Underground marijuana farm

Whose economy is better? The Chicago Sun-Times tries to settle a debate between Illinois Governor Pat Quinn and Wisconsin Governor Scott Walker. The two governors traded insults last week over which state is doing a better job of attracting businesses. The Sun-Times says Illinois is the winner on most points.

Peaceful place Nine Nobel Peace Prize winners will be in Chicago this week for the World Summit of Nobel Peace Laureates, according to the Chicago Tribune.

Natural gas Crain’s Cleveland Business considers the possibilities for exporting liquid natural gas made in Ohio. Exporting the fuel could lead to higher prices in the U.S., but those prices would help Ohio’s booming natural gas industry.

The Palisades problem NPR looks at the spotty safety record at the Palisades nuclear plant in Southwest Michigan. The story is reported by Lindsey Smith, of partner station Michigan Radio.

Preschool not a priority Ohio saw a big drop in public preschool enrollment over the past decade, and no other state cut more money from its preschool program during that time, according to the Columbus Dispatch. The numbers come from a report by the National Institute for Early Education Research. The report also has some negative news for Indiana and Illinois.

Still feeling it Forbes takes a look at the Rod Blagojevich legacy on fiscal issues in Ilinois, and tells the story of how the former governor could be to blame for a proposed rate hike from the Chicago Transit Authority.

Arsenal of research The U.S. Army is opening a new $60 million lab in the Detroit suburb of Warren. WDIV TV takes a tour of the new facility.

Nom nom nom Wisconsin will get three new cheese plants.

Wah Wah

Whoopsie Two weeks ago, a state press release in Indiana promoted the MBC Group as an example how the state’s new Right to Work law is creating jobs. One problem: the president of the MBC Group says Right to Work played no role in his company’s decision to expand.

Big money The Minneapolis Star Tribune reports on the “staggering” amount of money being spent on the Scott Walker recall campaign. The amount is more than double the amount previously spent on any statewide campaign in Wisconsin.

Calling all angels The Milwaukee Journal Sentinel reports that angel investing in Wisconsin reached over $61 million last year.

Immigrant entrepreneurs Chicago mayor Rahm Emanuel announced a series of workshops to help immigrants launch small businesses.

Primed for the primary Partner station WBEZ reports that Newt Gingrich was in Illinois yesterday. Other candidates will be in the state today, as the Illinois primary race gets going.

Damage done It’s only property A tornado ripped through the small Southeast Michigan village of Dexter yesterday. No one was hurt.

A hydraulic fracturing operation near Malvern, Ohio. Credit: flickr user Chiot's Run.

A “Mid-biennium Review” sounds like just about the least exciting thing in the world.

But Ohio governor John Kasich used his “Mid-biennium” budget talk yesterday for a ground-shaking announcement. Among a number of proposals unveiled, the governor announced new taxes for the many companies that are trying to extract natural gas and oil from Ohio shale.

If you haven’t heard by now, Ohio is sitting on an oil and gas bonanza. Up until a few years ago, no one could get at it, because it’s locked away in Ohio’s shale formations. But because of a new drilling procedure you’ve probably heard of called hydraulic fracturing, or “fracking,” all that gas and oil is now available.

As our own Dan Bobkoff reported in December, there is no shortage of hype about the possibilites for fracking in Ohio. The industry says it will create, or sustain 200,000 jobs. $200 billion could be invested over the next twenty years.

Tuesday, Chesapeake Energy announced plans for a $900 million plant to process all the oil and gas it’s pulling out of Ohio’s shale formations. So the boom times have already begun.

And yesterday, governor Kasich said he wants Ohioans to get a cut of all the profits from this new industry.

The Cincinnati Enquirer quoted Kasich:

“If Ohioans aren’t benefiting, then some shareholder in Texas will benefit. There’s gold in them thar hills. How much gold, we’re not sure. But I’d rather be sharing the wealth with Ohioans than investors living elsewhere.”

So, Kasich plans to impose new taxes on oil and gas drilling in Ohio (though small producers get an exemption), and 100 percent of what the government collects will go back to Ohioans in the form of tax breaks. The governor’s office estimates the oil and gas taxes will generate between $900 million and $1 billion in five years. The tax breaks will go to people in every income bracket, though the specifics have yet to be announced.

One complication to the plan is that it means Ohioans’ tax rates will fluctuate year-to-year, depending on how much money the energy companies make.

And, of course, the energy companies don’t like the idea much.

