Problem

In a previous “Spotlight on Spending” analysis, the Illinois Policy Institute focused on the
Department of Commerce and Economic Opportunity’s questionable grants, which range
anywhere from giving money to help celebrate a Canadian 4th of July, increasing the
awareness of Chicago and Illinois in Ireland, providing a fraternity with money to use
solar power, and a grant for advertizing “bed & breakfasts that specialize in chocolate-
themed meals.”

Although its grant choices may not make it clear, the DCEO’s mission includes fostering
a vibrant business climate in Illinois. It is failing, however, to fulfill this responsibility.
The American Legislative Exchange Council (ALEC) highlights this failure, ranking
Illinois 48th for Economic Performance and 47th for Economic Outlook in 2010.
Additionally, Illinois ranked 48th for Non-Farm Payroll Employment Growth from 1998-
2008, and 48th for Absolute Net Migration from 1999-2008.i

There’s more to the story. On top of questionable grants and dismal state economic
performance, what about all the tax dollars paying the salaries of this failing department’s
employees?

In 2009, Illinois taxpayers footed a tab of over $30 million in order to pay the salaries of
DCEO employees. The DCEO employs 487 workers, according to data the Illinois Policy
Institute received from the state through a Freedom of Information Request. As the data
shows, 13 DCEO employees make $100K or more; 28 make between $90-99K; 42 make
between $80-89K; 108 make between $70-79K; 118 make between $60-69K; 64 make
between $50-59K; 50 make between $40-49K; and, 64 make less than $40K. This does
not include DCEO’s director or assistant director, who make $145,000 and $121,000
respectively. These positions are not listed under “Department of Commerce and
Economic Opportunity” in the state’s databases but instead under “State Officers.”
 
Over 75 percent (373 out of 487) of DCEO employees make a salary of $50,000 or more,
and this doesn’t include benefits.

Graphic 1: Department of Commerce and Economic Opportunity Top 13 2009 Salaries

Salary Annual Agenc
Position Title
Ranking Salary y
SENIOR PUBLIC SERVICE
1 $113,176.27 DCEO
ADMINISTRATOR
SENIOR PUBLIC SERVICE
2 $112,261.88 DCEO
ADMINISTRATOR
SENIOR PUBLIC SERVICE
3 $108,388.00 DCEO
ADMINISTRATOR
FOREIGN SERVICE ECON DEV
4 $108,129.52 DCEO
EXECUTIVE II
SENIOR PUBLIC SERVICE
5 $107,896.65 DCEO
ADMINISTRATOR
6 $107,460.49 SENIOR PUBLIC SERVICE DCEO
 ADMINISTRATOR
SENIOR PUBLIC SERVICE
7 $104,417.49 DCEO
ADMINISTRATOR
SENIOR PUBLIC SERVICE
8 $104,076.36 DCEO
ADMINISTRATOR
SENIOR PUBLIC SERVICE
9 $102,948.86 DCEO
ADMINISTRATOR
10 $102,516.81 INFORMATION SYSTEMS ANALYST II DCEO
11 $101,666.69 PUBLIC SERVICE ADMINISTRATOR DCEO
12 $101,520.00 SENIOR PUBLIC SERVICE ADMINISTR DCEO
13 $101,343.96 SENIOR PUBLIC SERVICE ADMINISTR DCEO
Source: Response from State Comptroller’s Office to Freedom of Information
Request from Illinois Policy Institute

Now more than ever, a widespread number of Illinoisans are increasingly questioning
their government’s spending, especially regarding salaries. Not only is the DCEO failing
to perform its primary function of making Illinois attractive to businesses, it’s also paying
generous salaries despite lackluster performance by the Department on the whole.

Solution
The Department of Commerce and Economic Opportunity should be eliminated.

Why This Works

Taxpayers deserve better. The Department of Commerce and Economic Opportunity is
failing at its core mission to create and maintain jobs in Illinois. It spends tax dollars on
unessential projects and costs taxpayers a tab of over $30 million in salaries alone.

As Representative Mike Connelly (R-Lisle) points out, “There would be no need for
DCEO if the tax policies in Illinois were attractive to business investment. Moreover, it’s
a redundant government agency. Specifically, there are already many economic
development organizations like the Naperville Development Partnership that already
work to bring new business and retain business in Illinois.”

Also commenting on the DCEO’s role and its spending, Representative Jack Franks (D-
Woodstock) remarks, “There is absolutely no oversight in the Department of Commerce
and Economic Opportunity. No one knows how money is spent once it gets into the
hands of the grantee. It has turned into a pay-to-play cesspool, and it needs to be
eliminated. Clearly, the DCEO is failing when Illinois is losing business and remaining
uncompetitive to other states, like Indiana, that are doing a much better job of promoting
a friendly, pro-business environment and welcoming businesses in with better incentives.
Taxpayers deserve a much better and more honest use of their hard-earned money.”

Eliminating the DCEO would provide one step toward ending unnecessary spending of
tax dollars at the state level.
i
Arthur B. Laffer, Stephen Moore & Jonathan Williams, Rich States, Poor States: 2010 ALEC-Laffer State Economic
Competitiveness Index, April 7, 2010, http://www.alec.org/AM/Template.cfm?
Section=Rich_States_Poor_States&Template=/CM/HTMLDisplay.cfm&ContentID=13397.