My Blog

Year: 2011

  • Who’s Pro Business?

    Recently published is a series of stories on where it’s easier/better to start and run a business.  Whether we like it or not, businesses employ people; people do not employ businesses.  Creating and maintaining a pro-business environment is not easy.  But sure Illinois generally, and Chicago specifically, are failing… or are they?

    First, a national story out of Inc. magazine telling us that  it’s easier to start a business in Rwanda than in the U.S. | Inc.com.  Well that can’t be good.  Perhaps this is why Hillary Clinton recently toured a GM plant in Uzbekistan.  Yep, creating 6,600 jobs and giving away $160k in entrepreneurial awards in Uzbekistan is a sure sign that maybe the U.S. has it’s job creation priorities a little out of whack.  You hard earned tax dollars at work.
    Then we have Crain’s Chicago Business which confidently pronounced that Illinois’ business climate outshines its neighbors.  The three main reasons are low effective tax rates, easy access to capital, and a more educated population.  After telling us how wonderful Illinois is — and after most people have stopped reading — we find out the bad news:

    The costs to operate a business in Chicago are:

    • 25% higher than in Des Moines,
    • 20% higher than in Indianapolis, and
    • 15% higher than in St. Louis.

    Then we get this:

    Catalyst Exhibits Inc., a trade-show exhibit management company, moved last week to Pleasant Prairie, Wis., from Crystal Lake to save money. The company, which employs 92, had been considering Elgin but chose Wisconsin, which provided a $1.2-million low-interest loan and a $500,000 grant.

    “It wasn’t completely incentives,” says CEO Tim Roberts, who estimates he’ll save 20% a month on building costs, not to mention savings on health insurance and workers compensation premiums.

    Oh, cheaper to manufacture in Wisconsin, I see.  I wonder why?

    Illinois has the third-highest workers compensation rates in the nation, at $3.05 per $100 in payroll, though recent reforms are expected to lower those costs by about 9%. Indiana has the lowest in the nation, at $1.16. For a manufacturer, it could mean an extra $900 per employee annually. Wisconsin is in the middle, at $2.21 per $100 of payroll.

    …

    Illinois also is more unionized than neighboring states, with 16.4% of its workforce organized, compared with 15.1% in Wisconsin, 13.8% in Iowa, 12.2% in Indiana and 11.1% in Missouri, according to the Bureau of Labor Statistics. Unionized employees tend to have higher wages and more rigid work rules, driving up labor costs, which are the largest expense for most companies.

    The rest of the article is where things get really bad.

    Business owners worry they’ll have to pay the price for decades of fiscal mismanagement by Illinois’ elected officials. A yawning state budget deficit led to this year’s income tax hike. Even more ominous is the $93.5- billion funding shortfall in state employee pension plans. Illinois’ pensions are only 51% funded, the worst in the nation. Wisconsin’s plans are fully funded, Missouri’s and Iowa’s are about 80% funded, and Indiana’s is at 67%.

    Ya, that’s a problem.  But we’re going to fix that right?

    Indiana Gov. Mitch Daniels and Wisconsin Gov. Scott Walker have moved to rein in pension costs, pushing unions out of government work. Illinois Gov. Pat Quinn, who depended on unions for political support, has been unwilling to go as far.

    Oh, Illinois is just going to keep piling on the debt.  So how do we get out of this hole we’re digging?

    Illinois “won’t have any choice but to raise taxes again, and they don’t seem to be willing to cut,” says Mr. Roberts, a Barrington village trustee. “As far as the next 10 years, the odds in Wisconsin are much better for us.”

    But at least our elected officials and the government bureaucrats are working hard to keep businesses in Illinois right?

    Neighboring states also are developing a reputation for being more business-friendly. “When I call the secretary of state or whatever agency in Indiana, I get a positive response,” says Mark Winzenread, chief financial officer of Indianapolis-based Walker Information Inc., which previously had an Illinois office. “I don’t get that in Illinois. It’s generally a frustrating experience.”

    When the 180-person consulting firm moved its headquarters just a short distance a few years ago, the state provided $600,000 to extend a road two miles. “We had one or two meetings and got it done,” he says.

    Mr. Farrell, the former ITW CEO, says Illinois will have to fix its attitude and its finances or risk losing business to other states.

