B is for Business's blog

More Revenue (and nothing else)

From N-G:

At the same time, we urge the campus and university administration to continue to impress upon the leadership of the Illinois Board of Higher Education, our state legislators, and Governor Quinn, the critical need for the state to generate adequate revenue to pay for the professional services we and other public employees across the state continue to provide.

How about instead:

At the same time, we urge the campus and university administration to continue to impress upon the leadership of the Illinois Board of Higher Education, our state legislators, and Governor Quinn, the critical need for the state to implement a business friendly climate to attract jobs that would generate adequate revenue to pay for the professional services we and other public employees across the state continue to provide.

In Illinois we exist to serve the government.   In places like Indiana, the government exists to serve the people.   Listening to big government types with a mypopic focus on revenue has been consistent since the dems were hiking business fees, spending without constraint, proposing gross receipts taxes, launching new programs they didn't have the money for, and now proposing taxes that target (guess who)....investors.

While Frerichs and Naomi are non-existent in any discussion to address the problems their backers created, let's take a moment to appreciate what could have happened if Illinois would have positioned itself to attract business.

Start by comparing the State of Illinois economic development website for businesses to the State of Indiana economic development website. 

As you connect the links, you'll notice that the State of Indiana had a balanced budget in early 2009.   You'll quickly appreciate the benefits of having a governor with common business sense can bring to a state.   While we appreciate the benefit of having Chicago liberals drive our state into the ground, take another moment to listen to message from Mitch Daniels from Indiana:

(Click here to download audio file)

Here are some highlights from the Indiana economic development page.

Climate that Cultivates Success

Your business isn’t going to thrive just anywhere. You need to find a climate that cultivates success, and that means favorable business costs, shovel-ready sites and a skilled workforce.  Indiana has the business environment you need to branch out and the industry initiatives designed to stimulate growth, innovation and profits. Discover what some of the most successful companies in the world have found out about Indiana’s pro-business environment.

Right Taxes and Incentives

We know that businesses want to keep their costs low. That’s why Indiana has a tax structure that’s extremely competitive. Indiana also boasts the lowest workers compensation rates in the Midwest and among the very lowest in the country. And our costs for industrial electricity are the second lowest in the nation. On top of that, Indiana has great economic incentives to help your business grow. Find out more about our incentives and low costs of doing business.

You Can Get There From Here

Known as the “Crossroads of America,” Indiana sees more interstate highway commerce than any other state. With three international airports and the second-largest FedEx hub in the world, we’re also host to our fair share of air traffic. With an equally robust rail system and three marine ports on Lake Michigan and the Ohio River, it’s safe to say that no matter where your business goes, you can definitely get there from here. Find out more about why we’re the perfect place for business.

Workforce to Be Reckoned With

Indiana has the right people on the ground to accomplish your business objectives. With over 70 colleges and universities, our new graduates have the knowledge and expertise you’re looking for.  Add to that our best-in-the-nation status for manufacturing productivity, and you’ve truly got a workforce to be reckoned with. See how Indiana works for you.

 

 

 

PETA Joins Fight Against Campus Bar

If you walk into Joe's Brewery on busy night, chances are you will see a crowd of college students around the Lobster Zone Machine.   Here is video of what you could expect to see:

As a result, PETA's office in Norfolk, VA has asked the bar remove the machine immediately and threatened the group would mobilize their members against the bar.   For more information losters' ability to feel pain, please visit LobsterLib.com.   I am sickened by capitalist pigs abusing animals for cheap "amusement" in order make a few extra dollars. 

I hope you will join me and follow the advice provided on LobsterLib:

If you come across the Lobster Zone, you can help lobsters:

 

1. Call and write the owner of the restaurant. Politely, but firmly, let him or her know that games are supposed to be about skill, fun, and prizes, not suffering—and ask that the contraption be removed.

2. If the tank is excessively crowded, or if it looks as if there are dead lobsters, complain to the health department.

3. Write a letter to the editor of your local paper. Let people in your area know that all animals, including lobsters, deserve our consideration.

Here is a sample letter to the editor that you can write:

 

Letters to the Editor
[name of newspaper]

Dear Editor:

If grocery stores kept live pigs or chickens crammed inside tiny glass tanks along with recipes suggesting that the animals be boiled alive, there’d be a lot more vegetarians! But how many of us have walked by supermarket lobster tanks without as much as a second thought?

