts? They’re not business wastelands ruled by hordes of union members and social services recipients?
Rauner spoke well of Chicago and Illinois when praising the GE Healthcare relocation. That’s more of what we should get from the governor, and not badmouthin’ the state.
Comment by Grandson of Man Thursday, Jan 14, 16 @ 10:38 am
Ask a small busines owner,someone who has 15 or so emoyees what they think about these deals. Small companies folks are the economic engine of this country.it is frustrating that we continue to pay taxes to support infrastructure,schools,public services so some billionaire CEO can get a big bonus.I will jump on board with some of the RAUN Mans ideas if he just proves to me once he is an equal opportunity capitalist.
Comment by blue dog dem Thursday, Jan 14, 16 @ 10:39 am
X - prof - thanks for the response. ZC said the constitution was the impediment; I think the legislature and governor can soak the rich without changing the constitution.
In your opinion, will higher taxes for the “rich” encourage corporate big wigs to move their companies and employees to Illinois? Discourage them?
Comment by Junior Thursday, Jan 14, 16 @ 10:53 am
Maybe the Governor didn’t want GE healthcare considering GTCR’s healthcare investments….
Healthcare Investments Since 2000Actient Pharmaceuticals ATI Physical Therapy Capella Healthcare Cedar Gate Technologies Cole-Parmer Instrument Company Cord Blood Registry Correct Care Solutions Crealta Pharmaceuticals CuraScript Curo Health Services Devicor Medical Products GeneraMedix Pharmaceuticals Graceway Pharmaceuticals Health!Quest Partners HealthSpring LabPortal Managed Healthcare Associates Maravai LifeSciences Morton Grove Pharmaceuticals Ovation Pharmaceuticals Rx30 Sterigenics International Universal American (f/k/a APS Healthcare) XIFIN
Comment by Triple fat Thursday, Jan 14, 16 @ 11:01 am
And if Rauner’s administration had offered a comparable sum, the usual suspects here would be attacking him over
1 Handouts to his rich buddies
2 Giving money to corporations instead of schools or kids
Comment by Anonymous Thursday, Jan 14, 16 @ 11:10 am
Rich,
GE likely didn’t mention prev wage, work comp, property taxes, right-to-work, etc because those aren’t major drivers for the location of corporate jobs. For a HQ it’s more about cost of living relative to the coasts, proximity to a strong tech/innovation community, proximity to transept (O’Hare/Midway), quality of schools (both universities for talent and high schools for children of the corporate workers), etc.
If they were talking about whether to locate their next manufacturing facility in Rockford or NW Indiana, we probably would have heard about those things. That is, if IL were in the conversation at all, which it probably wouldn’t be.
Comment by Ay Caramba! Thursday, Jan 14, 16 @ 11:11 am
Junior - Yes, there are ways to capture more of the income of the state’s income growth without changing the constitution, but I wouldn’t call this soaking the rich. For example, we could increase the flat income tax rate (the main tax component for the wealthy, but not others) to say 5 or 6 percent. This would make the tax system less regressive, but still far from neutral, let alone progressive. The wealthy would still enjoy a total rate several points below the national average of 10%. IL would remain a tax haven for the wealthy, so no worries for corporate executives. If you think that Rauner and friends don’t know they have a very good tax deal in Illinois, dream on. If you think paying a few more points on their income is significant compared to daily fluctuations in their investment portfolios, check your facts.
Better yet would be to raise the income tax and compensate with a reduction in sales tax. This would protect middle and low-income tax-payers, who already pay several points above 10%, from the effects of the income tax hike. But I promised to stop harping on that idea, so please ignore my comment.
Comment by X-prof Thursday, Jan 14, 16 @ 11:17 am
… more of the state’s income growth …
Comment by X-prof Thursday, Jan 14, 16 @ 11:18 am
I guess we’ll just have to wait for a major manufacturing facility to reject us because of the Governor’s agenda.
Comment by Triple fat Thursday, Jan 14, 16 @ 11:18 am
Louis - “Don’t change anything. Nothing needs to be changed. Just click those glass slippers three times and chant: “Just pass a budget, do nothing else.”
This begs the question, what do you believe is reason that the Dems are unable to reach an agreement with Rauner? If bills are run without anti-union language and fail what is the logical inference that we should draw?
