WJBC Forum: Mitsubishi value

Posted on August 15, 2016

By Ron Ulmer

With the Mitsubishi shut down, the employees gone, and the plant about to be sold, I found myself asking, did the plant over its lifetime meet estimated economic development impact on the McLean County community and the State of Illinois that was touted with much fanfare when the project was announced? Were the expected number of jobs created during construction and operation come to fruition? Did the expected economic benefit to the community and state happen or did it fall short?

I was unpleasantly surprised upon reading that Mitsubishi layoffs had less impact on McLean County’s unemployment numbers than expected because many of the employees did not live in McLean County. Additionally, the leader of the Economic Development Council during a WJBC interview last Thursday stated that not much return to the taxpayers is generated by location economic development projects. He said the return is greater on retention and expansion projects.

As I thought about these statements additional questions came to mind. Are audited financial reports generated on projects that receive taxpayer money to determine if the project is meeting, exceeding, or falling short of expectations?Do taxpayers receive the biggest bang for their economic development buck spent? Are impact reports readily available to the public and if so where? Does the news media report the results or does a taxpayer have to make a FOIA request?

I suggest a professor or graduate student in economics or finance conduct a lifetime benefit-cost study of the Mitsubishi plant.I urge you to contact your government representatives to request an accounting of the Mitsubishi plant and while you are at it on all other economic development projects. We the taxpayers need to hold public officials accountable when taxpayer money is invested in economic development projects.

Ron Ulmer is an economist, have taught economics/finance at 3 central Illinois universities and employed by Illinois Power as a Senior Rate Analyst, supervisor of economic research, Market Program Manager. Now retired, Current member Normal Kiwanis, past 25 year member Optimist International Service Club, Property owner and manager in Normal for 37 years ongoing.

The opinions expressed within WJBC’s Forum are solely those of the Forum’s author, and are not necessarily those of WJBC or Cumulus Media, Inc.

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