Unprecedented unemployment jump shows need for Capital Plan

CHICAGO - This week the Illinois Department of Employment Security (IDES) announced that May's statewide unemployment jumped an entire percentage point from 5.4% to 6.4 %, the largest increase over one month on record, further showing the need for a statewide jobs plan like Illinois Works. In addition, IDES data shows that over the year, the largest jobs loss has been in construction, which lost 8,500 jobs since May of 2007.

 

"Unfortunately for the hard working people of Illinois, the national economy and the Illinois economy are getting worse, not better. We need a capital plan. We need a plan that will put people to work this summer. Studies have shown that the Illinois Works capital plan would support more than 500,000 Illinois jobs," said Governor Rod R. Blagojevich.

 

 

At the end of the legislative session, three of the four legislative caucuses came together to support the Illinois Works capital plan and the Senate passed the capital bill with bipartisan support. After the House Democratic leadership used a procedural maneuver to block that capital bill, the Governor called on legislative leaders to come together to pass this bipartisan plan before the month's end.

 

In addition to supporting more than 500,000 jobs statewide, Illinois Works will address the state's deteriorating roads and bridges, build and repair schools across the state, and provide resources for statewide economic development. The final bill is drawn from a set of recommendations presented by Illinois Works Coalition Co-Chairs Former Speaker of the U.S. House J. Dennis Hastert and Southern Illinois University President Glenn Poshard. For the last three months, Hastert and Poshard have led the effort to build consensus on a statewide infrastructure improvement bill. The last capital bill was passed in 1999.

 

In early March, Gov. Blagojevich appointed Hastert and Poshard as co-chairs of the Illinois Works Coalition. The duo focused on crafting and passing an infrastructure and jobs bill that would address pressing capital needs that have built up since the last public works plan was passed nine years ago all in a bi-partisan effort. The co-chairs facilitated regular meetings with the Governor and four legislative caucuses to draft a capital plan that could be acceptable to all participants. Three of the four leaders participated in those negotiations. In the end, the House Democratic leadership used procedural maneuvers to kill the negotiated capital plan before it could be voted on by the full House.

 

This month, Governor Blagojevich announced that the Fiscal Year 2009 budget passed by the General Assembly on Saturday contains $2.1 billion more in spending than anticipated revenue will support, making it unconstitutional. The Illinois State Constitution requires the legislature to pass a balanced budget. The Governor has called the four legislative leaders together this week to resume work so the people of Illinois will have a budget that fulfills constitutional requirements and meets the state's needs by July 1.

 

The Illinois Works capital plan passed by the Senate includes the following:

 

·        Invest $34 billion in transportation, education, energy, health care, environmental and water, economic development and other critical infrastructure and quality of life needs for the citizens of Illinois.

 

·        Provide a capital improvement plan clearly identifying timelines, priorities and funding sources for projects within each of these investment categories.

 

·        Fund education construction projects and mass transportation investments with $7 billion partial lottery concession.

 

·        Create Capital and Educational Trust Funds with "lockbox" accountability guarantees for capital investments and continuation of the current level of lottery proceeds for P-12 education.

 

·        Use motor fuel taxes to support bonded road projects that allow nearly $2 billion in additional projects

 

·        Expand gaming (Chicago Casino, one additional riverboat license, increases in positions at existing riverboats, and availability of electronic gaming at racetracks) to raise $600 million annually in new revenues for debt service for environmental and water, energy, economic  development, health care, state facilities, and other critical purposes.

 

According to a study by Southern Illinois University, a comprehensive capital plan would have tremendous economic benefits for the state.  The study found a capital plan would create 535,000 new full-time jobs, lead to $49 billion in economic activity and more than $2.9 billion in state and local tax revenues.  The Illinois Works Coalition has held a dozen events statewide since the beginning of March.