Border communities hoping for more Illinois business
WALWORTH — If Illinois businesses accept Gov. Scott Walker's invitation to "escape to Wisconsin," local officials hope they'll flock across the border to communities affected most by the sagging economy.
While there hasn't yet been an influx of new business, community leaders say there are promising signs that help is on the way.
"Things in Illinois are not going very well right now," said Mike Van Den Bosch, executive director of the Walworth County Economic Development Alliance.
The Illinois Legislature in January approved steep tax hikes to battle the state's estimated $15 billion deficit. The individual income tax rate jumped from 3 percent to 5 percent and corporate income taxes grew from 7.3 percent to 9.5 percent.
Wisconsin's personal taxes remain higher, so officials don't expect Illinois residents to feel as much pain as businesses.
Illinois' corporate tax rate is now the fourth-highest in the United States, according to the Tax Foundation. A 2011 report ranking state business tax climates ranked Illinois only slightly better than Wisconsin, but residents here believe the scale is beginning to tip in Wisconsin's favor.
"Illinois has given up a comparative advantage," said David Rasmussen, attorney and village of Walworth president.
"It's economically illiterate to raise taxes and think people aren't going to move."
Wisconsin's taxes remain higher, but people such as Rasmussen believe the similarities in taxes will force businesses to look elsewhere for advantages.
Some businesses didn't wait long to make the jump. FatWallet.com, an Internet business that deals in consumer coupons, announced in April it would move eight miles from Rockton, Ill., to Beloit. The company's general manager said the Illinois affiliate nexus tax would have reduced its business up to 40 percent.
Rasmussen said the village of Walworth is close to luring another business from Illinois, but an official announcement won't come until the deal is complete. He said he believes more business leaders will cross the border, benefiting Rock and Walworth counties.
"I expected it," Rasmussen said. "That's a big increase in Illinois."
It's clear businesses are showing interest, but the looming question is whether more will defect to the north in hopes of expanding their operations. Indiana Gov. Mitch Daniels made his own pitch to Illinois businesses, touting the Hoosier state's tax climate, ranked significantly better than Wisconsin's.
Van Den Bosch said he spoke to a number of businesses outside Wisconsin considering moving to another state. Several were in Illinois.
The Illinois tax structure isn't what concerns businesses—it's the trend. Taxes might be similar to Wisconsin's, but the direction Illinois is headed is causing fear that things will only get worse.
Many businesses threatened to leave the state, but one thing Van Den Bosch believes Illinois has excelled at is its ability to change minds with incentives.
Wisconsin has its advantages too, he said. Walworth County has backing from UW-Whitewater, George Williams College and other institutions outside of the county. That gives the region an edge in professional development.
"Right now, the name of the game in business is ‘workforce,'" Van Den Bosch said.
The county economic development alliance maintains a partnership with higher education resources, aiding start-up businesses and those in need of counseling services. Whitewater's Innovation Center at the Whitewater University Technology Park is one example, allowing entrepreneurs to use UW-Whitewater's resources to grow their business.
Wisconsin communities don't charge as many fees to businesses, and property taxes also are a bit lower, Van Den Bosch said.
One factor that's holding businesses back is new construction. Companies considering a move are reluctant to invest in new buildings, and Van Den Bosch said there isn't much vacant industrial space in Walworth County.
The economic development alliance continues to work with businesses already in Walworth County in addition to attracting new ones. Van Den Bosch said the organization has several programs aimed at retention and growth.
Sep 20, 2011 at 6:30 p.m.
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donnaw- What problems are you referring to? Because I stand up for people who struggle in life and want them to have at least a living wage? I am at an age far beyond needing a job but I know a great many people who can't afford to live. Volunteer in your community and you may get to know their stories too.
Sep 20, 2011 at 3:37 p.m.
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alert...apparently you aren't "alert" as you don't understand sarcasm. Keep blaming Walker for your problems if it makes you feel better.
Sep 20, 2011 at 9:50 a.m.
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donnaw- You only get that wage and those benefits if you are going to work for the state as an appointee of Gov. Walker's. Shame on him.
Sep 20, 2011 at 9:08 a.m.
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I get a kick out of the "states" bantering back-and-forth about more jobs in this "state" or that "state" when, in actuality, fedgov has the whole scenario largely killed off for all 50 states from the top to begin with........Funny stuff that.....Have fun with the banter, "states".
Sep 20, 2011 at 8:53 a.m.
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alert... Oh by way, none of the jobs can be minimum wage but rather pay at least $15/hr, have full health insurance coverage, including dental, vision and mental health, 15 sick days per year, 2 weeks vacation right away and a very generous pension plan. God forbid we should have anyone start out like we did, making minimum wage, developing skills on making change, greeting customers, showing up to work on time dressed appropriately, working efficiently for the work shift, etc. We want it all, right now. We don't want to work our way up, we want it now. We won't be happy for anything less.
