Suburban interests neglected by lawmakers

SPRINGFIELD - Suburban governments didn't get the pension breaks they wanted to help balance budgets, and tax breaks to help locate a manufacturing research center in Lisle also weren't acted upon during state lawmakers' fall session.

Local cities and villages had been pressuring lawmakers to provide pension relief. Investment losses have resulted in increased upcoming pension contributions that in many cases, local governments say they'll struggle to make.

But lawmakers said talks broke down between the municipalities and the police and firefighter unions. The cities and villages wanted relief for two years, but the public safety unions insisted on just one, said state Sen. Pamela Althoff, a McHenry Republican and one of the sponsors.

"We came to impasse," she said.

The timing was crucial, because the local governments must publish their tax levies next month. Lawmakers aren't due back at the Capitol until January, so it appears there will be no state intervention.

Althoff, a former suburban mayor, said those communities with the ability to raise local taxes without going to voters will likely consider doing so, while others will need to look to cut.

Labor issues also stalled state tax incentives for Navistar's planned relocation of a research center to Lisle.

State Sen. Louis Viverito, a Chicago Democrat who sponsored legislation providing similar tax breaks to other companies, said negotiations are ongoing between Navistar and the autoworkers' union. When talks conclude, Navistar could be included in the tax break program.

Republican lawmakers blasted Democrats for "pandering" to labor unions and jeopardizing economic development in the suburbs at a time when the state's unemployment is soaring and budget is sinking.

Navistar, formerly known as International Harvester, is a leading manufacturer of trucks and truck engines. The Lisle facility is expected to bring in 800 jobs averaging $80,000 annually by relocating the company's engineering research operation to Lisle from Ft. Wayne, Ind.

The Illinois House had overwhelmingly supported Navistar applying for a state business tax credit program that could give the company a $4 million tax credit for the next 10 years. Supporters said the added jobs and investment would create $100 million in state tax growth over that same period. The program, called the EDGE Tax Credit is intended to help attract, expand and keep businesses in Illinois.

Navistar representatives said the company currently is not eligible for the tax credit program because it has a net operating loss under Illinois income tax calculations. That's blamed in part on International Harvester choosing to avoid bankruptcy and instead honor pension obligations to retirees.

However, the state Senate left Navistar out of a final EDGE Tax Credit deal.