Petroleum Marketers and Convenience Stores of Iowa 31st Annual Cent-A-Gallon Day: Wednesday, November 23, 2011

The Petroleum Marketers and Convenience Stores of Iowa are launching their 31st annual Cent-A-Gallon Day for Camp Courageous Wednesday, November 23, 2011. One-cent out of every gallon of petroleum products sold on the day before Thanksgiving, by participating marketers, will go to Camp Courageous.

Camp Courageous is a year-round recreation and respite care facility for individuals with special needs.  Run on donations, over 6,000 individuals are served annually.

On this day, participating Petroleum Marketers and Convenience Stores will give thanks by contributing one-cent from every gallon of petroleum product sold to Camp Courageous.  "The day before Thanksgiving was picked 31 years ago," according to Charlie Becker, the camp's director, "because both Camp Courageous and the Petroleum Marketers and Convenience Stores have felt we have an awful lot to be thankful for and it was the perfect time to give thanks for all our blessings."

Posters will be displayed in the windows of participating Petroleum Marketers and Convenience Stores to distinguish them as participants.  The Petroleum Marketers and Convenience Stores of Iowa encourage everyone to join with their local petroleum marketer to give thanks this Thanksgiving, by helping Camp Courageous on the day before.

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Camp Courageous Annual Fruitcake Sales

Monticello, IA–The Camp Courageous Fruitcake Sale is underway. Over 75 locations have these delicious fruitcakes. Posters will be displayed in the windows of participating businesses or one can go online to get the latest location updates at www.campcourageous.org.

These scrumptious one-pound cakes sell for $10.00. They do not contain citron or alcohol and make wonderful holiday gifts.      They need to be stored, cut and served frozen. Fruitcakes will be sold at the various outlets from November through December. The cakes are also available at Camp Courageous or can be ordered online at the camp website. Camp will ship anywhere in the United States.

Camp Courageous is a year-round recreational and respite care facility for individuals of all ages with disabilities. The camp was built and continues to run on donations, without government support, without formal sponsorship, and without paid fundraisers. The camp will serve over 6,000 individuals with special needs this year.

LAS VEGAS, Nev. - Allegiant (NASDAQ: ALGT), has entered into a purchase agreement with Scandinavian Airlines System, Denmark-Norway-Sweden ("SAS") to purchase up to 13 MD80 aircraft and 12 JT8D-219 spare engines in 2012 and 2013.

These purchases will primarily be used to replace engines that will be coming due for major overhauls over the next two years, thus helping the airline to optimize its engine-related maintenance expense.  The agreement also allows Allegiant the flexibility to use several of the aircraft for additional MD80 fleet growth in the future, should it decide to do so.

This most recent transaction with SAS demonstrates Allegiant's ability to consistently source high quality assets at economic pricing.

Allegiant, travel is our deal.

Las Vegas-based Allegiant Travel Company (NASDAQ: ALGT) has posted 35 consecutive quarters of profitability. The company is focused on linking travelers in small cities to world-class leisure destinations such as Fort Lauderdale, Fla., Las Vegas, Los Angeles, Phoenix-Mesa, Orlando, Fla., and Tampa/St. Petersburg, Fla. Through its subsidiary, Allegiant Air, the company operates a low-cost, high-efficiency, all-jet passenger airline offering air travel and hotel rooms, rental cars and other travel-related services. The company ranked ninth this year in Forbes' Best Small Companies. Allegiant was also recently named one of FORTUNE magazine's "100 Fastest-Growing Companies" for the second consecutive year. In 2011 and 2010 Allegiant ranked 64th and 25th, respectively, on FORTUNE magazine's Fastest-Growing Companies list. In 2010, Allegiant was ranked number one for low-cost carriers in Aviation Week's Top Performing Airline study. Receive breaking news from Allegiant by visiting Allegiant's Facebook Fan Page at www.facebook.com/Allegiant or follow Allegiant on Twitter at twitter.com/allegianttravel.