Comment by pundent Thursday, Jan 14, 16 @ 11:21 am
–For those who think that Illinois was too perfect of a state for GE to move their HQ to, congratulations. For those who think that Illinois need not change a thing to attract more businesses and create more jobs in Illinois, congratulations.–
No, just perfect enough, though, for GE Healthcare.
Louis, Junior, are you saying Illinois should be more like Massachusetts to be “attractive” to companies like GE?
Because I’m telling you, I’m not seeing anything like a Turnaround Agenda going on in Massachusetts. Looks like kind of a Liberal state.
Higher taxes, too. And, woof, Boston is a way more expensive place to live in than Chicago.
LOL, what are you goofs going on about here — it’s Massachusetts! No Turnaround Agenda going on there! GE didn’t move to Mississippi, boys.
Comment by wordslinger Thursday, Jan 14, 16 @ 11:31 am
==what do you believe is reason that the Dems are unable to reach an agreement with Rauner?==
A similar reason Rauner is unable to reach an agreement with the Dems.
Rauner would have worked out a budget agreement by now if it were not for Madigan. Just as Madigan would have worked out a budget agreement by now if it were not for Rauner.
Rauner and Madigan have both demonstrated an ability to negotiate and work with others, but not each other.
Comment by Formerly Known As... Thursday, Jan 14, 16 @ 11:32 am
OK
Let’s begin with Tribbie source …like a buildin’ owner/consultant that had forked out a lot of moolah winin’ & dinin’ and lost…had to make some story to tell. Now he/she has clip to pin on the expense report
99-100 of these happens because the CEO & family live somewhere or want to move
Motorola end up in Schaumburg because the the Galvins lived there Little Vinny’s dad can confirm them one.
Back to the ROI dat on the ‘genda.
Comment by Annonin' Thursday, Jan 14, 16 @ 11:38 am
==LOL, what are you goofs going on about here — it’s Massachusetts!==
==offering what could be one of the richest incentive deals in the state’s history — together valued at as much as $145 million==
Not that $145 mill had anything to do with it?
Comment by Formerly Known As... Thursday, Jan 14, 16 @ 11:38 am
@Rich nails it. This graduated from a hostage situation to a war months ago.
Speaker Madigan labeled this an ==epic struggle== early on, and there are casualties of any war or ==epic struggle==.
Both Rauner and Madigan should end this stupid ==war==, but neither can do it alone.
Comment by Formerly Known As... Thursday, Jan 14, 16 @ 11:42 am
FKA, try to follow along.
I was responding to Louis and Junior, who are unquestioning acolytes in the healing powers of the Turnaround Agenda and are implying the lack of such “structural reforms,” as they call them, are reasons why a company like GE did not relocate to Chicago.
I was simply pointing out that Massachusetts is one of the most Liberal states in the union and does not have policies resembling those in the Turnaround Agenda. The state also has higher taxes than Illinois and Boston has a much higher cost of living than Chicago.
Yet GE chose Boston.
As to the corporate welfare, I’m of the opinion that CEOs choose where they want to relocate, then they start shopping it around to maximize the handout from the chosen place.
Put it this way: GE made $15.2 billion in profits last year. That’s profits, not income.
$145 million represents .9 of 1% of one year of corporate profits.
So no, I don’t think that .9 of 1% was the deal-maker. They decided where they wanted to go, then they got as much beer money as they could from goofy politicians.
Do you recall when ADM claimed they might move out of Illinois if they didn’t get $4 million a year in EDGE credits.
The state called their bluff.
Where is ADM now?
Comment by wordslinger Thursday, Jan 14, 16 @ 12:00 pm
Total BS- GE mentioned the problems with CPS and the unfounded pension problems. I must have overlooked the statement because I didn’t see anything about the dispute with Rauner and Madigan over the Stat budget. I have to think Jeff Immelt might be supportive of the Governor’s efforts more then seeing the State continue to circle the drain
Comment by Sue Thursday, Jan 14, 16 @ 12:05 pm
===GE mentioned the problems with CPS and the unfounded pension problems===
And those problems can’t be addressed during the impasse.
Try to keep up. It ain’t that hard.
