Illinois Loses Most Jobs in the Nation

From: Illinois Policy Institute

In a trend that continues to worsen, more Illinoisans found themselves unemployed in the month of July.

Illinois lost more jobs during the month of July than any other state in the nation, according to the most recent Bureau of Labor Statistics report. After losing 7,200 jobs in June, Illinois lost an additional 24,900 non-farm payroll jobs in July. The report also said Illinois’s unemployment rate climbed to 9.5 percent. This marks the third consecutive month of increases in the unemployment rate.

Illinois started to create jobs as the national economy began to recover. But just when Illinois’s economy seemed to be turning around, lawmakers passed record tax increases in January of this year. Since then, Illinois’s employment numbers have done nothing but decline.

Data released today by the bureau confirms this downward trajectory. When it comes to putting people back to work, Illinois is going backwards. Since January, Illinois has dropped 89,000 people from its employment rolls.

It’s too early to know conclusively the full impact of the tax hikes on the Illinois economy. Nevertheless, Illinois’s employment numbers serve as a good reminder that public policies have dramatic consequences for the daily lives of Illinoisans. A combination of high taxes, overspending and red tape do nothing but chase away job creators and leave too many citizens without jobs. Springfield needs to act now and reverse course.

Illinois severs foster care with Catholic Charities

From: Chicago Tribune

The state has declined to renew its foster care and adoption contracts with Catholic Charities across Illinois, possibly ending a historic partnership initiated by the Roman Catholic Church a half-century ago and potentially severing the relationship between nearly 2,000 foster children and their caseworkers.

Though four Catholic Charities agencies had already stopped licensing new foster parents, three of them will seek an injunction from a Sangamon County judge on Tuesday to continue serving families and abiding by Catholic principles that prohibit placing children with unmarried cohabiting couples.

“We’re not sure what the state is intending to do or how it’s intending to do it,” said Peter Breen, an attorney with the Thomas More Society representing Catholic Charities. “It’s a surprise. But it’s also very disturbing. The impact on the [nearly 2,000] children in Catholic Charities care will be catastrophic.”

In letters sent last week to Catholic Charities in the dioceses of Peoria, Joliet and Springfield and Catholic Social Services of Southern Illinois, the Illinois Department of Children and Family Services said the state could not accept their signed contracts for the 2012 fiscal year. Each letter said funding was declined because “your agency has made it clear that it does not intend to comply with the Illinois Religious Freedom Protection and Civil Union Act,” which the state says requires prospective parents in civil unions to be treated the same as married couples.

“That law applies to foster care and adoption services,” each letter stated. “Thus, there is no meeting of the minds as to the (fiscal year 2012) Foster Care and Adoption Contracts.”

The three seeking an injunction on Tuesday — Catholic Charities in the dioceses of Springfield, Peoria and Joliet — sued the Illinois attorney general and DCFS last month for enforcing new policies that accommodate civil unions. In the lawsuit, the agencies sought the court’s permission to preserve their current policy of granting licenses to married couples and single, non-cohabiting individuals and referring couples in civil unions to other child welfare agencies.

“If the restraining order is not granted, we have other alternatives,” said Glenn Van Cura, director of Catholic Charities in Joliet, who received the state’s letter Monday morning. “There is nothing more important on my docket right now. It’s so important for the kids we have under our care.”

State officials said they are confident that other agencies complying with the civil union law will step up to take Catholic Charities’ caseloads. “We have a strong community of private-sector, not-for-profit child welfare agencies who stand ready to take these cases,” DCFS spokesman Kendall Marlowe said.

Since March, Attorney General Lisa Madigan, Gov. Pat Quinn's legal team and DCFS have been researching the Illinois Human Rights Act, the Civil Union Act and the Illinois Constitution to determine whether they barred agencies from considering sexual orientation as a factor in foster care and adoption. (In Illinois, all adults who adopt or become foster care providers must obtain foster care licenses from the agencies.)