Senate unanimously passed bill yesterday that includes similar provisions to Braley bill to increase veteran hiring

Washington, DC - After the US Senate unanimously passed the Returning Heroes and Wounded Warriors Tax Credit yesterday, Rep. Bruce Braley (IA-01) used Veterans Day today to urge House leadership to take up the bill immediately and send it to the president's desk.  The legislation includes language similar to the Combat Veterans Back to Work Act, a bill Braley introduced in August.

"Our service men and women put their lives on the line for our country," Braley said.  "They shouldn't have to fight for a job when they come home.  Unemployment among returning Iraq and Afghanistan veterans is three times the national average.  That's unacceptable.

"This bill will increase the hiring of veterans, improve resources for vets to translate their military skills into the civilian workforce, and provide veterans with new tools to help their search for a job.  I urge Congress to act immediately to pass the Returning Heroes and Wounded Warriors Tax Credit, because our veterans can't afford to wait."

In August, Braley introduced the Combat Veterans Back to Work Act, a bill which exempts a business from paying their share of an employee's Social Security taxes for one year when they hire a current member of the National Guard or Reserve or any veteran who has returned from deployment within the last 18 months and is currently unemployed.

The Returning Heroes and Wounded Warriors Tax Credit includes similar provisions.  The American Legion, Disabled American Veterans, Iraq and Afghanistan Veterans of America, and the Veterans of Foreign Wars have all endorsed the bill.

Braley is the highest ranking Democrat on the House Veterans Affairs Subcommittee on Economic Opportunity.

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Good Government 101:  Public's Right to Know

by U.S. Senator Chuck Grassley

A bit of wisdom attributed to a 16th century philosopher has nearly become cliché' in today's 21st century information age:  Knowledge is power.

The Internet and widespread, user-friendly technology allow people from around the world to mobilize, communicate and share unfiltered information and ideas like never before.  Going digital has revolutionized consumer behavior, the global economy and the public's expectations for information.

The public's right to know dates back to America's founders whose advocacy and altruism planted the seeds of our republic that would create a lasting government created of, by and for the people.

James Madison, hailed as the father of the U.S. Constitution, served as the primary architect of our system of checks and balances and embraced the rights of the individual, saying, "Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power which knowledge gives."

Representing Iowans in the U.S. Senate, I have championed the public's right to know and to protect freedom of information.

Meeting with Iowans in each of Iowa's 99 counties at least once every year for the past three decades helps keep me accountable to the people who elect me to public office.  Keeping in touch with constituents - whether it's face-to-face or by e-mail, with traditional news outlets or via social media - helps me to uphold the public trust.

What's more, I take seriously my oath of office to uphold the Constitution.  As an elected caretaker of our representative democracy, I work to nurture and cultivate the freedoms and responsibilities of all Americans.

Transparency, openness, accessibility and accountability are non-negotiable cornerstones of good government that build faith in the three branches of the federal government.  Bureaucratic stonewalling and judicial over-reaching foster cynicism and distrust that harm public confidence.  In turn, this damages the government's ability to effectively serve its citizens and, for example, could lead to an erosion of voluntary tax compliance.

From City Hall, to the Statehouse, to Capitol Hill, the taxpaying public has a vested interest in the people's business.  Taxpayers deserve scrupulous stewardship of their tax dollars and assurance that our system of checks and balances is working to root out waste, fraud and abuse and to protect the integrity of the rule of law.

That's why I have worked year after year to keep the people's business open for public consumption.  Most recently, that includes my ongoing oversight of the:

  • Department of Justice's "Fast and Furious" gun walking fiasco that allowed the illegal sale of thousands of weapons to flow to Mexico;
  • Department of Health and Human Service's decision to shut down a public website with information on malpractice cases involving thousands of the nation's doctors;
  • Federal Communications Commission and its attempt to block information from members of Congress and the public about a fast-tracked licensing agreement for a politically-connected applicant;
  • Securities and Exchange Commission's missteps in its mission to protect investor confidence and the integrity of capital markets, including my efforts to support whistleblowers, tighten the revolving door between investment firms and regulatory and law enforcement, and to protect record-keeping relevant to investigations of wrongdoing on Wall Street.

