Fritz Pfister

Last week it was reported that the local economy had a negative job growth rate, down fractionally. The number of employed is about 112,000. A good base with room to grow, however the lack of new jobs will impact the local economy, especially the housing market.

Last year a new record in the number of homes for sale was set when on August 19Th 2006, the number of residential listings in the Capital Area Association of Realtors MLS eclipsed 1800 homes for sale. The inventory surpassed 1800 on June 23rd this year. Year to date 39% of the residential listings have sold and closed. It will be a challenge for home sellers the remainder of the year to get sold with a record number of homes for sale, and zero job growth.

The Greater Springfield Area Chamber of Commerce announced a ‘bridges’ campaign last year to join businesses together for the purpose of job creation. The business community responded very positively with over five million dollars raised for the purpose of creating 4500 new jobs in five years. A wonderful goal, and very ambitious, however the ‘bridges’ campaign faces a severe challenge, and major obstacle. The governor of Illinois, and state government.

Governor Blagojevich has proven to be blatantly anti- business with his fee (tax) increases on businesses during his first administration, driving thousands of jobs out of Illinois. Then his proposal of a Gross Receipts Tax, an economically disastrous proposition, has ground state government to a halt, placing the states economy in neutral. The prospects for prosperity under this governors leadership is dim due to his socialistic desires to be everything to everybody, at least in the name of children, education, and health care. The governor and his staff are devoid of economic common sense, with tax and spend as their mission. Build a voting constituency by proposing unaffordable new social programs doomed to bureaucratic ineptitude and failure, costing people their jobs, which the programs are intended to help. To hell with the economy of Illinois, as Blagojevich continues to propose Pollyanna programs without any way to fund, or effectively manage his social experiment at taxpayer expense.

This has been especially hard on Springfield. Blagojevich refuses to live in Springfield, and costs taxpayers tens of thousands to commute monthly from his Chicago home. With Blagojevich locating his headquarters in Chicago, along with directors, it is estimated Springfield has lost 1700 state jobs to Chicago. A double whammy for the Springfield economy, anti-business governor, moving jobs out of Springfield.

The Chamber of Commerce was prepared to launch its campaign for job development when the Blagojevich administration proposed the largest tax increase in Illinois’ history. The chamber had to take time off from their job creation project, to oppose Blagojevich’s job destruction project! Incredible. The prospects for growth in the state are slim with Illinois becoming known as the worst state in the nation to do business. The only saving grace for the state’s economy is the coat tail strength of the national economy. The majority of the nation’s states are experiencing unprecedented growth, and state revenues.

Tax revenue is projected to grow by over eight hundred million dollars for the state this fiscal year, in spite of the obstacles Blagojevich throws in front of the private business sector. I don’t know too many entities that couldn’t get by on an eight hundred million dollar pay raise, but it appears Blagojevich, and the state of Illinois can’t, as the states leaders continue to attempt to pass a budget in the overtime session.

The explosion in the number of homes for sale is troubling with the prospect of zero job growth adding more buyers to the housing market. If there aren’t new people and families relocating to the area, then the Springfield housing activity is really just “trading spaces”.

I wish the chamber well for job creation in this central Illinois community. If by some miracle they can just keep the state government, and tax and spend Blagojevich out of the way, there is a chance for success. That would be good news for everyone in Springfield, Illinois.

Too bad Illinois doesn’t have a recall provision in its constitution. Three and a half more years of economically unsound proposals to fight, doesn’t leave much time to move forward.