September 8, 2010
Taxpayer Tab for DCEO
Generous salaries for a
failing agency
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
Spotlight on Spending
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 1999-2008.1
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;
This is part 12 of the Illinois Policy Institute’s weekly Spotlight on Spending series, highlighting wasteful or inefficient
programs and spending with the goal of bringing more responsible spending and accountable government to Illinois. For
additional information on state spending, visit www.IllinoisOpenGov.org.
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.
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
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attractive to business investment. Moreover, it’s Endnotes

a redundant government agency. Specifically, 1 Arthur B. Laffer, Stephen Moore & Jonathan
there are already many economic development Williams, Rich States, Poor States: 2010 ALEC-Laffer
organizations like the Naperville Development State Economic Competitiveness Index, April 7, 2010,
Partnership that already work to bring new http://www.alec.org/AM/Template.cfm?Section=Rich_
business and retain business in Illinois.” States_Poor_States&Template=/CM/HTMLDisplay.
cfm&ContentID=13397.
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.
The Clearly, the DCEO is failing when Illinois is
Department losing business and remaining uncompetitive to
other states, like Indiana, that are doing a much
of Commerce better job of promoting a friendly, pro-business
environment and welcoming businesses in with
and better incentives. Taxpayers deserve a much
Economic better and more honest use of their hard-
earned money.”
Opportunity
Eliminating the DCEO would provide one step
is failing toward ending unnecessary spending of tax
at its core dollars at the state level.

mission to
create and Graphic 1:
Department of Commerce and Economic Opportunity Top 13 2009 Salaries
maintain jobs Salary
Annual Salary Position Title Agency
in Illinois. Ranking
1 $113,176.27 SENIOR PUBLIC SERVICE ADMINISTRATOR DCEO
2 $112,261.88 SENIOR PUBLIC SERVICE ADMINISTRATOR DCEO
3 $108,388.00 SENIOR PUBLIC SERVICE ADMINISTRATOR DCEO
4 $108,129.52 FOREIGN SERVICE ECON DEV EXECUTIVE II DCEO
5 $107,896.65 SENIOR PUBLIC SERVICE ADMINISTRATOR DCEO
6 $107,460.49 SENIOR PUBLIC SERVICE ADMINISTRATOR DCEO
7 $104,417.49 SENIOR PUBLIC SERVICE ADMINISTRATOR DCEO
8 $104,076.36 SENIOR PUBLIC SERVICE ADMINISTRATOR DCEO
9 $102,948.86 SENIOR PUBLIC SERVICE ADMINISTRATOR DCEO
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: Illinois Department of Natural Resources, Illinois Office of the Comptroller’s Public Accountability
Report, Fiscal Years 2007 and 2009, and the Illinois Budget Books.