By State Senator Darin LaHood (R-Peoria) -
Nearly a year ago the CEO of Caterpillar Inc. sent a letter to Gov. Quinn outlining the company's concerns about the business climate in Illinois. Almost a year later, Democratic leaders in Springfield have done nothing to address these concerns. Last week, Caterpillar announced that the company will not build its new North American track-type tractor and hydraulic excavator facility in Illinois, instead opting to build the facility in North Carolina.
In a letter to Peoria County, the Cat facility site selection team cited, "previously documented concerns about the business climate and overall fiscal health of the state of Illinois" as the main reason that it would be "unpractical" to build in Illinois.
Caterpillar Inc. is the largest private sector employer in the state, employing more than 23,000 Illinois citizens. Unfortunately this was not enough to overcome real concerns the company has about the fiscal health and business climate in the state.
Both Peoria County and the city of Galesburg submitted comprehensive and well-received proposals that included economic incentives for Cat that were broadly supported. Unfortunately, because of Illinois' current business climate and its fiscal instability, these proposals could not be given due consideration.
We all know that Illinois is in trouble. From the recent downgrade by Moody's - which panned Illinois for a legislative session that took no steps to implement lasting solutions - to a startling report by the Civic Federation to editorials from the Wall Street Journal and the Peoria Journal Star, there is wide acknowledgement that today Illinois faces issues like never before. Changes like substantial workers' compensation reform, reduction of business regulation, tort reform, and reduction of the personal income tax and corporate tax rates must be addressed to build a business climate that will keep employers in Illinois and attract new ones.
Last year, after the original letter from Cat was sent to Gov. Quinn, I authored a letter that was co-signed by a bipartisan group of 10 senators. It expressed our desire to work with the governor to develop solutions to create a more business-friendly environment to bring employers to Illinois.
Because of inaction on the part of the current leadership in Springfield, a plant that stood to relocate some 1,000 jobs or more from Japan to Illinois will be built in North Carolina. Illinois can't compete with other states until we address the fundamental issues that trouble this state.
Darin LaHood is state senator in the 37th District. He lives in Peoria.
First published in the Peoria Journal-Star Sunday, February 12, 2012
