With a little more than two weeks to go in Illinois’ legislative session, there’s talk that some Republicans are trying to delay major reforms in hopes of getting more leverage.

Don’t do it.

This is a rare moment in Springfield. Lawmakers, led by Gov. Pat Quinn, have rolled up their sleeves to tackle an out-of-control budget. Quinn has moved so far to the middle that even his normal adversaries in the business community are rallying around him.

For example, Doug Whitley, president of the Illinois Chamber of Commerce, said of Quinn: “He’s coming across as being a solid guy who’s interested in getting the state’s problems fixed.”

On Monday morning, Quinn urged business leaders in Chicago to join his “rescue operation” to reform Medicaid and public pensions. We hope they, and all lawmakers, were listening.

Delaying action past the legislative deadline was a favorite tactic of former Gov. Rod Blagojevich.

But guess what? When the dust settled, he never gained a thing to show for it.

Apart from not wanting to walk in Blagojevich’s footsteps, lawmakers should understand that now is the time to seize the moment.

Illinois is at a crossroads. Let’s march our state forward in the right direction.

http://www.suntimes.com/opinions/12522880-474/editorial-this-is-no-time-for-republican-legislators-to-delay-reforms.html

Illinois’ powerful coal lobby had been shepherding a bill through the General Assembly to create a new plant downstate, which would employ advanced technology so that it could use the state’s dirtier high-sulfur coal. But fierce pushback from business and green groups forced a surprise switcheroo in Springfield. In an effort to marshal more votes for their bill, Tenaska, the Nebraska company that has pulled out all the stops to get the plant built in Taylorville, has decided to power the facility with natural gas instead. It remains to be seen whether this was a politically savvy move as there are already public rumblings about support for the bill evaporating from formerly supportive coal country lawmakers.

Why should you care care about a downstate coal plant? Well, if the bill passes, you will be paying for it. The General Assembly would force every electric customer in the state to pitch in over the next 30 years to pay for the Taylorville Energy Center whether it burns coal or natural gas (or corn cobs or cow dung, for that matter). The shift from coal to natural gas would lower the price tag from $3.5 to $1.1 billion dollars. But despite the lower cost and potential for pollution reduction, opposition from groups like Sierra Club and the Illinois Chamber of Commerce (when do those two agree on anything?) has not waned due to persistent questions of whether demand for the plant exists. And industry comments about the plant shifting back to coal later probably don’t help much with groups concerned about the environmental and economic costs that move would return to the mix.

Movement on the bill is expected before the General Assembly finishes this session, but it looks like downstate clean coal remains as elusive as Bigfoot in Illinois: there has been a lot of talk, but nobody has proof it exists.

http://chicagoist.com/2012/05/13/how_do_you_do_clean_coal.php

DAVID MERCER  Associated Press

CHAMPAIGN, Ill. — Gov. Pat Quinn built his career on populism and consumer advocacy. But, in the middle of what might be his defining political moment, he finds himself in an unlikely alliance with major Illinois business groups in a battle against unions and advocates for the poor.

Quinn has proposed sharp cuts in both Medicaid and pensions for government workers to save billions in expenses the state can’t afford to pay. In that, he for the most part has the support of the state’s business community.

Business leaders say it’s a surprise the ideas are coming from Quinn — a surprise they welcome.

“I have been more comfortable with Governor Quinn since he got elected, and his actions, if you will, than I was for the past 30 years of his political life,” said Doug Whitley, president of the Illinois Chamber of Commerce. “He’s coming across as being a solid guy who’s interested in getting the state’s problems fixed.”

Whitley noted that the problems are ones that Quinn inherited.

Quinn addressed an Illinois Retail Merchants Association meeting May 2 in Springfield, and he sounded almost surprised the group wanted to hear from him. But that did not stop him from appealing for their help.

“I was so happy when I got the invitation,” he told the audience. “This is a moment we cannot miss. Like never before, we need you to talk to your legislators.”

The state’s tough financial situation has been a sore point for business executives, some of whom complain that the state’s climate hampers investment. Quinn signed off last year on an income-tax increase that angered many business leaders. The state continues struggling to pay companies it uses as vendors. The state’s credit rating has been downgraded. And other states are trying to lure Illinois companies away.

