Capitol Fax.com - Your Illinois News Radar


Latest Post | Last 10 Posts | Archives


Previous Post: Count me out
Next Post: Two excellent editorials today by the Chicago Tribune - And a totally unrelated development

We’ve had our fun, now fix the problems

Posted in:

* Yesterday, I praised Gov. Pat Quinn for his cheesehead beatdown over federal high speed rail money, and for his laudatory push for wind power jobs.

But how about we take care of our existing businesses as well? For instance

The Rialto Square Theatre was promised $2.2 million in the state capital bill passed 16 months ago. The Rialto still doesn’t have the money and won’t get it any sooner than spring or summer.

Getting it then may not be a sure bet either.

“We do live in the state of Illinois,” said Rialto Executive Director Randy Green, alluding to the state’s financial troubles when asked how sure he is that the money is coming.

* And

The amount of overdue payments the state owes to providers of substance abuse prevention and treatment programs increased by $12 million in the span of a month.

According to the Illinois Alcoholism and Drug Dependence Association (IADDA), the state owed $34 million at the beginning of October, and it now owes $46 million — in some cases, on bills that are seven months overdue.

Sarah Howe, spokesperson for the IADDA, said providers throughout the state are in danger of soon being unable to pay employees. “The next payroll out, the one after that, they are potentially going to have to miss it.”

Howe said that many providers have stopped offering essential services, such as detox programs, sending individuals seeking help to local emergency rooms. She said specialized substance abuse treatment providers are more equipped to handle such procedures, and sending those in need to hospitals costs taxpayers more and clogs up emergency medical treatment facilities. “I cannot think of a provider that hasn’t had to do something as far as curtailing services,” Howe said.

* And while Quinn one-upped those crazy badgers to the North, we’re losing out - again - to the Hoosiers

A new study found Illinois is not keeping up with some neighboring states on job creation in the solar power industry. […]

According to the report, as of August 2010, more than 93,000 people nationwide work in solar power, and half of companies in that field expect to hire new employees in the next year. Those jobs include manufacturing, installation and sales. There are solar companies in every state, but the industry is mainly concentrated in the western and northeastern parts of the country. California leads the nation with 30 percent of all solar related businesses and more than 36,000 solar jobs.

Michigan, Wisconsin, Minnesota, Indiana and Ohio all made it into the report’s top 20 states for solar job creation, but Illinois did not.

According to the research, Illinois has about 530 solar-related jobs with a projected growth to nearly 700 jobs by 2011. That compares with Indiana — ranked 10th in the country for solar employment and growth — with more than 1,600 jobs and projected growth to more than 1,800 by 2011.

* Speaking of which, Sen. Mike Jacobs doesn’t get it

Sen. Mike Jacobs, chair of the Senate energy committee, said alternative energy sources, such as wind and solar, may not yet be consistent enough to rely upon, and lawmakers should be judicious when considering tax breaks or subsidies. He is concerned about asking consumers, especially in a down economy, to pay more for power. Jacobs, an East Moline Democrat, said it is a constant balancing act to keep old power sources thriving while still encouraging development of renewable energy.

“Everybody is really interested in jobs. … I just don’t think weakening incumbent utilities who provide us cheaper power is a good trade-off for us,” Jacobs said.

“Hands off ComEd!” Great slogan, buddy.

* But Gov. Quinn did get one more good whack at that Wisconsin governor-elect which deserves a pat on the back

A war of words is heating up between Wisconsin Gov.-elect Scott Walker and Illinois Gov. Pat Quinn over job creation.

The Republican Walker said Thursday he plans to persuade Illinois companies to come to Wisconsin. He says he’ll emphasize that Quinn has proposed massive tax increases. […]

Quinn spokeswoman Ashley Cross criticized Walker’s characterization of massive tax increases.

She says even with Quinn’s proposal of a 1 percent tax for education, Illinois’ individual income tax rate would be 4 percent. Wisconsin’s ranges from 4.6 percent to 7.75 percent.

Take that!

* Except, Governor-elect Walker seems to have an economic vision that isn’t nearly as ad hoc as Quinn’s catch as catch can ways

Gov.-elect Scott Walker says he wants to set up a fund to help startup companies in Wisconsin.

Walker offered no details Thursday, but he told the Early Stage Symposium at Monona Terrace the fund would represent a public-private partnership.