Comment by Rich Miller Thursday, Jan 14, 16 @ 12:07 pm
1. Pension payments made.
2. Tier II will save money in the long run
3. GE not satisfied with generous tax abatements?
4. Your loss GE
Comment by Now What? Thursday, Jan 14, 16 @ 12:29 pm
Wordslinger - pretty sure you have read my posts on this thread…. I’ll summarize…I don’t think the GE decision had much, if anything, to do with the economic and political situation in Illinois. I think they got a better offer from MA (also, having the Ivy League in the area could have had an impact). We differ on plenty (which is okay by me), no need to misrepresent what I write.
Comment by Junior Thursday, Jan 14, 16 @ 12:42 pm
@wordslinger - $145 mill may not be ==the deal-maker==, but it does not hurt as @Rich correctly points out.
Perhaps they were just shopping for beer money. If they were, should we be concerned at all that they chose Boston despite the ==higher taxes== and being ==a way more expensive place to live== than Chicago?
Or is it a moot point in your opinion because Illinois was never in the running to begin with?
Comment by Formerly Known As... Thursday, Jan 14, 16 @ 1:14 pm
Another great job of non-editorial coverage by the Tribune using ALL the information available to cover the news.
Comment by forwhatitsworth Thursday, Jan 14, 16 @ 1:17 pm
–Or is it a moot point in your opinion because Illinois was never in the running to begin with?–
That was my point.
–As to the corporate welfare, I’m of the opinion that CEOs choose where they want to relocate, then they start shopping it around to maximize the handout from the chosen place.–
–They decided where they wanted to go, then they got as much beer money as they could from goofy politicians.–
Comment by wordslinger Thursday, Jan 14, 16 @ 1:30 pm
“GE didn’t move to Mississippi, boys.”
Missing in all this jabber about moving white collar non union jobs to Boston is any mention of GE closing down a valve factory in Avon, Massachusetts eliminating about 300 largely blue-collar jobs and shifting the work to a new plant in Jacksonville, Florida.
Comment by CapnCrunch Thursday, Jan 14, 16 @ 2:13 pm
Perhaps another factor that might have gone into GE’s decision is simply that it wasn’t that far of a move geographically. Fairfield CT and Boston are only 160 miles (about a 3-hour drive) apart — roughly the same as from Chicago to Peoria. If GE could get all the cultural/educational advantages they wanted AND not have to move all their corporate people halfway across the country, why wouldn’t they?
Comment by Secret Square Thursday, Jan 14, 16 @ 2:45 pm
- VanillaMan - Thursday, Jan 14, 16 @ 9:21 am:
I wish you statements along with Rich’s FC news could be published in the newspapers around the state. The public needs to wake up and realize what is really happening in this state. To many people are clueless.
Comment by Mama Thursday, Jan 14, 16 @ 4:33 pm
@wordslinger - gracias for responding and clarifying. The update says Chicago was in the running until late fall, so this does not appear to have been one of the cases where the CEO made up their mind in advance - though it may often occur that way.
Comment by Formerly Known As... Thursday, Jan 14, 16 @ 5:09 pm
Another failure for rahm. He should step down after he gets his bond deals done. That is the real money maker.
Comment by Tried and true Thursday, Jan 14, 16 @ 7:46 pm
Having Rahm and all the city other problems are not selling points.
I do not believe GE would have ever left New England.
I am surprised they offered as much as they got.
Comment by cannon649 Thursday, Jan 14, 16 @ 8:55 pm
This decision has nothing to do with the political climate in Illinois. Illinois was used (along with other cities and states) by GE to leverage as much as they could get out of their eventual destination. History has shown that in these situations, these corporations have already made an internal decision as to where they want to locate then they use others to extort as much as they can out of their eventual destination. What purportedly drove them out of Connecticut were the the tax changes made by their legislature last spring. Their Governor and legislature reconsidered after GE threatened to leave and they came back and made several favorable tax changes to entice them to stay but those efforts failed.
Comment by Regnad Kcin Thursday, Jan 14, 16 @ 9:46 pm
Time and again, after supposedly long analyses and comparisons of working environments and educated workers… the decision gets made in favor of the state and urban area where the company CEO recently bought a new residence, Anyone want to check that out here?
Comment by Capitol View Thursday, Jan 14, 16 @ 10:46 pm