The public's right to know is a fundamental liberty of citizenship.  So whether it's protecting watchdogs and whistleblowers or clearing out bureaucratic cobwebs with stronger sunshine laws, I'm working in Washington to promote access to government information.  The taxpaying public pays the bills, and the taxpaying public deserves to know how its government operates.

As James Madison wrote, "Those who expect to reap the blessings of freedom must undergo the fatigue of supporting it."  That's why I'm committed to encourage, enable and engage the public to, as Madison also said, "arm themselves with the power which knowledge gives."

Friday, November 11, 2011

 

Q&A on the Deficit Reduction Committee

with U.S. Senator Chuck Grassley

Q:        What exactly is the deficit reduction committee in Congress, and under what authority was it created?

A:        Last summer, Congress passed the Budget Control Act of 2011.  The law made it possible for the federal government to borrow more money, avoiding possible default on debt, and authorized the formation of a Joint Select Committee on Deficit Reduction.  Twelve members of Congress - six Democrats and six Republicans - were named by party leaders to the Joint Committee, and two of them are designated as co-chairs.  Committee members are charged with presenting a ten-year proposal for at least $1.2 trillion in deficit reduction by November 23.  Both the Senate and the House are supposed to vote on the Joint Committee's legislative package by December 23.  If the Joint Committee doesn't agree on deficit reduction legislation or it is not enacted, then an automatic spending reduction process would be triggered beginning in January 2013.  These automatic reductions would be divided evenly between defense and non-defense spending.  The way that the Budget Control Act restricts amendments and limits time for debate is unusual.  I'm an advocate for regular order where standing committees develop responsible policy and legislative proposals in their areas of jurisdiction.  And, I voted against the Budget Control Act because the spending reductions weren't proportional to the massive fiscal challenges we face.  But, Article I, Section 5 of the Constitution gives to both the Senate and House the power to "determine the Rules of its proceedings," and the Budget Control Act was adopted by Congress and signed into law by the President on August 2, 2011.

 

Q:        Can Congress unravel the law if the Joint Committee isn't successful, preventing the automatic deficit reduction from taking effect?

A:        As the director of the Congressional Budget Office recently said, "Any Congress can reverse the actions of a previous Congress."  At the same time, there is tremendous pressure to begin reversing unsustainable growth in the federal debt and deficits.  In 2009, for the first time ever, the deficit was more than $1 trillion.  From 1946 to 2008, budget deficits averaged 1.7 percent of the gross domestic product and exceeded five percent only three times.  From 2009 to 2011, budget deficits will average 9.4 percent of the gross domestic product.  The federal debt held by the public has grown from 40 percent of the gross domestic product in 2008 to an estimated 69 percent of the gross domestic product in 2011.  The fact that Congress can vote to abandon plans put in place for spending restraint - and, too often, either has unraveled budget controls or never adopted them in the first place - makes the case for a constitutional requirement for a balanced budget.  I'm a co-sponsor of legislation that would establish a balanced budget amendment to the Constitution.  The last time the Senate voted on a balanced budget amendment was in March 1997, when the nation's debt was less than half of what it is today.  The resolution failed by one vote.  A balanced budget amendment passed the House of Representatives in 1995.  Both the Senate and the House of Representatives must vote on a balanced budget amendment this year, sometime before December 31, thanks to a requirement in the Budget Control Act.

 

Q:        Don't tax increases need to be part of the solution for reducing deficits and debt?

A:        Fiscal discipline and economic growth need to be the top priorities for deficit and debt reduction.  Unchecked government spending will further threaten economic opportunity with higher debt and higher taxes.  It might be one thing if tax increases actually were used to reduce the deficit, but that's not what happens.  Since World War II, every new dollar in tax increases has resulted in Congress' spending $1.17.  Raising taxes has been a license for Congress to spend even more.  And, every dollar spent by Congress is a dollar taken out of the economy, and higher taxes leave fewer resources for the private sector to make investments, expand production, and create sustainable jobs.  The work of the Joint Select Committee on Deficit Reduction should stay focused on reducing spending, not on finding ways to increase revenue to fuel excessive government spending.  In addition to supporting reforms to entitlement spending to make sure valued programs are available to future generations of Americans and sustainable for taxpayers, I've submitted specific recommendations to the Joint Committee for spending reductions totaling hundreds of millions to even billions of dollars from administrative restructuring, reduction of duplicative  and overlapping programs, and unnecessary and wasteful programs under the authority and jurisdiction of the Senate Committee on the Judiciary, where I serve as Ranking Member.  I also made recommendations to the Joint Committee for my bipartisan legislation that would save $4.8 billion in federal government spending on prescription drugs, including through Medicare and Medicaid, by stopping deals between name-brand and generic drug makers that keep less expensive drugs off the market.  I've urged the Joint Committee to adopt caps on farm payments, for a savings of $1.5 billion, and backed a goal of saving $23 billion in spending from programs that fall under the jurisdiction of the Senate Committee on Agriculture.  The bottom line is that Washington doesn't have a revenue problem, it has a spending problem.