“We’re going to focus in on small businesses,” he said, opening the second day of the two-day gathering of young technology company leaders and investors.

Walker reiterated his campaign pledge to declare an “economic emergency” and hold a special legislative session on jobs with a package including personal income tax cuts for employers with 50 or fewer workers; streamlined regulations; and an end to the state tax on health savings accounts.

Walker handed Quinn a big public relations success, but Quinn might still learn from the guy.

* Related….

* Milwaukee train company Talgo considers move to Illinois

* Quinn Tries to Get Wisconsin Jobs, Federal Money for Illinois

* War of words between Quinn, Wisc. gov.

* Walker and governor of Illinois spar over jobs

* High-Speed Rail Debate Crosses State Line

* Durbin angling for other states’ high-speed rail money

posted by Rich Miller
Friday, Nov 12, 10 @ 12:47 am

Comments

  1. Nice robust blog this morning. Long night, or early morning?

    Comment by Moving to Oklahoma Friday, Nov 12, 10 @ 5:50 am

  2. Walker has Quinn flummoxed. Quinn isn’t addressing the problem of huge unfunded gov’t employee mandates. That’s what is sinking IL.

    Walker has it right. What company will want to establish itself in IL when they could go to any neighboring state and not be on the hook for funding these lavish state worker goodies? SOMEONE is going to have to pay for all the crap we give out to our dedicated ‘public servants’.

    The only way IL gets new business is if Hapless Pat cuts ‘em a tax deal(as he has for numerous businesses over the past months).

    Poor Pat. He’s not quite up to the job. Well, hopefully the GA will lead him along and keep him from doing any MORE damage. Even young Mike Jacobs is sounding a little ‘conservative’, as of late. Astounding!

    Comment by Mary, Sterling Friday, Nov 12, 10 @ 6:28 am

  3. If Quinn’s going to engage in these media debates with other gov’s perhaps he should hone his game. Something like, “I know my Wisconsin counterpart is new, but when he gets in office he might want to check out his state’s income tax rates. Illinois has a ways to go before its rates match his. Is that what he’s going to tell our businesses? I’m happy to meet the governor-elect to discuss economics. Perhaps a summit on the border. I’ll take the train. Not sure how he’ll get there.”

    Rich, since the governor is sooooo bad in his public deliveries and his press staff ain’t exactly Dennis Culloton, perhaps you could offer a service. Let your informed well-expressed readers offer up possible commentary for our governor.

    Especially when dealing with other states. We ain’t gonna take no lip from badgers and hoosiers.

    Comment by Piling on Friday, Nov 12, 10 @ 6:33 am

  4. –Gov.-elect Scott Walker says he wants to set up a fund to help startup companies in Wisconsin.–

    Well, he can plan on losing money then, because the majorities of startups go out of business. It sounds like PR to me.

    Good schools, transportation and communications and safe streets are the state’s biggest role. Paying bills on time would be an economic development tool, as well.

    Comment by wordslinger Friday, Nov 12, 10 @ 7:27 am

  5. Dear Mary:

    Wisconsin has the exact same defined benefit retirement program for public employees that Illinois has.

    The difference is that Wisconsin taxpayers actually KEEP their promises and pay their share into the retirement system.

    Unlike Illinois where the taxpayers elect folks to skip pension payments so that they can keep corporate tax loopholes alive and well.

    So, if you want to blame someone for the state’s failure to keep its promises, look at your neighbors and then look at yourself.

    And then, by all means, ask yourself “If Wisconsin can keep its promises, why can’t we?”

    Comment by Yellow Dog Democrat Friday, Nov 12, 10 @ 8:38 am

  6. Sen. Jacobs may get it more than he realizes, except for different reasons.

    Many wind generators, because of their intermittent output, require conventional back-up generators (normally natural gas) as part of their installation plan. Wind turbines are also still unreliable and expensive compared to conventional power generators. Economically, wind generation is among the most expensive methods, and is not economically feasible without government subsidies. A 2009 Spanish study (which has a higher percentage of wind generation) shows wind power to be a job killer.

    With all these faults, it makes sense to end subsidies for wind generation. Unfortunate, given the precedent of these subsidies, Rich’s slogan (”Hands off ComEd) will act as a brake to any move to eliminate this inefficient use of government subsidies.

