SPRINGFIELD — A new survey backs up the belief that Illinois is not a business friendly state.

By Benjamin Yount

SPRINGFIELD — A new survey backs up the belief that Illinois is not a business friendly state.

Development Counsellors International, or DCI, a New York-based marketing firm, Monday released a survey of 322 company executives who ranked the 50 states as either good or bad for business.

Illinois ranked as the third worst state in the country, behind California and New York in bad business climates.

The executives, who participated in the survey, said the bottom three states earned their rankings because of “taxes” and “too much regulation.”

But Illinois also earned a low ranking due to its “fiscal problems and budget deficits,” according to the survey

Mark Denzler, vice president for the Illinois Manufacturers’ Association, or IMA, which lobbies for hundreds of manufacturers statewide, said it should come as no surprise that Illinois’ government problems are becoming a business problem.

“Companies want stability and predictability, “said Denzler. “They understand that in some states maybe the tax burden may be a little higher in one state than another, or that workers compensation costs may be a bit lower. But they want stability and predictability.”

Denzler said Illinois has not had much of either over the past eight years.

However, he is quick to say that few state government created problems exist in the top ranked states. Texas ranked No. 1, followed by North Carolina at No. 2 and South Carolina at No. 3.

State Rep. David Harris, R-Arlington Heights, said Illinois has earned its bad-for-business reputation, referring to former Gov. Rod Blagojevich’s proposed gross receipts tax, and the personal and corporate income tax increases signed by Gov. Pat Quinn in January as proof.

Illinois business groups, including IMA, and a number of Harris’ fellow Republicans said the tax tactics of Democrats have created an environment that is not conducive for business.

But he adds that Illinois is not permanently relegated to the bottom.

“Illinois has great resources,” Harris said. “We have great and talented people. We have natural resources. We have a transportation network that is the equal of any state in the nation.”

Harris said Chicago, with its access to Lake Michigan as well as the city’s rail, air and interstate hubs are evidence of what Illinois has to offer.

But Harris said the state’s policies have put Illinois into a “terrible situation.”

Kelly Jakubek, spokeswoman for the Illinois Department of Commerce and Economic Opportunity, said Illinois is not that terrible.

“Site Selection magazine ranked Chicago the No. 1 metro area and Illinois the No. 8 state for corporate facility expansions in 2010,” said Jakubek. “Illinois was also named one of 10 ‘business friendly’ states that are gaining businesses by U.S. News & World Report.”

Denzler admitted that Illinois is starting to turn the corner.

“I think (state leaders) have begun to realize it,” Denzler said. “I think that you’ve seen a (Democratic) governor and a (Democratic-led) Legislature … work to impose some new reforms of workers’ compensation, that are going to save money, that you would not have seen from (Democratic) leaders five years ago.”

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  1. Illinois third worst ….

    I find it no coincidence that the three worst states are also three of the ten states with full time legislators. Big politics and big business don't mix. The three best states have part time legislators. When they are not legislating, they have jobs and businesses to support themselves – not the taxpayers.

  2. What do these three states have in common?

    Let's see if Evanstonians can tell me what California, New York and Illinois all have in common, that may be a major contributor to the moniker… worst states for business.

    Or, tell me why it is a coincidence that these three states are bankrupt and over taxed.

    Both questions have the same answer.

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