 

Friday, November 11, 2011
Simon backs federal Impact Aid for North Chicago schools

CHICAGO - November 11, 2011. On Veteran's Day, Lt. Governor Sheila Simon urged Illinois members of Congress to maximize federal education funding for school districts serving Naval Station Great Lakes in North Chicago.

In a letter sent to the delegation today, Simon asked U.S. House members to support legislation that would allow the five elementary and high school districts that serve Great Lakes families to continue pooling their student cohorts to qualify for a higher rate of federal Impact Aid.

Impact Aid is designed to help cover the cost of educating students whose families live or work on federally owned, property tax-exempt land, such as military bases. Without the legislation, North Chicago-area schools could lose millions of dollars.

Simon serves as the Governor's point person on education reform and is the chair of the Interagency Military Base Support and Economic Development Committee. The legislation is supported by Sens. Dick Durbin and Mark Kirk.

"As we celebrate Veterans' Day and honor those who have served and are serving our country, it is important that we support their families as well," Simon said in the letter.

The federal Impact Aid funding would benefit all students in five public school districts serving Great Lakes: Glenbrook High School District 225, Glenview School District 34, North Chicago District 187, North Shore District 112, and Township High School District 113.

More than 35,000 U.S. Navy recruits pass through Great Lakes' doors each year, joining an additional 13,500 students who attend training schools on the base annually. About 2,000 children of Great Lakes personnel attend public schools in the area.

As chair of the military base committee, Simon coordinates the state's activities and communications relating to current and former military bases in Illinois, and also provides advice and recommendations for base retention, realignment and reuse efforts.

The military base committee was established in 2005 in response to nationwide base closures, and it continues to coordinate local, state and federal action on retention, realignment and reuse efforts.

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Detroit - In the city of Detroit, the very face of destructive liberal economics, presidential candidate Herman Cain presents his vision of turning poverty-stricken communities into thriving Opportunity Zones as part of his bold "9-9-9 Plan."

The new video focuses on a desperate city, hungry for jobs, commerce, and true hope; Herman Cain lays out specific plans for returning Detroit to a pinnacle of industrial achievement.

In this video, respected author and conservative activist, Dr. Alveda King, niece of Dr. Martin Luther King, Jr., lends her support for Mr. Cain's vision for economic renewal.

"Where some see economic decline, Herman Cain sees fertile soil for growth," begins the narrative. And the citizens of Detroit seem to feel it can't happen soon enough...

You can see the video on the Herman Cain YouTube channel.

Before his Presidency, Lincoln Served in the Illinois Militia During the Black Hawk War

SPRINGFIELD, IL (11/10/2011)(readMedia)-- Before Abraham Lincoln's name became synonymous with the Civil War, he slogged his way around the state during the Black Hawk War as a volunteer Soldier in the Illinois Militia, known today as the Illinois National Guard.

Elected by his peers to the rank of captain, Lincoln will forever be linked to the history of the National Guard, which will celebrate its 375th birthday on Dec. 13. Lincoln is one of 19 Presidents to serve in the National Guard, one of two from Illinois. The other is Ulysses S. Grant, who would go on to command all Union Armies under President Lincoln.

Previously unknown Black Hawk War documents written and signed by Capt. Abraham Lincoln while on duty in 1832, and an affidavit signed by Lincoln in 1855, have recently been discovered at the National Archives in Washington, D.C and their authenticity confirmed by researchers at the Abraham Lincoln Presidential Library and Museum (ALPLM) in Springfield, Ill.