    Comment by Cincinnatus Friday, Nov 12, 10 @ 8:44 am

  7. Jacobs is right. Govt. shouldn’t be subsidizing any of this crap.

    Comment by Greg B. Friday, Nov 12, 10 @ 10:40 am

  8. I’m no Quinn fan, but this Wisconsin Governor-elect deserves all the abuse that can be poured upon him. He spent his entire campaign trying to mislead people into thinking that the state could just take this federal rail money and use it for other projects instead. Regardless of the merits of high-speed real, this is money that’s already been appropriated by Congress for that specific purpose, so it either goes for high-speed rail in Wisconsin or it goes somewhere else. He managed to trick enough people into voting for him on that basis, and now they’re going to find out the truth.

    Comment by Anonymous Friday, Nov 12, 10 @ 11:06 am

  9. Not only is Senator Mike Jacobs right, he’s damn right. Why would Illinois allow start-up companies to insert their hands in taxpayers pockets without providing clear citizen benefits? If “flim-flam men” want to build wind turbins or erect massive solar panels then they are free to go ahead do it. Why they think they need Senator Mike Jacobs’ blessing is hard to fathom? If they are trying to get Jacobs’ ear this seems like an odd way to do it.

    Fact is, “con-men” want unfettered access to tax dollars to subsidize inferior products which do not stand on their own as they are too expensive and unreliable.

    Comment by Whatwhat Friday, Nov 12, 10 @ 11:09 am

  10. Greg B: I guess it’s ok for the government to subsidize the oil and coal industries, right? Don’t be a dolt…There is no such energy commodity that isn’t underwritten by the government…I wonder how much campaign money Jacobs takes from
    Ameren and other please don’t roil the waters energy companies in central and southern IL….
    Americans just don’t get it…

    Comment by Loop Lady Friday, Nov 12, 10 @ 11:14 am

  11. CA has grown it soler power business by offering large tax credit to home owners and business who install soler units.

    Interestingly, U of I has som cutting edge soler power reseatch, including thin sheets that can go over windows etc.

    IL should consider tax credits and other offsets to spur the growth here.

    Comment by Ghost Friday, Nov 12, 10 @ 11:22 am

  12. If the market does not support alternative energy sources, then once the market forces economic reality upon us once again, we will see all this money as waste - just as it was wasted thirty years ago.

    Why don’t we just reinvest in the canals we built two hundred years ago and make the same claims.

    High speed canal packets on the Hennepin Canal! Supersize those mules! They eat grass, so that is solar power, right?

    Comment by VanillaMan Friday, Nov 12, 10 @ 11:41 am

  13. The history of coal, oil, natural gas and nuclear power shows that no energy sector was developed without large government subsidies. Wind energy will become more efficient over time, especially with the development of energy storage and smart grid technologies.

    Comment by going nuclear Friday, Nov 12, 10 @ 11:42 am

  14. Loop Lady. No, it’s not ok for the govt. to subsidize the oil, coal or any other industry. But even if we do, it’s still a bad idea to double down on a bad policy by subsidizing something that has been repeatedly tried in the past only to waste money and enrich charlatans.

    It’s ok to be stupid if you’re fair about it, doesn’t really help anyone.

    Comment by Greg B. Friday, Nov 12, 10 @ 11:47 am

  15. Greg, ok, I guess to further enrich the Saudis/Hugo Chavez is preferable to you rather than to be more energy efficient on our own…I for one, think the sheiks and the coal barrons in the East have had their fun with Americans money long enough and would like to give them less of it in the future…but to change course would be really inconvenient to the business as usual interests/lobbyists, so let’s just forget about that whole self sufficiency thing…nip it in the bud…the only thing is renewable technologies are being funded anyway by the the likes of Corporate interests such as Google, and in the future they and others will take you and other naysayers kicking and screaming along for the ride…by then,you’ll probably be fully onboard with the concept and reality so please get back to me in ten or fifteen years…until then…ta ta…

    Comment by Loop Lady Friday, Nov 12, 10 @ 12:19 pm

  16. BTW Greg, be careful who you’re calling a charlatan…

    Comment by Loop Lady Friday, Nov 12, 10 @ 12:20 pm

  17. Why are we giving a private entity, The Rialto Theatre, state money when we can’t afford to take care of the historic sites and parks that we actually own?

