4 economic principles every local politician should know | The Rock River Times

 

By Paul Gorski
Columnist

There are four basic economic principles our local politicians should know: 1) Tax abatements are not effective tools for long-term economic growth; 2) Locally, TIF districts have not proved to be useful tools in generating long-term economic growth; 3) Investments in public healthcare can have a positive effect on local economies; 4) Investments in public education have long-term benefits to local and regional economies.

Let’s tackle that last one first. Investments aimed at reducing high school dropout rates have a direct benefit on local economies. Higher education levels are associated with lower criminal activity, which is a positive for any community.

High school graduates are also less likely to enroll in state Medicaid programs and federal Medicare health care programs, reducing the participation in these taxpayer-funded programs. In addition, high school graduates earn more money and contribute more in income tax revenue compared to high school dropouts over their respective lifespans. Therefore, the public investment in education eventually comes back to the state economy.

Investments in public healthcare aimed at keeping residents out of emergency rooms as their primary source of care can have a positive effect on resident health and local hospitals’ bottom line.

Local hospital systems often carry the burden of treating low-income, underinsured patients in their emergency departments. Programs that increase clinic access, provide for mobile clinics and programs that help avoid chronic health conditions can help hospitals save money and improve the health of the community. Local governments can help by providing financial assistance for vaccinations, wellness education, and promoting access to care.

Tax abatements, often in the form of property tax relief, have not been shown to promote long-term economic growth. From my March 2014 column: “Michigan researchers found that while tax abatements in Michigan might work for some industries in some high-tax rate areas, that “net tax abatements result in a net cost to the local government.” In other words, the tax reductions cost the local governments more than the promised economic benefit.” The article details similar examples.

Tax increment financing (TIF) districts offer a slightly brighter prospect for economic growth, but we have not used them wisely, and property values have been dropping in some of our TIF districts, so there is not enough money coming in to repay the money borrowed to improve those areas. Not only are we not improving these areas, we are putting ourselves deeper into debt.

Course summary: invest in public health and public education, and use tax incentives sparingly.

Paul Gorski (paul@paulgorski.com) is a Cherry Valley Township resident who also authors the Tech-Friendly column seen in this newspaper.

4 economic principles every local politician should know | The Rock River Times

Fossil fuels and climate change | The Rock River Times

 

By Robert and Sonia Vogl
President and Vice President, Illinois Renewable Energy Association

The scientific community overwhelmingly considers climate change as real, resulting primarily from human activities, especially increased fossil fuel consumption and deforestation. If these existing trends prevail, severe environmental problems will increase.

Concerns about the potential of carbon releases to change the climate were a topic of discussion among a group of oceanographers in the 1950s.  We became aware of them around 1970. In the late 1980s Hansen addressed the climate threat to Congress, bringing it to the public’s attention.

Andrew C. Revkin pointed out that by 1995 fossil fuel interests supporting the Global Climate Coalition sponsored an internal scientific study which indicated that the scientific basis for linking climate change to carbon emissions from human activity could not be refuted. Rather than proposing actions consistent with the science of climate change fossil fuel interests chose to mount a campaign of denial to delay taking action. Those interested in the details of the campaign can either read the book or watch the film “Merchants of Doubt”.

As public pressure builds to address climate change, fossil fuel interests and their allies in Congress and some state houses continue to support policies favoring fossil fuel consumption. Michael T. Klare, Professor of Peace and World-Security Studies at Hampshire College, puts the ardent support of the Keystone Pipeline into a global perspective.

After losing control over the majority of the world’s oil and gas reserves, international oil companies such as BP, Chevron and Exxon Mobil launched a successful effort to increase their production in Canada, the U.S. and Mexico from fracking, horizontal drilling and deep water drilling.

Klare describes an effort to promote North American energy independence by increasing U.S. participation in the energy industries of Canada and Mexico while eliminating barriers to cross-border pipelines and reducing environmental regulations. An abundance of fossil fuels is seen as strengthening U.S. dominance in key areas around the globe. He expects that energy abundance and national security will be major platform issues in the next presidential campaign.

