The state of Illinois is the fifth largest state in the country and regularly makes national headlines. Illinois has claim to four presidents, a rich cultural history and the birthplace of many things we love today.
There is also a dark history of political corruption, Al Capone, present day gun violence, and the current state budget battle led by Gov. Bruce Rauner. Illinois is a great state but there are many challenges that need to be addressed.
As of December 2015, the unemployment rate was a full percentage point above the U.S. average of 4.9 percent for January 2016. Among neighboring states, Iowa’s unemployment is 3.4 percent, Wisconsin (4.3 percent), Indiana (4.4 percent), Kentucky (5.3 percent) and Missouri (4.4 percent).
Why is Illinois the highest? According to the Illinois Department of Employment Security, Illinois lost 3,000 jobs in 2015. Last month there was an announcement of over a combined 1,100 jobs to be cut. Those eliminating positions are Mondelez, Wal-Mart, CoStar, IFCO Systems and Lutheran Social Services of Illinois.
Lutheran Social Services, a large faith-based nonprofit, is owed $6 million by the state of Illinois and with the ongoing budget battle could no longer fund its current day-to-day operations. Caterpillar has eliminated 2,300 jobs since September of last year. Chicago Public Schools and the Illinois’ Pension System are in dire need of restructuring.
The first step to rebuilding Illinois is for a budget to be passed. Bruce Rauner, a Republican, has been demanding the state implement his turnaround agenda in order for him to agree to a budget. The governor’s turnaround agenda includes making Illinois a right to work state; weakening unions; eliminating the prevailing wage law, which pays construction workers a fair wage; freezing property taxes; cutting workers’ compensation benefits; term limits; and cutting spending.
Rauner’s efforts leading the state have earned him a 33.1 percent approval rating and 51.6 percent disapproval, according to a Jan. 9 poll by the Illinois Observer. It is coming close to a year that the state has been running without a budget and many local governments and universities are struggling. Chicago State University may close. The governor’s demands are hurting this state and he is unwilling to compromise for the better of the people he was elected to serve.
Illinois is governed by strong Democrat majorities in the state legislature, and with Rauner in charge of the governorship it’s important to take a detailed look at both parties’ economic message. Minnesota, a blue state, and Texas, a red state, are worth looking into. Both have thriving economies and Illinois can be one of them too.
It’s time a team of independent economists look at our state and distinguish how to best manage our state’s finances without heartless cuts and how to best continue commit to innovation and opportunity for its residents.
Angel Guzman
Joliet