Legendary "explainer" helps enlighten Illinoisans about pension squeeze

 

CHICAGO - November 27, 2012. Governor Pat Quinn's new web campaign to educate Illinoisans about the pension squeeze was bolstered today by legendary "explainer" Salman Khan, who unveiled two videos to explain pensions in general and specifically lay out the Illinois pension crisis. Earlier this month, Governor Quinn met with Salman Khan in the governor's Chicago office, and Khan agreed to create an explainer video on Illinois' pension problem.

 

Khan's video on Illinois' pension problem and general video on pensions can be viewed at ThisIsMyIllinois.com and the "Thanks in Advance" Facebook page.

Founder of the trailblazing Khan Academy, Khan's 3,600 teaching videos have been viewed 204 million times. Khan - named by Time Magazine as one of the World's 100 Most Influential People - has appeared on "60 Minutes," "Colbert Report" and NPR to share his vision of offering a "world class education for everyone everywhere."

"The power of Salman Khan's videos comes from his ability to make a complex subject easy to grasp, and he does so in an informative and engaging style," Governor Quinn said. "We're delighted to have his help in enlightening Illinois citizens about how the pension problem came to be."

Employing his trademark " black blackboard" style, Khan focuses on Illinois' pension obligations in a seven-minute video in which he explains how spending on pensions will surpass spending for education by 2016. In his more general 10-minute video, he explains the concept of pensions - particularly the distinctions between "defined benefit" and "defined contribution" plans.

"Khan Academy is about life-long learning and we strive to help clarify topics that are important for understanding our society," Khan said. "When I learned about the underfunded pension situation in many states, especially in Illinois, I felt it was important that voters understand the issue themselves."

Governor Quinn recently launched an Internet campaign to educate everyday people on the 70-year old Illinois pension problem, deemed worst in the nation by the Pew Center on the States. Since launching, more than 28,000 unique visitors have gone to ThisisMyIllinois.com and a video featuring "Squeezy the Pension Python" has been viewed 20,000 times. The "Thanks in Advance" campaign is designed to boost public awareness about the "squeeze" caused by soaring pension costs and the need for pension reform.

In April, Governor Quinn proposed a plan to the General Assembly that would rescue Illinois' public pension systems, ensure employees have access to benefits and prevent skyrocketing pension costs from squeezing out core services such as education, health care and public safety. Quinn's plan would fully fund the pension system by 2042.

Born and raised in New Orleans, Khan is a former hedge fund manager who founded the nonprofit Khan Academy after discovering a knack for tutoring. What began as a favor to his niece and nephews in 2006 - sharing his mathematics explainer videos - has grown into one of the world's fastest-growing, widely-used education tools. Last month, www.khanacademy.org had 6,000,000 unique visitors from nearly every nation on earth. Available in 16 languages, Khan's explainer videos cover topics ranging from math and science to history and finance. He is author of "The One World School House: Education Reimagined".

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Todd Raufeisen of Davenport, Iowa introduced Calvin N. Hileman today as the newest member of the development staff of Raufeisen Development Company. Mr. Hileman will be responsible for leasing and management. Cal comes to Raufeisen Development from Mercy Medical Centers and Clinics where he was in charge of the real estate department based in Cedar Rapids, IA.

He was formerly with Cullinan Properties in Peoria, IL as Vice President of Leasing. He directed the internal and third party leasing activities for Cullinan's retail properties in Illinois, Texas, and Missouri.

He brings more than 30 years of retail property management and leasing experience and the leasing of more than 1.5 million total square feet of GLA.

Cal was Regional Leasing Director for CBL Properties directing the leasing activities of twelve enclosed malls, fourteen strip centers and more than 11 million square feet of GLA.

As Executive Vice President for Equity Growth Group, he was responsible for management of the property management and leasing company.

As Sr. Vice President for General Growth /Center Companies he was responsible for the leasing and remerchandising of 16 enclosed malls in the East and Midwest.

Cal began his leasing career at The Taubman Company and the leasing of centers including Woodfield Mall, Schaumburg, IL, Columbus City Center in Columbus, OH, The Mall at Short Hills, Short Hills, NJ, Beverly Center, Beverly Hills, CA and Stamford Town Center, Stamford, CT. Major accounts included Melville Corp., Hallmark Cards, Crate & Barrel, Ralph Lauren Polo and Hartmarx.

