FEBRUARY 2014
Directory of Advertisers
Inside F E B RUA RY 20 14
1st Bank and Trust of Murphysboro ........5
questions can help an employer make the right choice.
ENTREPRENEUR’S MAILBAG
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Why a website? Businesses seeking to grow need to consider the power of the Internet. A website once was a trendy accessory, but today it is a busi-ness necessity. Why? An online presence offers an opportunity to expand any business’s distribution channels and reach customers around the world. Operating online is the equivalent of keeping your electronic doors open 24/7. That adds up to better earning potential through access to targeted customers and the possibility of lower overhead in the future. Page 6
WORKPLACE Experience versus education: Some employers believe experience is the best education and make their hiring decisions accordingly. Others prefer highly educated candidates, who can be quickly trained to fill the specific needs of the business. To make an effective decision on experience versus education, employers should first examine the specific job very closely. That requires an investment of time and runs against a natural tendency to fill empty positions quickly. Four key
John A. Logan College ........................ 13
ELDER LAW Leaving money on the table: When planning for long-term care, seniors need to be aware of what might happen if they proceed without the guidance of an attorney. An experienced elder law attorney can be the most valuable resource, even in cases in which a financial professional tries to persuade a senior that it is unnecessary to involve an attorney. Going it alone can be a costly mistake.
ACHIEVEMENTS Who’s in the news: Find out who has been hired, who has been promoted or who has received an award for efforts in business. Make sure you check out our newest Faces in the News collection of business portraits and learn more of the achievements and honors in regional business. If you know of a business person who deserves special recognition for advanced training, a unique honor or a business expansion, please let us know at sbj@thesouthern.com. Pages 14-15, 17
Publisher: Bob Williams 618-351-5038
Southern Illinoisan. Contact us via mail at 710 N. Illinois Ave., Carbondale, IL 62901, or at P.O. Box 2108, Carbondale, IL 62903. Also reach us on the Web at www.sbj.biz and via email at SBJ@thesouthern.com. The Journal is published 12 times per year monthly, and mailed to businesses, community development leaders, chambers of commerce members and other professionals in Southern Illinois. Copyright 2013 by The Southern Illinoisan, all rights reserved. A subscription may be obtained by calling 618-529-5454 or 618-997-3356, or by visiting our website.
SIU Credit Union .................................. 8
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Contact us The Southern Business Journal is a publication of The
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Editor: Gary Metro 618-351-5033 Advertising: Mark Dynis 618-351-5815 Design & Layout: Rhonda May 618-529-5454, ext. 5118
Small Business Growth Corp ................ 3
Southern Illinois Healthcare................ 18
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FEBRUARY 2014
SOUTHERN BUSINESS JOURNAL
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LOOKING FOR A
Cover Story
SMALL BUSINESS LOAN?
New laws on speed limit, cellphone use impact regional businesses
Buy or Build a New Facility
BY DEB SAUERHAGE SBJ CORRESPONDENT
We’re more than a month into 2014, and the reviews are mixed on how a variety of new laws are impacting businesses. For Danny Bost, owner of Bost Trucking
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Find more business news at www.sbj.biz. in Murphysboro, the new speed limit on Interstates isn’t “on his radar.” The speed limit was increased from 65 to 70 mph on Jan. 1. According to the Illinois Department of Transportation, about 87 percent of Interstate highways and 98 percent of rural Interstates will be increased to 70 mph. There are 34 states with speed limits of 70 mph or higher, including all of Illinois’ neighboring states. Fifteen states have speed limits of 75 mph and one state has a speed limit of 85 mph. The increased speed limit isn’t the real issue, Bost said. “Of all of the problems going on with the state, we have so many bigger issues. The speed limit is at the bottom of the list,” he said. “Do they really think it’s going to generate a lot of income?” Bost thinks the increase speed is “more about politics than common sense.” “It was 55 then 65 and now 70, obviously people will go that speed or higher,” Bost said. “A lot of people are already doing 70.” Bad weather delayed replacing the old signs until mid-January. All 70 mph sign installations in Southern Illinois, Districts 8 and 9, are complete. The 900 new signs were made of recycled materials from IDOT’s Sign Shop SEE COVER / PAGE 4
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SOUTHERN BUSINESS JOURNAL
FEBRUARY 2014
Cover Story FROM PAGE 3 in Springfield at an estimated cost of $200,000. Along with the increase comes caution. The new law includes an additional safety provision, which lowers the limit by 5 mph at which drivers may be charged by law enforcement with excessive speeding. If you are 26 mph over the limit you will be charged with excessive speeding. The old limit was 31 mph.
