Illinois Public Media News

WILL - Illinois Public Media News - March 25, 2011

Kirk Says Legislation Will Boost Illinois’ Business Climate

Illinois' junior U.S. Senator is worried about the state's business climate after state lawmakers approved increases in both corporate and income taxes.

In a visit to Champaign Friday, Mark Kirk touted his Small Business Bill of Rights. He says the legislation would help reverse the trend of other Governors trying to lure business away from Illinois.

The Senator says one portion of the measure would exempt small employers from federal taxes for 10 years if they commit to investing in vacant commercial property.

"Because nothing was happening there (vacant properties) anyway," Kirk said. "And we want to make central towns and cities exciting to invest in. Or for new innovators, a fast lane at the patent office. Because we know that small innovates 8-times faster per capita than big business."

The portion of Kirk's bill that expedites the federal patent approval process passed the Senate earlier this month. That provision assists business owners with patent filing issues.

Other parts of the legislation seek to lower business health care costs by allowing interstate competition for insurers, and to cut energy costs by promoting the use of hybrid vehicles and more efficient practices.


WILL - Illinois Public Media News - March 25, 2011

Hiring in Illinois Outpaces National Average

(With additional reporting from The Associated Press)

The latest government data suggest some states are recovering much faster than others from the recession, including a few that were hit the hardest.

U.S. companies have added jobs for 12 straight months, but the gains have been uneven.

The U.S. Labor Department says the unemployment rate dropped in 27 states in February, including Illinois. It rose in seven states and stayed the same in 16. Last week, the Illinois Department of Employment Security announced the state's jobless rate had fallen to 8.9 percent for Februrary. That's the first time since February 2009 that the unemployment rate has been below nine percent - and the 13th consecutive monthly decline in unemployment rolls.

Job growth in Illinois stands at 1.5 percent, which slightly outpaces the national average of 1.0 percent. The industries posting the biggest job increases in Illinois include Professional and Business Services, Education and Health Services, and Trade, Transporation and Utilities.

Forty-four states have added jobs during the last year, including some that were badly battered during the downturn. Since January 2010, Illinois has added 85,000 jobs, according to the Illinois Department of Employment Security. California added nearly 200,000 net jobs, and Michigan created a net 71,000 jobs during the last year.

Still, six states reported a net loss in jobs in that time, including a few that weren't considered trouble spots: New Jersey, New Mexico, and Kansas.

(AP Photo/Seth Perlman)

Categories: Business, Economics

AP - Illinois Public Media News - March 25, 2011

U.S. Postal Service Announces Sweeping Cuts

The U.S. Postal Service announced Thursday that it will reduce its workforce with layoffs and offers of buyouts and will close seven district offices from New England to New Mexico to help address record losses.

The reorganization, designed to eliminate 7,500 administrative, executive and postmaster jobs this year, came as a commission that is evaluating the Postal Service's plan to eliminate Saturday delivery concluded that one in four letters would be delayed by not just one but by two days.

The independent Postal Regulatory Commission also said that postal officials underestimated the losses the agency would suffer from handling less mail- and overestimated the cost savings.

Five-day service and a smaller workforce are among the Postal Service's strategies to become solvent after losses of $8.5 billion in fiscal 2010, the result of declining mail volumes. Projected losses for 2011 are $6.4 billion.

Once buyout decisions aimed at administrative staff are final in April, the agency plans to eliminate the jobs of thousands of postmasters and supervisors, many through layoffs, officials said.

"Nobody did anything wrong, but we're a victim of the economy and past legislation," said Anthony Vegliante, the Postal Service's chief human resources officer and executive vice president. The cuts are expected to save $750 million a year.

District offices that handle managerial work will close in Columbus, Ohio; Albuquerque, N.M.; Billings, Mont.; Macon, Ga.; Providence, R.I.; Troy, Mich., and Carol Stream, Ill., the Postal Service said.

The closures will pave the way for the agency to close up to 2,000 local post offices throughout the next two years, a plan announced in January.

Vegliante said he expects about 3,000 administrators to take the buyouts, which will offer $20,000 to employees over age 50 with at least 20 years of service, or any age with at least 25 years of service. Layoffs will then be used to help reach the 7,500 goal, he said, though he would not commit to a number.

