Pritzker’s Dreadful Policies
ECONOMY
CGFA report decries “Illinois’ poor economic performance.” The Illinois Commission on Government Forecasting and Accountability (CGFA) recently released a report decrying “Illinois’ poor economic performance.” The report compared Illinois’ economy to the economies of other states, using four key metrics:
Real Gross Domestic Product (GDP)
Illinois—long the economic powerhouse of the Midwest—has lagged behind its peers, the report notes, observing that “Illinois’ economy is growing slower than most other states.”
Following the economic shock caused by the COVID-19 shutdowns, Illinois’ economic growth has been an anemic 2.8%. When measured against other states, the report ranked Illinois as 46th in terms of growth with its economy even slipping into negative-growth range in the first quarter of 2024.
Total Nonfarm Payroll Employment
Illinois has also underperformed when it comes to creating jobs. While other states have significantly exceeded their pre-COVID jobs numbers, Illinois’ total nonfarm payroll jobs have lagged the national growth rate. The report notes:
“The U.S. now has just over 6.2 million more jobs than in February 2020, representing 4.1% growth. Illinois, on the other hand, has barely surpassed its pre-COVID-19 level, with approximately 14,000 more jobs in May 2024 than in February 2020, equating to only 0.2% growth. This ranks Illinois 45th in the nation.”
Unemployment Rate
Illinois’ unemployment has remained stubbornly above its peers for years. As the report observed:
“In May 2024, preliminary data indicates that Illinois’ seasonally adjusted unemployment rate was 4.9%, which is 0.9% higher than the U.S. average of 4.0%, ranking 47th among the states and the District of Columbia. Over the last year, Illinois’ unemployment rate increased by 0.7 percentage points, from 4.2% to 4.9%. This increase is higher than the average state increase of 0.4% and the national increase of 0.3%.”
Total Personal Income
Illinois’ personal income growth has also lagged national trends. From the first quarter of 2023 to the first quarter of May 2024, personal income in Illinois grew at a 3.7% rate, trailing the national rate of 4.4%, according to CGFA. The report also notes that Illinois’s personal income growth ranked 46th compared to other states since the economic disruptions resulting from the handling of COVID-19.
CGFA operates under the authority of a bipartisan commission of twelve legislators. It is tasked to perform a number of economic and research tasks on behalf of the Illinois General Assembly. The full report can be accessed here.
JOBS
Illinois’ unemployment rate went up in June.The Illinois Department of Employment Security (IDES) announced last week that the unemployment rate increased +0.1 percentage point to 5.0 percent, while nonfarm payrolls increased +10,400 in June, based on preliminary data provided by the U.S. Bureau of Labor Statistics (BLS), and released by IDES. The May revised unemployment rate was 4.9 percent, unchanged from the preliminary May unemployment rate. The May monthly change in payrolls was revised from the preliminary report, from +12,700 to +9,600 jobs. The June unemployment rate and payroll jobs estimate reflect activity for the week including the 12th.
In June, the industry sectors with the largest over-the-month job gains included: Private Education and Health Services (+7,100), Trade, Transportation, and Utilities (+3,200), and Government (+2,800). The industry sectors with monthly payroll job declines included Leisure and Hospitality (-1,800), Information (-1,100), and Professional and Business Services (-1,000).
The state’s unemployment rate was +0.9 percentage point higher than the national unemployment rate reported for June. The national unemployment rate was 4.1 percent in June, up +0.1 percentage point from the previous month. The Illinois unemployment rate was up +0.7 percentage point from a year ago when it was 4.3 percent.
The number of unemployed workers was 327,900, up +3.3 percent from the prior month, and up +18.7 percent over the same month one year ago. The labor force was up +0.1 percent over-the-month and up +1.4 percent over-the-year. The unemployment rate identifies those individuals who are out of work and seeking employment. An individual who exhausts or is ineligible for benefits is still reflected in the unemployment rate if they actively seek work.
CORRUPTION
McClain wants to be tried separately from Madigan in federal corruption case. A defendant in the upcoming federal prosecution of former Illinois House Speaker Michael Madigan wants his own trial separate from Madigan.
Defendant Michael McClain, a former state lawmaker and ComEd lobbyist known for his close association with Madigan, has filed a request to sever his trial from Madigan’s because Madigan’s defense team plans to blame McClain for any wrongdoing.
“McClain respectfully seeks severance of his case from Co-Defendant Michael Madigan because a joint trial will result in such prejudice to Mr. McClain that his fundamental due process right to a fair trial will be denied,” defense attorneys wrote in a motion before Judge John Blakey.
In an 11-page motion, McClain’s defense attorney, Patrick Cotter, alluded to Madigan’s plans, but those parts of the motion were redacted from public view. Regardless, Cotter said they can’t stand together.
“The Madigan Second Prosecutors’ defense theory logically precludes and excludes Mr. McClain’s theory of defense, making it necessary for the jury to reject one or the other to find either Defendant not guilty,” Cotter wrote in the motion. “Because of this situation, there is a serious danger, if not an inevitability, that the jury will decide the case by choosing which of the two defense theories they believe to be stronger, instead of deciding whether the Government has proven its case beyond a reasonable doubt. Mr. McClain is seriously prejudiced by exposure to this inevitable violation of his due process rights. This danger can and should be avoided by allowing Mr. McClain a separate trial.”
Madigan served in the Illinois House from 1971 to 2021, as speaker from 1983 to 1995 and again from 1997 to 2021. That made him one of the state’s most powerful politicians, especially given his role as head of the Democratic party in the state. He faces 23 counts of racketeering, bribery, and official misconduct as part of a federal indictment. Madigan has pleaded not guilty.
Madigan was initially charged along with convicted former lawmaker and lobbyist Michael McClain in March 2022 with 22 counts of racketeering and bribery for his alleged improper dealings with the state’s largest utility, ComEd. Prosecutors further alleged that he used his political power to unlawfully steer business to his private law firm, Madigan & Getzendanner. In October 2022, prosecutors filed a superseding indictment that charged Madigan and McClain with conspiracy related to an alleged corruption scheme involving AT&T Illinois.