Take a look the next time you’re at the store: Often, lobster tanks are filthy and overcrowded, with lobsters piled on top of each other, as I witnessed at [name] grocery store this week. Even under the best of circumstances, eating lobsters can be a public health risk. Seafood is the number one cause of food poisoning in the United States, and shellfish are involved in more than 66 percent of all seafood-related illnesses. In fact, as much as 10 percent of raw shellfish are infected with organisms that can cause hepatitis, salmonella poisoning, cholera, and even death. Keeping these sea animals in filthy tanks doesn’t make them any safer!

It is also cruel to confine animals of any species to a small space and slowly starve them. Most lobsters in restaurant and grocery store tanks are never fed in order to prevent the water from being fouled with excrement. Of course, this does nothing to protect consumers from the mercury, DDT, PCB’s, dioxin, disease-causing bacteria, and other contaminants that are commonly found in lobster flesh.

It’s time to liberate these and other animals from the pot by switching to a healthful, humane vegetarian diet.

Sincerely,

B is for Business

Campustown Safety Summit

Campustown is without a doubt the economic hub of the community.  According to the 2007 University District Existing Conditions Report (part of the Campustown Action Plan), 19.72% of the sales tax generated in the City of Champaign came from the University District (Campustown).  In addition, the report states that 8.87% of the total property tax generated by the City of Champaign was derived from the University District. (Hat Tip: Bulldog)

Recently the University District Advisory Board was disbanded after many meetings were cancelled.

After speaking with multiple council members, bar owners, and a few students, I grew very disturbed.   There is an obvious disconnect between the Mayor and the bar owners.   The Liquor Advisory Commission is not working.   The University District Advisory Board clearly was not working.   The Mayor is making claims that he has made things clear and some bars are arguing otherwise.   After listening to multiple sides of the situation, there is (at the very least) a communication problem.   These types of problems are solvable. 

Yet you have THE economic epicenter of the community arguably on the brink of a huge political and economic shift that is certain to bring significant change.   A change that impacts some serious stakeholders and could possibly undermine the very goals that the city and mayor are working towards.   A change that possibly brings serious short-term challenges on many levels.

I think it would be in everyone's best interests if key stakeholders had a special summit or one-time special committee formed to focus on campustown safety.   This summit, study session, special one time committee, whatever, could be designed to plan in advance of Unofficial, while improving communication among the key stakeholders of that district, and looking the top 1-2 safety concerns outside of Unofficial. 

It is not reasonable to expect that any one group should shoulder all the blame or responsibility.  This is a great opportunity to bring people together and work for a cause everyone agrees with.   What are the major challenges?   What can a group do to make the situation better?   Where does a group need help?   What can one group to do to help the other group?   ALL the groups should be engaged.  

1) The Mayor and Council

2) City Staff

3) Police Department

4) The Bar Owners

5) The University

6) Property Owners

7) The Retail Business Group

8) Student Senate

9) Irish Illini

(Did I get them all?)

The agenda could be two-fold preparing proactively for Unofficial and also working together to get everyone in campustown on the same page.  This is obviously a great opportunity to do great things with something like this.

I don't know why these commissions are not meeting and don't want to suggest another commission or committee that is not effective.   Hopefully, everyone can keep it simple and constructive.   People don't need extensive documents.   No master plans.  As little finger pointing as possible.  Keep it short-term and specific so it doesn't turn into another bland committee.   It doesn't have to include economic development.   It doesn't have to focus on economic concerns, even though it's obvious we need to keep things in balance.   We can keep it somewhat simple and be very direct, yet respectful about everyone's concerns. 

Saftey.   It's a good thing.  

Communication.  It's a good thing.

And PS - if this type of summit is even possible, let's try to set it up so the crazies don't come in and talk about how they send their kids away so they can insulate them from the horrors of this community.  : )   Instead, let's ensure the key players are working together to make the key economic hub of our community safer and more attractive. 

CYA

It is so rewarding when policy makers read the IlliniPundit.   Good things start to happen and you apply common sense.

http://www.wicd15.com/newsroom/top_stories/videos/wicd_vid_1525.shtml

The mayor said in the report that, "This is the one thing that I will not tolerate."  

I must ask, what the heck is that one thing?   Where was that one thing communicated?    How was that message expected to reach the bar owners? 