An aggressive expansion of fossil fuel resources runs counter to actions needed to address climate change and environmental deterioration.  As extreme weather related events including storms, droughts, forest fires, floods and rising sea levels increase, global pressures on governments to deal with climate change are intensifying.

With cost effective energy efficiency measures and declining costs of wind and solar energy, an effective option to expanded fossil fuel consumption exists and is being widely implemented. Some interests indicate it is essential to leave the remaining reserves of fossil fuels in the ground and move toward an aggressive effort to cut consumption and waste. The scale of action called for is similar to what was done to shift industrial production away from consumer goods to providing military supplies for World War II.

As an apostle of hope in a fear driven world, Paul Gilding in “The Great  Disruption” outlines what he calls “the one degree war” against catastrophic climate change. He envisions ending our addiction to growth and accepting the need to change as a business opportunity in which new companies will reshape our economy.

Some elements of Gilding’s view of new business opportunities to address climate change are included in the proposal of the Illinois Clean Jobs Coalition.

Drs. Robert and Sonia Vogl can be reached via e-mail at sonia@essex1.com.

Fossil fuels and climate change | The Rock River Times

Rauner says 2015 budget fix nearing – but he’s thought that before | The Rock River Times

 

By Mark Fitton
Illinois News Network

SPRINGFIELD — Gov. Bruce Rauner on Wednesday said he continues to believe a bipartisan fix for the 2015 budget hole — about $1.6 billion — is nearing.

“We’ve had various ideas on the table (and) we’ve been very close to a resolution for about five weeks. I believe a resolution is now about done,” he said.

But then Rauner chuckled and added, “Of course, I’ve believed that for a little while now.”

The governor did not directly answer a questions about a proposed 2.25 percent across-the-board budget cut reportedly floated by House Democrats, but he didn’t discount the idea, either.

“I’m hopeful that in the coming few days we’ll have a bill introduced and it’s one based on recent discussion that I’ll be supporting,” Rauner said.

Rikeesha Phelon, spokesman for Senate President John Cullerton, D-Chicago, when asked for comment responded, “I’ve had to respond to the ‘days away’ remark for 30 days.”

Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago, said, “The speaker continues to believe a settlement is days away.”

Asked whether an across-the-board cut might apply to school funding, the governor deferred to legislative leadership.

“I don’t want to get out in front of the General Assembly, the leaders, on what will be in or out of that particular reallocation of budget money,” Rauner said. “I’ll leave that (for) the right announcement.”

Earlier, the governor told an audience of Illinois Chamber of Commerce members the process “is sausage being made. It’s not real pretty. But it will be tasty when it’s done, I believe.”

Workers comp

The governor gave a version of his well-traveled remarks in support of his “Turnaround Illinois” agenda to a largely receptive audience of Chamber members Wednesday morning.

The governor asked for his audience’s help, as he usually does, but on Wednesday he focused on workers compensation reform.

Rauner said it’s one aspect he needs help with if he’s to make Illinois more of a competitor for jobs.

Rauner says his political opponents and the media misstate or understate the size of workers compensation costs in Illinois.

Rauner and other critics of the workers compensation system in Illinois say the state’s premiums are out of line compared with the rest of the nation and make it hard for businesses to compete.

Among other changes, they want codified standards for causation. In other words, claims for injury or aggravation of injury must be directly tied to employment.

Illinois doesn’t have to have the lowest cost, the governor said.

“We can even be above the average on the cost, but we can’t be one of the top, the most expensive and that’s where we are today,” Rauner said.

Todd Maisch, president and CEO of the chamber, said he understood the governor’s call for help from business leaders and he thinks chamber members will pitch in.

“Consistently, the governor stresses workers compensation in front of employers and I think that’s a strong statement.”

“I think there’s widespread support in the employers’ community,” Maisch added. “The cost is tremendous and it (workers comp reform) has to be on the table.”

