Jobs and the Economy

My plan for jobs and the economy includes:

• Creating good jobs here in Illinois
• Overcoming our budget problems with fiscal responsibility
• Growing our economy by investing in technology

Illinois Economy

The Illinois economy suffers from two distinct but related problems -- high unemployment and a significant state budget deficit -- that are preventing our state from realizing its potential.

At the beginning of the last decade, Illinois enjoyed an unemployment rate of 4.5%, its lowest on record. We have since experienced one of the worst recessions since the Great Depression resulting, ultimately, in our current unemployment rate of over 11%.

Meanwhile, a combination of revenue shortfalls attributable to our growing unemployment problem and other long term obligations including employee pensions has resulted in an unsustainable budget deficit that will force Illinois to fall short in providing the services our citizens need and deserve.

The State Budget Deficit

Our current budget shortfall is attributable in part to the economic recession that began in 2008. However, there is also a long-term component to the deficit with far greater consequences than the current recession, namely our promises of future Medicaid, pension, and retiree health benefits. For years, the state government has deferred its responsibility particularly to the pension system, but we cannot continue this pattern of delay.

Solving the current and long-term budget problems will not be easy and will demand tough decisions. I am committed to a process that emphasizes fiscal responsibility, efficiency, transparency, and sustainability.

11% Unemployment

A March article in Crain's Chicago Business amplified what many of us already knew: job creation in Illinois has lagged behind many other states. Not only has this hurt individual families, but it has reduced the amount of revenue the state can devote to much needed basic services such as public safety, human services, and education.

Technology, Innovation, and Job Creation

Job creation must be the lynchpin of any strategy to overcome our economic woes. Our economy is undergoing a massive transformation. The economic decisions that the General Assembly makes right now will determine whether we join the leading edge and benefit from the new economy, or instead whether we lag behind other states, resulting in further job loss and economic slowing.

In order to create good-paying jobs, Illinois must foster investments in new technology and the green economy. With our solid manufacturing base, world-class academic institutions, robust transportation networks, and entrepreneurial culture, we have every reason to be a global leader in technology and innovation, simultaneously paving the way toward sustainable economic growth and sustainable environmental practices. I will use my scientific training and experience to lead the General Assembly toward policies that make this vision a reality.

Here is my five-point plan to create jobs and jump-start the economy.

1. Establish a temporary tax credit for new hires

We must create an economic environment that encourages robust hiring practices. I support accomplishing this via a targeted tax credit to encourage private sector hiring. That would have wide ranging benefits to the economy as a whole including reducing unemployment, increasing tax revenues, and fostering business expansion. The policy would provide businesses with a credit towards their total state tax liability for each new worker hired over the next two years.

2. Invest in state-of-the-art transportation and energy infrastructure

I support investment in high-speed rail, which is a vehicle for tremendous potential growth in the Midwest. A study commissioned by the City of Chicago estimates that the introduction of high-speed rail into the Chicago region will result in over $8 billion of increased economic activity. Moreover, the rail network will generate more than $2 billion in value from highway and airport congestion relief. Finally, the mere construction and operation of a high-speed rail system will generate tens of thousands of jobs.

We can also grow the Illinois economy by making the investments needed to become a leader in the use of renewable sources of energy. The 2007 Illinois Power Agency Act requires 25% of all residential power to come from renewable resources by the year 2025. To meet this obligation, we must update our electric grid to handle new sources of power including solar, wind, and bio-fuels. Grid modernization will both create construction jobs and generate greater economic activity and efficiency by granting businesses greater access to reliable and lower-cost power.

3. Create opportunities to learn new skills

A significant factor in Illinois's ability to create jobs is its agility in adapting to changing market conditions. Illinois must encourage job retraining for the unemployed and underemployed through tangible measures. In times of economic downturn, workers with skills that are not in demand must have opportunities to learn new skills to increase their chances for employment. The most efficient way to achieve this is to ensure that Illinois's community colleges and other institutions of higher education have adequate resources to offer relevant educational opportunities and that adequate financial aid is available to students.

According to a 2007 study, Illinoisans significantly increase their earning potential by attending community college -- more than enough to cover the cost of a 2-year degree. Unfortunately, the current budget crisis has severely affected state funding for community colleges and other schools at precisely the time that they need it the most, thus accelerating the slowdown. I will always back budgetary priorities that address our most pressing problems, rather than exacerbating them.

4. Require transparency and fairness in state contracting

I am deeply committed to establishing transparency and fairness in the state contracting system. In addition to restoring confidence in our government, this would finally allow Illinois business to compete on a level playing field. Currently, companies are too often able to secure state contracts in exchange for political favors rather than by competing to offer the best price and quality. In this inefficient environment, worthy businesses are unable to win contracts that would allow them to expand hiring and service provision.

5. Explore new export markets

I will establish policies that encourage small and medium-sized businesses to expand by exploring new export markets. This is absolutely essential in order to balance the need for economic growth with the need to restrain the overall debt carried by individuals.

Throughout the economic downturn, Americans have racked up debt far beyond what is sustainable. We simply cannot continue to consume goods and services at the same level without jeopardizing our financial future. To achieve a more sound financial footing we must focus on reducing personal levels of debt and increasing the amount we save. At the same time, though, the economy needs spending and income to recover. Rather than solely relying on domestic consumers we must look elsewhere to find new consumers.

As President Obama outlined in his new National Export Initiative, the U.S. has one of the lowest levels of exports relative to its GDP of any industrialized nation in the world (around 11%). The export initiative seeks to reverse that lag. It will help businesses overcome the barriers to entry by, among other things, supplementing existing trade promotion services offered by the U.S. Department of Commerce and the Illinois Department of Commerce and Economic Opportunity.

A complete recovery will involve far more than just governmental action, though. It will rely on people from across our community contributing their talents and ideas to get us back on track. I hope you'll begin that process by clicking below to share your thoughts.