At an unrelated news conference Monday, Quinn, a practicing Catholic, reiterated his support of the civil union law and the state’s decision to sever ties with Catholic Charities.

“We're not going back,” he said. “They made a choice. Any organization that decides that because of the civil unions law that they won't participate voluntarily in a program, that's their choice.”

At a meeting last month, lawyers for the attorney general's office and DCFS reportedly told Catholic Charities that couples in civil unions must be treated the same as married couples when it comes to providing foster care services.

Robyn Ziegler, a spokeswoman for Madigan, confirmed that meeting, but refrained from saying much more because the matter is in litigation.

“We will respond to Catholic Charities’ arguments in court,” Ziegler said. “Our focus remains on doing what is best for the care and welfare of children in the foster care system in Illinois.”

Marlowe said the state couldn't agree to do business with partners who have declared their intention to violate state law both in letters to DCFS and in court documents.

“We cannot enter into a contract for services with anyone who has publicly, affirmatively stated that ‘we will not follow the law in delivering those services,’” Marlowe said. “These agencies have chosen this course, and we must now plan to transition these cases with the least disruption for the children we serve.”

Lutheran Child and Family Services and the Evangelical Child and Family Agency both have had policies that require foster care parents to be married. LCFS has renewed its contract and promised to abide by state law. Marlowe said the state will seek a similar promise from ECFA.

Ken Withrow, executive director of ECFA, said the agency will continue to uphold the same policies and principles, which includes licensing only married, evangelical Christian couples unless the prospective foster parent is related. Family comes first, Withrow said. He added that lawyers reviewed this year’s DCFS contracts before signing them and saw no language that prevented them from signing in “good faith.”

Congressman Roskam: Higher taxes have consequences

From: The Daily Caller

Note: Caterpillar CEO Doug Oberhelman will testify before the Ways & Means Trade Subcommittee today.

Illinois and other states have recently made headlines for their declining populations. Whether they realize it or not, what states like Illinois are learning the hard way is that over-taxing and over-regulating has consequences. And Illinois is now learning that one painful consequence is job loss.

Caterpillar, a Fortune 500 company that employs 23,000 workers in Illinois, currently finds itself dealing with a new tax increase in an already over-taxed state. Their CEO, Doug Oberhelman, sent a warning shot on March 21st with a letter to Illinois’ new Democrat Governor Pat Quinn:
“I want to stay here,” Oberhelman wrote. “But as the leader of this business, I have to do what’s right for Caterpillar when making decisions about where to invest. The direction that this state is headed in is not favorable to business, and I’d like to work with you to change that.”

Would the last business leaving Illinois please turn out the lights?

From: American Thinker

Caterpillar, Inc, one of the largest employers in the state of Illinois and an iconic symbol of heartland solidity, is seriously considering a move to another state.

CEO Doug Oberhelman sent a letter to Illinois Governor Pat Quinn, saying that "the pressure was on" from other states who are trying to woo the tractor maker and their 23,000 jobs away from their home in East Peoria.

The Pantagraph:

"I want to stay here. But as the leader of this business, I have to do what's right for Caterpillar when making decisions about where to invest," Oberhelman wrote in the letter obtained Friday by the Lee Enterprises Springfield bureau. "The direction that this state is headed in is not favorable to business and I'd like to work with you to change that."

Oberhelman said he's being actively courted to move.

"I have been called, 'cornered' in meetings and 'wined and dined' -- the heat is on," Oberhelman wrote. "Before, I never really considered living anywhere else and certainly never considered the possibility of Caterpillar relocating. But I have to admit, the policymakers in Springfield seem to make it harder by the day."

Cat spokesman Jim Dugan said the letter was designed to show Quinn that Oberhelman wants to be involved in finding solutions that benefit the company, which employs 23,000 people in Illinois.

"I view it as an olive branch to offer our help," Dugan said.

[...]

