NEWS

From the Illinois State Senate

State Senator Michael Frerichs, 52nd Legislative District

For Immediate Release: Thursday, May 3, 2012 

Frerichs praises the passage of bill abolishing General Assembly scholarships

SPRINGFIELD, IL – State Senator Michael Frerichs (D – Champaign) joined his colleagues today in voting to abolish the General Assembly scholarship program which has gained attention in recent years as abuses in the program by legislators have come to light.

“I have been pushing this bill for the past three years and I am very happy to see my colleagues joining me today in ending this scandal-ridden program that has cost our taxpayers and our universities millions of dollars,” Frerichs said. “I am glad to see an end to this practice is in sight.”

Abolishing legislative scholarships has not been the only effort to eliminate wasteful and fraudulent spending that cost taxpayers money in recent years. For the past four years, the Senate has taken steps to rein in spending through shared sacrifices, such as cutting their pay, which would save nearly $1 million this year.

“Legislators have to prove to the people of Illinois that we are serious about reforming our state government,” Frerichs continued. “We understand the importance of shared sacrifice in solving our budget deficit.”

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Seeking to head off environmental horror stories, state Sen. Michael Frerichs successfully guided through the Illinois Senate the state’s first comprehensive set of standards for hydraulic fracturing – often referred to as “fracking.”

“This measure is an effort to be proactive in setting necessary standards so that we can start the process of bringing the hydraulic fracturing jobs to Illinois,” Frerichs said after Thursday’s Senate vote.

Fracking is an increasingly controversial process for extracting natural gas that involves injecting water and chemicals into the ground to force out the gas. In other states, the process has been tied to contamination of drinking water and other environmental concerns. At the same time, the natural gas extraction industry is primed to create jobs and assist in boosting the nation’s energy independence.

Frerichs believes the legislation he’s advancing in Illinois strikes a pro-active balance. His proposal won the support of leading environmental groups like the Sierra Club, Faith in Place, and Illinois Environmental Council and key business groups such as the Illinois Petroleum Council and Illinois Oil & Gas Association.

Frerich’s proposal – SB 3280 – requires oversight and regulation of fracking by the Department of Natural Resources. Specifically, fracking operators would be required to provide the department with a complete list of the chemicals used in the hydraulic fracturing process before beginning work. The proposal requires that fracking wastewater pits be lined to prevent leakage into groundwater.

“Currently, there are no fracking sites in Illinois, but companies have started to invest in southern counties in the state and are expected to start drilling in those areas as soon as next month,” Frerichs said. “Having these regulations in place before any fracking begins ensures that safeguards are in place from the very beginning and landowners have greater protection from chemical contamination of their drinking water.”

The legislation now advances to the Illinois House for consideration.

Legislation to extend and improve one of Illinois’ most successful economic development tools today passed the Senate with overwhelming support. State Senator Michael Frerichs’ (D – Champaign) Enterprise Zone Extension legislation, Senate Bill 3688, now moves to the Illinois House of Representatives.

Despite the overwhelming support expressed in the Senate and from business leaders statewide, this legislation faces future challenges. Senate Democrats remain committed to ensuring that Enterprise Zones remain a useful, successful economic development tool for Illinois businesses.

“You just cannot argue with the results of enterprise zones in keeping our economy going,” said Frerichs. “We conducted a thorough review of these zones and found impressive support around the state for keeping them in place and improving them. This legislation does just that, and we hope the House will agree.”

As chair of the special Senate Committee on Enterprise Zone Extensions, Frerichs held four hearings across the state to gather input and support for the legislation from business and community leaders. Hearings were held in Carbondale, Rockford, Chicago, and Peoria. Last week, the committee met at the Capitol in Springfield.

Mark Denzler, Vice President and Chief Operating Officer for the Illinois Manufacturers' Association says Enterprise Zones “are one thing that work well in the state of Illinois.” He notes that while the business community may not always be happy with what happens, this program “is one thing that works very well in Illinois and should be continued.”

Business leaders from across Illinois echoed this sentiment at each of the four hearings held statewide:

• "Over the last 5 years or so, from 2006 to 2010, Continental AG, our parent company in Germany, decided to invest in expansion projects in the US. The decision to invest in the Illinois plant versus Indiana and other states was largely dependent on the benefits we received both from the Enterprise Zone program and incentives from the State of Illinois and our local governments. So it is very important for the Mount Vernon plant to remain competitive, again, within the Continental group and within the tire industry. The Enterprise Zone program and its current benefits, the way they are, helps us to do that." - Barbara Hoppa, Continental Tire in Mount Vernon
  
• "Certainly it was one of the things that we looked at whenever we were going through making a determination of which plants we wanted to invest in and grow. So that was one of the—the Enterprise Zone that the Belvidere plant was located in—was one of the contributing factors to that continued investment, that $700 million investment." - Misti Rice, Chrysler
  
• "Over the last year, Caterpillar has certainly been critical of certain issues that we think that the State can improve upon. But today I’m here to talk to you about something that Illinois is doing right and ought to continue…Enterprise Zones are one tool that the State can use to set itself apart to make itself more attractive for investment. Caterpillar has facilities in Enterprise Zones in East Peoria, Morton, Decatur, Mapleton, and Joliet, and of course we have many suppliers that are located near us that also benefit from the zones. The zones in these communities are working, and making these communities more economically viable…The State of Illinois has a positive economic development tool available to it today. But its availability for next year is in question. We would encourage you to re-authorize these zones quickly and provide the state with a long-term renewal that creates a stable and predictable environment for businesses to plan." - Rob Carney, Caterpillar in Peoria

After public hearings across Illinois to hear testimony from local officials, economic development experts, and business leaders, a measure sponsored by Senator Frerichs has passed through the Senate Special Committee on Enterprise Zone Extensions. The proposal now faces a vote from the full Senate.

“In our hearings, we found that enterprise zones have a solid reputation as the best way to create and maintain jobs and improve business in local communities. The officials and business leaders we heard testimony from had nothing but positive proof that the Enterprise Zones are essential to these areas and no one wants to see them expire.”

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Senator Frerichs recently spoke at the Rantoul Chamber of Commerce's luncheon. Senator Frerichs spoke about the state budget, using a slideshow presentation to illustrate the challenges facing the state regarding pensions and Medicaid. See photos below: