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1
SENATE RESOLUTION

 
2    WHEREAS, The State of Illinois has a strategic interest in
3developing the best possible economic development strategy to
4create the most jobs for the least amount of taxpayer money,
5particularly as the State suffers from a relatively high
6unemployment rate; and
 
7    WHEREAS, One of the programs that the State of Illinois
8currently administers is the EDGE (Economic Development for a
9Growing Economy) tax credit program that authorizes the
10Illinois Department of Commerce and Economic Opportunity to
11craft agreements with for-profit companies to reduce or
12eliminate State corporate income taxes in exchange for the
13companies hiring and retaining Illinois employees; and
 
14    WHEREAS, There is no statutory cap on the amount of EDGE
15tax credits that can be awarded to companies by the Department
16of Commerce and Economic Opportunity; and
 
17    WHEREAS, According to the Chicago Tribune, the Department
18authorized $161 million of EDGE tax credits in 2011; and
 
19    WHEREAS, The Department reported in June of 2013 that 82
20separate agreements were reached that include in the aggregate
21the creation of 3,581 jobs and the retention of 15,215 jobs;

 

 

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1and
 
2    WHEREAS, The Department does not report the cost per job
3for each of those 82 separate agreements; and
 
4    WHEREAS, The Department does not report the annual amount
5of tax credits that were authorized as part of their annual
6report; and
 
7    WHEREAS, It is of crucial importance for policymakers to
8understand whether the cost of the EDGE tax credit program in
9the aggregate and each of these agreements is justified based
10on the job creation and retention benefits generated from the
11agreements; therefore, be it
 
12    RESOLVED, BY THE SENATE OF THE NINETY-NINTH GENERAL
13ASSEMBLY OF THE STATE OF ILLINOIS, that the Auditor General is
14directed to conduct a program audit of the Illinois Department
15of Commerce and Economic Opportunity to examine the operations
16and management of the Department as it relates to the
17administration of the EDGE (Economic Development for a Growing
18Economy) tax credit program and to report the findings to the
19Illinois General Assembly; and be it further
 
20    RESOLVED, That the Auditor General answer the question in
21his report whether the job creation and job retention benefits

 

 

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1from the EDGE tax credit program is worth the cost to
2taxpayers; and be it further
 
3    RESOLVED, That the Department of Commerce and Economic
4Opportunity fully cooperate with the audit and turn over any
5materials requested by the Auditor General; and be it further
 
6    RESOLVED, That the Auditor General is further directed to
7commence this audit as soon as possible and, upon completion,
8distribute a report in accordance with Section 3-14 of the
9Illinois State Auditing Act; and be it further
 
10    RESOLVED, That suitable copies of this resolution be
11delivered to the Auditor General and to all 4 legislative
12leaders of the Illinois General Assembly.