"Few documents survive that detail Abraham Lincoln's service as a Company Captain in the 4th Illinois Mounted Volunteers in the 1832 frontier disturbances collectively known as the Black Hawk War," said Daniel Stowell, editor of The Papers of Abraham Lincoln at the ALPLM. "This discovery reminds us that many U.S. presidents, including Lincoln, answered their country's call to duty long before becoming Chief Executive, and that service had a formative effect on their future careers. Lincoln always said he was more gratified by being elected an officer by his men than any position he held afterwards."

Private researcher Anne Musella recently brought a previously discovered Certificate of Discharge signed by Lincoln to the attention of Papers of Abraham Lincoln staff who are working at the National Archives Building in downtown Washington. That led Assistant Editor David Gerleman to delve further in the Bounty Land Warrant files at the National Archives where he found two more Certificates of Discharge written and signed by Lincoln.

Together with other documents previously discovered, it appears that Lincoln, like other officers, filled out and signed dozens of these Certificates of Discharge. Given to soldiers as they mustered out to return home, the veterans later submitted these documents as proof of service when they claimed the bounty lands allotted to them by Congress. The certificates located at the National Archives more than double the number of surviving discharge certificates written and signed by Captain Abraham Lincoln, and likely others still await discovery.

Twenty years after the end of the conflict, changes in bounty land laws gave several of Lincoln's company the chance to claim up to 160 acres of federal land. To do so, they had to provide evidence of their service, and so Lincoln was once again called upon to confirm that they had indeed enrolled in his company. An additional document discovered by Gerleman in the Bounty Land Warrant Files was an affidavit signed by Lincoln and Thomas Moffet in 1855 attesting that former First Corporal Charles R. Pierce had honorably served and therefore was entitled to make a land claim.

Like Lincoln's service, Soldiers and Airmen in the Illinois National Guard have protected their communities from during natural disasters and other domestic emergencies, while also answering their nation's call during war and national emergencies. From the communities around the state to the sands of Iraq to the mountains of Afghanistan, the Illinois National Guard has made their mark. The echos of the past live on today in the men and women of the Illinois National Guard, whose Joint Force Headquarters unit patch features a silhouette of Lincoln.

WASHINGTON - Senator Chuck Grassley today welcomed Senate passage of a version of the veterans hiring legislation he and Senate Finance Committee Chairman Max Baucus introduced in January and urged House of Representatives passage as soon as possible.

"These men and women are extremely capable," Grassley said.  "They have a lot of skills to offer in the workplace.  The legislation that Senator Baucus and I put together clears some bureaucratic hurdles and adds a financial incentive to encourage employers to seek out veterans.  These steps are a logical follow-up to my effort to increase the IRS' hiring of veterans.  The IRS saw the value of this pool of potential workers and followed through on increased hiring of veterans.  Other employers, including small businesses, should have similar opportunities."

The legislation approved by the Senate today was based on the Veterans Employment Transition Act, or the VETs Jobs bill, introduced by Grassley and Baucus in January.  A previous version of this credit, which was part of the Work Opportunity Tax Credit and also authored by Grassley and Baucus, was designed to help employers hire veterans but expired at the end of 2010.

The new version of the legislation would reinstate the tax credit and make it easier for veterans and small businesses to use.  As a result, servicemen and women who have been recently discharged would be able to provide documentation directly from the Department of Defense without having to go through the tax credit's current certification process.

The credits will range from up to $2,400 to up to $9,600 in 2012 depending on the veteran hired.  Tax exempt organizations are eligible for the credit.  The credit is only available for calendar year 2012. The credits are 40% of the veteran's wages up to $24,000.  The credits total:

  • $9,600 for veterans with service-connected disabilities unemployed for 6 months or longer in the past year.
  • $5,600 for veterans unemployed for 6 months or longer in the past year.
  • $4,800 for service-disabled veterans hired within 1 year of being discharged.
  • $2,400 for veterans who do not fit any of the above categories and are unemployed for between 4 weeks and 6 months in the past year.