Quinn, 63, spent most of his career building a populist resume. As a Cook County politician in the early 1980s, he helped create the Citizens Utility Board, a consumer watchdog group whose mission is to look out for the interests of residential utility customers. His speeches are liberally sprinkled with references to the everyman president, Abraham Lincoln, and the working men and women of Illinois. He was known for

Unions are his biggest campaign contributors, though he angered them by moving to cancel a pay increase promised to state workers.

The state’s mounting fiscal problems — the state government owes $9 billion in unpaid bills — led Quinn to announce plans that so far business leaders support as realistic efforts to get the state’s ledgers under control.

To rein in Medicaid costs, Quinn has proposed cutting services for the poor and disabled and cutting payments to doctors and hospitals. To keep from having to cut further, he proposes essentially doubling the tax on a pack of cigarettes, a measure that is not as popular with the chamber.

He wants to control pension costs by having government workers pay more from their paychecks into pension funds, making those employees work longer before they can retire and reducing cost-of-living increases after they leave work.

Illinois Chamber of Commerce President Doug Whitley says he’s more comfortable with Quinn and his ideas right now than he’s ever been.

FILE – In this May 2, 2012 file photo, Illinois Gov. Pat Quinn speaks with members of the Illinois Retail Merchants Association in Springfield, Ill. Quinn told members of the group that he needs their help to push lawmakers to cut state spending. (AP Photo/Seth Perlman, File)

“The IMA supports both pension and Medicaid reform and we commend Governor Quinn for laying out bold proposals,” said Mark Denzler, vice president of the Illinois Manufacturers Association, though he noted the group wants to see more details.

Business leaders say reining in the rapidly increasing Medicaid and pension systems will have a long-term impact like few other things the governor could do. Medicaid is currently running a $2.7 billion deficit, while the state retirement systems are running a shortfall of $83 billion on the money they’ll have to pay out to state employees in the decades ahead.

“It’s clear that these are things that are eating more and more and more of the budget each year,” said David F. Vite, the Retail Merchants Association president.

Whether Quinn and his new friends in the business community succeed will depend on how lawmakers respond, the chamber’s Whitley said. Both House Speaker Michael Madigan and Senate President John Cullerton agree that the two big state spending programs need to be reduced.

The General Assembly over the past week has voted for some of the cuts Quinn has in mind, but lawmakers with high numbers of state employees in their districts “feel far more heat and feel far more vulnerable,” Whitley said.

“You’ve got to look that state employee in the eye and say, ‘Do you want a pension or not?’” he said. “Because you can’t have what we’ve currently got — because what you’ve currently got is not sustainable.”

____

REWIND: Last week, Closer Look examined a legislator’s claim that fraud and abuse account for roughly 10 percent of Illinois’ Medicaid spending and that eliminating it could save the state $1.5 billion. There was little evidence supporting that 10 percent figure for Medicaid programs generally or the Illinois program in particular.

The Civic Federation, which analyzes state spending and recommends reforms, points out federal reports showing “improper payment” rates of 10.5 percent in the nation’s Medicaid program as of 2008.

Improper payments include any sort of error, such as a check for too much or too little, so it’s a broader category than fraud and abuse. But the information does shed light on the scale of problems in Medicaid spending.

The most recent estimate for improper payments nationwide is 8.1 percent.

___

Associated Press writer Christopher Wills contributed to this report from Springfield.

http://www.therepublic.com/view/story/f73907f9e16249138eb48a2d3d072d94/IL–Closer-Look-Quinn-Business/

State Farm chairman and CEO Ed Rust Jr. will be the headline speaker at the Illinois Chamber of Commerce’s annual luncheon on June 8. The Chamber says “Rust will draw upon his own experiences with the country’s largest auto and home insurer as he shares why business leaders must engage – and stay involved – in the development of economic and public policy, particularly in the uncertain regulatory environment we face today.” Should we expect comments like Caterpillar CEO Doug Oberhelman’s?

http://wjbc.com/5-things-you-should-know-may-11-2012/

Representatives from the Illinois Chamber of Commerce and local business associations across the state on Wednesday announced their support for Governor Pat Quinn’s pension reform proposal, applauding the governor’s “rendezvous with reality” and emphasizing the need to address Illinois’ dire financial situation this legislative session.

