September 12, 2017

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Illinois, Latest News

Rauner’s Record: Slowed Economic Growth, Worst Job Growth in the Region

Rauner’s Failed Policies Drove Up Debt, and Drove Out People and Jobs

This week, Governor Bruce Rauner travels to Asia to sell foreign investors on Illinois, a state he loves to bash at home. While he’s abroad trying to sell Illinois, let’s look at the mess he left behind.

Bruce Rauner campaigned on the theory that his business experience would benefit Illinois, but economic growth in Illinois has ground to a crawl under his failed leadership.  A recent in-depth article by Rich Miller of Capitol Fax found Rauner’s manufactured budget impasse slowed job growth considerably. Over the past year and a half, Illinois has only grown 40,000 jobs. This anemic growth is easily the lowest of Illinois’ neighbors and well below the national average.

Reports from just last week detailed the damage Rauner’s budget crisis has done. Crain’s Chicago found that more than 60 businesses are owed at least $10 million by the state in bill backlogs. The Illinois Economic Policy Institute found the budget crisis resulted in 7,500 less jobs at colleges and universities, and student enrollment dropped by 72,000 students. And the Illinois Association for Behavioral Health reported at least 1,000 “workers at not-for-profit organizations providing treatment services no longer are employed as a result of the budget crisis.”

“Bruce Rauner campaigned on being a business executive, but under him jobs and people are still leaving the state,” said DGA Illinois Communications Director Sam Salustro. “Illinois is last among its neighbors in job growth, and Bruce Rauner’s failed leadership is to blame. Instead of focusing on strengthening the middle class, Rauner chose to play political games that only hurt Illinois families. His misplaced priorities created a budget crisis that will keep hurting Illinois’ economy for years to come.”

Background:

ILLINOIS LAGS THE NATION AND NEIGHBORS IN JOB GROWTH

Rich Miller: Rauner “Inherited An Economy” That Was Growing Jobs, “Only To Slow To A Crawl In The Past 19 Months.” According to Rich Miller’s column in Crain’s Chicago Business, “Rauner inherited an economy that, according to the same Illinois Department of Employment Security data he uses, added 61,500 jobs in 2013 and 84,600 in 2014, before Rauner was inaugurated, only to slow to a crawl in the past 19 months, despite a tax cut that took effect at the beginning of 2015. So far this year, the ‘Trade, Transportation and Utilities’ sector has lost 9,300 jobs.” [Crain’s Chicago Business, Rich Miller, 8/25/17]

Since January 2016, Only 41,900 Jobs Have Been Created In Illinois. “But most of those jobs were gained in 2015, when 83,400 jobs were added. In the 19 months starting in January of 2016 through July of 2017, just 41,900 jobs were created in Illinois, according to IDES data. Of those, a mere 19,600 jobs were added in Illinois during the first seven months of this year.” [Crain’s Chicago Business, Rich Miller, 8/25/17]

Since January 2016, Illinois’ Job Growth Rate Has Been 0.7%, Lower Than The National Average Of, And Lower Than Wisconsin, Minnesota, Iowa, Missouri, Kentucky, Indiana, and Michigan. According to BLS seasonally adjusted non-farm employment data, Illinois only gained 0.7% job growth from January 2016 to July 2017, or 41,900 jobs. At the same time, Wisconsin gained 1.2%, Minnesota 2.7%, Iowa 1.3%, Missouri 2.8%, Kentucky 2.1%, Indiana 1.6%, and Michigan 2.4%. The National average was 2.3%. [BLS, CES Seasonally Adjusted, Accessed 9/12/17]

DESPITE A BUDGET DEAL, MORE THAN 60 BUSINESSES WERE STILL OWED AT LEAST $10 MILLION BY ILLINOIS

More Than 60 Businesses Were Owed At Least $10 Million Each By State Of Illinois. According to Crain’s Chicago Business, “More than 60 businesses and other groups are owed at least $10 million apiece by the state, while 13 of them are due $100 million or more. Those owed the most are in health care, including insurers Aetna Better Health and Blue Cross/Blue Shield parent Health Care Service Corp., each out nearly $600 million.” [Crain’s Chicago Business, 9/5/17]

DURING BUDGET CRISIS, PUBLIC UNIVERSITIES SAW ENROLLMENT REDUCED BY 72,000 STUDENTS, AND ELIMINATED 7,500 JOBS.

Between 2015 and 2017, Public Colleges And Universities Lost $660 Million In State Support. According to the Illinois Economic Policy Institute’s Policy Director, Frank Manzo, in the State Journal-Register, “Yet like most of Illinois, public colleges and universities were asked to do more with less during the two-year budget stalemate. And that choice came with lasting consequences. Between 2015 and 2017, these institutions had to grapple with a $660 million drop in state support.” [State Journal-Register, Frank Manzo IV, 9/9/17 

Illinois Public Colleges And Universities Reduced Enrollment By 72,000 Students, And Eliminated 7,500 Jobs During The 2 Year Budget Impasse. According to the Illinois Economic Policy Institute, “The two-year Illinois budget stalemate reduced enrollment in the state’s public colleges and universities by more than 72,000 students, eliminated nearly 7,500 jobs, and cost the Illinois economy nearly $1 billion per year, according to a new study released today by the Illinois Economic Policy Institute (ILEPI) and the Project for Middle Class Renewal at the University of Illinois at Urbana-Champaign.” [Illinois Economic Policy Institute, 9/7/17]

1,000 WORKERS AT NON-PROFITS PROVIDING DRUG TREATMENT SERVICES NO LONGER EMPLOYED BECAUSE OF BUDGET CRISIS

At Least 1,000 Non-Profit Workers Providing Drug Abuse Treatment Were No Longer Employed Because Of The Budget Impasse. According to the State Journal-Register, “The recently resolved, budget impasse — the result of political bickering between Rauner and the Democratic-controlled General Assembly — delayed and reduced funding for many human-service providers, including drug-abuse treatment centers. At least 1,000 workers at not-for-profit organizations providing treatment services no longer are employed as a result of the budget crisis, according to the Illinois Association for Behavioral Health.” [State Journal-Register, 9/6/17]