SPRINGFIELD - Manufacturers in Illinois are facing tough times because of the state's business policies, but according to Jay Shattuck, who lobbies at the State Capitol for the Technology|Manufacturing Association, there's a renewed hope that things may be looking up.
“I think the election of Bruce Rauner has signaled a turnaround for the business community – and certainly for manufacturing – in Illinois,” Shattuck said in a recent interview with TMA's monthly News Bulletin.
There’s a new, more positive outlook with state lawmakers and agencies, he said. Manufacturers’ needs are now taken seriously.
“The governor’s office is looking for input from the business community first,” Shattuck says. “In prior administrations, our input was asked for, but in terms of the level of what importance and credence it was given, it was pretty low on the totem pole.”
Starting with last fall’s transition period, the Rauner Administration has been calling and asking Shattuck for advice and ideas.
“They’re looking for ways to increase manufacturing jobs in Illinois,” he said. “It’s a nice change."
Shattuck says he is optimistic that key items in the governor’s Turnaround Agenda could become public policy in Illinois, even though Democrats hold the super-majority in both legislative chambers.
Democrats are just as interested in creating jobs as Republicans, they often just have a different approach, he says.
The high cost of workers’ compensation is a key topic that Governor Rauner is consistently pushing with the Democrats; and Shattuck expects the issue to become more urgent. While House Speaker Mike Madigan and Senate President John Cullerton emphasize tax hikes to raise government revenue, Governor Rauner argues that to raise the money, Illinois should focus on creating more jobs, more production and business growth, which will lead to the revenue the Democratic leadership demands.
“Rauner sees four things that will make a difference: workers’ compensation reform, a property tax freeze, term limits for lawmakers, and a new system of redistricting,” Shattuck says.
Specifically, the governor wants causation in the workers’ compensation system to be raised to 50 percent or more before the primary company is required to pay for an injury.
“While Democrats argue they reformed the workers’ compensation system in 2011, from the standpoint of TMA members, those changes were helpful, but not real reform,” he says.
Shattuck says Rauner’s strong stand for the state’s manufacturers is frustrating Democratic leadership.
As a result, manufacturers in Illinois should expect the intensity of political rhetoric to heighten during the month of July as budget negotiations face deadlines. All the uncertainty about the state’s attitude towards manufacturing is inhibiting expansion, job creation and the state’s revenue stream.
Manufacturers hesitate to jump into long term expenses, because they’re just not confident of where the state is headed public policy-wise.
There’s no certainty, especially here in Illinois, Shattuck says. But with a new, pro-business climate in the Executive Branch, there’s a growing optimism.
“The other good thing about dealing with the Rauner Administration, is that TMA members should find that state agencies are much more willing to work with them on getting into compliance, rather than focusing on big fines and punishing employers,” Shattuck says.
“Instead of coming in and shutting down a business, or slapping down a huge fine, most of the time now an agency will step in and say, ‘You have this problem and you have X number of days to resolve it. If you don’t, then we have the authority to apply penalties and take a more severe approach. Whereas, I think, prior administrations were like, ‘We gotcha, here’s a $50,000 fine.’”
Specifically, that means changes in policy and activity in the Department of Labor, Department of Employment Security, the Environment Protection Agency and the Workmen’s Compensation Commission – a half dozen or more agencies that affect the manufacturing world in direct ways.
However, Shattuck warns, “Six months of the new administration shows a different attitude, but there’s a long way to go yet.”
See the rest of the TMA Interview with Shattuck HERE.
