HR0655 100TH GENERAL ASSEMBLY

HR0655 LRB100 15221 MST 30177 r

HOUSE RESOLUTION

WHEREAS, The State of Illinois has a strategic interest in developing the best possible strategy to create the most jobs for the least amount of taxpayer money; and

WHEREAS, State of Illinois and City of Chicago officials have responded to Amazon.com, Inc.'s "Request For Proposal" for their new facility with a package that likely includes subsidies and other taxpayer-funded incentives to entice them to choose Illinois; and

WHEREAS, Amazon.com, Inc. has a market value of nearly $400 billion and the necessary capital to construct a new facility without taxpayer assistance; and

WHEREAS, The State of Illinois has a bill backlog of nearly $16 billion, which includes social service agencies, small-business medical providers and many others who are struggling to continue operating without the funds they are duly owed; and

WHEREAS, The State of Illinois has already awarded more than $112 million in subsidies to Amazon.com, Inc. for constructing distribution facilities that its business model requires, with little credible evidence of benefit to the State's economy; and

WHEREAS, The average wages at Amazon.com, Inc. warehouses are significantly lower than the prevailing wage for comparable work within the same areas; and

WHEREAS, In 2015, Amazon.com, Inc. generated approximately $1.5 million in sales in Illinois for every full-time warehouse worker it employed, while the State's brick-and-mortar retail stores employ about seven people to accomplish the same sales; and

WHEREAS, The actual economic impact of trading large taxpayer subsidies to corporations for promised jobs is poorly understood, and the supposed benefits are disputed by many academics and experts in the field; and

WHEREAS, Foxconn Technology Group was recently awarded more than $3 billion in taxpayer subsidies to locate a plant in Wisconsin, at a cost of more than $230,000 per job created, representing a massive transfer of wealth from Wisconsin taxpayers to corporate shareholders; and

WHEREAS, It is of crucial importance for policymakers to understand whether the cost of potential future subsidies to Amazon.com, Inc. is justified based on the job creation and retention benefits generated by an agreement; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge extreme caution in the pursuit of Amazon.com, Inc.'s new facility, as an offer of subsidies approximating the Foxconn Technology Group deal in Wisconsin is almost certain to be a net negative for Illinois taxpayers; and be it further

RESOLVED, That we believe job growth and retention is crucial, but fighting with taxpayer money to win a bid from a corporation that has absolutely no financial need for subsidization is a dangerous path to tread; and be it further

RESOLVED, That it violates both free-market principles and good common sense to subsidize Amazon.com, Inc.'s facility with more public money per new job than is likely to be repaid in state and local taxes; and be it further

RESOLVED, That we urge policymakers to hold public hearings before any final deal is agreed to, complete with expert testimony in order to fully demonstrate to the public the potential economic merits and drawbacks.