Executive Report

Enterprise to begin in eight Illinois zones

TESTING the premise that less government means more economic growth, eight economic nomically depressed areas were designated as the state's first enterprise zones by the Department of Commerce and Community Affairs in June. Under the Illinois Enterprise Zone Act signed into law last fall, businesses which locate in these zones can receive special incentives such as eligibility for state revenue bonds, tax breaks and exemptions from some state and local regulations. A zone must be no smaller than one-half square mile and no larger than 10 square miles in area. The act provides that a city must declare a particular area to be economically depressed, design a development plan and pass an enterprise zone ordinance. The state can designate eight enterprise zones each year for the next six years. An area can retain its enterprise zone status for a maximum of 20 years.

Enterprise zones announced by the governor June 2 were: Canton (300 acres west of Canton which would make a new use of the International Harvester plant located there); Decatur (9.3 square miles in the northeast part of the city); East St. Louis (9.5 square miles along the city's river front and a portion of the southeast section of town); Joliet (9.75 square miles encompassing parts of Joliet, Rockdale and Lockport); Peoria (1.9 square miles in the Southtown section of the city); and Rockford (3.5 square miles in the south and west portions of the city).

Two Chicago enterprise zones were announced June 28. One comprises 7.0 square miles in the city's Back-of-the-Yards area; its designation will help Spiegel Company, which is located there, to remain in Chicago. The other consists of 7.5 miles in the port area of southeast Chicago, including the Calumet River and Lake Calumet Harbor.

Nineteen localities applied for enterprise zone designation. Deadline for applications for the next round of selections is December 31,1983.

State pays women less for equal work

WOMEN employed by the state are not receiving pay equal to that of male state employees for doing work of equal value, according to a pilot study by the Illinois Commission on the Status of Women released June 14. The commission, with the assistance of Hay Associates, a Chicago consulting firm, compared 24 "benchmark" job classifications, 12 of which were male-dominated and 12 female-dominated.

Each benchmark classification has a large number of employees and represents an occupation common to similar employers. Across all levels of job complexity, salaries in male-dominated job classifications were significantly higher than those in female-dominated classifications. The study found that most men employed by the state draw salaries exceeding $16,000 per year, while most women earn $16,000 or less. The study also found that overall more than half of the state's job classes are dominated by men and less than 20 percent by women, even though the state employs more women than men.

Commissioner Clara Day said, "Wage discrimination has a pervasive effect on women, reaching beyond the paycheck itself. Since fringe benefits such as life insurance and pension plans are based on salary, wage discrimination has life-long implications for the wage earner and her family." Commission Chairwoman, Rep. Barbara Flynn Currie (D-26, Chicago), has introduced legislation to address the findings and recommendations of the study. House Bill 1646 would prohibit state agencies from discriminating on the basis of gender by paying different wage rates for work of comparable worth. House Bill 1647 would prohibit all employers from gender discrimination in wage rates. These bills are on the interim study calendar of the House Labor and Commerce Committee; hearings will be held this summer.

Greyhound ends service to 36 towns

THE Illinois Commerce Commission (I1CC) granted in May a request by the Greyhound Bus Company to discontinue service to 36 Illinois cities along four major routes, effective June 10. I1CC Chairman Philip R. O'Connor said: "This abandonment case exemplifies a statewide problem. We see bus companies abandoning unprofitable or marginally profitable routes and the states have virtually no tools, at least within a regulatory framework, to preserve service."

The Federal Bus Regulatory Reform Act which became effective November 19, 1982, limits the states' power over bus companies by prohibiting states from regulating service factors such as schedules and frequency of service. Under the new law, O'Connor said, state regulatory agencies cannot look at the quality of service offered on a route to determine if a reasonable level is being offered. Instead, they are limited to looking at the profitability of the route as the main factor for justifying abandonments.

According to O'Connor, the commission is working with legislative leaders at the state and federal levels to find ways states can help preserve bus service. I1CC supports federal legislation which would require companies to notify states well in advance that they are planning to abandon particular routes. A state could then work with communities along the route to establish some sort of alternative service.

The routes and cities affected by Greyhound's abandonment of service are: (Springfield-St. Louis) Auburn, Carlinville, Staunton, Edwardsville and Collinsville; (St. Louis-Paducah, Ky.) Freeburg, New Athens, Marissa, Tilden, Coulterville, Sparta, Culter Jet., Pinckneyville, St. Johns, DuQuoin, Christopher and Herrin; (St. Louis-Evansville, Ind.) Mascoutah, New Memphis, Okawville, Addieville, Nashville, Pyramid and Ashley; (Chicago-Madison, Wis.) Addison, Bloomingdale, Kenneyville, Pingree Grove, Stark Station, Harmony, Coral, Marengo, Garden Prairie, Cherry Valley, Roscoe and Rockton.

Complaint ratios for homeowner and auto insurance released

THE Department of Insurance (DOI) released the 1982 complaint ratios for automobile and homeowner insurance policies June 9. DOI defines a complaint as any written correspondence expressing a grievance against an insurer. The ratios for automobile insurance are the number of complaints against a company for every 1,000 policies in force; for homeowner insurance it is the number of complaints for every 10,000 policies in force. Ratios were computed for each company that received over 10 complaints: 62 automobile insurers and 17 homeowner insurers.

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DOI received 13,523 complaints in 1982: 8.7 percent were about homeowner insurance and 30.5 percent concerned automobile coverage. Both of these percentages are down from 1979 levels.

The three automobile insurance companies with the highest complaint ratios in 1982 were: Coronet Insurance Company with 21,680 policies in force and a complaint ratio of 10.79; State Security Insurance Company with 7,293 policies in force and a complaint ratio of 10.69; and Prestige Casualty Company with 6,889 policies in force and a complaint ratio of 6.96.

The three homeowner insurance companies with the highest complaint ratios in 1982 were Miller's Mutual Insurance Association of Illinois with 13,397 policies in force and a complaint ratio of 8.95; Trans-america Insurance Company with 14,770 policies in force and a complaint ratio of 8.80; and Hartford Accident & Indemnity Company with 13,253 policies in force and a complaint ratio of 8.30.

For a complete list of complaint ratios for automobile and homeowner insurance, write to the Department of Insurance, 320 W. Washington, Springfield, Ill. 62767, Attn. Dale Emerson, or call (217) 785-8616.

Traffic deaths down for sixth straight year

ILLINOIS is the only state in the nation to show a decrease in traffic fatalities for five consecutive years. In 1982, 1,671 persons died in traffic accidents, a decrease of 9.8 percent from 1,852 traffic fatalities in 1981 and a 23.1 percent decrease from 1977. In addition, the 1982 fatality total was the lowest in the state since 1945. Total accidents in 1982 also decreased 3 percent from 1981 and 26 percent from 1977.

Although it is difficult to pinpoint why traffic deaths declined so sharply, especially since travel over the six-year period remained fairly constant, the Department of Transportation suggests contributing factors were: highway improvements, enforcement of the new drunk driving law, enforcement of the 55-mph speed limit, training of beginning motorcycle drivers, public awareness of traffic safety and mandatory driver's education.

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