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* California appears to have done it, so why not Illinois?…
California employers quieted any lingering doubts about the state’s economy in August, as an uptick in hiring helped absorb hordes of new job-seekers.
The state added a net 63,100 jobs last month and the unemployment rate remained at 5.5%, according to data released by the Employment Development Department on Friday.
Across the nation in August, employers added a net total of 151,000 new positions, meaning that California accounted for 42% of all U.S. job growth last month. […]
Since last August, the state has boosted payrolls by 378,000 workers — a 2.3% gain. Despite new paid-leave mandates, a rising minimum wage and strict environmental regulations, California has managed to grow faster than the rest of the country for several months.
posted by Rich Miller
Monday, Sep 19, 16 @ 2:14 pm
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Previous Post: Khouri zooms into the lead… on improper property tax exemptions
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Jerry Brown in California managed to raise taxes significantly on the super-wealthy to put the state’s financial house in order without the super-wealthy (individuals or businesses) fleeing in large numbers. I don’t know if other states could replicate that: between the quirkiness of the entertainment and tech industries out there, some people just love living in California (beyond typical homerism).
Plus, we can’t do progressive taxing here anyway.
Comment by lake county democrat Monday, Sep 19, 16 @ 2:21 pm
Why not? Because in Illinois we’re pushing a turnaround agenda that by its author’s estimates will produce benefits in the neighborhood of 1.4%. While that type of return might not mean much to most, and certainly isn’t on par with what California just reported, it means the world to the handful of well-heeled backers that will reap the benefits.
Comment by pundent Monday, Sep 19, 16 @ 2:23 pm
California has a graduated income tax which taxes income and capital gains at a rate as high as 13.3%.
Democrats in Illinois have, regrettably, refused to support a graduated income tax in this state.
Comment by FearTheTree Monday, Sep 19, 16 @ 2:28 pm
Why not IL you ask?
Oh to tee up this softball
Why not…cause Big CAT spent billions about the time the need for new stuff dried up and they believe American layoffs are a good way to cover.
Why not IL …cause the 1%ers are busy on ideas that kick in next DECADE rather than a new road program
NEXT
Comment by Annonin' Monday, Sep 19, 16 @ 2:40 pm
Beaches. Ocean. Mountains. Surf and snowboard in the same day. Sun and 70. Docks for Asian imports. Tech hub and enough grads to support it. Military installations. People will pay more to live there for a reason.
But hey, they aren’t out of the woods yet: http://www.latimes.com/projects/la-me-pension-crisis-davis-deal/
Comment by Shemp Monday, Sep 19, 16 @ 2:40 pm
They did the exact same thing that Governor Dayton did in Minnesota. We seem to be following the Kansas model instead.
Comment by Carhartt Representative Monday, Sep 19, 16 @ 2:49 pm
The difference is gubernatorial leadership. Governor Brown raised taxes and cut social services to stabilize their budget. He recently vetoed a very popular tax cut (feminine hygiene products) because it wasn’t balanced out with cuts or more revenue. All governors may own, but only some governors lead.
Comment by Earnest Monday, Sep 19, 16 @ 2:58 pm
Wait, what?!? …but, but California has by far the HIGHEST workers’ compensation costs in the entire country 188% of the median cost vs. Illinois at 127%!
How can the most expensive state in the country for workers’ compensation premiums costs–$3.48 per $100 of payroll vs. $2.35 in Illinois–get their employment numbers up so high, when we are told with a that we must reduce benefits to the families of injured workers and decrease reimbursement rates to their medical providers if we want to be “competitive”??
I am in a state of cognitive dissonance and it hurts my brain like a Super-sized Slurpee.
http://www.cbs.state.or.us/external/dir/wc_cost/files/report_summary.pdf
Comment by Matt Belcher Monday, Sep 19, 16 @ 3:04 pm
== Plus, we can’t do progressive taxing here anyway. ==
Not without changing the State Constitution.
People keep trying to remove the Pension Clause but that won’t have any kind of immediate savings return on the effort invested, only gradually over the years as new employees are hired.
People voted overwhelmingly for a millionaire’s surcharge tax (a form of progressive income tax), which would have an immediate and noticeable return of higher revenues.
It takes the same amount of work to change the constitution for either issue. One is clearly popular with the public and has an immediate return on the investment of time and effort … so why isn’t a progressive income tax or millionaire’s surcharge on the ballot this fall?
PS: that’s a rhetorical question …
Comment by RNUG Monday, Sep 19, 16 @ 3:22 pm
Illinois doesn’t have California’s weather or the ocean. Tourism is a massive job driver in Cali. Plus a big oil/ Nat gas industry that is rebounding.
Comment by Anonymous Monday, Sep 19, 16 @ 4:00 pm
If you’re comparing Illinois and California then you don’t get it. Go spend a week there, you’ll understand.
Until the cost of living approaches Hawaii levels, they can get away with it.
Comment by m Monday, Sep 19, 16 @ 4:10 pm
And I am pretty sure California still has a domestic out-migration problem. There are enough articles in any major California daily that will attribute the high cost to live there with that.
Comment by Shemp Monday, Sep 19, 16 @ 4:40 pm
The results are in. The California/Minnesota model works. The Kansas/Wisconsin model, which Rauner is trying to implement here, is a failure.
Comment by Truth be told Monday, Sep 19, 16 @ 4:44 pm
“Vote Bill McKay, the Better Way!”
“Vote once, vote twice, for Bill McKay. You middle class honkies. “
Comment by Brendan Monday, Sep 19, 16 @ 4:56 pm
Um, California is beautiful, has amazing weather, and has tech and Hollywood.
Illinois has soybeans and corn.
Comment by Ron Monday, Sep 19, 16 @ 5:51 pm
CA is losing manufacturing jobs too.
Comment by Ron Monday, Sep 19, 16 @ 5:53 pm
@ Shemp But hey, they aren’t out of the woods yet: http://www.latimes.com/projects/la-me-pension-crisis-davis-deal/
No, but they have a budget and raised taxes to eye watering levels to start paying for it.
I wonder what Illinois’ unfunded liabilities look like using a similar discount rate?
The LA times article is worth a read. Sobering. Pensions ain’t cheap. “Highway Patrol officers contributed 11.5% of pay and the state added 42%.”
That’s 53.5% of payroll to fund pensions. That doesn’t include the cost of post retirement health care.
Comment by Fred Monday, Sep 19, 16 @ 6:09 pm
Here we are fighting for political power. The financial and social effect on the State are side issues.
I have lived in California and prefer Illinois. I prefer soybeans to smog.
Comment by Last Bull Moose Monday, Sep 19, 16 @ 6:15 pm
California has been doing well in adding jobs this year.
Taxes can be raised on the rich, and it has worked great for Minnesota and California. Both states have budget surpluses as well as good economies.
Comment by Grandson of Man Monday, Sep 19, 16 @ 7:39 pm
Brown did it by cutting the budget and allowing voters to restore the cuts using the citizen’s initiative to raise taxes–
Gov fixed the problem without the legislature, but with voters help. Citizens initiative to raise taxes not allowed under Illinois Constitution.
Comment by anon Tuesday, Sep 20, 16 @ 9:07 am