Rauner says 2015 budget fix nearing – but he’s thought that before | The Rock River Times

Career & Internship Fair at Rockford University | The Rock River Times

Staff Report

Rockford University with Rock Valley College will be hosting a Career & Internship Fair Wednesday, March 25 in the Burpee Student Center at Rockford University, 5050 E. State St.

There will be 45 employers present looking to fill part-time, full-time and internship openings within their organizations.

Job seekers attending are required to wear business professional attire.

Pre-registration is strongly suggested for job seekers with those registering in advance having their resumes sent to employers before the fair.

To pre-register for the fair visit rockford.edu/community/careerservices/fair/.

Career & Internship Fair at Rockford University | The Rock River Times

Letter: Boone County residents should tell Rockford Register Star to ‘scram’ - Opinion - Rockford Register Star - Rockford, IL

The following in answer to the following:  http://boonecountywatchdog.blogspot.com/2015/03/our-view-thanks-for-asking-boone-county.html

Posted Mar. 17, 2015 at 7:00 AM

I was extremely disappointed by the attitude of your March 10 “Our View” editorial took. Telling your neighbor to “scram” simply because a political inquiry was made shows the lack of knowledge and understanding the editors have of the relationship between Winnebago and Boone counties.

Industry on both sides of the county line have numerous employees from each county; commercial and professional services are provided and sought on both sides and families, reside on both sides. Boone and Winnebago are joined at the hip, and nothing is more evident than our judicial system, where Boone and Winnebago are part of the same judicial circuit and judges serve both counties.

Maybe Boone County residents should decide to tell the Rockford Register Star to “scram” and refuse to buy the paper as well as not participate in advertising. Next time, if there is one, maybe the editors will realize there is more to cooperation and they might see how it could work to eventually, for example, bring passenger rail service to both of our communities.

— Donald L. Shriver, Rockford

Letter: Boone County residents should tell Rockford Register Star to ‘scram’ - Opinion - Rockford Register Star - Rockford, IL

U of I Extension to host farmers market marketing class - News - Rockford Register Star - Rockford, IL

 

BELVIDERE — U of I Extension will hold a marketing class for farmers market vendors from 6 to 8:30 p.m. April 9 at the Boone County Extension Conference Room, Suite 5, 205 Cadillac Court.

Attendees will learn about booth set up, signage and staffing considerations and about the best ways to package, price and display products.

Fee: $5. For information: 815-544-3710.

U of I Extension to host farmers market marketing class - News - Rockford Register Star - Rockford, IL

IDOT letter casts doubt on future of Rockford Amtrak service - News - Rockford Register Star - Rockford, IL

 

ROCKFORD — Four Rockford-area Republicans say a letter from the Illinois Department of Transportation expressed concerns that funding for Amtrak through Rockford will continue to be delayed.

Reps. Joe Sosnowski, Brian Stewart and John Cabello and Sen. Dave Syverson said Quinn made promises that Illinois couldn't financially afford.

“The availability of funds for this project was falsely advertised," Sosnowski said. "There was no money designated for the project. It was an outrageous political lie by the prior administration.”

The letter, from acting Secretary Randall Blankenhorn, asks legislators for patience while Gov. Bruce Rauner's administration determines what can be afforded.

"The Illinois Department of Transportation is currently examining the costs and benefits of this project to the taxpayers of the state," he wrote. "In the interim, it is important that project stakeholders understand the status of this project and the possibility that it may or may not be terminated."

Legislators haven't completely given up on getting a rail stop in Rockford but aren't sure about the project's ultimate feasibility.

“I am disappointed that this project continues to be delayed,” Stewart said. "IDOT confirmed that this project currently looks doubtful, however I am hopeful that future plans will continue to develop as we strive to address our state's current fiscal mess. Until then, we will just have to wait.”

IDOT letter casts doubt on future of Rockford Amtrak service - News - Rockford Register Star - Rockford, IL

Poll: Voters Sour Further on Rauner | David Ormsby

 

Shortly after his election, Bruce Rauner warned that "tough" decisions needed to be made to fix Illinois and that he would likely not be "Mr. Popularity" for a while.