The mayor knew about the bar crawl but did not send out an email or any indication of his desires, but today he (courtesty of staff) sent out the email you see below.   Isn't it so nice when you're nice enough to take time to outline your expections in advance and work together.   Congratulations!   This is how it should have have been for the bar crawl as well!   It is clear that this communication capability was possible and it's a shame he couldn't simply indicate his concerns in advance.   Then again, the "force the bar to 21" scheme wouldn't have worked. 

The TV reported the mayor is "taking heat".   Oh yeah, wait until the marketing campaign starts! 

Ben Handleman (bhandleman@wicd15.com), if you are going to reference this blog as a source/reference on story where you get paid to report on, please give the Illini Pundit his due respect.   Unlike you, nobody here gets paid.   The least you can do is give credit where credit is due.   For the record, you did a great job on the story.  : )

Update: Illinipundit.com was cited as source at bottom of screen. 

From an email from the Mayor today:

Licensees:
 
Please find attached 2 documents:
 
1. Holiday Party & New Years Eve Event Reminder note on Happy Hour
2. 2010 TIPS and BEST training schedule

 
Should you have any questions, please don't hesitate to call.
 
Sincerely,

 
 
Mayor Jerry Schweighart

December 15, 2009

To:    Owners / Managers
On Premise Liquor License Holders

From:    Gerald Schweighart
    Liquor Commissioner

Re:    Holiday Party’s and New Year’s Eve events

Dear Licensee,

With the holidays upon us, may of you are involved in private parties and related holiday activities.  Some of you are in the final stages of planning for New Year’s Eve functions.  During this period, it is not uncommon for city staff to field a large number of questions related to these events and the legality of certain types of activities.  Our goal is to help you be successful with your event and remain within the legal guidelines of the city and state.

To that end we wanted to share with you the specific section of the Illinois Liquor Control Act that focuses on “Happy Hour” as well as an article from Richard Haymaker, ILCC Chief Legal Counsel that addresses their interpretation of “Private Functions”. 

In discussions with representatives from the Illinois Liquor Control Commission it is apparent that any publicly advertised event with tickets that are sold in advance or offered for sale at the door and offer unlimited drinks are a violation of the state code.  There can be no unlimited or open bars offered under this circumstance or any non private function as they have defined. 

Event packages which include a meal and drinks may be developed and offered but must limit the number of drinks available to the customer.  Please keep in mind that if the number of drinks offered in this package would likely produce intoxication in the guest, the licensee is opening themselves up to civil and or criminal liability.  The customer will likely want to consume all drinks offered which will make it more difficult for the server to cut them off if needed. 

Event packages that are alcohol only are not allowed according to the statute.  Please keep in mind that the sale of alcohol to an intoxicated subject is a violation at both state and local levels. 

The City of Champaign will be investigating any complaints related to these types of promotions and take enforcement action as necessary.

It is our hope that you will have safe and profitable holiday events.  Again we are very interested in seeing you be successful while being compliant with the law.  As city staff we are more than willing to help you with these issues and to promote a safe holiday season.  Feel free to contact the Legal Department at 217-403-8765 or the Alcohol Enforcement Office at 217-403-6914.

Happy Holidays

Cheers!

Common Sense: Anonymous Blogging Circa 1776

PERHAPS the sentiments contained in the following pages, are not yet sufficiently fashionable to procure them general favor; a long habit of not thinking a thing wrong, gives it a superficial appearance of being right, and raises at first a formidable outcry in defence of custom. But tumult soon subsides. Time makes more converts than reason.

As a long and violent abuse of power is generally the means of calling the right of it in question, (and in matters too which might never have been thought of, had not the sufferers been aggravated into the inquiry,) and as the king of England hath undertaken in his own right, to support the parliament in what he calls theirs, and as the good people of this country are grievously oppressed by the combination, they have an undoubted privilege to inquire into the pretensions of both, and equally to reject the usurpations of either.

In the following sheets, the author hath studiously avoided every thing which is personal among ourselves. Compliments as well as censure to individuals make no part thereof. The wise and the worthy need not the triumph of a pamphlet; and those whose sentiments are injudicious or unfriendly, will cease of themselves, unless too much pains is bestowed upon their conversion.

The cause of America is, in a great measure, the cause of all mankind. Many circumstances have, and will arise, which are not local, but universal, and through which the principles of all lovers of mankind are affected, and in the event of which, their affections are interested. The laying a country desolate with fire and sword, declaring war against the natural rights of all mankind, and extirpating the defenders thereof from the face of the earth, is the concern of every man to whom nature hath given the power of feeling; of which class, regardless of party censure, is

THE AUTHOR.

