CEO survey: Illinois the worst state in the Midwest for business
On the other end of the spectrum, Indiana ranked as best in the Midwest and No. 5 in the U.S., with Texas, Florida, North Carolina and Tennessee taking the top four spots. All of these states attract swarms of people in migration from Illinois, especially Texas, Florida and Indiana.
A new survey from Chief Executive Magazine pegs Illinois as the most anti-business state in the Midwest, and the third-worst in the entire U.S. for business friendliness.
And for the third year in a row, Illinois-based CEOs were outspoken on the cause of Illinois’ problems.
On the other end of the spectrum, Indiana ranked as best in the Midwest and No. 5 in the U.S., with Texas, Florida, North Carolina and Tennessee taking the top four spots. All of these states attract swarms of people in migration from Illinois, especially Texas, Florida and Indiana.
Each year, Chief Executive Magazine surveys 513 CEOs across the U.S. to gauge each state’s friendliness in three broad categories: tax and regulatory regime, quality of workforce and quality of living environment. Illinois took 46th for taxes and regulations, 44th for quality of workforce and 45th for living environment, in all cases taking the worst spot in the Midwest.
As in previous years, the CEOs who were surveyed about Illinois were clear in describing the problems. Last year, one CEO even went so far as to say:
“The Democratic politicians have been [misleading] the voters in Chicago for close to 40 years. The state fiscal condition is a mess and Bruce Rauner may be the last, best chance to save the state.”
This year they CEOs didn’t go quite so far, but did point out that the state’s politics are driving an economic and fiscal mess. One CEO said that Illinois politicians destroy job opportunities:
“Illinois continues to tax heavily and politicians continue to destroy opportunities for employees and businesses. It’s a terrible combination, which leads to the exodus we see in both families and businesses.”
Another CEO projected a dim future without a budget overhaul:
“The Illinois budget crisis is approaching catastrophic proportions and will soon impact the quality of living for middle income and moderately higher income families.”
And the last CEO who commented explicitly placed blame with legislative leadership:
“The governor is trying to improve the state, but the legislative leadership refuses to allow changes which will improve the business climate in the state.”
In contrast, the findings on Indiana were fairly short and are summed up well with one line:
“Indiana … has its act together and is impressive.”
The opinions of CEOs aren’t the only say in the matter, but they are important and should certainly be considered. After all, these are people who make decisions about where to invest, hire, create new jobs and increase industrial output. The fact that Indiana shares a border with Illinois makes the state’s problems that much worse, especially since Indiana is so highly regarded by business decision-makers.
The differences that CEOs point out between Illinois and Indiana aren’t just a matter of opinion; their opinions are borne out in the growth of job opportunities in each state. Since the bottom of the Great Recession, Indiana’s job-creation rate has been 1.5 times what Illinois’ has been.
The difference is far starker in the industrial economy, where tax and regulatory policy have a more pronounced effect.
Illinois’ anti-business policies are anti-jobs policies – and ultimately anti-worker policies. Illinois is one of only four states in the U.S. with no private-sector jobs growth in the 21st century. Both employers and employees in Illinois have suffered under a terrible tax and regulatory burden for too long, and deserve better from state politicians.