    “I love Chicago, I really do,” he says. “Do you think I can look another CEO in the eye and say this is a great place to bring a plant? No. Most of the large companies in the state are very nervous about where we are.”

    Oh, ok.  So there you have it. Illinois is broke.  Has access to capital and lots of smart people.  But it’s a financial mess, heading off the cliff, and the politicians and bureaucrats are clueless of how to help business because they’re all beholden to union interests.

    Of course, in May 500 CEOs considered a wide range of criteria and ranked Illinois 48 out of 50 of states for business.  That’s right, Illinois in only behind New York and California.  Well we have to see how our neighbors rank in order to see if the Crain’s story is even close.

    • Indiana  – 6th
    • Iowa  – 22nd
    • Wisconsin  – 24th, and
    • Illinois  – 48th.

    Hummm.  It appears safe to say that the position taken by Crain’s is at odds with the position taken by 500 business CEOs.  Kinda makes me wonder who came up with the Crain’s position and if it was their own idea or if it was provided to them.

    I believe that Illinois has all of the elements needed to be an awesome state for business.  We do have not only manufacturing talent but technical know-how and access to capital as claimed.  What we need to do is balance our budget, reduce our spending, have pension reform, and elect people who really want to help businesses in the state.  It can be done.  We just need different leadership.

  • Worst Schools Ever

    Six of every 10 Illinois public schools failed to meet federal test targets this year and risk federal sanctions as a result, according to information released Thursday by the Illinois State Board of Education.

    High schools fared the worst.

    Statewide, 656 of the 666 public high schools fell short of the proficiency standard on math and reading tests that students take every spring. Only eight high schools where students take the exam in 11th grade met federal standards. Two more high schools made it based on participation and student performance on other state exams.

    via The Chicago Tribune.

    I guess this is why the teacher’s union doesn’t want merit pay for teachers.  It appears most are failing miserably.

    I’ve recently had a fairly heated email exchange with a family member, and former public school teacher, about the standard by which teachers should be measured.  Of course, the teachers’ union’s position is that it is completely unfair to measure teacher performance at all.  This is at the root of our problem.

    One word:  ACCOUNTABILITY.

    If we keep going down the current path and Illinois will become a wasteland.

    But if we make teachers AND PARENTS responsible for the education of their students and things will improve.  I’ve written up a pretty basic plan that I will share with everyone one say soon.

     

  • Occupy The Courts

    Now this I have a problem with:

    Lawyers representing about 800 Occupy Wall Street protesters arrested in the past month demand that prosecutors drop the charges.

    If not, they say they won’t deal and will insist on going to trial – putting pressure on the already overloaded Manhattan criminal courts.

    “I’d like to suggest to the DA’s office the appropriate way to deal with these cases is outright dismissal,” said defense lawyer Martin Stolar.

    via the New York Daily News.

    Civil disobedience is fine, necessary at times and perhaps even cool once in a great while.  But if you can’t do the time, don’t do the crime.

    What these people appear to want is to have the law simply not apply to them.  That’s not how things work.  The law applies equally to all people; including protesters.  Justice demands that if you break the law you be treated fairly under it and pay the appropriate price for your misdeeds.

    For those that don’t know, this is a strategy right out of the Cloward-Piven playbook.  This is the progressives great play in order to collapse the American economy.

  • Residents Flee St. Louis

    Does this sound familiar?

    St. Louis is losing residents, according to U.S. Census figures released Thursday, and the population decline goes deeper than being another blow to the proud city’s image.  The drop will mean a financial loss that could cost the already cash-strapped Gateway City millions of dollars.

    Figures from the 2010 census were a bitter disappointment, as the city’s population dipped to 319,294.That’s down more than 29,000 – a staggering 8 percent – from 2000.

    (Full story here.)

    But wait, there’s more:

    The mayor said the ongoing struggles of the city school district are a big part of the problem.

    “A lot of families are leaving the city for better educational opportunities, especially public education opportunities,” Slay said.

    Increasingly, they’re moving further and further out.

    Why yes.  Yes, that does sound familiar.

    We have the change the way we do things as a city.  Change the way we look at problems and potential solutions.  We’re $27 billion in debt, have high taxes, bloated social programs, failing schools, corrupt politicians, and criminals running around loose in the streets.