“Pension reform is the single most important accomplishment Governor Quinn can deliver for the long-term future of Illinois,” said Doug Whitley, Illinois Chamber president and CEO. “It is fundamental to restoring fiscal integrity to state finances and improving the business climate. Illinois has been in desperate need of the leadership and political will necessary to address this critical and controversial topic. I thank Governor Quinn for recognizing that we can no longer afford to ignore the problem and accepting the task at hand.”

Whitley noted that the Chamber cannot endorse or embrace a specific piece of legislation since one has not yet been presented. However, the Illinois Chamber and many of the local chambers of commerce supports the many of the measures outlined in the pension reform proposal the governor released in April. Key points of that plan include reducing cost of living increases, extending the retirement age and increasing employee contributions to pension plans.

Other local chamber leaders voiced their support, underscoring the financial dangers posed by the state’s unsustainable pension programs.

“We need our officials to pass modernization legislation to meaningfully reduce the tens of billions of unfunded liabilities owed by the taxpayers, job creators and businesses of Illinois,” said John Schmitt, president & CEO of the Naperville Area Chamber of Commerce, the largest suburban chamber in Illinois. “Our economy can’t afford to bear the price of further tax increases or absorb a tax shift to the local level; the time has come for real and actuarially sound reform.”

“The state of Illinois must reform public pensions this year,” said Ryan Whitehouse, a representative of CIRCLE, an organization comprised on 18 local chambers of commerce in Central Illinois. “The burden this payment places on the budget is crippling services in other areas such as human services, public safety and infrastructure. We also urge the General Assembly to find solutions to this problem without ‘cramming’ this down to the local level.”

“I applaud Governor Quinn’s efforts to reform Illinois’ public pension systems and want to thank his administration for taking a bold step forward in solving Illinois’ financial crisis,” said Laura Crawford, Executive Director of the Downers Grove Area Chamber of Commerce & Industry. “The $83 billion in unfunded liabilities and increasing annual payments owed to Illinois’ public pension systems is a direct contributor to our state’s annual budget deficits, backlog of unpaid bills, and the business community’s belief that another tax increase is certainly on its way.”

“Pension costs at the state and local level are siphoning off valuable resources that could be used for education, infrastructure and other vital services that government provides,” said Erich Bloxdorf, Interim President & CEO of the Greater Springfield Chamber of Commerce. “The General Assembly must act this session to make necessary reforms that reduce pension costs and provide a fair and stable pension system. We applaud the Governor and the four legislative leaders for their work on reducing pension costs.

While the Illinois Chamber could also support having local schools, community colleges and public universities shoulder the burden of employees’ pensions, Whitley said it is essential the change be phased in over time rather than implemented swiftly.

“Illinois’ pension crisis is not the fault of public employees, who have been faithfully contributing to their pension plans over the years,” said Whitley. “We are in this position because previous General Assemblies and governors failed to fully meet their responsibilities to make the employer’s contribution to public employee pension plans. We are encouraged that Governor Quinn has recognized it as a shameful practice that must cease.”

“We know that reform is hard. We know it’s unpopular. But I am optimistic pension reform will lay a solid foundation and demonstrate that fiscal responsibility has returned to the Illinois Statehouse. It’s time to change course for a better Illinois.”

Nearly 30 local chambers have joined the Illinois Chamber in its commitment to pension reform:

• Peoria Area Chamber of Commerce
• East Peoria Chamber of Commerce
• McLean County Chamber of Commerce
• Canton Area Chamber of Commerce
• Chillicothe Chamber of Commerce
• Jacksonville Area Chamber of Commerce
• Lincoln/Logan County Chamber of Commerce
• Manito Chamber of Commerce
• Morton Chamber of Commerce
• Peoria Heights Chamber of Commerce
• Greater Springfield Chamber of Commerce
• Washington Chamber of Commerce
• Greater Decatur Chamber of Commerce
• Champaign County Chamber of Commerce
• Clinton Area Chamber of Commerce & Tourism Bureau
• Macomb Area Chamber of Commerce
• Quincy Area Chamber of Commerce
• Rolling Meadows Chamber of Commerce
• Downers Grove Area Chamber of Commerce & Industry
• Sauk Valley Area Chamber of Commerce
• Pekin Area Chamber of Commerce
• Rockford Chamber of Commerce
• Jersey County Business Association
• Aurora Regional Chamber of Commerce
• Greater Centralia Chamber of Commerce
• GOA Regional Business Association
• Lincoln Park Chamber of Commerce
• Murphysboro Chamber of Commerce

http://www.illinoisisbroke.com/news/1980

http://www.pekintimes.com/community/blogs/business_of_pekin_blog/x192922983/Chamber-Leaders-Endorse-Gov-Quinns-Pension-Reform-Proposal

by Nick Przybyciel
May 10, 2012

Indiana led the nation, with Illinois close behind, in increased initial filings for jobless benefits in the week ended April 28, while the total number of claims across the country decreased by 1,000 last week. The four-week moving average of initial claims declined for the first time since March.

