SR0151 99TH GENERAL ASSEMBLY

SR0151 LRB099 08456 GRL 28612 r

SENATE RESOLUTION

WHEREAS, The State of Illinois has a strategic interest in developing the best possible economic development strategy to create the most jobs for the least amount of taxpayer money, particularly as the State suffers from a relatively high unemployment rate; and

WHEREAS, One of the programs that the State of Illinois currently administers is the EDGE (Economic Development for a Growing Economy) tax credit program that authorizes the Illinois Department of Commerce and Economic Opportunity to craft agreements with for-profit companies to reduce or eliminate State corporate income taxes in exchange for the companies hiring and retaining Illinois employees; and

WHEREAS, There is no statutory cap on the amount of EDGE tax credits that can be awarded to companies by the Department of Commerce and Economic Opportunity; and

WHEREAS, According to the Chicago Tribune, the Department authorized $161 million of EDGE tax credits in 2011; and

WHEREAS, The Department reported in June of 2013 that 82 separate agreements were reached that include in the aggregate the creation of 3,581 jobs and the retention of 15,215 jobs; and

WHEREAS, The Department does not report the cost per job for each of those 82 separate agreements; and

WHEREAS, The Department does not report the annual amount of tax credits that were authorized as part of their annual report; and

WHEREAS, It is of crucial importance for policymakers to understand whether the cost of the EDGE tax credit program in the aggregate and each of these agreements is justified based on the job creation and retention benefits generated from the agreements; therefore, be it

RESOLVED, BY THE SENATE OF THE NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the Auditor General is directed to conduct a program audit of the Illinois Department of Commerce and Economic Opportunity to examine the operations and management of the Department as it relates to the administration of the EDGE (Economic Development for a Growing Economy) tax credit program and to report the findings to the Illinois General Assembly; and be it further

RESOLVED, That the Auditor General answer the question in his report whether the job creation and job retention benefits from the EDGE tax credit program is worth the cost to taxpayers; and be it further

RESOLVED, That the Department of Commerce and Economic Opportunity fully cooperate with the audit and turn over any materials requested by the Auditor General; and be it further

RESOLVED, That the Auditor General is further directed to commence this audit as soon as possible and, upon completion, distribute a report in accordance with Section 3-14 of the Illinois State Auditing Act; and be it further

RESOLVED, That suitable copies of this resolution be delivered to the Auditor General and to all 4 legislative leaders of the Illinois General Assembly.