Raufeisen Development has major mixed use land developments in Iowa, Colorado, Illinois, Iowa and Wisconsin.

Trade mission is part of the administration's goal to increase trade opportunities by 20 percent. Interested Iowans are encouraged to participate in the trade mission.

(DES MOINES) - Lieutenant Governor Kim Reynolds will lead a trade mission to Vietnam and the Philippines from February 22 - March 2, 2013. This trade mission will focus on two main components; increasing exports of Iowa pork to Southeast Asia and fostering export opportunities for Iowa manufacturers who are considering development or expansion in the region. The Iowa Economic Development Authority's (IEDA) International Trade Office will assist in coordinating the trip, and interested Iowans are invited to participate in this mission.

"This mission will generate new trading relationships with Vietnam and the Philippines," said Lt. Gov. Reynolds. "Both countries have shown tremendous economic growth and continue to be open to new business opportunities - it makes sense for us to have a presence there and I am pleased to be leading this effort."

"Vietnam and the Philippines are burgeoning markets for Iowa businesses, especially when it comes to pork products and manufacturing," said Gov. Branstad. "Trade missions like this one open Iowa companies up to new growth opportunities in expanding markets outside of the United States."

Visits to Hanoi, Ho Chi Minh City and Manila are part of the Iowa delegation's itinerary.  The trade mission's agenda will include meetings with senior government officials, prospective industry association leaders and events promoting Iowa to potential economic partners. Iowa companies will participate in meetings specific to their market entry or expansion needs.

Additional information on this trade mission can be found at: www.iowaeconomicdevelopment.com/intlevents/downloads/VietnamPhilippinesMission.pdf. The deadline for application is December 15, 2012.

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CHICAGO - November 23, 2012. Governor Pat Quinn today encouraged shoppers to use the Saturday after Thanksgiving, Nov. 24, to support Illinois' more than 1.1 million small businesses. Nationally, the Saturday between "Black Friday" and "Cyber Monday" - traditionally two of the busiest shopping days of the year - is recognized as Small Business Saturday where consumers around the country are encouraged to shop at small businesses. In recognition of the effort, Governor Quinn today proclaimed Saturday, Nov. 24 as "Small Business Saturday" in Illinois.

"Small businesses are the backbone of the state's economy and we want to see them flourish," said Governor Quinn. "Through efforts like Small Business Saturday, we can show our support for local merchants that are contributing to our local economies, helping put people to work and keeping our economy moving forward."

Small business success is critical to Illinois' and the nation's overall economy. According to the U.S. Small Business Administration, there are approximately 28 million small businesses in the United States, which have created 65 percent of new jobs over the past two decades. For every $100 spent in locally-owned, independent stores, $68 returns to the community through taxes, payroll and other expenditures, according to the 3/50 Project, a small business advocacy group.

Recognizing the vital role entrepreneurs and small businesses play in Illinois' economic recovery, Governor Quinn has made supporting these businesses a top priority. The Governor recently extended the Small Business Job Creation Tax Credit Program, which allows eligible small businesses that create one or more new, full-time position to receive a $2,500 per job tax credit. Governor Quinn also launched Advantage Illinois, a new program for small businesses to access capital, thanks to more than $78 million from the federal State Small Business Credit Initiative (SSBCI). Advantage Illinois consists of three programs to spur institutional lending to small businesses and one program to leverage private venture capital in start-ups and high-growth businesses.

For more information on the state's small business resources, visit www.ildceo.net. A copy of the Governor's proclamation is attached.

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Pollet to Lead Illinois Department of Commerce and Economic Opportunity

CHICAGO - Wednesday, November 21, 2012. Governor Pat Quinn announced the appointment of Adam Pollet as acting director of the Department of Commerce and Economic Opportunity (DCEO), effective Monday.

Pollet is an international trade expert with broad business experience across both the public and private sectors. In his new post, he will lead the state's economic development arm and implement Governor Quinn's vision to create jobs, double exports and expand the state's global economy.  Pollet succeeds David Vaught, who is retiring from full-time employment with the state.

"I am pleased to announce the appointment of Adam Pollet to lead the state's commerce department and bolster the Illinois economy in the global marketplace," said Governor Quinn. "I also want to thank my longtime friend and advisor David Vaught for his service to the state. During the past four years as head of the budget office and DCEO, Vaught has worked tirelessly to lay the foundation for fiscal stability and economic growth in our state."

