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Illinois declares unilateral truce in regional economic battle

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Illinois

* Greg Hinz tried to hold a mini peace summit recently during the Alliance for Regional Development’s fourth annual conference…

In a joint interview, [Gov. Bruce Rauner’s top economic development aide, Intersect Illinois CEO Jim Schultz], Indiana Secretary of Commerce Victor Smith and Wisconsin Deputy Development Corporation COO Tricia Brown all pointed to new efforts at cooperation. In fact, while I was interviewing the trio, Schultz asked Smith if he’d be interested in a joint trade mission to next year’s Paris Air Show, the huge convention of the aeronautics industry. Smith said yes.

Then I asked the three if they’d agree to end cross-border job raids.

Smith said Indiana has ended those lovely “Illinoyed” ads—”That campaign was successful”—but added: “We don’t say no to anybody. We recruit companies from all over. That’s our job.” Wisconsin’s Brown turned a thumbs-down, too. “The reality is it’s a competitive environment,” she said. “There’s a role for incentives.”

But Schultz, who earlier had compared the three states to Big Ten football teams that beat the tar out of one another until the bowl games roll around, said he’s sworn off such raiding. “I’ve talked to the governor. Our agreement is we don’t do that,” he said. If a Wisconsin firm calls, Illinois certainly will talk to it, Schultz said. But, in general, luring a company from Zion to Racine or Elkhart to Watseka is “just moving deck chairs. I’m not planning to go into Wisconsin or, for that matter, Indiana.”

So, apparently, Gov. Rauner’s vow to rip the economic guts out of Indiana and go after the state “big time” is no longer on his agenda.

posted by Rich Miller
Monday, Nov 21, 16 @ 10:55 am

Comments

Great! Smart policy.

Comment by Dan Johnson Monday, Nov 21, 16 @ 10:57 am
When you realize you can’t win a war, you seek a cease fire.

Comment by Jaded Monday, Nov 21, 16 @ 11:06 am
If memory serves correctly, I recall something similar in Edgar’s first administration. An attempt at a cease fire on industry poaching. “Smoke stack chasing” was the term. Didn’t last however and we were back in the game within a few years. There’s always someone who breaks the cease fire.

Comment by Madigan's Lapdog Monday, Nov 21, 16 @ 11:06 am
Just another Bruce “No Social Agenda” Rauner U-Turn.

Comment by Handle Bar Mustache Monday, Nov 21, 16 @ 11:08 am
The “corporate raids” are a bunch of unsupported hype, p.r. for politicians, anecdotal corporate welfare taxpayer rip-offs, like Uiehlein took in Wisconsin.

Crains actually has gone beyond the shallow blather on the subject.

http://www.chicagobusiness.com/article/20150103/ISSUE01/301039989/inside-indianas-campaign-to-lure-illinoyed-businesses

Comment by wordslinger Monday, Nov 21, 16 @ 11:11 am
Russia has its mole …Indiana has theirs.

Comment by David Monday, Nov 21, 16 @ 11:11 am
Sounds like a person who does not believe he can compete.

I am not a big believer in using tax incentives to lure companies into the state. I would make an exception for anchor investments, like the Mitsubishi plant, where there is a large immovable capital investment that will generate jobs and tax revenues for years.

Comment by Last Bull Moose Monday, Nov 21, 16 @ 11:14 am
A rising tide lifts all boats.

Comment by Not It Monday, Nov 21, 16 @ 11:20 am
I do not remember the date and can not cite the quote exactly but I recall our Governor saying that he had a list of dozens of companies that were wanting to move to Illinois if only his TurnAroundAgenda were passed.

Obviously that is not going to happen and now we find out that the privatized IntersectIllinois has apparently decided to refrain from luring new business from other midwest states, what are we to think.

Does anyone think a budget proposal from the Governor might help alleviate some of the concerns these businesses might have about relocating?????

Comment by illini Monday, Nov 21, 16 @ 11:34 am
My govenor is now pensive?

Comment by Rabid Monday, Nov 21, 16 @ 11:52 am
Politicians should stop saying they’re going to bring manufacturing back. The days when a factory could employ hundreds or thousands is dead. Automation and increased productivity have sealed that deal. Maybe we should be preparing our workforce for the future, instead of pining for an unachievable past

Comment by Rogue Roni Monday, Nov 21, 16 @ 11:57 am
== So, apparently, Gov. Rauner’s vow to rip the economic guts out of Indiana and go after the state “big time” is no longer on his agenda. ==

Perhaps Rauner realizes that given Illinois’ current fiscal condition, it will be a long time before the state can compete with its neighbors.

Comment by Saluki Matt Monday, Nov 21, 16 @ 12:02 pm
Last weekend was the start of the shotgun deer season, which prompts this thought, it is a little difficult to field dress the neighboring States when you can’t find a sharp knife.

Comment by Huh? Monday, Nov 21, 16 @ 12:54 pm
This tells me EDGE is dead. Look for a huge giveaway in December. Billions out the door. No accountability and not going into our coffers. Last minute orgy of corporate welfare.

Comment by Honeybear Monday, Nov 21, 16 @ 1:06 pm
Why do we need non FOIA intersect Illinois to bring in deals now that EDGE is going to die Jan 1?

Comment by Honeybear Monday, Nov 21, 16 @ 1:08 pm
Honeybear,

I know its a popular talking point in the circles you run, but would you please stop acting like EDGE is some sort of world-beater tax credit? It’s not.

As an ED industry person, I’ll tell you flat out that EDGE is borderline useless. I don’t even discuss it when I talk to companies and haven’t for years.

Every other state bordering Illinois has either a refundable (can be exchanged for cash) or a transferable (can be sold to someone else) economic development tax credit program. EDGE is neither, which drastically reduces its value to businesses. I’ve heard from multiple site selectors in the Chicago area who say that their clients have a lot of trouble redeeming their EDGE credits and the program has gotten a really bad reputation as a result.

This is one example of what I mean when I tell people that our state’s ED toolbox is 30 years behind the rest of the country.

Comment by sulla Monday, Nov 21, 16 @ 3:27 pm
These are one giant, and two also-rans in the room, in terms of economic activity. Perhaps the roles should be different.

Gross State Product and national rank:

Illinois #4 $900B
Indiana #17 335B
Wisconsin #21 305B

All have shown modest growth. Any things DCEO and the like might do, have minimal overall impact on the state economies, but sure can be good PR.

Comment by walker Monday, Nov 21, 16 @ 3:33 pm
–These are one giant, and two also-rans in the room, in terms of economic activity. Perhaps the roles should be different.–

Walker, if the Dems had the governor’s p.r., um, “sense,” they’d claim credit for the Illinois economy being more than two-and-a-third times as large as Indiana and Wisconsin’s combined.

“Fourth largest economy among the 50 states because…. Madigan.”

It would be just as honest as what the governor has been selling.

Comment by wordslinger Monday, Nov 21, 16 @ 6:04 pm
Illinois was ranked #5 in GDP.

By the Republican narrative shouldn’t we have been more like #20 instead of actually improving?

Just goes to prove Martire correct again.

Comment by JS Mill Tuesday, Nov 22, 16 @ 8:27 am