State treasurer candidates debate job creation role

Myriad candidates in Tuesday's election are talking job creation because of the flagging economy but the four people vying for Illinois treasurer differ on whether that responsibility should be a priority.

With incumbent Alexi Giannoulias running for the U.S. Senate, it's an open field for Matteson Democrat Robin Kelly, Chicago Libertarian James Pauly, Chenoa Republican state Sen. Dan Rutherford and the Green Party's Scott Summers of Harvard.

Kelly, chief of staff for Giannoulias, said the treasurer's office can spur employment with new ideas such as a loan guarantee program she's proposing. It would offer 10 percent guarantees on loans for small businesses that promise to create jobs within a year.

She backs existing services such as the Linked Deposit program where the state puts money into banks that will offer low-interest loans to targeted groups, such as small businesses, or the Technology Development Account that invests in venture capital funds to promote high-tech jobs.

“I'd like to have our own Silicon Prairie,” Kelly said.

Rutherford, a ServiceMaster executive, said he's well aware of business needs because of his private sector experience. What's important to ensure is that the treasurer's office doesn't duplicate job services offered by other state agencies.

“Keep in the mind the core mission of the treasurer is to invest money for the highest returns and in the safest way possible,” he said.

Rutherford said he'd order a performance audit of the Linked Deposit program because right now there's not an “objective methodology” to determine its value.

“I want to be sure Linked Deposit is fulfilling its mission and isn't just a press opportunity for the treasurer,” he said.

Summers, an attorney and author, said his No. 1 focus is job creation. He backs a “microcapitalism” concept of fostering home- and community-based businesses using grants and loans. He wants to institute a New Homestead Act that would allow people on limited incomes to rehabilitate tax-delinquent properties and eventually become homeowners through their own “sweat equity.” Another idea is “Invigorate Illinois,” a summer jobs program.

Pauly, a quality assurance analyst, contends the treasurer needs to guard the state's assets first and foremost.

“The treasurer's office needs to be more aligned with the powers that are granted to it by the state Constitution,” which do not include job creation, he said. The concern is that more could be spent creating jobs than the jobs actually produce in terms of wealth, Pauly said, adding “I would adhere to a strict policy focusing on managing the money and the risk.”