That prediction continues to be prescient.

A new poll by Ogden & Fry on Friday, March 13, of 938 voters, commissioned by The Illinois Observer, finds that after his first 60 days in office, Rauner's approval stands at 40 percent, dropping three points since a February 11 Ogden & Fry survey measuring his first 30 days.
The bigger, more worrying number is the nine-point jump in the governor's disapproval rating, rising from 28.2 percent in February to 37.3 percent in March.
Ouch.

Moreover, Rauner's job approval rating is down a full 12 points from a January 14 poll conducted by We Ask America when it pegged his rating at 52 percent. And his disapproval rating is up 14 points from We Ask America's January survey when it hovered at just 23 percent.
Ogden & Fry pollster Tom Swiss attributes Rauner's weakening standing with voters to the reception of his proposed FY 2016 budget.
"Bruce Rauner has continued his aggressive government reforms from his "turnaround budget" to reducing by half municipalities' share of the state income tax," Swiss wrote in the polling memo. "Governor Rauner's vision of fiscal discipline is being met with heated rhetoric from local politicians, Democrats, and the media."

Rauner's fiscal plan, which state law requires to be presented accounting for only existing, authorized revenues, presented $6 billion in budget cuts, ranging from $2.7 billion from employee pension and health care benefits to developmental disabilities to substance abuse treatment to child welfare to breast cancer screenings to public universities and on and on.
The media has been since churning out a range of negative stories on those cuts that the governor had glazed over in his February 18 budget address.
In addition, Rauner has been on a tear since his budget speech traveling widely and often across the state pushing not his budget plan but his "empowerment agenda" that centers on "Right-to-Work" zones and other anti-union agenda items in front of friendly audiences.
But Rauner got an ear-full at the South Side Irish Parade in Chicago's 19th Ward on Sunday, which is stuffed with union households, being roundly booed by parade-goers.
A Capitol Fax commenter, South Sider, provided on Monday perspective on the reception that Rauner received.
"I've been attending the south side St. Pat's parade for 30 years and always pay attention to the reaction politicians get. I expected Rahm to get a rough ride this year given the high number of teachers, cops, and other city workers who live in the neighborhood. But Rahm might as well have been the first Irish pope compared to the reception Rauner got. The people marching with Rauner had to resort to chanting "Bruuuuuuuce" as he walked by to drown out the boos," South Sider wrote.
What is most striking about the sour reception is that the 19th Ward was one of Rauner's best performing wards in the City on November 4. Rauner took 20.6 percent citywide, but won 33.5 percent in the 19th Ward.
Rauner has said that he is willing to "take the arrows" over his decisions, but as experienced politicians know, the "arrows" launched by voters lack precision guidance and they also typically hit a chief executive's partisan allies.
To promote his legislative agenda, the governor has squirreled away $20 million in his campaign account to protect - or punish - GOP lawmakers. But as Chicago's recent municipal election demonstrates, an unpopular chief executive's pot of gold is no guarantee of electoral security for allies. The Rahm Emanuel-aligned Super PAC raised $2 million to bludgeon aldermanic foes and bolster friends, but it was mostly mayoral allies who were bloodied on February, many being pushed into runoffs or barely escaping a second round.
Unless Rauner can turnaround his drooping poll numbers, he will find it more difficult to round up Republican votes for his agenda when that agenda is perceived by GOP legislators as perilous to their own political popularity at home.
Still, the new poll is not all bad news for the governor.
A chunk of voters are still giving Rauner the benefit of the doubt with 22.5% who have no opinion yet on his performance, though that's down from 28.6% in February. That means the governor has an opportunity to add the undecided to his approval column, but he may have to alter his strategy to do so because the current public opinion trajectory is not his friend.
Stay tuned.

davidormsby@davidormsby.com

Poll: Voters Sour Further on Rauner | David Ormsby