Illinois’ pension restructuring may have an impact on the business climate.
Before the new law was enacted, businesses had to be bribed with incentives to move to or stay in the state, says Laurence Msall, head of the Civic Federation, a fiscal watchdog.
“All of the business groups recognized that as long as our financial stability was in question, as long as we couldn’t tell businesses what to expect from state government in terms of tax policy, we’d be running into a very dangerous issue, which you’re seeing played out right now,” he said.
That issue is businesses running to Springfield and asking for taxes to be waived.
Msall says even if this law stands up in court, the state’s financial condition is still poor, with revenue billions short of expenses, with the income tax slated to go down at the end of next year, but at least it’ll be possible to get costs under control.