Sep 20, 2011 at 7:48 a.m.
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donnaw- As a "lefty" I would be thrilled if Wisconsin got a million new jobs. In fact I'll be a believer of yours if Wisconsin gets 500,000 jobs that pay more than minimum wage to it's workers.
Sep 20, 2011 at 7:39 a.m.
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If Wisconsin got a million new jobs you lefties still wouldn't be happy. It's in your negative nature.
Sep 19, 2011 at 8:27 p.m.
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Can't believe that you conservatives aren't yelling to build a wall on the border!!!
Sep 19, 2011 at 6:17 p.m.
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justmy414 - that's only one category of jobs...
Sep 19, 2011 at 6:02 p.m.
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Dwight, the DWD was appointed by Walker specifically to tell you what he wants you to hear. That includes the "creation" of seasonal jobs, and temp jobs being counted over, and over, and over in that job statistic. But the actual job numbers available from the Department of Workforce Development show that since Walker took office Wisconsin has shed 5,700 teachers and education jobs.
Sep 19, 2011 at 4:52 p.m.
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Verbiage? The DWD is who tracks jobs in Wisconsin - if the DWD secretary isn't telling the truth, then no one can be trusted with jobs numbers.
Sep 19, 2011 at 4:51 p.m.
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Fox News? Where? Fox 6 is a local Fox affiliate in Milwaukee - not associated with Fox news.
Sep 19, 2011 at 2:28 p.m.
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fox news? really?
Sep 19, 2011 at 2:28 p.m.
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Dwight, where? I see no proof, just verbage.
Sep 19, 2011 at 1:53 p.m.
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wakerfan - I provided my evidence of +30000. Where is your evidence of "an overall decrease"? Other than hearsay from a "TV news reporter", of course.
Sep 19, 2011 at 1:52 p.m.
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"Sheehy isn't the only one focusing elsewhere than the jobs lost. Wisconsin Department of Workforce Development Secretary Scott Baumbach argues Wisconsin added nearly 30,000 jobs in 2011. He believes the trend will continue during the final months of the year."
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http://www.fox6now.com/news/witi-2011091...
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"MADISON, Wis. (AP) - Wisconsin's seasonally adjusted August unemployment rate was 7.9 percent, up from 7.8 percent in July.
State labor officials said Thursday the total number of jobs decreased by 2,300 from July to August, including 800 in the private sector.
But there was a net gain of 1,200 jobs in goods production and the sector has gained more than 16,000 jobs since December 2010.
Department of Workforce Development Secretary Scott Baumbach says even though Wisconsin had a slight drop in private-sector jobs, it had a net gain of nearly 30,000 jobs this year, which is stronger than the nation."
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http://www.nbc26.com/news/covering-wisco...
Sep 19, 2011 at 1:10 p.m.
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dwight--Where does your "+30000 jobs since walker took office" come from? 'Cause I just listened to a TV news reporter say that Wisconsin has seen "an overall decrease in jobs since January," which, if my memory is correct is when walker took office.
Sep 19, 2011 at 12:58 p.m.
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Come on, really, Ideally? First, Wisconsin is +30000 jobs since Walker took office, and second, he has nothing to do with GM. People aren't buying SUVs so there's no demand for the GM plant.
Sep 19, 2011 at 12:35 p.m.
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"millions of dollars in buying power were taken from the middle class"
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And if Republicans have their way by raising taxes on the middle class and eliminating the EITC, middle-class people are set to lose still more. Republicans characterize programs that benefit middle-class Americans as "welfare." And that includes unemployment benefits. But when the president (as well as the vast majority of voters) suggest that wealthy individuals and corporations pay their fair share in taxes, that's "class warfare." Clearly Republicans think voters are stupid. I just hope they're wrong.
Sep 19, 2011 at 12:25 p.m.
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"If Illinois businesses accept Gov. Scott Walker's invitation to escape to Wisconsin."
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Well, GM famously has not accepted Walker's offer. Let's face it: Walker was elected on empty rhetoric. He's not delivering. Instead, he's picking on teachers.
Sep 19, 2011 at 11:08 a.m.
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And the economy is shrinking because millions of dollars in buying power were taken from the middle class and given to corporate interests.
Sep 19, 2011 at 9:58 a.m.
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Janesvillian: As someone who works for an IL border company I think you're wrong. Our company would love to expand and hire more people which we desperately need but we're in a holding pattern because of the economy.
Sep 19, 2011 at 6:17 a.m.
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Give Them Money & They will Come
Sep 19, 2011 at 12:37 a.m.
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This isn't creating jobs, it's just moving deckchairs on the Titanic. Not many of those companies that move "just over the stateline" are going to need to hire many people locally -- that's why they're only moving a short distance in the first place. As a strategy, this is pretty much a zero-sum game.
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