    Comment by lincolnlover Friday, Nov 12, 10 @ 12:56 pm

  18. ===If the market does not support alternative energy sources…===

    It’s not that the market doesn’t support alternatives, it’s that there is no market at all. That is why a federal cap and trade market for carbon emissions is needed: to create the market.

    We don’t currently capture the cost of carbon emissions in the cost of energy. Creating a market will provide certainty to businesses and incentives for alternative energy.

    I can’t understand why free-market supporters continue to oppose creating this market.

    Comment by 47th Ward Friday, Nov 12, 10 @ 1:01 pm

  19. Hey, look, I’m all for domestic production. I also believe “self sufficiency” is a pipe dream and inimical to US and probably global interests. Global markets for energy is here to stay.

    Fee market supporters don’t support cap and trade because it’s not a free market. We have experience in the US with them and European cap and trade results have been dismal. I haven’t seen anything to suggest that wouldn’t be the case here in the U.S as well.

    Fossil fuels are abundant and more flexible and will be for the foreseeable future. That’s just the reality. 7 or 8 times the US govt. has stated that we were at peak oil in the 20th Century. Each time they were wrong.

    I’m all for alternative energy exploration and uses. As long as it’s efficient, inexpensive and it works. It should have to compete on a level playing field (as close to that as one can get). Let consumers pick the winners and losers.

    Comment by Greg B. Friday, Nov 12, 10 @ 2:17 pm

  20. Greg, fossil fuels are abundant? Says who? You?
    That’s why were obtaining it from Canadian shale, right? I don’t want to upset your world view, but just because you say it doesn’t make it true…the world is in the waning years of an oil based economy. I don’t think we should wait until the Saudis give us the finger by telling us there’s no more to be had before investigating the alternatives…I am done arguing with someone who obviously is not open to self criticism and scrutiny…have a nice day!

    Comment by Loop Lady Friday, Nov 12, 10 @ 2:51 pm

  21. There are about 4.5 trillion bbls of recoverable oil in the world which would last approximate 140 years at current consumption rate. Most of that oil is not in the Middle East.

    Comment by Cincinnatus Friday, Nov 12, 10 @ 3:00 pm

  22. Greg B, do you think there is a social cost of pollution? If so, who should pay the cost? If you don’t think there are any costs to society from pollution, then your position makes more sense.

    Economists call things like pollution “externalities.” A market based approach is the most efficient method to account for these extra costs. The lack of certainty means Exelon can’t estimate the true cost of constructing a new nuclear plant. In the absence of this certainty, it keeps its coal-fired plants operating. But even there too, it lacks any market incentive to upgrade coal plants and improve their efficiency.

    The cost of generating a kilowatt of electricty does not include any cost for the pollution produced to make the transaction possible. And while consumers will have to pay the cost of pollution, it will be spread evenly among all energy consumers, which makes it the fairest system possible. By adding cap and trade, we can let the market sort it out as efficiently as possible.

    Comment by 47th Ward Friday, Nov 12, 10 @ 3:03 pm

  23. Cincy: Does this estimate account for an increasing number of cars in India and China and subsequent demand?
    Given the supply will last as long as you say, 140 years isn’t a very long time, or I guess you don’t care cause it won’t be your problem, right? Love your world view…if it doesn’t affect me, who cares? It will affect you in your lifetime.

    Resources are scarce buddy, maybe when the western US has their water wars in the coming years it will dawn on Americans that we can’t take our natural resources for granted…

    Comment by Loop Lady Friday, Nov 12, 10 @ 3:44 pm

  24. ==Quinn spokeswoman Ashley Cross criticized Walker’s characterization of massive tax increases.

    She says even with Quinn’s proposal of a 1 percent tax for education, Illinois’ individual income tax rate would be 4 percent. Wisconsin’s ranges from 4.6 percent to 7.75 percent.==

    The Wisconsin standard deduction is a maximum of $9,440 for low-income workers and decreases with income. There is also a small personal exemption.
    Quinn says he’s for the little guy, but his tax plan hits them far harder than does Wisconsin’s.

    Comment by Rambler Friday, Nov 12, 10 @ 4:40 pm

Add a comment

Sorry, comments are closed at this time.

Previous Post: Count me out
Next Post: Two excellent editorials today by the Chicago Tribune - And a totally unrelated development


Last 10 posts:

more Posts (Archives)

WordPress Mobile Edition available at alexking.org.

powered by WordPress.