"The governor welcomes frank and open exchanges between the business community and government, and we are always open to new ideas that can help our businesses grow, innovate and create jobs," Callahan said.

Illinois recently almost doubled its business tax and income taxes for employees. Oberhelman has a fiduciary responsibility to the company's shareholders to examine options that would increase the profitability of Caterpillar. He could be fired (or charged with a crime) if he failed to do so. The huge tax increase makes staying in Illinois an unprofitable option.

It would be hard to overstate the effect of Caterpillar leaving downstate Illinois. It would devastate the local economies who depend on Caterpillar and their employees to pump tens of millions of dollars into these communities.

And then there's the uncertainty:

Republican leaders, who unsuccessfully fought Quinn on the tax hike, say the letter confirms why they were opposed to the increase.

"These are the kinds of letters we fear," said Patty Schuh, spokeswoman for Senate Minority Leader Christine Radogno, R-Lemont. "Even more worrisome are the hundreds of businesses being wooed that we don't know about."

Indeed.

Caterpillar To Leave Illinois?

From: Pantagraph.com

SPRINGFIELD -- The chairman and CEO of Peoria-based Caterpillar Inc. is raising the specter of moving the heavy equipment maker out of Illinois.

In a letter sent March 21 to Gov. Pat Quinn, Caterpillar chief executive officer Doug Oberhelman said officials in at least four other states have approached the company about relocating since Illinois raised its income tax in January.

"I want to stay here. But as the leader of this business, I have to do what's right for Caterpillar when making decisions about where to invest," Oberhelman wrote in the letter obtained Friday by the Lee Enterprises Springfield bureau. "The direction that this state is headed in is not favorable to business and I'd like to work with you to change that."

Oberhelman said he's being actively courted to move.

"I have been called, 'cornered' in meetings and 'wined and dined' -- the heat is on," Oberhelman wrote. "Before, I never really considered living anywhere else and certainly never considered the possibility of Caterpillar relocating. But I have to admit, the policymakers in Springfield seem to make it harder by the day."

Cat spokesman Jim Dugan said the letter was designed to show Quinn that Oberhelman wants to be involved in finding solutions that benefit the company, which employs 23,000 people in Illinois.

"I view it as an olive branch to offer our help," Dugan said.

Quinn plans on discussing the letter with Oberhelman April 5 when the two meet at a conference in Peoria. The governor also plans on touring Caterpillar facilities at that time, spokeswoman Brie Callahan said Friday.

"The governor welcomes frank and open exchanges between the business community and government, and we are always open to new ideas that can help our businesses grow, innovate and create jobs," Callahan said.

Oberhelman didn't single out any specific problem with the state's policies in his one-page letter, but Dugan said the recent income tax increase -- signed into law by Quinn in January -- played a significant role in triggering the note.

The tax hike has led to attempts by other states, including Wisconsin, Indiana and New Jersey, to try and poach companies that don't want to stay in the Land of Lincoln.

Oberhelman also sent along correspondence Cat has received from other states.

"I stand ready to help convince you to relocate or expand in the fiscally conservative, low-tax Lone Star State," wrote Texas Gov. Rick Perry in a Jan. 24 letter.

"I encourage you to consider South Dakota as a place for your business to grow and prosper," noted J. Pat Costello, secretary of the South Dakota governor's economic development office.

Nebraska Gov. Dave Heineman wrote in February to say, "In Nebraska, we balance our budget by controlling spending, not by raising taxes."

Republican leaders, who unsuccessfully fought Quinn on the tax hike, say the letter confirms why they were opposed to the increase.

"These are the kinds of letters we fear," said Patty Schuh, spokeswoman for Senate Minority Leader Christine Radogno, R-Lemont. "Even more worrisome are the hundreds of businesses being wooed that we don't know about."

Schuh said the tax hike and the state's worker compensation costs on businesses "make Illinois a hostile environment, prime for the picking."