During my eight years as state Treasurer, I have made the innovative use of state deposits to foster economic and community development a top priority. Through the Linked Deposit program, the state treasurer's office has been able to retain existing jobs and create new ones in staggering numbers — nearly 15,000. In these times of economic recession and corporate flight to the sun belt, this is no small achievement. I'm proud of my record of helping Illinois business stay in Illinois — a place where people can find work to achieve a decent way of life.

Through creative planning with local financial institutions, there have been many successful linked deposits. Here are just a few:

CHRYSLER CORPORATION—BELVIDERE

In 1979, when Chrysler Corporation was on the brink of bankruptcy, I used my discretionary investment authority as state Treasurer to loan $20 million to Chrysler. The low-interest loan, backed by the first mortgage on the Belvidere plant, saved thousands of manufacturing jobs for Northern Illinois.

GENERAL TIRE PLANT—MT. VERNON

Thirty million dollars was deposited in a major Chicago bank to assist General Tire Inc. in building a $229 million facility. The expansion created 450 permanent jobs in addition to hundreds more during the construction phase of the project.

COMMUNITY REVITALIZATION—OHIO, IL

Small Town America was the focus of the 1988 linked deposit which enabled Ohio to reverse the trend of citizens abandoning rural towns for large metropolitan areas. Through my commitment to deposit $1 million in a local bank, Ohio was able to offer financial incentives and low-interest loans to families willing to relocate to this northwestern Illinois community.

ILLINOIS INSURED MORTGAGE PILOT PROGRAM

In 1982, I initiated an aggressive program to provide financing for 18 commercial/retail projects around the state. The state purchased certificates of investment from a major Chicago bank which in turn loaned funds to qualified developers. This program created 10,000 construction and permanent jobs, in addition to providing millions of dollars in increased tax revenues for the state and local governments.

The Linked Deposit program has been instrumental in providing emergency assistance in times of natural and financial disaster, as well. I'm pleased to say the program has enabled my office to hold out a hand to those in need over the eight years I have been in office.

The blizzard of 1979 hit Northern Illinois particularly hard. Forty-two million deposited in area banks made loans available to businesses and farmers which enabled them to handle the cash flow consequences of the storm, as well as provide for recovery during the clean-up operation.

For tornado disaster recovery in 1982, 1989 and again this year, for flood relief on the Illinois River and in suburban Cook and DuPage counties, for victims of the recent west side power failures — I've been able to make money available to lessen the burden and help people get back on their feet.

As I prepare to entrust the Office of the State Treasurer to my successor, I am uplifted by the record I have been able to achieve. And I look forward to applying the same creative approach to the next challenge that awaits me.

November 1990 / Illinois Municipal Review / Page 7