Hands free If you are driving on the Interstate, or across town, you better be chatting on a cellphone that is hands free, either with a headset or one that is built into your vehicle. Illinois has also passed a Distracted Driving Cell Phone Ban, joining about a dozen other states with laws banning the use of cell phones while driving. The new law joins a current law that prohibits texting and driving. The goal of the new law is to cut down on distracted driving, making the roads safer. Violators will be fined $75 for a first offense. Fines for repeat offenses could be as high as $150 and repeat offenders could face a moving violation. Drivers are still allowed to make calls in an emergency. If you are using a non-hands free device and are in an accident with injuries, you could be charged with a felony. Bening Communications, a Verizon Wireless retailer with stores in Marion, Sparta, Red Bud, Freeburg, Nashville and Waterloo, has seen more customers who needed a Bluetooth enabled device to comply with the new law. “They are flying off the shelves,” said Misty Rohde, store manager in Nashville. “The technology has been around for a long time, but people know they have to have it.” Rohde said the stores are well stocked with the devices, which run from $20 to $100. Styles vary from a headset to a unit that clips to your visor.
The built-in Bluetooth technology is standard on most new vehicles, according to Vic Koenig, owner of Vic Koenig Chevrolet in Carbondale. “It’s been available since 2009,” Koenig said. “People will realize it is a good option.” The law just doesn’t apply to car and truck drivers. “The law also pertains to tractors and heavy equipment operators including farmers,” Rohde said.
Other new laws As tax time approaches, other new laws are also coming into play. Those who are in a same sex marriage shouldn’t rush to do their taxes. Many of the finer points of tax laws have not been determined on the state level. “If you were legally married in a state or foreign country that recognizes same sex marriage, you will file jointly,” said David Powless, CPA and tax manager at Kemper CPA in Marion. The state of Illinois has not finalized how state taxes will be handled. “The state has not sent out instructions for state taxes,” said Powless, who expects the information will be released in a few days.
ACA Tax preparers also have many questions regarding the Affordable Care Act for businesses. Individual premiums were, in part, set by employees, who estimated income when applying through the Marketplace. Powless said if their income changes, they will either get a credit or have to pay more at the end of the year. Employers are working to make the changes. For example, in the past, some companies gave their employees a tax-free monthly stipend for insurance. Now, that money is considered as income and may change the employee’s income, thus changing or denying their insurance premium through the Marketplace. Employers also face fines of up to
$100 a day per employee for not following the law. “It is a very difficult topic,” Powless said. “We don’t have all the rules.” The ACA has also impacted employees and the businesses they work for. Southern Illinois Healthcare is working through the changes, said Pam Henderson, vice president of human resources. “Our health plans already covered the preventative services that the ACA now requires, so no changes were necessary there,” Henderson said. “We did eliminate the lifetime maximums from the plans and now fewer services are excluded from the annual out-ofpocket limits.” One change that will have a big impact was delayed until January 2015, when employees who work 30 or more hours a week have to be offered full-time health insurance coverage, Henderson said. “This will have an impact on our per diem employee program,” she said. The ACA has also affected reimbursements. “To this point, it has meant lower reimbursement from Medicare,” said Mike Kasser, SIH’s chief financial officer/treasurer. “The first four years of the ACA has meant $6.5 million in lower reimbursement to SIH hospitals. On top of that amount is the sequestration which has reduced our payments another $1.5 million per year.” Even though more people have access to healthcare through the Marketplace, SIH has not seeing new patients. “We are not seeing any new patients that we can identify. The insurance exchange and Medicaid expansion did not cover anyone until January 1, 2014,” Kasser said. “Since SIH does not turn people away based on ability to pay, we do not anticipate new business, but are hopeful that more will have some type of coverage.” SEE COVER / PAGE 12
PROVIDED BY ILLINOIS DEPARTMENT OF TRANSPORTATION
FEBRUARY 2014
SOUTHERN BUSINESS JOURNAL
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State Focus Tax on trusts is unconstitutional if no connection to Illinois BY KIRK HOOPINGARNER AND E. KING POOR SBJ CONTRIBUTORS
Hoopingarner
Poor
A state’s power to tax reaches far and wide, but it’s still bounded by constitutional limits. In the words of the U.S. Supreme Court, “The simple and controlling question is whether the state has given anything for which it can ask in return.” This basic principle applies equally to the
taxation of trust income. For decades, courts across the country have grappled with whether state taxes on trust income violate due process. In December 2013, the Illinois Appellate Court in Linn v. Dep’t of Revenue, 2013 IL App (4th) 121055, entered the debate and held that taxing the income of a trust with no current connection to Illinois was unconstitutional. The facts in Linn begin in 1961. In that year, an Illinois resident established an inter vivos trust governed by Illinois law, with an Illinois trustee, for trust property located in Illinois. The trust agreement provided for a power of appointment to distribute trust assets to a different trust or trustee. In 2002, new trustees (also residing in Illinois) distributed the assets to create a new trust now governed by Texas law with a new trustee residing outside of Illinois.
