Tuesday, February 21, 2012
 
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Business leader gives governor C, C+ grade on job creation; Quinn says he deserves better mark

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[February 21, 2012]  CHICAGO (AP) -- Pat Quinn deserves a passing C or C+ grade on job-creation policies as governor, but his administration must do more to improve the business climate and burnish the state's image to woo would-be investors away from other states, a key business leader said Monday.

Doug Whitley, president of the Illinois Chamber of Commerce, made the comments as he launched a two-day statewide tour to highlight obstacles he says stymie growth and thwart attempts to reduce a state jobless rate that's hovered stubbornly around 10 percent. The national unemployment rate is closer to 8 percent.

The head of the 3,500-member chamber singled out Peoria-based Caterpillar's recent decision to open a new manufacturing plant that will employ 1,400 workers, not in the heavy equipment maker's home state but in Georgia.

"The next time Caterpillar thinks about locating a plant, we at least want Illinois in the running," Whitley said in a telephone interview from Aurora, the first stop on his tour. "The fact some of these companies don't even consider Illinois -- that's got to change."

Asked later Monday to respond to Whitley's less-than-stellar jobs grade, Quinn said he deserved better. At least one group, the United Auto Workers, would give him an A for helping to persuade Chrysler recently to add 1,800 workers at its Belvidere plant, he said.

"We work every day on that issue (jobs), and it is the most important issue we have in Illinois," he said.

If Illinois fails to get its economic house in order, Whitley said, there's a real danger of losing businesses to states with more business-friendly reputations, like Indiana.

Illinois' own reputation has suffered both from the unpredictability of its economic policy over the past decade and from a series of high-profile corruption scandals, illustrated most recently by former Gov. Rod Blagojevich's multiple corruption convictions.

"Every year there is talk about raising the corporate tax, or there's another governor going off to prison," he said. "People don't think about job creation (when they think Illinois); they think about corrupt governors."

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The chamber is voicing its views as Quinn prepares to deliver his much-anticipated budget proposal Wednesday. Quinn has cut spending and raised taxes, but Illinois remains in dire financial shape -- in large part because of yawning health and pension costs.

Whitley did praise the governor for identifying economic development as a priority, and especially for putting renewed focus on generating more trade between Illinois and the rest of the world. But he says Quinn "gets a really low grade on fiscal policy."

"The situation is not terribly different in Illinois than the situation in (debt-crippled) Greece," Whitley said. "We are going to have to do things that aren't terribly popular ... but it's the only way to turn this state around."

Among Whitley's prescriptions for re-energizing the state's economy is to cut Illinois' corporate tax rate, lower workers' compensation costs, lessen the influence of public employee unions and reform state courts so businesses aren't as susceptible to lawsuits.

Whitley was scheduled to be in Aurora, Joliet and Peoria on Monday. His stops Tuesday were to include Springfield and Belleville.

[Associated Press; By MICHAEL TARM]

Associated Press writer Sophia Tareen also contributed to this report.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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