Pollet, 34, was most recently deputy director for the Illinois Office of Trade and Investment within DCEO, where he led the state's export and foreign direct investment activities. Before joining the state in 2011, Pollet worked in the Chicago office of the management consulting firm McKinsey & Co. where he served client companies in the firm's strategy and operations practices. While at McKinsey, Pollet concentrated on the energy, transport, logistics and automotive sectors.

A graduate of Harvard Law School, Pollet previously worked for the United Nations focusing on trade facilitation, poverty reduction, and environmental protection initiatives. At the U.N., he implemented a World Bank-funded project to promote trade and increase government revenue in Afghanistan and oversaw large-scale infrastructure projects in that country, as well.

Pollet earned his undergraduate degree at Stanford University, where he studied international relations.

Vaught, 65, has served as a top aide to Governor Quinn since 2009. He was director of the Governor's Office of Management and Budget for three years and most recently director of DCEO. In the 1990s, Vaught also served in the Office of Illinois Treasurer Pat Quinn.

Prior to his state service, Vaught was Managing Director for Mitchell Vaught & Taylor Inc. investment advisors. Vaught is a graduate of the Southern Illinois University School of Law, and the U.S. Military Academy at West Point where he studied engineering. He also served in the U.S. Army's 82nd Airborne Division.

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$352 Million, Multi-State Procurement to Bring Next Generation
Passenger High-Speed Rail Cars to Midwest and California

 

ROCHELLE - November 19, 2012. Governor Pat Quinn today was joined by U.S. Secretary of Transportation Ray LaHood, Illinois Department of Transportation (IDOT) Secretary Ann L. Schneider and leaders from Sumitomo Corporation of America (SCOA) to announce that Illinois-based Nippon Sharyo has been awarded a $352 million contract from the California Department of Transportation (Caltrans). The contract will allow Nippon Sharyo, a railcar manufacturing company which Governor Quinn recruited to Illinois, to build 130 passenger railcars that will be delivered throughout the Midwest and California starting in 2015. Today's announcement will put people back to work and advance the governor's efforts to build a 21st century rail system in Illinois.

"Illinois is committed to building a high-speed, 21st century rail system and leading the nation in rail equipment manufacturing," Governor Quinn said. "By working together with other states, the federal government and outstanding Illinois-based companies like Nippon Sharyo, we can put people back to work and advance Illinois' role as one of the nation's top transportation hubs."

In October, Governor Quinn, Senator Dick Durbin and Secretary LaHood led the first-ever test run of high-speed rail between Pontiac and Dwight.

The awarding of the contract from a joint procurement between IDOT and Caltrans is the final step in a first of its kind multi-state procurement that will also see new railcars delivered to Michigan and Missouri. California will buy 42 railcars and the Midwest coalition will buy 88 railcars, which will operate out of Amtrak's Chicago hub. The competitively-bid contract for 130 state-of-the-art, bi-level passenger railcars was won by Sumitomo Corporation of America, which will deliver these railcars through Rochelle, Illinois-based railcar manufacturer Nippon Sharyo. This next generation equipment procurement is being funded through the Federal Railroad Administration and has met all requirements to ensure that the final assembly be prepared by American workers, with American-sourced steel, iron and manufactured components.

"This new era of passenger rail will give travelers better, faster transportation options and create jobs for American workers building the 130 rail cars in Illinois," said U.S. Secretary of Transportation Ray LaHood.  "This is good news for rail travelers and for the regional economy, and it's one more example of President Obama's vision of an America Built to Last."

The new cars are designed for operation at speeds up to 125 mph and equipped to deal with weather extremes throughout the country. The stainless steel car body is designed to provide a longer usable life with reduced maintenance requirements and will include amenities such as Wi-Fi, increased space between seats in all classes of service, state of the art visual and audible announcement systems. In addition, it will exceed current ADA requirements. The bi-level design of the new cars will increase capacity of Chicago "Hub" trains significantly over existing trains - up to 90 people per coach.

"We are proud to partner with Caltrans and the Midwest Coalition to cost-effectively procure the state-of the-art passenger railcar equipment needed to address the increasing demand for efficient and convenient passenger rail service throughout the state," said Illinois Transportation Secretary Ann L. Schneider. "With Amtrak ridership at record levels in Illinois and the official purchasing process of the railcars under way, this massive project will continue to boost America's manufacturing and assembling industry and provide improved travel options for the entire Midwest."