The Postal Service has eliminated 105,000 full-time positions in the last two years, among them clerks, plant workers and mail handlers. Those cuts were made mostly through attrition and early retirements.

The Postal Service announced plans for five-day service in 2009, although Congress, which must approve the change, has showed little interest in pursuing it.

Among the findings of the 211-page opinion from the Postal Regulatory Commission:

- Five-day service would delay by two days delivery of 25 percent of first-class and priority mail.

- The Postal Service did not adequately evaluate the effect of five-day service on rural areas.

- While the Postal Service estimated net savings from the reduced service at $3.1 billion, the commission's estimate is closer to $1.7 billion.

- Lost revenue from mail volume declines from the service cuts would be $600 million a year, not the $200 million the Postal Services estimates.

Margaret Cigno, the regulatory commission's chief analyst, said many letters normally delivered on Saturday would not arrive until Tuesday because Saturday mail would no longer be transported and processed over the weekend. "Saturday would not just end delivery, but mail would not go out," she said.

Postal officials said they would continue supporting the plan.

"I'm comfortable that people did their due diligence," Vegliante said, calling five-day service "an inevitable question."

"Whether it's tomorrow or 10 years from now, sooner or later it's got to be dealt with."

(Photo courtesy of Coolcaesar/Wikimedia Commons)

Categories: Business, Economics

WILL - Illinois Public Media News - March 25, 2011

Study: More than 15% of East Central Illinois “Food Insecure

People who are fighting hunger in east-central Illinois now have some more specific numbers to make their case.

The Eastern Illinois Foodbank has long known that 15.5% of people in the 14-county region are "food insecure" - in other words, they're at risk of not finding enough healthy food. But the new "Map the Meal Gap" study breaks that number down into individual counties. Vermilion, Coles and Champaign counties have slightly higher food-insecurity rates than the average.

Cheryl Precious is a foodbank spokeswoman. She says the report points out a need for education, even if chronically-needy people usually know how to get assistance. "But a family that has had stable employment and has never really struggled, or maybe was right on the edge and had a job loss in the family and was pushed over the edge into food insecurity -- they may not be adequately equipped to make use of those resources," said Precious. "So part of it is education and awareness of the resources that are out there."

But Precious says the survey also demonstrates a need for more assistance, particularly for people who are ineligible for food stamps because they make just above the poverty requirement. She says it's a call to relax those requirements as well as to bolster food pantries and other emergency programs.


WILL - Illinois Public Media News - March 24, 2011

Raw Audio of the Champaign School Board Candidate Forum

The five candidates running for four seats on the Champaign School Board took part in a forum sponsored by the National Association for the Advancement of Colored People (NAACP). They are board school members Susan Grey, Greg Novak and Kristine Chalifoux, and newcomers Jamar Brown and Lynn Stuckey. The candidates evaluate the current curriculum and efforts to improve graduation rates, and they suggest changes to the No Child Left Behind law.

(Photo by Sean Powers/WILL)

Download mp3 file

AP - Illinois Public Media News - March 23, 2011

Indiana House Leaders Meet Amid Democratic Boycott

The leader of the boycotting Indiana House Democrats returned to the Statehouse on Wednesday for what he called a "very positive" meeting with Republican House Speaker Brian Bosma.

Mr. Bosma met with House Minority Leader Patrick Bauer (D., South Bend) behind closed doors after the two attended another meeting with Senate leaders. Messrs. Bosma and Bauer both characterized the talk as positive. Though it didn't immediately end the month-long standoff, Mr. Bosma said it seemed like a step forward.

"It's possibly the beginning of the end," Mr. Bosma said. "It's a positive step that he returned to the Statehouse. I think that's great."

Mr. Bauer described the discussion as a positive exchange of ideas over bills, mainly one changing the regulations covering wages and other matters for workers on government construction projects.

"We've had a pretty good talk with each other," Mr. Bauer said before driving back to Illinois, where most Democrats are staying during the boycott.

Mr. Bosma (R., Indianapolis) said he would talk to the author of the government projects bill Thursday about ideas Mr. Bauer suggested. Mr. Bauer said he would talk to his caucus after hearing back from Mr. Bosma on that bill.