According to seasonally adjusted numbers released Thursday by the U.S. Department of Labor, Indiana ranked first in the nation with an increase of 2,294 claims and Illinois came in third by adding 1,512. The increase was attributed to layoffs in the transportation, manufacturing, construction and administrative support industries.

The rise comes after two straight weeks of relatively strong declines in both states.

“I don’t get too exercised over week-to-week numbers,” said Doug Whitley, president and CEO of the Illinois Chamber of Commerce. “The big picture is not favorable, it’s still static. We need to have significant job growth. These blips and bleeps do not matter.”

Despite the small loss of manufacturing jobs, Whitley is confident that industry is strong in Illinois. Recently, he’s fielded concerns from several large manufacturers that they are having trouble filling vacant positions with skilled workers.

“We’ve got to do a better job of improving the image of the manufacturing world as a good place for young people to find jobs and find satisfaction with their work,” he said.

Nationally, initial unemployment claims hit their lowest point in a month last week. The number of new claims was 367,000, down slightly from the previous week’s revised figure of 368,000.

The four-week moving average, considered by economists to be a less volatile measure than the weekly number, decreased by 5,250 claims to 379,000 from the previous revised average of 384,250.

Economists, for the most part, had tepid reactions to the news.

“These numbers have to be looked at through the backdrop of a weakening jobs creation report,” said Rick McGahey, a professor of public policy and economics at the New School and former economic policy adviser to Senator Edward M. Kennedy. “The unemployment picture is not getting much worse, but it’s certainly nothing to celebrate.”

For McGahey, a small decrease in the four-week average wasn’t enough to outweigh April’s employment report.

“You want to see monthly employment [gains] over 200,000, rather than the 115,000 we saw last month,” he said.

Also disconcerting is the possibility that January and February’s strong employment and initial claims reports may have “borrowed” seasonal jobs from this time of year, owing to the warmer winter. April’s stagnant employment numbers back this belief; jobs that would normally be added in the spring seem to have already been reflected in earlier unemployment reports, noted McGahey.

Thus, the optimism surrounding the labor market at the beginning of the year may have been premature, since jobs were not being created as the result of general economic growth, but rather an acceleration of the typical seasonal employment cycle.

In all, last week’s claims and the four-week moving average exceeded expectations slightly.

http://news.medill.northwestern.edu/chicago/news.aspx?id=205393

The Illinois Chamber of Commerce’s Annual Meeting of Members and Business Leaders Luncheon will take place at the Hilton Chicago on June 8 from 11:00am – 1:30pm. Tickets are $119, or $1,500 for a sponsor table of eight.

The keynote speaker for the event will be Edward B. Rust from State Farm Mutual. The event will start of with the Call to Order and the Posting of the Colors of the Illinois Army National Guard, followed by the pledge of allegiance. Retiring members of the Illinois Chamber of Commerce Board will be acknowledged and new members of the Chamber will be welcomed. This will be followed by the Edie Awards which honor those who bring “jobs, growth and prosperity” to the state of Illinois. Awards are given for manufacturing, distribution, commercial, technology, and energy; there can be up to three winners per category. After the awards, lunch will be served, followed by the keynote address and ending with the Retiring of the Colors of the Illinois Army National Guard.

There will be plenty of time for networking over lunch. Chicago printing companies will no doubt be providing business card printing services to many of those who plan to attend the luncheon. Networking over lunch is slightly different to networking at a meeting; those at each table have the perfect opportunity to meet up to seven new people with whom to exchange business cards. It is recommended that if you are sitting at a table with people you don’t know, you suggest that everyone introduces themselves and talks a little about their business.

http://www.shop.minutemanpress.com/news/midwest/illinois/chicago/be-introduced-to-the-illinois-chamber-of-commerce-board-for-2012-8258.html