    These problems exist as all levels: local, county, state, and federal.  We need comprehensive reform nationally in order to survive.

  • CPS racial disparity grew under Daley

    A study by two University of Illinois at Chicago professors Thursday dumped on the idea of a Chicago Public Schools “miracle’’ under Mayor Daley and pushed for an elected — rather than appointed — school board to move city schools forward.

    The disparities between black and white students, and between Latino and white students, have only grown larger under Daley, creating a “two-tier” public education system, according to the analysis by Pauline Lipman and Eric “Rico” Gutman.

    (Full story here.)

    Well the UIC professors just proved what many of us already knew.

  • Tomorrow’s Email Today

    The following email is scheduled to go out at 5:00AM CT 02/09/2011

    Dear Friends and Neighbors,

    I don’t like being over-dramatic but this may be one of the most important emails you’ll read this month.  Please give me 1 min of your time on two topics concerning the upcoming aldermanic race.

    First Topic: Genita Robinson, the “Machine’s Candidate”

    It has come to my attention that Ms. Robinson is the machine’s candidate for alderman of the second ward.  And trust me, I do not make the accusation lightly. Yesterday it was disclosed that a secretly funded organization connected to Mayor Daley just gave Ms. Robinson $10,000.  But that only tells part of the story.

    After a quick review of Ms. Robinson’s campaign committee filing it turns out that of nearly $40,000 raised, $7,020 (17.8%) of it is in “not-itemized” or anonymously donated funds.  So much for transparency.

    Further, of the $32,400 which was disclosed, only $1,800 (5.5%) comes from within the 2nd Ward.  In fact, nearly 5 times as much money, $9,050 (27.9%) comes from OUT OF STATE!  That’s right, Ms. Robinson raised $1,800 in the ward but $3,000 from New York state.

    Additionally, the Sun-Times has reported that while Ms. Robinson was working at Chicago Public Schools she admitted knowing about “a secret list of politicians, businessmen and others with connections who were seeking to help kids win admission to the most coveted Chicago Public Schools” and did nothing about it.  This is not transparency.  This is not accountability.  This is nothing but old school Chicago politics.

    Something is wrong with this picture folks.  Please educate yourselves.  Every man, woman, and child is carrying city debt equal to $10,000 per person.  We cannot afford any more machine politicians.

    Second Topic:  Please Vote Sciammarella

    You read that right.  I realize that I cannot win and this election is too important to be left to chance.  I’m asking that you please vote for Federico Sciammarella.  You may not know this but Federico has been working hard on educational issues and trying to bring new businesses and jobs to our ward.  Further, Federico has pledged to work with myself and several other people in the area (like David Askew) to make sure that our neighborhood gets treated fairly in the ward.

    Say NO to machine politicians, please vote Sciammarella.

    The machine has nearly bankrupt our city and burdened all of us, and our children, with crushing debt that will have to be repaid.  The city is stuck with onerous long-term labor contracts that call for annual raises for city workers above and beyond the rate of inflation.  We’re getting taxed to death, our housing market collapse continues, and our middle class is getting ready to flee to the suburbs.

    We get the elected representatives we deserve.  We deserve the best.  Only you can make that happen.  It’s up to you.  Vote for Sciammarella.

    Lastly my friends, we are all in this together.  I humbly ask that you share this information with someone else you know.  Knowledge is power; and if we work together we can take back our city from the machine that has spent our future and our children’s future.  Please pass this on to a friend.

    As always, please feel free to contact me directly with any questions.

    Thank you,

    Jim

    Jim Bosco
    740 West Fulton Market
    Chicago, Illinois 60661
    https://temp.jamesbosco.com
    jb@jamesbosco.com
    312.929.1490

  • The Supreme Court Decision

    I realize this is now old news but it is worth mentioning that the decision of the Illinois Supreme Court placing Rahm on the ballot is going to have far reaching consequences.  Justices Freeman and Burke appear to be the only members of the court with any vision:

    Suffice it to say, therefore, that this court has not always spoken clearly on what is meant by residency, and the majority should acknowledge this fact. This is why both sides in this dispute can contend that their respective positions are supported by decades of precedent. Indeed, contrary to the majority’s assertions, the only thing that is well established in this case is the confusion that has existed on this subject. The majority today now makes clear that residency for all purposes is the equivalent of domicile. The majority, therefore, should overrule those portions of Pope, Park, and Clark which hold to the contrary.  …

    Finally, it should be noted that today’s decision will raise questions beyond the facts of this case. Because the court holds that residency has one settled meaning, and that meaning rests on a person’s intent, today’s decision will have implications for residency requirements for in-state tuition, residency requirements for municipal employees such as police officers and firefighters, residency requirements for school districts and other similar situations. This court should be prepared to address those issues as firmly and expeditiously as we have done today.

    I can tell you that the police officers I know are already moving forward, with or without, the FOP to begin taking advantage of this decision.  Chicago police and firefighters will no longer have to live within the city limits as long as they express any intent to someday return.  I’m sure that was not the intent of this decision, but that’s where we stand.

    So, what’s going to happen now?  Sometime over the next few years a police or firefighter residency case will wind its way through the courts.  And when it gets to the Illinois Supreme Court, my prediction is that it will find some way to reverse itself on this decision.

    This decision is for Rahm and Rahm alone.  This decision will forever be know as Rahm’s law.  It applies to no one else.

    This is the sorry state of politics in Illinois.  Someday I’ll write more about why judges should not be elected.  I will use this case as the starting point of the discussion.

  • Yes it’s been a few days

    Yes, I realize that it has been several days — and a lot has happened — since my last posting.

    About a week before snowpocalypse I ran into a buzz saw and I’m just getting caught-up.  Everyone gets busy from time to time and this blog on occasion takes more time that it should.  But I’m going to try to put up some additional posts over the next few days.

    I thank you for your patience.

  • The Rahm Situation, Part II: The Sword

    He who lives by the sword dies by the sword.
    — Matthew 26:52

    Surely it is folly to suggest that Rahm is getting any less than he fully deserves.  When you live your life in politics and have so playfully toyed with so many peoples lives as he has, things just have a way a catching up to ya.  There is such a thing as karma.

    Obama got elected to his first office in Illinois by knocking his opponents off the ballot.  When Obama and Rahm entered the White House they had no interest in working with anyone in any party on any issue.  The quote was something like, “We won, they lost.”  So much for being a team player.

    I guess the issue is that no one should feel bad for Rahm.  He’s a big boy and knew what he was getting himself into.

    There’s letters seal’d, and my two schoolfellows,
    Whom I will trust as I will adders fang’d—
    They bear the mandate, they must sweep my way
    And marshal me to knavery. Let it work;

    For ’tis the sport to have the enginer
    Hoist with his own petard, an’t shall go hard
    But I will delve one yard below their mines
    And blow them at the moon.
    — Hamlet

    More than once Rahm fancied himself Claudius the King.  Is it not just fitting that the game he has played so well for years has handed him this moment?

    I don’t know how it’s going to end; only the Illinois Supremes do.  But Rahm is an excellent politician.  This little set-back will not knock him out of the game.  It can only delay his entry.

  • The Rahm Situation, Part I: Enforce the Law

    The surest way to get a bad law repealed is to enforce it strictly.
    — Abraham Lincoln

    While editorial boards, talking heads, and policy wonks from near and far are condemning the recent Appellate Court decision removing Rahm from the ballot based on emotion, there has been little discussion in the media as to what the law actually says.

    It’s time we acknowledge, our city and state governments have passed a lot (a LOT) of poorly worded, half-baked laws.  As someone who’s read a few laws in their day I can tell you that many of our laws as so poorly written that even our best judges struggle to figure out what the law really is.  This leads to more appeals and costs everyone money.

    I read both the majority opinion and the decent of the Appellate Court.  Then I reviewed the actual code.  In the end, I believe the Appellate Court got it right.  There are two requirements to run for office in this city and one of them is residency.  As John Kass wrote his headline today, “The law, at least, doesn’t care who sent ya.”

    Further, I’m against judicial activism.  I believe judges should rule as the law “is” and not what they think the law “should be.”  We should follow Lincoln’s advice and strictly enforce the law as it is written.  And then, we should change the law, so that we don’t have this problem again.