"By pooling our resources, all four states involved in this partnership can purchase the equipment at lower costs because it will be acquired in high volume under one contract," said Caltrans Director Malcolm Dougherty in a statement. "These new railcars will help us meet the growing ridership demand on California trains, which is up 53 percent since 2002."

Sumitomo Corporation of America and Nippon Sharyo have supplied approximately 900 commuter rail cars in the North American market since the 1980s. Sumitomo has developed or managed transportation systems in Illinois, Indiana, Maryland, California, Virginia, Canada, Japan and the Philippines.

"SCOA, with our carbuilder subcontractor Nippon Sharyo, is most pleased to be selected for the U.S.'s first high-speed railcar procurement under The American Recovery and Reinvestment Act of 2009. We also look forward to working closely with these four transit authorities and to be part of the growth of their surrounding communities." said Mr. Hideyuki "Hugh" Ninomiya, Director, Transportation Systems and Equipment, Sumitomo Corporation of America. "Our team is proud to partner with Caltrans and the Midwest Coalition to provide state of the art, cost-effective, "Made in America", high-speed passenger rail cars."

In July, Governor Quinn joined Nippon Sharyo at the grand opening of its new U.S. headquarters and 465,000 square foot manufacturing facility passenger railcar production facility in Rochelle. Nippon Sharyo is investing $50 million and creating at least 250 jobs in Rochelle, while the state is providing support of $10 million in targeted investments through Governor Quinn's Illinois Jobs Now! capital construction program, job-creation based Economic Development for a Growing Economy (EDGE) tax credits, and Employer Training Investment Program (ETIP) job-training funds. In 2010, Metra announced that it will purchase 160 new rail cars from Nippon Sharyo over the next five years with $585 million provided through the Illinois Jobs Now! program.

Illinois has become a national leader in passenger rail expansion and the Midwest leader in implementation of high-speed rail service. Total ridership on Amtrak's four Illinois routes has grown nearly 75% over the past six years, rising to more than 2.1 million passengers last year. Ridership on today's Chicago-St. Louis Lincoln Service alone has doubled in that time period, despite relatively slow speeds and aging equipment. When the Chicago to St. Louis high-speed rail corridor is completed, trains will reach top speeds matching those of trains now traveling between Chicago and Detroit, the fastest passenger trains in North America outside of the East Coast. 110-mph speeds will be achieved in sections of the corridor this fall, with 75% completion scheduled for 2015.

To follow progress, updates and completed improvements along the signature Chicago-St. Louis high-speed rail corridor, please visit www.idothsr.org.

 

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WASHINGTON - Senator Chuck Grassley today joined other senators from states along the Mississippi River to urge the Army Corps of Engineers to remove impediments to navigation on the Mississippi River, as well as ensure water flow from the Missouri River does not impede Mississippi River navigation.

Grassley, along with Senators Tom Harkin, Roy Blunt, Dick Durbin, Mary Landrieu, Lamar Alexander, Amy Klobuchar, David Vitter, Claire McCaskill, Mark Kirk, Mark Pryor, Roger Wicker, Al Franken, Thad Cochran and John Boozman requested the action from the Army Corps of Engineers in an effort to keep commerce flowing on the river.

"The drought resulted in low water levels that have created challenging shipping conditions in some spots along the river for grain and other exports," Grassley said.  "The action we're requesting is not unprecedented, and could have a major and positive impact on the economy up and down the river."

Here is a copy of the text of the letter.  Click here for a signed copy of the letter.

 

November 16, 2012

The Honorable Jo-Ellen Darcy

Assistant Secretary for Civil Works

108 Army Pentagon

Room 3E446

Washington, DC 20310-0108

 

Dear Secretary Darcy:

We are requesting immediate action to prevent an impending disruption to inland waterways navigation caused in large part by the 2012 drought particularly in the Missouri River Basin. A very large share of the flows into the Mississippi River at St. Louis are derived from the Missouri River.

On or about November 23, 2012, the United States Army Corps of Engineers may begin to impound Missouri River water in accordance with the annual operating plan for the Missouri River. This action will lead to a crisis on the Mississippi River when commerce is interrupted due to low water conditions that prevent the maintenance of the congressionally-authorized 9-foot channel.

