The Problem

Want to be a hair braider? Get a license. Already a pizza restaurateur? Raise your prices. Starting a business? First prove to the state there is a “need” for your product. Like flowers? Don’t even think about trying to sell them on the street—it’s not allowed. And, don’t dare try to start a cupcake business out of an unapproved kitchen.

In a 2009 report on states’ economic competitiveness, the American Legislative Exchange Council (ALEC) ranked Illinois 48th in economic performance and 47th in economic outlook. ALEC ranked Illinois 40th for its burdensome workers’ compensation requirements and 44th for its costly minimum wage rate, which increased to $8.00 per hour in July 2009 and will increase another 25 cents in July 2010.

Illinois’s maze of regulations has the effect of sending a “KEEP OUT” message to would-be entrepreneurs. Not only do Illinoisans battle against the general tide of a struggling economy, they must also confront costly barriers to doing business, which come in the form of state laws and regulations, licensing requirements and fees.

Our Solution

Workers, families, employers and entrepreneurs are fleeing Illinois for more business-friendly states. ALEC ranked Illinois 48th for its absolute migration because a net 637,979 people left the state from 1999-2008. This trend will continue unless Illinois changes course and reforms—and in some cases eliminates—job-killing barriers to economic opportunity. In order to turn around its unfriendly business climate, Illinois can start by implementing legal and regulatory improvements in the following areas:

1.     Workers’ Compensation
2.     Minimum Wage
3.     Licensing and Fees

Why This Works

Implementing regulatory reforms in the areas of workers’ compensation, minimum wage, and state licensing and fees would create a more favorable business climate in Illinois, attracting more businesses, more jobs, and more state revenue to our state—and, ultimately, providing Illinoisans from all walks of life with a better opportunity to care for their family.