Any veteran who has left active duty in the past five years who has discharge paperwork showing 180 days of qualified active duty would be eligible for the credit. This would include those men and women who were activated by their states as members of the National Guard.  The bill also helps service members market themselves to prospective employers by requiring the military to educate service members about how the credit works.

Noting that the unemployment rate for veterans is higher than for non-veterans nationwide, the senators first introduced the VETs Jobs bill in May 2010.

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Beginning Farmer and Rancher Opportunity Act introduced Today

Lyons, NE - Lyons, NE - The Center for Rural Affairs praised the Senate introduction today of the Beginning Farmer and Rancher Opportunity Act of 2011, a cross-cutting initiative aimed at helping the next generation of farmers and ranchers enter into agriculture and take advantage of emerging markets. The bill is sponsored by Senator Tom Harkin (D-IA) and nine other Senators. A companion bill was introduced in the U.S. House of Representatives by Representative Jeff Fortenberry (R-NE) and Representative Tim Walz (D-MN) several weeks ago.

"I am proud of the initiatives we have previously enacted to help beginning farmers and ranchers create and pursue opportunities and realize their goals and dreams," said Senator Harkin as he concluded his floor speech introducing the bill. "By building on the success of the existing programs, this legislation will lend more help to beginning farmers and ranchers and in doing so strengthen American agriculture, our rural communities, and our nation as a whole.  I am grateful to the cosponsors of this bill and urge all of my colleagues to support it." 

"We commend Senator Harkin and the other sponsors for introducing this bill. Their legislation is smart, cost-effective public policy that will create jobs and invest in the future of rural America," said Traci Bruckner, Assistant Director for Rural Policy of the Center for Rural Affairs. "It addresses obstacles that often prevent beginning farmers and ranchers from getting their operation started."

The Beginning Farmer and Rancher Opportunity Act contains several key elements, including:

  • Reauthorizing the Beginning Farmer and Rancher Development Program, a beginning farmer and rancher training and support initiative. It would increase mandatory funding from $75 million to $125 million over the next 5 years to help meet growing demand for the program, and include a new priority on agricultural rehabilitation and vocational training programs for military veterans.
  • $30 million in annual funding for the Value Added Producer Grants Program and will retain the priority for projects benefiting beginning farmers and ranchers as well as a set-aside of program funding for these projects.
  • Creating savings and enhancing lending provisions that help beginning farmers and ranchers access credit and establish a pattern of savings.
  • Providing conservation incentives to assist beginning farmers and ranchers and socially disadvantaged farmers and ranchers to establish conservation practices and sustainable systems on their farms and ranches.

Senator Harkin is joined by Senator Barbara Boxer (D-CA), Senator Tim Johnson (D-SD), Senator Robert Casey (D-PA), Senator Patrick Leahy (D-VT), Senator Sherrod Brown (D-OH), Senator Jon Tester (D-MT), Senator Al Franken (D-MN), Senator Jeff Bingaman (D-NM) and Senator Amy Klobuchar (D-MN) as original co-sponsors of the Beginning Farmer and Rancher Opportunity Act of 2011.

"When you compare the numbers from the 2007 and 2002 Census of Agriculture, you see a big drop in the number of younger farmers in agriculture as their primary occupation. The revitalization of rural America depends, in large part, on reversing that trend," explained Bruckner.

"It can be difficult to get started in the world of agriculture," said Garrett Dwyer, a beginning rancher and former Marine infantryman from Bartlett, NE. "Skyrocketing costs of buying or renting land make entry into farming and ranching a daunting task." Dwyer traveled to D.C. in June to participate in a nationwide fly-in called, "Sound Investments to ensure the Next Generation of Beginning Farmers and Ranchers."

According to Dwyer, more beginning farmers and ranchers are needed because without a new generation of beginners, the land will concentrate in large farms. "And that will cause the permanent loss of opportunity for family farms, ranches, and rural communities and squander the chance to shift to a more sustainable system of agriculture," explained Dwyer.

Bruckner explained that the introduction of these bills in both the House and the Senate is a crucial step in focusing more of the public investment in the 2012 farm bill on the next generation of farmers and ranchers. Congressional investment in beginning farmers and ranchers is an investment, by all Americans, in the future of rural America.  