Philadelphia, Feb. 14, 1776.

Drunk on Power

Overly broad.   Heavy handed.   Unchecked.  

Surprisingly, I'm not talking about another one of Prussings commie proposals.  

Instead, Mayor Schweighart appears to have gone completely around the bend.

After being so impressed with the community rallying around the notion that you don't criminalize a property owner for the acts of criminals on the owners property, Mayor Schweighart is moving to shut down bars for 30 days because of patrons involved in drinking games.   Even more sad, the Mayor is giving bar owners the option to avoid being shut down for 30 days if they voluntarily go to 21 yo entry.  

He is obviously getting radical trying to push a 21 year old bar age even though he can't get it passed in council.    No shame. 

You have bars being penalized for pouring drinks to participants of a bar crawl.

You have bars being penalized because patrons were playing trivia in a bar and that trivia may have been associated with drinking games.

You have bars being penalized because the group participating in the bar crawl were promoting the bar as a stop.

I'm not kidding.  

You'd think I was kidding, but this is actually happening.

While a bar or two may have crossed the line and actually engaged in promoting drinking games, the Mayor has taken full advantage of his Czar powers and is acting like a dictator gone crazy.

This isn't the first time.   The Liquor Czar shut down a bar earlier this semester because a patron brought in a ping pong ball and a few were playing a drinking game on a table.    The bar didn't provide the ping pong ball, but were essentially penalized $10s of thousands of dollars in lost revenue by being shut down. 

I'm not kidding. 

You'd think I was kidding, but it actually happened.

What is the protocol for shutting down a business?   Is the penalty a function of a formula, or is the penalty a function of how grumpy the Czar is on a particular day?   Rather than fining a bar $10s of thousands of dollars, I would think a $500 fine would be appropriate.   Even more appropriate would be to fine the individual for doing something you believe to be wrong.   Is it too much to ask that a "conservative" mayor promote individual accountability? 

I am 100% in favor of the bars and the city working together and implement common sense mechanisms to curb underage drinking and challenges that come along with it.    Being unreasonable does not encourage reasaonable behavior.   In fact, I'm so shocked by this I'm actually going to block off a day on my calendar this spring and unofficially take a drinking day.   

The Liquor Czar's approach to "making bars accountable" is about as silly as making the bars 21 on Unofficial and trying to manage all the individual apartment parties.   It's a beautiful strategy you really have to see to appreciate.   In fact, I encourage you to check it out this spring if there are any bars that have not been shut down.  

Right now I'm really appreciating that Mayor Schweighart doesn't operate in the strong mayor system that Urbana does.   He seems to get drunk on power.

The sensible thing to do would be to work together with business, not encourage them to work against you.   It's not too late to start acting sensible.  

$35,000,000 per Mile

U.S. High Speed Rail Network

I had a beer and a very interesting conversation last night with a conservative who was making a case to lobby for a high speed rail corridor through Champaign between STL and CHI.   It would get us CMI folks to Chicago in less than hour.   It is not unreasonable to assume that you could commute to Chicago for work and be back in time for dinner.   This could be a game changer for Champaign County, no doubt. 

My first questions to him were (1) why do we want more government and (2) aren't we already spending too much of our grandkids' money (3) even if it's good, how can conservatives argue for limited spending and then be all for it when it beneficial to our district???

I got home and started doing some research.   I was particularly interested in trying to analyze the economic benefit of the huge investment.    Here is something that I found interesting.   In that NYT article they posted a GAO report on the topic.

Apparently there are people in the area pushing for the local High Speed Rail (HSR) and they are hoping to have it in place by 2020.   I'm very curious to understand the arguments behind this effort, but more importantly the assumptions.

I have to admit, how friggin' cool would be to hop on 200+ mph train and be in Chicago or St. Louis in no time at all, and even get work done assuming the train has internet service?!   How many execs (I'm thinking Brenda Employer) would look at Champaign County where you get easy access to the big city without the cost?!   How many more people would visit Champaign or want to work here since we'd be "connected".    I have to admit, there is huge upside potential for our community if this goes forward.

There is a lot to research on this topic and I'm hoping that people will share some great stuff.  