Fortunately, we understand that the Corps has the ability to remove impediments to navigation by demolishing rock pinnacles - particularly at Thebes, Illinois - in order to avert the looming crisis. We urge the Corps of Engineers to undertake this work as soon as possible. If authority can be found, we also request that the impoundment of Missouri River water be delayed until the rock work is completed so that navigation can be maintained. Our support for those flows is with an understanding that no other beneficial use would be seriously impacted and that any deficit of water for other various uses would be repaid from future navigation flows. We believe that the USACE Master Manual permits such deviations.

The Mississippi River is vital to commerce for agriculture and many other goods, including our ability to export our goods. If the river channel is not maintained, there will be a loss of jobs, income to many businesses and farmers, and an adverse impact to the economy of the region as a whole.

We encourage you to take action to preserve this crucial artery of commerce. We appreciate your consideration of this important issue.                             

Total Iowa Investment by Google to top $1.1 Billion

(DES MOINES) - Governor Terry Branstad and Lieutenant Governor Kim Reynolds were joined by Senate Majority Leader Mike Gronstal, Council Bluffs Mayor Tom Hanafan, Council Bluffs officials, and representatives from Google today at a news conference at the State Capitol in Des Moines.

During the news conference, the leaders detailed Google's plan to continue expansion of its data center operations in Iowa. With this additional investment, Google surpasses a major milestone of investing over $1 billion in Iowa.

"Google's decision to continue its investment in Iowa is a tribute to the company, and to Iowa," said Governor Terry Branstad. "We have worked hard to make Iowa an attractive and safe place to do business, and this is another example of that work bringing great results. Google has found a unique recipe in Iowa: an educated workforce, reliable tax structure, and reasonable energy costs. Google's substantial investment, now totaling more than $1.1 billion, represents a major step towards Iowa building a diversified and forward looking economy."

"We are proud of all that Google has accomplished in Iowa, and we are also grateful for the significant investments they have put back into the state and community. Google has truly gone above and beyond in making the lives of Iowans better," said Lt. Gov. Kim Reynolds.

Senate Majority Leader Mike Gronstal (D-Council Bluffs) stated, "Google's decision to build in Iowa, and its continued investment are a clear example of a successful local, state and private partnership. Working together, we've built a framework for success that benefits private industry and the State of Iowa."

Council Bluffs Mayor Tom Hanafan noted "Google is a good neighbor, as we'd say here in Iowa, helping our local schools, non-profits and the community. The decision to continue its substantial investment in Council Bluffs is a tribute to the strong partnership our city and county governments have built with Google."

Coming within four years of first opening the Council Bluffs Data Center, surpassing the $1 billion investment amount puts Google in the top tier of new companies that have chosen Iowa as an operations center.

The Google data center in Council Bluffs currently employs more than 130 workers and houses computer systems and associated components that support services such as Google Search, Gmail, Google Maps, and new products including Google+.

"Since opening our data center operations here in 2009, we have been committed to Council Bluffs and to Iowa," Google Data Center Operations Manager Chris Russell said. "We have an outstanding workforce in the Council Bluffs area, and we are so appreciative of the exceptional welcome we have received from the local community and the state of Iowa.  We are glad to be in Iowa, and Google's future here is very bright."

About Google

Google's innovative search technologies connect millions of people around the world with information every day. The Google data center located in Council Bluffs, Iowa, houses computer systems and associated components that support services such as Google Search, Gmail and Google Maps and Google + and employs more than 30,000 people. Google's targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. For more information, visit www.google.com/micrositeforcouncilbluffs .

Google was recently recognized at the top of Fortune Magazine's list of "100 Best Companies to Work For" in 2012. In addition, the data center also received ISO 14001 and 18001 certification, which is the standard for environmental management and workforce safety. Google is the first major Internet services company to gain external certification for their high environmental and workforce safety standards for all of their U.S. data centers.

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(DES MOINES) - The Iowa Department of Management today released the following costs associated with the collective bargaining proposal put forth today by the union. If the union proposal were extended to all state employees, the costs from all funding sources would be as follows:

Overall:

Year 1 (FY '14): $122 million increase

Year 2 (FY '15): $159 million increase

Across-the-Board salary increases:

Year 1 (FY '14): $35 million increase

Year 2 (FY '15): $72 million increase

Step salary increases (4.5% average salary increase):

Year 1 (FY '14): $47.4 million increase

Year 2 (FY '15): $45 million increase

Benefits (Health care, retirement, etc.)

Year 1 (FY '14): $39.5 million increase

Year 2 (FY '15): $42 million increase

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