Survey: Illinois third worst state for business
By Benjamin Yount
Illinois Statehouse News
SPRINGFIELD, Ill. — A new survey backs up the belief that Illinois is not a business-friendly state.
Development Counsellors International (DCI), a New York-based marketing firm, released a survey Sept. 19 of 322 company executives who ranked the 50 states as either good or bad for business.
Illinois ranked as the third worst state in the country, behind California and New York, in bad business climates.
The executives, who participated in the survey, said the bottom three states earned their rankings because of “taxes” and “too much regulation.”
But Illinois also earned a low ranking because of its “fiscal problems and budget deficits,” according to the survey
Mark Denzler, vice president for the Illinois Manufacturers’ Association (IMA), which lobbies for hundreds of manufacturers statewide, said it should come as no surprise that Illinois’ government problems are becoming a business problem.
“Companies want stability and predictability,” said Denzler. “They understand that in some states maybe the tax burden may be a little higher in one state than another, or that workers’ compensation costs may be a bit lower. But they want stability and predictability.”
Denzler said Illinois has not had much of either over the past eight years.
However, he is quick to say that few state government-created problems exist in the top-ranked states. Texas ranked No. 1, followed by North Carolina at No. 2 and South Carolina at No. 3.
State Rep. David Harris, R-Arlington Heights, said Illinois has earned its bad-for-business reputation, referring to former Gov. Rod Blagojevich’s proposed gross receipts tax, and the personal and corporate income tax increases signed by Gov. Pat Quinn in January as proof.
Illinois business groups, including IMA, and a number of Harris’ fellow Republicans, said the tax tactics of Democrats have created an environment that is not conducive for business.
But, he adds that Illinois is not permanently relegated to the bottom.
“Illinois has great resources,” Harris said. “We have great and talented people. We have natural resources. We have a transportation network that is the equal of any state in the nation.”
Harris said Chicago, with its access to Lake Michigan as well as the city’s rail, air and interstate hubs, are evidence of what Illinois has to offer.
But Harris said the state’s policies have put Illinois into a “terrible situation.”
Kelly Jakubek, spokesman for the Illinois Department of Commerce and Economic Opportunity, said Illinois is not that terrible.
“Site Selection magazine ranked Chicago the No. 1 metro area and Illinois the No. 8 state for corporate facility expansions in 2010,” said Jakubek. “Illinois was also named one of 10 ‘business friendly’ states that are gaining businesses by U.S. News & World Report.”
Denzler said Illinois is starting to turn the corner.
“I think (state leaders) have begun to realize it,” Denzler said. “I think that you’ve seen a (Democratic) governor and a (Democratic-led) Legislature … work to impose some new reforms of workers’ compensation, that are going to save money, that you would not have seen from (Democratic) leaders five years ago.”
Print This Article
2 Comments
Leave it to the Quinn administration to sugar-coat the problem! It has been said that Pat Quinn always thinks he is the smartest guy in the room…what a fool! This state is sinking fast and Quinn’s too dumb to see it.
The truth is that we are worse off here than in most of the country, and things are getting even worse by the day. Almost everyday, I pick up the Tribune and read about another company shutting down and heading to Indiana or Wisconsin.
Let’s look at a few facts;
“Bad for business” means JOB LOSSES! Businesses hire people, and fire them when they pack up and leave. A number of companies have done just that.
Conventions are avoiding Chicago because of the ridiculus costs…more job losses. This isn’t even including the “highest in the nation” taxes visitors are stuck with in Chicago.
The few companies Quinn has managed to “bribe” into staying will come back to haunt us…look for that cost in a future tax bill.
Olin down in Alton is slowly bleeding off it’s Illinois workforce and moving the operations to Mississippi.
Quinn’s last tax increase did not solve this states problems, so Quinn is back with his borrowing schemes to put us even further into debt.
Quinn is the most wasteful and abusive Governor ever, appointing his friends and allies to useless, but high-paying boards and commissions that suck the life out of taxpayers.
And then there’s people like me. People who can’t wait to sell their homes and get the hell out of this cesspool.
And finally, Quinn has people like Kelly Jakubek babbling on about how Chicago is the #1 Metro area for corporate expansion in 2010. Seriously? Does anyone really believe this nonsense.
If Quinn would have taken the tax increase and used that to pay down the debt, IL would be looking better, but the Mighty Quinn submitted a budget that had MORE SPENDING than the previous year. Now the MIGHTY QUINN has the balls to break a legal contract by taking away pay raises and blames the legislature for not passing his whole budget and not allowing him enough money to pay the bills.
The nonsense of quoting a small magazine saying that Chicago is #1 Metro area for corporate expansion is laughable. I bet they worked long hours to find that one…..
The tax breaks given to keep companies from leaving the state will hurt is later. The increase in spending will hurt us later. Quinn has no clue that stimulating the state economy will lead to a better/more sustainable increase in revenue. The tax increase is a short term solution which will result in a loss of revenue longer term, and that will also hurt us in the end.
Quinn is a joke. I still do not understand how he won the election with only two counties in his column… but unfortunately for the great people of IL, one of those counties was Cook which the people of Chicago reside. That was enough to put him over the top.
Any guess’s why all of Quinn’s policies benefit Chicago and no where else in the state?