As nice as this idea is and how fun it is to dream about this stuff, does the cost vs. benefit support such a huge capital investment?   Secondly, would we be investing in such a project if the feds weren't giving us "free money"?   Thirdly, if it is such a great idea and the feds don't support the effort, why don't we pay for it ourselves?

I found this conversation interesting and thought it would be a good starting point.   Enjoy.   It's always fun when thinking of ways to spend someone else's money.    : )  If this conversation is half as interesting as my discussion last night, this will be fun. 

Update: For those who are interested in becoming informed on the issue you can check the website:  http://www.midwesthsr.org

Three-O-Nine (309 Green - Champaign)

It has come to my attention that a local developer will be asking the Champaign City Council for development concessions on a local campustown development.   While I appreciate developers investing in our community, I hope Council will take into serious consideration a few concerns of mine.

1) "Three-O-Nine" Green currently has liens on the building while local contractors have been waiting to be paid for "almost a year".   I heard number of $2M or more in liens that I don't know how to confirm, but does someone know how to look up liens so that we can get an actual figure?

2) When the council gives concessions to a developer, it is not fair to competing developers who did not benefit from such agressive concessions in the past.   Standards should be set that are consistently enforced.   This is beneficial on many levels and ensures that those getting special treatment do not benefit from an unfair competitive advantage over other local developers.   Will this developer be providing something that nobody else is willing to provide?   Is the demand so great for student apartments that we need to ignore existing standards?   What do you say to other developers who did not benefit from the same concessions who must compete with the developer who was not required to meet those standards?

I would like to provide you some additional perspective and explain why I think the council should think long and hard before rewarding developers who do not fullfil their obligation to local contractors.   I was able to get in touch with a contractor directly impacted by the failure of the developer to pay their bills.  

Please take a moment to appreciate how irresponsbile behavior can adversely impact a business provider who sells construction product on low margins.   I have confirmed that the situation I'm explaining is actual and not speculation. 

  • A contractor was required to take out loans against unpaid receiveables to pay for employees and product.  They are paying interest cost on a large receivable.
  • That same contractor is losing any opportuninity of investing that payment and receiving a return on that investment.   So not only is the local employer paying interest to the bank, the local employer is losing out on considerable opportunity cost as well.    These are not recovered from the developer even if they were to pay tomorrow. 
  • There are signficant costs for a small employer to file a lien and hire an attorney to chase down developers who do not pay their bills.  Ask Deb Feinen what she would charge.   These are not recovered from the developer even if they were to pay tomorrow. 

Whether or not the City Council decides to grant concessions to the developer, I hope everyone will take this matter seriously and not encourage and/or reward those who screw over local employers. 

This needs to stop right now.   Before any more time is invested working with developers who are not paying their bills, we need a clear and very good explanation of the situation I just decribed.

Furthermore, the city needs to acknowledge this problem on their own development projects at Burnham and M2 and work to make sure this doesn't keep happening.  

Plan would raise property tax 23%

 (From Springfield, IL)

Get used to this folks.   At one point people worked for living, now we vote for a living.   At one point the government served us, now we serve the government.  

Didn't see this coming...(yes we did)

According to the proposed tax levy, the bulk of the property taxes — $16.2 million — would go toward police and fire pensions. Other expenses covered by property taxes would be contributions to the Illinois Municipal Retirement Fund, payments of Social Security and Medicare taxes, and judgments.

The pension scam has finally caught up to us.   How much time before we can expect further tax increases?   How much time before we've maxed out every fee and creative tax option to make the tax burden less transparent?    Do we think we can just grow so fast and furious that we can offset this burden?  What happens when all the baby boomers retire on government pensions and we have the new guys coming in that we have pay additional benefits to? 

When the private sector realized this model wasn't sustainable, it adjusted.   If you feel it is appropriate to continue this unsustainable  model, at the very least admit that the only thing that state and local governments can do to sustain this scam is by drastically increasing taxes and/or reductions on other services.  Steadily increasing over time as we've done just will not be good enough.  

It is greedy to expect good, hard working taxpayers to provide government types benefits that can only be guaranteed on the backs of taxpayers who don't have government benefits.   Pretty soon, people are going to finally catch on.  

In the local municipalities, liberals don't have the luxury to simply suggest that we tax the investors and employees and pretend that the average taxpayer is not on the line.   This is going to be very interesting to watch.  

Watch what happens...it's just getting started.....

