SUBURBAN
MAYOR OPPOSES ADDING 1,500 JOBS AS ILLINOIS STRUGGLES WITH EMPLOYMENT
Illinois Policy Institute/
Ben Szalinski
Amazon
bought the old commercial property, but Bolingbrook’s mayor opposes
putting 1,500 jobs on it. Illinois’ job growth was below the national
average in 2019. |
Bolingbrook Mayor Roger Claar flatly rejected Amazon’s bid to
build an 825,000-square-foot fulfillment center, bringing 1,500 jobs to the
suburb southwest of Chicago.
Claar, who has been mayor since 1986, raised issues with Amazon’s pledge to pay
workers $15 an hour. He told Crain’s Chicago Business he would rather see jobs
that pay people more than minimum wage so they have discretionary income to
spend in the local economy.
“That’s not even a living wage,” he told Crain’s. “Will County is full of
distribution centers. There are tons of jobs like this.”
Amazon currently employs 7,000 workers in Will County, has another facility in
Romeoville and plans to add another 500 jobs at a fulfillment center planned in
Channahon.
Amazon in January bought the land in Bolingbrook for $50.5 million. The 119-acre
site on Illinois 53 near Interstate 55 was an auto auction business and
previously an indoor amusement park and mall called Old Chicago.
Amazon would need changes to the village’s zoning rules before they could build
their center. Claar said the village board gave him no objections when he voiced
his displeasure with the project, indicating a battle is ahead for Amazon.
In addition to Claar’s wage objections was the look of the warehouse. He said it
would be too tall and unsightly, hurting Bolingbrook’s image. The plan calls for
a windowless building of about eight to nine stories, which is above the
village’s height restrictions.
Claar said Amazon informed him the warehouse would add about 200 trucks a day to
the area’s traffic. He said the truck traffic would be a nightmare.
Amazon’s desire to add these 1,500 jobs comes at a critical time in Illinois.
The state added only 45,000 nonfarm payroll jobs in 2019 – an increase of just
0.7% and less than half the national average. Private sector job growth in
Illinois ranked 42nd in the country.
The state’s unemployment rate has been slowly declining to 3.7%, 31st in the
nation. But that low rate is because Illinoisans have fewer opportunities and
are giving up on finding jobs, not because they are going to work.
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In his State of the State address, Gov. J.B.
Pritzker touted 2019’s job numbers. However, Pritzker’s numbers were
the lowest of any elected governor’s first year since 2007, when
former Gov. Rod Blagojevich had growth of just 0.5% as the Great
Recession hit.
Recent tax hikes have already fostered an
environment in Illinois that makes it harder for Illinoisans to find
work and reduces wage growth prospects for those who are employed.
While the rest of the nation has experienced robust employment
growth in the past decade, with payrolls far exceeding their 2007
levels, Illinois has struggled to add jobs.
Since 2007, Chicago has added a mere 241,000 jobs, the second-worst
performance in percentage terms among the 15 most-populous
metropolitan areas. Meanwhile, the rest of the state has actually
lost jobs since 2007, shedding more than 41,000 jobs.
Adopting the governor’s progressive income tax proposal would
prolong the state’s labor market troubles, likely costing the state
thousands of jobs and encouraging even more Illinoisans to exit the
workforce. Instead of again asking taxpayers for more, lawmakers
need to pursue real reforms that would put the state on firm fiscal
footing and give much needed certainty and tax relief to families
and businesses.
First, Illinois must address its pension problem by amending the
Illinois Constitution to allow for adjustment of the growth rate of
not-yet-accrued benefits. The state can reduce pension debt and
ensure the plans can support retirees without overwhelming
taxpayers. Such changes could include increasing the retirement age
for younger workers, tying annual benefit increases to the actual
cost of living and making retirement plans more closely resemble
401(k)s for new workers.
Second, a spending cap could help the state meet Illinois’
constitutional balanced budget requirement, which has been ignored
for nearly 19 years.
The best source of growth still comes from private businesses. Local
leaders should welcome investments and new companies to their
commercial districts, rather than turning down 1,500 jobs. To
someone who is unemployed, a $15-an-hour job goes a long way toward
a better life.
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