Mr. Bauer said it was likely impractical for Democrats to return to the House floor on Thursday because of the lateness of the meeting and the need to discuss the issues with other House members.

Before Messrs. Bauer and Bosma talked privately, they met with Senate leaders Republican David Long and Democrat Vi Simpson on a separate legal issue. Ms. Simpson described the meeting as cordial and said there was no hostility among the leaders.

"It's always a good sign when people talk," Ms. Simpson said.

The House Democrats left for Urbana, Ill., on Feb. 22 in protest of Republican-backed education and labor bills. Among them is the government projects bill. That measure, as currently written, would increase the point at which projects were exempt from the state's prevailing construction wage law from $150,000 to $1 million and remove school districts and state universities from its requirements.

After the bill became the focus of Democrats' objections, its sponsor offered to lower that level-first to $500,000 and now to $350,000-and delete the school and university exemptions.

Mr. Bauer declined to say whether Democrats asked for the level to be lowered even further and did not outline other specific changes he wanted made to the bill.

Mr. Bosma said Democrats are "looking for as much moderation in that bill as can be tolerated."

Mr. Bauer's unannounced Statehouse trip Wednesday was a stark contrast from a visit earlier this month when photographers greeted Mr. Bauer in the parking lot. Reporters gathered inside for that meeting and watched from the doorways of Mr. Bosma's office as he and Mr. Bauer and six other lawmakers talked about proposals. Those discussions did not resolve the standoff.

When asked why he took a more secretive approach to Wednesday's meeting, Mr. Bauer said: "We're trying to bring peace.

Categories: Economics, Government, Politics

AP - Illinois Public Media News - March 23, 2011

UI Board of Trustees Approve Tuition Hike

Tuition is going up again at the University of Illinois. New students will pay more starting in the fall.

The U of I's Board of Trustees approved a 6.9 percent tuition hike for the next school year, but President Michael Hogan prefers to look at it over a four year span. He says with a state law that locks in the tuition rate over that time, incoming students will actually pay 2.7 percent annually which is closer to the rate of inflation. Hogan says the tuition hike was necessary.

"Without a tuition increase we would be short another $22 million," Hogan said. "It would be very hard to staff our classes and keep class sizes the way they are."

But others, like Trustee Tim Koritz, voiced concerns about the increasing cost of higher education.

"We have to keep in mind every time we raise tuition," Koritz said. "We may be pricing certain potential students out of the ability to attend our university."

Board chairman Chris Kennedy said he doesn't want to see the U of I be just for elite families. University leaders point out half of all students don't pay any tuition because of financial aid. The U of I is still owed about $450 million from the state government, and officials expect state funding to be reduced again in the next year.

Hogan said cost cutting will continue. Trustees raised the possibility of more consolidation within the U of I system, including academic programs. Hogan said he wants to see the first pay raise for employees in three years, but offered no specifics.

Based on the tuition increase, new students at the Urbana-Champaign campus will pay $11,104 next fall; Chicago students will pay $9,764; Springfield students will pay $8,670. Those figures don't include fees or room and board, all of which will also go up in the fall.

Categories: Economics, Education

AP - Illinois Public Media News - March 22, 2011

Ill. Officials Tout High-Speed Rail Construction

The next phase of construction on a high-speed rail route between Chicago and St. Louis will begin next month, a high-stakes transportation project similar to those that other states have rebuffed, Illinois Gov. Pat Quinn and U.S. Sen. Dick Durbin announced Tuesday.

"Illinois has always been a strong railroad state and we always will be," Quinn said at an Amtrak rail yard near downtown Chicago.

Quinn and Durbin took swipes at other states for turning back money for high-speed rail, including Florida, which rejected $2.4 billion that had been earmarked for rail projects in that state because new Republican Gov. Rick Scott was worried taxpayers could get socked with the bill for any overruns and operating subsidies. Illinois has said it will try to get a part any money that other states return.

"The governors of these other states that have given up their money can stand by and wave at our trains when they go by. We're going to move people, we're going to freight, we're going to set a standard for America. It starts right here in Chicago," Durbin said.