D is for Deficit

I came across a great tool for understanding deficits.   It ends up that Illinois can boast that there are 8 states who have worse deficits when you measure the deficit per capita.   Click on the 'values' button below the graph and it will sort in order of deficit per capita.

1) Conneticut* - $1,171

2) California* - $1098

3) NY* - $918

4) NJ* - $806

5) Mass* - $769

6) Delware* - $638

7) Minnesota* - $613

8) Wisconsin* - $569

9) Illinois* - $543

10) Hawaii* - $529

* - Voted Democrat in the 2000, 2004, and 2008 elections. 

Don't tell Illinois democrats that we have room to increase spending.   I don't want to give them the wrong idea.  

 

REAL Shady

Are you a fan of special interests eliminating competition via legislation?

If the service you provide is essentially a commodity, how do you promote your value proposition?

If you want some pointers, you should take a look at latest and greatest from the wonderful world of realtors, where every market is different.

Since being a licensed real estate salesperson requires so much skill and expertise, they've doubled the minimum educational requirements.  If I read correctly, I think they even eliminated that position and are requiring the sales people to become brokers.  

This weekend, I enjoyed a beer with a real estate broker who told me about this law change and also informed me of something that I just don't believe.  Actually, I think he had too many beers because it just sounds crazy:

Is it true the local Champaign County Association of Realtors charges licensed sales agents a monthly non-member fee while not providing any service to the non-members?   Please, can someone confirm that this is BS, because if true, I might hold the leaders of this organization in less regard that I do union leaders.  From what I'm seeing from the law change, I think the realtor situation needs a closer look.   Just because they claim to be a business-friendly organization does not make all this any less shady.   In fact, this is quite disturbing.  

This is one of those deals that just sounds too silly to be true.   Are there any realtors out there who can justify this change?   How will it benefit the consumer for realtors to have an additional 45 hours of classroom.   I have to be honest, I value my realtor but it is not because of her "book smarts".   I know it's always a great time to buy (wink, wink), but I value her access to the MLS and her experience with transactions.  I value her networking skills and relationships in the community.  

Here's a summary of law change:

Edit: removed entire summary and simply provided link.

Brenda Employer

My name is Brenda Employer and I own a small business that currently employs 20 people.  

My business is such that I can setup shop pretty much anywhere.   We've launched successfully, but now I'm looking for a place to call home for the long-term.

We've had a breakthough in the company and we expect that we will likely grow to total payroll of about $10,000,000.  

I've been looking at a few places, preferably small metros in/around college towns, and I currently have a few favorites:

Bloomington, IN, Lafayette, IN, Columbia, MO, Iowa City, IA, and Champaign, IL.

I'm a bit partial to the Champaign, IL because that's where I graduated college.   I'm a midwest gal, so I'd prefer to be within driving distance of family.   Can you bloggers please tell me why I should consider moving my business to the great state of Illinois and to the great City of Champaign?

Your help would be greatly appreciated.   We hope to build a long and prosperous relationship with your community.

Best Regards,

Brenda Employer

 

 

M2 Sidewalk

What a beautiful day to work outside!   It seems like it had been raining 40 work days and 40 nights until this break in good weather.   That certainly hurts construction progress.

Now that we have some good weather, we should be heading down the final stretch and completing the long-awaited sidewalk outside of the M2 project.  

For the surrounding businesses and patrons of downtown who have been looking forward to the sidewalk opening back up, look outside and watch the progress in action.   Almost there!   

Even though there are some critics of M2, Downtown Champaign will look very attractive when the construction is finally complete.  

I must say it is a beautiful building.

 

University of Illinois - Financial Concerns

I will never pay for my kids to attend Fresh/Soph year at the UofI.   How in the world do you justify charging $16,978 when you can go to Parkland and take 30 hours for $2,910 (at $97/credit hour).   At parkland, you learn the same basic stuff, but the teachers there are more likely to speak English and not be some inexperienced grad student.  

Since we're trying to be as liberal as California, where they just raised tuition rates 32%, I suspect we'll end up jacking fees at tuition here while we pay Richard Herman $244,000 per year and Joe White to remain the university earning $300,000/yr.   I suspect we're paying them big dollars to look for new jobs and I suspect they enjoy pensions as well.

(UCLA students protesting in California)

What does a UofI undergraduate tuition pay for?

Do the UofI student have to pony up more tuition to pay for research park buildings?

I think the Daily Illini should proactively look into the staggering cost and the certain-to-increase cost of tuition.  

