PHOTO CREDIT: www.ilbedc.org

Illinois Gov. Bruce Rauner today (Jan. 27, 2016) announced in his State of the State address that leaders at the Illinois Department of Commerce & Economic Opportunity and business stakeholders will collaborate in organizing a newly formed private, non-profit organization focusing exclusively on increasing Illinois’ competitiveness for job creation and investment.

The creation of a private economic development organization was a key recommendation of the governor’s bipartisan transition committee last year, according to a state of Illinois news release.

“Other states have moved to public-private partnerships to boost economic development efforts, while Illinois has stood still,” Rauner said in the State of the State message. “Last year, we introduced legislation to create a P3. But it stalled in the legislature. This year, we will move forward with a revised version that will laser focus on sales, marketing and customer service, to increase our competitiveness for job creation and investment.

“This morning the Illinois Business and Economic Development Corporation filed articles of incorporation with the Secretary of State, the first step towards bringing our economic development efforts into the 21st century. In the days ahead, I will be signing an Executive Order to formally establish our collaboration.”

In the state of Illinois news release, Illinois Department of Commerce Director Jim Schultz said Illinois is at a critical crossroad.

“There is no reason Illinois should not have a thriving economy,” Schultz said. “Yet we continue to lag behind other states and national averages, and we are losing a steady stream of businesses, jobs and residents to other states. Last year, Illinois lost an average 250 jobs a month and ended 2015 with 3,000 fewer jobs, in stark contrast with overall national growth. Middle class families are hurting as traditional footholds like manufacturing are decimated, losing 14,000 jobs in 2015 alone. The result is families fleeing the state in droves; in 2015 more than 100,000 residents left Illinois.

“We must take decisive, focused action if we are going to reverse our state’s economic decline and put Illinois back on the path to growth and prosperity,” Schultz said. “The rigid structure and suffocating bureaucracy of the Department of Commerce hinder our ability to attract businesses to Illinois and to drive economic development. A mere 14 percent of Department of Commerce staff is dedicated to economic development activities, limiting the resources to attract and to retain business, which is a disservice to Illinois businesses and taxpayers.”

Meanwhile, neighboring states have benefited from flexible, focused private economic development organizations, easily overtaking Illinois in business attraction and job creation.

“We must take a new approach to growth in Illinois; the status quo is no longer acceptable,” Schultz said.

The Illinois Business and Economic Development Corporation will focus on sales, marketing and exceptional customer service. It will work at the speed of business and maintain lean, efficient operations. The corporation will be governed by a diverse board of experienced economic development and business leaders dedicated to returning Illinois to prosperity. Final composition of the board is still under development.

The corporation will maintain strict standards of transparency and accountability, based on industry best practices, including a robust conflict of interest policy, public disclosure of donors, and application of other transparency laws. The ILBEDC will not replace the Illinois Department of Commerce, which will maintain key functions, including federal program administration and final authority and oversight of all state grants and incentives negotiated by the ILBEDC.

The ILBEDC, for which Articles of Incorporation were filed this morning with the Illinois Secretary of State, is a private organization seeking 501(c)(3) status. The Governor will sign an Executive Order in the coming days to formally establish its relationship with the Illinois Department of Commerce. The formation of the ILBEDC and its operations at least through FY16 will be funded entirely with private donations. The Department of Commerce will maintain all its existing duties, including working with companies on expansion and relocation efforts, until the ILBEDC is operational.

For additional information on the ILBEDC, please visit www.ilbedc.org

SOURCE: State of Illinois news release

CREDIT: C-Span video screenshot. Link: http://www.c-span.org/video/?403755-1/illinois-governor-bruce-rauner-state-state-address

Read More

• Full Text of Gov. Bruce Rauner’s 2016 State of the State Address
• Click This Link for a Video of the State of the State Address