This transcript is automatically generated
And now this Caterpillar.
It's not gonna do any new business in Illinois that's his home state that's where it's headquartered.
It's gonna put a brand new factory in Georgia.
His Chief Executive Officer even riding an all at about why it is so hard to do business in Illinois boss.
Illinois governor says high taxes and an anti business regulations then all the problem in Illinois he thinks categories -- him because Illinois.
Doesn't have ocean access I'm not joking he said that.
Doesn't have ocean access joining us now is Kristina Rasmussen of the Illinois policy institute.
Christina welcome to the program.
Be joining -- took my breath away when the governor of Illinois says Caterpillar is leaving because Illinois doesn't have ocean access to the go to Georgia.
I suspect and I'm sure I hope you're gonna agree with me.
Then leaving Illinois that building in Georgia because Georgia is a right to work state and because Illinois raise taxes.
Am -- right to -- my rights.
You're absolutely right in -- announcing the decision Caterpillar executives did say that logistics played a role here.
But if we down now at any distance can be -- if your local conditions are ripe for ground.
And you compare internally in Georgia Illinois is an anti growth anti competitive state when you look at Georgia.
Right to work lower taxes lower working compensation costs.
The Caterpillar executives were Smart and betting on the state that's got sounder fiscal future ahead of it.
That deal with the Illinois policy institute I'm sure you follow all aspects of Illinois government and its finances.
I believe that they have raise taxes very very significant play but that did not bring in as much money as they thought they were gonna bring it.
And that budget is still in huge deficits and they've got unpaid bills to local vendors people doing business in Illinois.
What is about six or eight billion dollars said the I'm asking what is the end point here because -- in deep financial trouble.
You're right that progressives in this state demanded and -- lame -- last minute tax hike.
And the -- come in and it's basically eating a broken sits down with this new pressure revenue.
It's taken off the pressure off the politicians to reform some of the big drivers of our fiscal and soundness pension -- Medicaid and so forth.
And sad things look rough -- back bill backlog has not decreased in fact it's going up.
And that's exactly why you don't kid broken budgets more revenue because they test feed the broken sits down well I you look at Georgia and they're talking about cutting -- -- that's much more attractive to an international company.
That can choose to locate really anywhere in the world.
Is it possible that Illinois looking for a bailout from President Obama which is actual Illinois is adopted home state.
That's a very scary possibility and one -- not even floated by the governor last year in -- budget speech.
He talked about the idea of federal guarantees to our pension sense that he -- backed away from that but that's a real possibility and parents -- -- the legislators think that.
Friends and DC might come to their rescue if they can't add -- -- -- but it doesn't have to be this way we can look to examples of -- nearby neighbors Wisconsin for budget relief.
I next door in Indiana for worker and -- reform Illinois doesn't have to be a bad at fiscal basket case I think our glory days are had a -- but we need to see a change.
And the public policies make -- state great wants.
And Kristina Rasmussen from the Illinois policy institute thank you so much for joining us we appreciate it -- while.