In a statement, the Ohio Oil and Gas Association says:

“Crude oil and natural gas exploration in the state is still in its infancy and increasing the severance tax at this critical juncture will negatively impact the economic future of Ohio and its residents. For this reason, we oppose a tax increase of any kind, particularly one targeting an emerging industry.”

Kasich says the new taxes will be competitive with other states. He’s also proposing new regulations on the industry, to try to address some of the environmental concerns it creates. Among other things, the industry will have to disclose all of the chemicals it uses in the fracking process. And the governor says some areas will be off limits to drilling.

Many of the proposals in Kasich’s “Mid-biennial” review will have to get approval from the state legislature before they go into effect.

Fracking taxes

Lot o’ Lollapaloozas The Chicago Park District signed a new nine-year agreement with organizers of the Lollapalooza music festival, according to the Chicago Tribune. One park official says the deal will give the city a $1 billion boost over the next decade. But ticket prices for music fans will probably be going up.

No consent Tuesday, the State of Michigan offered leaders in Detroit a consent agreement to allow a new panel to solve the city’s budget crisis. Now, the Detroit Free Press reports the city is working on a counter-proposal, while the Associated Press says a “war of words” has broken out between the mayor and the governor.

Starting up startups The Wall Street Journal takes a look at Chicago’s growing scene for startups. But the paper finds Chicago still has a long way to go to compete with New York or Silicon Valley for startup money.

Keeping up with foreclosures Chicago foreclosure filings spiked upward in February, according to the Chicago Sun-Times. The Columbus Dispatch says filings were also up in Ohio, though they’re down quite a bit compared to a year ago. And partner station Michigan Radio reports foreclosure filings were down in Michigan for the month.

Prison time Rod Blagojevich reports to prison today. Partner station WBEZ has the story.

Gassed up

You’re next, Illinois Mitt Romney’s poor showing in Alabama and Missisippi seems to have heightened the importance of next week’s primary in Illinois. The Chicago Tribune reports the Romney campaign just bought another $1.35 million in ads in the Chicago market.

Politics behind consent Yesterday was a big day in the city of Detroit, as Michigan governor Rick Snyder released a proposed consent agreement to handle the city’s budget crisis. Partner station Michigan Radio takes a look at the politics behind the proposal.

Mining a new strategy Even though a controversial piece of legislation to allow mining in northern Wisconsin failed to get enough votes, and the company that wanted the mine has pulled out, some state Republicans are still fighting for the cause.

Ohio gets the bronze The Labor Department reports that Ohio had the third-largest increase in jobs in January. Only New York and Texas saw more jobs created in the first month of the year.

Camera-ready Partner station WBEZ looks into Chicago’s volatile, but growing film industry.

Santorum’s surge Rick Santorum is not only leading Mitt Romney in Romney’s home state, a new poll shows Santorum is ahead in Ohio as well.

The Fracking Factor A plan to use coal to make natural gas in Indiana may be a bust, according to the Indianapolis Star. A utility executive in Indiana says the boom in shale-gas production, or “fracking” has brought down the cost of natural gas, and the coal-to-gas plan no longer makes sense. Governor Mitch Daniels had touted the coal-to-gas plant as a way to help consumers and boost the economy in Southern Indiana.

Boeing’s big order Chicago-based Boeing has finalized the details of the largest order in its history.

Kohl’s says no to downtown The Milwaukee Journal Sentinel reports that retailer Kohl’s has decided against building a new company headquarters in downtown Milwaukee.

Cincinnati jobs Ohio Governor John Kasich announced yesterday that two new companies are moving to the Cincinnati area.

We’re shocked – shocked! A former city alderman, turned political science professor says he’s done the calculations and Chicago is, in fact, the most corrupt city in the country.

Natural gas extracted from shale rock, some say, is the most positive development in the nation’s energy outlook in 50 years.  Ohio sits atop some of the largest deposits.

Big name oil and gas companies are flocking to the Buckeye State in a frenzy of preparation for “fracking” – that’s the innovative and controversial technology used to drill through and “fracture” the shale.  It un-traps natural gas that lies within large layers of rock.

Ohio John Kasich is one of the industry’s biggest cheerleaders, saying it could be a real “game changer” for the state’s economy.  This week he also said tough, new regulations are needed to make sure “fracking” doesn’t harm the environment.  From our Changing Gears project, Mhari Saito and Dan Bobkoff have this overview on the new “natural gas economy.”