The Illinoyed campaign ended but Indiana has a new strategy to lure Illinois businesses. From the featured story on the A State That Works website:
The state of Illinois has been drowning in debt for years due to mismanagement, and their only solution is to keep raising taxes. Sound familiar? Illinois taxpayers have been picking up the tab for longer than anyone cares to remember, but it wasn’t always that way.
Ten years ago Indiana and Illinois had the same AA credit rating, but the unfunded pension debt crisis in Illinois has steadily deteriorated over the years, to the point that their current credit rating of A- is the worst in the nation.
Illinois is borrowing a staggering amount of money to pay for state services and they’re seen as a bad risk to keep making those payments, according to the rating agencies. In fact, the interest alone on Illinois’ unfunded liabilities is about $1.5 billion per year…
Indiana is deliberately making smart financial decisions and defining what a state can do to pass the savings of efficient government on to their taxpayers by eliminating debt, keeping taxes low and continually balancing their budget. It’s a refreshing change from a state like Illinois that has taxpayers picking up the tab for a public debt-management crisis, and it’s what makes Indiana a state that works.
Such efforts have been going on for quite a while yet I haven’t seen evidence that shows a campaign like this works. I’ve long suspected this is more about scoring easy political points than anything else; “look at the good things happening in Indiana while Illinois languishes.” Yet, somehow the Chicago region with its 9+ million people hangs on and the city is continually ranked as one of the top 10 global cities in the world.
One side note: part of northwest Indiana is in the Chicago metropolitan region. According to this campaign, some might get the best of both worlds: the residents and businesses get the lower taxes, less political gridlock, and less debt yet get to take advantage of the jobs and other opportunities the Chicago area offers. In the long run, a significant decline in Illinois or Chicago’s fortunes probably would have some residual negative effects not just on northwest Indiana but also the entire state.