"And it is money well spent," continued Bruckner.

Bi-Partisan Reforms Will Save Businesses $400 Million, Encourage Growth

SPRINGFIELD - November 10, 2011. Governor Quinn today applauded the passage of bi-partisan legislation to strengthen the integrity of Illinois' unemployment insurance program. The reforms - supported by numerous groups, including the Illinois Retail Merchants Association and the Illinois AFL-CIO - are expected to save Illinois businesses more than $400 million, provide 16 percent unemployment insurance tax reductions for companies that have not laid off workers, and identify and punish those that defraud the unemployment system.

"We are in difficult economic times, and we need to bolster our unemployment insurance program to protect both workers and businesses," Governor Quinn said. "As we did with our workers' compensation overhaul this spring, we brought everyone to the table to find a solution. I want to thank representatives of labor, business and the General Assembly whose hard work and collaboration created a package of reforms that will reward Illinois companies for sound business practices, protect those laid off through no fault of their own and give our companies the confidence to grow."

Illinois' Unemployment Trust Fund (UTF), like all unemployment trust funds, is designed to be resilient to economic movements, running deficits during downturns and building a surplus during times of prosperity. Due to the ongoing national recession, however, the self-correcting unemployment trust funds in more than half of U.S. states currently carry a negative balance. Illinois is expected to end 2011 with $2.4 billion in outstanding loans from the federal government to cover state unemployment benefits. Without the agreement, in 2012 federal penalties would result in increased unemployment insurance taxes for companies throughout Illinois, regardless of whether they have laid off workers.

The legislation allows Illinois to issue non-General Revenue Fund (GRF) bonds during a period of historically low interest rates to keep the fund solvent, without shrinking benefits and preventing additional taxes to businesses. The bonds prevent continued UTF borrowing at 4 percent interest from the federal government, saving the state an estimated $240 million (nearly $82 million in interest payments in 2012 alone). The bonds are paid for entirely by businesses normal contributions to the UTF and require no payments from the GRF, freeing money for other state obligations.

The bill also will save businesses more than $400 million through 2019 by preventing the penalty taxes that further federal borrowing for the UTF would create. In addition, the agreement will provide significant tax reductions to the nearly 46 percent of Illinois employers (more than 143,000) that have not laid off workers during the recession. Under this legislation, companies that have avoided layoffs will see, on average, a 16 percent reduction in their unemployment insurance taxes in 2012.

"Businesses need a degree of tax certainty to successfully grow in this economy. This legislation will provide the tax relief to make that happen while making the trust fund solvent," David Vite, president of the Illinois Retail Merchants Association, said.

"This bill recognizes the difficult decisions necessary to prime the pump of this economy," Tim Drea, secretary-treasurer of the Illinois AFL-CIO, said. "We recognize that the best economic environment in Illinois occurs when business and labor work together."

The reforms also introduce new tools to prevent and recover fraudulent payments, which will help restore UTF solvency. The legislation will, for the first time, allow the state to garnish federal tax returns of individuals who purposefully collect unearned unemployment insurance benefits and establish personal liability for individuals who defraud the unemployment insurance program of taxes owed.

"This legislation will help our businesses regain their footing and provide certainty so they can appropriately prepare for the future," Illinois Department of Employment Security Director Jay Rowell said. "Although the lingering effects of the national recession echo across our country, we must not let that uncertainty prevent sound proposals that will help our local economy."

The unemployment insurance program is a joint federal-state effort, coordinated by the U.S. Department of Labor and the Illinois Department of Employment Security. Businesses' unemployment insurance taxes fund the UTF, and those contributions fund unemployment insurance benefits to qualified workers. The amount businesses pay is tied to their experience with the program; the more employees a business lays off, the more they must contribute to the fund to support the increased stress on the UTF.

The UTF provides benefits to individuals laid off through no fault of their own based on their income over the previous four quarters. Unemployment benefits provide temporary assistance until an individual is able to find meaningful employment. Temporary payments also help communities in times of economic stress by ensuring continued spending in the local economy.

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