Quinn for Illinois

By Karen McDonald

A bill signed by Gov. Pat Quinn on Thursday means more than a tax break for a Bartonville company - it translates to keeping jobs and boosting morale.

Quinn signed Senate Bill 328 into law at Keystone Steel & Wire, which will extend the company's utility tax exemption. Keystone, though still located in the required enterprise zone, had no longer qualified for the exemption on energy use because it crossed below the threshold requirement of 1,000 jobs because of the slumping economy.

"It's helpful for us, in the recessionary environment we find ourselves in, to have this relief," said Keystone President David Cheek. "If we assume that this recovery is going to get some legs and economy recovery will continue, we'll have the demand there for our products and able to have people back to work."

The law means Keystone will be able to keep about $120,000 to $140,000 per month in its pockets - money to eventually bring temporary laid off workers back to work and keep the local jobs.

"Save jobs and save money. It's important we rise to the rescue, work together, adjust our laws so we can save jobs in Illinois and get back on our feet this year and back on track when it comes to our economy," Quinn said.

Cheek disagreed with lawmakers' contentions that hundreds of jobs would have been lost had the tax credit not been extended.

As of Jan. 1, the company had 165 salaried workers and 668 hourly workers - it had instituted temporary layoffs. The proposed bill stipulates that in order to continue receiving the exemption, a company must have 675 full-time jobs in 2011, 850 in 2012 and, ultimately, 1,000 full-time jobs.

"We're not a giant player in the steel industry ... so a tax savings by getting a break in the utility tax is extremely big for this company," Tim Kieser, president of the Independent Steelworkers Alliance (ISWA), the union that represents the nearly 700 hourly workers.

Keystone's enterprise zone was established in the mid-1980s, and the company has benefited from the utility tax exemption for more than 17 years.

"This was an issue that really wasn't a hard sell. This is real jobs, right now," said state Sen. Dave Koehler, D-Peoria, a chief sponsor of the bill.