Why is it increasing so incredibly fast?  

If my kid wants to get a finance degree, how does his tuition get allocated?

How much of the tax payer subsidy actually goes to education (when you can get the same thing or better at Parkland for 90% (signficantly) less, at least when it comes to general education)?

Does the undergraduate student wanting to get a finance degree have to pay significantly more to fund research efforts by the university?

It would so great if the DI called out the scumbags who author textbooks and change the versions every year so that the students cannot buy used textbooks.   Seriously, is your great salary and gold plated benefits not good enough?   Are you really going to snake an additional profit like that by screwing poor college kids?  Is your version of Econ 101 so much different than any other professor's version of Econ 101?

I finally found a protest in California that I can support.   Those kids need to remain committed to keeping costs contained in government. 

But wait, speaking of Econ 101, a local economics professor posted a breakdown on this with important information (linked) that starts to address my questions from above.   The university spends 39.5% on reasearch.   The receive 15.3% from grants and contracts.   The total UofI budget is $4.17B and that includes $517.9M in employee benefits.  

Hold up.   $517.9M/$4.17B = 12%.   So the university pays 12% of the ENTIRE fiscal budget towards employee benefits.   Is it just me, or does that seem sort of high?   Generally, the cost of benefits should be approximately 30% of entire compensation.    I'm very curious to learn the university payroll totals and why they do not provide this number in the pocket facts summary.   I guess we could email them at infosource@uillinois.edu if anyone else is curious. 

What will happen when the state runs out of money and fails to pay the University of Illinois 18.3% of their expected revenues?   I know some people will try, but you can't blame this on George Bush. 

Clearly, the only solution is more revenue.   

Second look at nuisance issue

This ordinance was so bad as drafted, that it apparently needed a second look:

November 19 Commentary in News Gazette.

Ideally, Prussing would have the people most able to help her craft a good ordinance working with her to solve the problem, instead of spending their time and energy having to fight her unreasonable notion of good government.

What if the Chamber of Commerce hadn't rallied the business community?   I supect that took time and energy that could have been better spent solving problems and promoting our community.   I suspect the proposed ordinacnce would have passed because the city (at Prussing's urging) was hell bent on passing this.  The most in depth analysis you might have heard would have been from a local landlord stating, "I have no problems with this."

Where was the Urbana Business Association on this?  

After the vote, I was told that Mayor Prussing cancelled a meeting with the Chamber of Commerce once she heard they would be opposing the ordinance in its proposed form.   On top that, she apparently ditched a meeting to discuss the ordinance with the Urbana Business Association to discuss the ordinance (at the 11th hour). 

Would the city have called a meeting to discuss the ordinace with the UBA unless the Chamber hadn't pushed back?    Probably not.  Wouldn't it be logically to have your local business group weigh in?  

The more I hear about this, the more amazed and amused I become.    Thank God for the Chamber of Commerce injecting some common sense into the process. 

Unions Drive More Business Out of Illinois

I've been taken back the story coming out Chicago about the McCormick Place losing business.   Intitially, I didn't think to take a second look.

Link 1:ABC News Story that has some interesting analysis both in the video footage and supporting written analysis/links.

 

One at the recently departed Health Care Information show said the electrical services bill in Chicago reached $40,000. In Orlando, the same work costs $4,000.

Is it true that work rules require a union electrician to plug in a machine?

"McCormick Place has had a difficult chore in getting and keeping shows unless they get their costs down. It's as simple as that," said Daley.

"When we talked about shift changes....we've stepped up," said Dennis Gannon, Chicago Federation of Labor.

They may have to step up again.

On Wednesday, union leaders and other service providers will meet to talk about ways to keep Chicago competitive in the convention business.

The plastics industry has held its trade show in Chicago since 1971. Now they're leaving town. The trade group that puts on the convention determined moving the show to Orlando will save as much as $20 million.

Link 2: Chicago Tribune Article.

Though restaurant show attendance fell 24 percent this year, to 54,000 exhibitors and potential buyers, the event still pumped an estimated $86 million into the local economy, according to the Chicago Convention and Tourism Bureau. The show is committed to remain here in 2010 and 2011.

The reason I took a second look is that I got to thinking...if a convention brings that much postive impact to the community, what about attracting employers?   What is the impact of employers who chose other, more competitive states?   What is the impact of employers who have left the state or have expanded in NOT Illinois?   If a flippin' trade show can pump $84M into the economy, imagine what 54,000 additional exhibitors jobs would be bring to the community and state, especially if they were not short term.