But not everybody in Illinois is gung-ho about fast trains. Freshman Congressman Joe Walsh said the government can't afford to spend the money and he doubted their cost effectiveness because Americans love their cars. He said governors like Scott in Florida had the right idea by giving up federal money for rail projects.

"I respect the governors who have done that, that clearly is not what Pat Quinn is about," Walsh, whose district is in northern Illinois.

Illinois' other senator, Republican U.S. Mark Kirk, supports high speed rail including federal funding and believes it should be a private-public partnership so that trains move with the speed and reliability to serve consumers who would otherwise would fly, Kirk spokesman Lance Trover said.

When high-speed trains are eventually traveling up to 110 mph, the trip between St. Louis and Chicago could be cut by 90minutes to less than four hours.

Illinois has been awarded $1.2 billion in federal money to expand passenger rail and the state has promised to kick in another $42 million. Last year, Quinn and Durbin debuted the first $98 million in upgrades to a 90-mile stretch of track from Alton, just northeast of St. Louis, to Lincoln for the high-speed route.

The latest $685 million section of the construction project is scheduled to start April 5 and includes building new rail track using concrete ties between Dwight and Lincoln and between Alton and the Mississippi River. A modernized signal system will also be installed between Dwight and Alton, Quinn's office said. Officials estimate the work would create more than 6,000 direct and indirect jobs, such as construction and manufacturing work. Illinois Department of Transportation spokesman Guy Tridgell said job numbers are typically devised using formulas based on the amount of money being spent on a project.

Trains traveling at 110 mph on the 284-mile Chicago-to-St. Louis corridor could debut between Dwight and Pontiac as early as next year, Quinn's office said. Upgrades to the Dwight-Alton portion of the corridor are expected to be finished by 2014.


WILL - Illinois Public Media News - March 22, 2011

University of Illinois Considers Raising Tuition

The University of Illinois' Board of Trustees is scheduled to vote on raising tuition by 6.9 percent during its meeting Wednesday in Springfield.

Board members approved a measure in January to tie tuition increases with the rate of inflation. If trustees approve the tuition hike, students who come to the University next fall would pay 2.7 percent more a year, a figure U of I spokesman Tom Hardy says is near the rate of inflation. Those figures don't include fees, room and board.

"I would call it a conservative proposal," Hardy said. "That reflects concerns about affordability, reflects the need to be able to protect the university's purchasing power by adjusting for inflation."

Under the proposal, new students at the university's Urbana-Champaign campus would pay $11,104 a year in tuition. Students at the Chicago campus would pay $9,764, while students in Springfield would pay $8,670.

Hardy said the increased tuition is smaller than what has been introduced in the last decade. He said with the U of I waiting on about $440 million in state payments, the University hopes to generate about $35 million in additional revenue. About 17 percent of that revenue would be used for need-based grants.


AP - Illinois Public Media News - March 22, 2011

Illinois Agencies Challenge SEC Regulation

Ramped-up regulations proposed by the Securities and Exchange Commission are supposed to help prevent another financial meltdown, but government agencies in Illinois are fighting one proposal they allege would do more harm than good.

The measure would require volunteers on state and local boards that make financial decisions to register as "municipal advisors." The idea is to increase SEC oversight on people with a say over taxpayer dollars. The SEC says appointed board members should register because they are not directly beholden to voters.

Protesting cities from Illinois include Champaign and Peoria, as well as state universities like Western, Northern, Illinois State and the University of Illinois. The Illinois Finance Authority is also against the change. That agency's Bill Brandt said unpaid board members already get oversight - from Illinois' governor, Attorney General, and annual audits.

"Now you have the federal government trying to someone how intervene in that, which is a real constitutional question," Brandt said. "I'm all for federal regulation of the markets. But I'm not sure neither the governor nor the legislature of Illinois are really anxious to have all of their decisions reviewed by a federal agency that otherwise has no bearing on what Illinois does to bring jobs into the state."

Brandt also said the SEC's proposal would drive away qualified people with investment expertise, who are volunteering out of a commitment to public service. He said many won't participate if they have to pay to register, take ongoing classes, disclose their personal finances and be exposed to increased liability.

Categories: Economics, Government, Politics

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