As I think about this I remember that Sentator Frerichs worked hard to elect Blago who took little time to excessively jack up business fees and eliminate competition on government contracts.   Now sentator Frerichs wants to increase income taxes as the solution.   Maybe a little more effort should be involved in taking our heads out of our (fill in the blank) and start applying some common sense.

On the bright side, California executed a similar approach to drive away business.   At least us Illinoisians are not the best at being the worst.  : )

Don't worry.   I'm sure you'll be comforted by idea that we can address this problem and assurance that will not have to pay for it.   That will be addressed by raising the taxes on investors and jacking up fees on the employers.  

Jury Still Out on Research Park

 

Impressed.   Kudos to the N-G for the great series of articles on the Research Park.

Jury Still Out on Research Park

UofI Tenants Help Fill Space

How UofI Park Compares with Midwest

I always thought the Research Park was a solid idea but now I have mixed emotions.   I liked the idea because it would (and definately should) attract private jobs.   I'm a bit suprised to learn that "A total of 827 full- and part-time employees work for private companies or the hotel/conference center in the park."   That number seems low to me.

Also...is anyone else hearing the rumors about an investigation into how the project was awarded?   I heard these rumors about a month ago and then this series of artcles comes out noting "The original agreement between the UI and Fox/Atkins to develop and operate the park expires in May. The UI has solicited proposals from firms interested in developing land for the park's next phase, which includes acreage south of the I Hotel and Conference Center. A new contract with a developer could be awarded in the spring."   Can someone help me understand if these rumors have no merit or if there is actually an investigation going on?   The coincidence just seems too convenient. 

Thoughts on the Research Park?    Are there other factors besides the "the economy" that have impacted our ability to attract private jobs to this area? 

 

Who's Who: 10 States Closest to Economic Collapse

Illinois made another Who's Who list: http://www.dailyfinance.com/2009/11/11/these-10-states-may-be-closest-to-financial-collapse/

"Many of the states, like California, New Jersey and Illinois, have a long history of borrowing to close budget gaps."

I love it when we send professional politicians and professional government types to run state business. 

I wonder who Senator Frerichs is going to suggest we elect for Governor.   He picked a winner with Blago, maybe he can go 2 for 2.

I'm sure California, New Jersey, and Illinois have more similarities than simply creative borrowing.

Obviously, a tax increase is the solution.

The "Home" Argument

I had a discussion today with someone that claims that a landlord in Urbana cannot ban a guest even if that guest is criminal or engages in criminal or nuisance behavior on their property.

Apparently, when you call the Urbana police, they will tell the individual that they will not enforce such a ban.

The logic behind this is that tenants should have the same property rights as mortgage payers.

I recall some liberal gal at the Urbana City Council meeting made that argument.

Doesn't it seem reasonable that you should be able to ban somone from your property if that individual is impacting another tenant's right to quiet enjoyment of the property?

Doesn't it seem reasonable that you should be able to ban someone from your property if they are caught vandalizing your property?

The more I hear and read about the Chronic Criminal Nuisance ordiance and related issues, the more silly the whole idea sounds.

Is it reasonable that a tenant should have ALL the same proprty rights as a property owner?   I don't think so.

 

R is for Restaurant

I recently ate at a restaurant where the tab was $500 for two people.   $115/plate + a bottle champagne and other drinks adds up pretty quickly in Chicago.   You have to go up to Chicago to waste that kind of money.   But why does it have to be that way?!   Why don't we open a super-chic restaurant in downtown Champaign so people can blow their money here and help the local economy??

Since the market probably doesn't support this type of product, I'm thinking we can ask the City of Champaign to subsidize each plate.   My business investors believe that the market will support $50 plate, and we can achieve a reasonable 8% return on our investment, but only with the taxpayers’ help.

Think about it...having that type of product in the town will attract the types of customers who are willing to pay for that product.   We can gradually increase the prices to accommodate the positive market shift and provide the city with an exit strategy in 100-150 years.

The people in Chicago are used to high parking fees and high prices, so why wouldn't they start coming here?  When those people come here to live, work and play, they will be producers in the local economy and the city should see a healthy return on its investment.   This is a win-win-win.

Before I submit my proposal to the City of Champaign, I was hoping to get some feedback on the idea.   Thanks in advance for your help.

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