Find more business news at www.sbj.biz. By 2006, none of the beneficiaries or the trustee of the new trust resided in Illinois, and none of the trust assets were located there. When the state of Illinois sought to tax the new trust’s income, the trustee brought suit, seeking a declaration that the tax was unconstitutional. The trial court ruled in favor of the state, finding that the tax was constitutional. The appellate court reversed. The appellate court first reviewed case law in which testamentary trusts had sufficient contacts to a state so that taxation was constitutional. The court contrasted these cases with inter vivos trusts, which do not owe their existence to a probate court and for which any connection to the state may be “more
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attenuated.” The court cited other decisions, holding that the grantor’s residence by itself was not enough of a contact for an inter vivos trust. Thus, in this case, the original grantor residing in Illinois was “not a sufficient connection to satisfy due process.” The court also stated the focus should only be on the connections to Illinois for the tax year in question, and “what happened historically with the trust in Illinois has no bearing on the 2006 tax year.” The court emphasized that for the tax year at issue, there were no longer any connections to Illinois: All of the trust’s business, assets, trustee, beneficiary and protector were all outside of Illinois. The court ruled that without any current connections to Illinois, taxing the trust’s income violated due process. SEE STATE FOCUS / PAGE 17
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Entrepreneur’s Mailbag Website development Part 1: Understanding your web strategy BY CAVANAUGH L. GRAY SBJ CONTRIBUTOR
During the Golden Era of the Internet, we all watched as countless companies crashed and burned because, in large part, to their untested, web Gray strategies. I remember thinking, if they could only get this ‘web thingy’ right … it might have a chance of being something really big. Enamored by the Internet, I remember taking a web certification course, figuring there might be an opportunity for me somewhere down the road. I quickly realized all of that coding was not for me. I would need some of those skills later on as I looked to build a site for The Entrpreneur Café, LLC. As fate would have it, I was fortunate enough to find someone to help me translate my lofty web goals into reality. This month, we launch our first major web redesign in years. Looking ahead, this is sure to be a work in progress. However, this time around, I learned a lot about the web design process that I missed at the outset. My hope is that nontechnical and technical entrepreneurs alike can use what I’ve learned to launch their first site or update an existing one.
Website benefits and myths There are a lot of benefits to operating online. For starters, the web offers an opportunity to expand a business’ distribution channels and reach customers around the world. Operating online is the equivalent of keeping your “electronic doors” open 24 hours a day — seven days a week — allowing you to increase your earning potential. Having
Find more business news at www.sbj.biz. a website allows you to better educate your target customers and lower the overall cost of doing business. When I first launched my company’s website, I admit that I was a little naïve. I thought web development would be easy and inexpensive. I initially thought making money on the web would be a cakewalk — if I build it, they will come. Starting out, I had no idea how to translate true customer service offline, let alone online. I had the misconception that if I hadn’t launched a site at that time, then it was too late. The reality is that it’s never too late to bring a quality product or service to the web. I believe my biggest misstep was not understanding the need for a separate web strategy that would fit into my larger business plans.
Developing a design checklist My first attempt at a site felt more like a brain dump instead of a calculated approach to web development. With no rhyme or reason, I simply incorporated ideas into the site as they came to me. That first website had all of the elements that I wanted in a site, but I doubt if the content offered any real benefit to site viewers. This time around, I started off by putting myself in the customers’ shoes — designing a site around the needs of my target market. If you have a niche business, make sure that those efforts translate online. With the rise of social media, I think it’s hard to build a website without factoring in how social media might help you build an online community. In developing the new website, I found myself thinking long and hard about what kind of content would keep visitors coming back. You might not have international plans for you business at this time, but because the web is a global
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‘I remember thinking, if they could only get this ‘web thingy’ right … it might have a chance of being something really big. Enamored by the Internet, I remember taking a web certification course, figuring there might be an opportunity for me somewhere down the road. I quickly realized all of that coding was not for me,’ said Cavanaugh Gray.
platform, it doesn’t hurt to have a broader vision at the outset. It’s important to keep in mind that web related marketing requires a full array of integrated online and offline efforts in order to drive traffic. Make sure that your website says credibility — viewers will likely stick around longer on a well designed site.
Web development strategies I can talk strategy all day, but translating offline strategy to the web can prove challenging. However, I was fortunate enough to be able bounce my ideas off of a qualified web professional. For those small business owners in need of a bit more web strategy help, I recommend trying to answer the following questions: How well suited are your products and services for selling on the Web? What are the objectives you have set for your company’s website? Will your site have a simple design and how easy will it be to navigate? What’s your web investment and how will your rate of return be measured?
How will any order fulfillment be handled? What are your tactics for marketing the site and drawing traffic? The biggest lesson I would say I am learning has to do with being mindful to always give the customer what they want. With so many different functions to juggle I can see the small business owners’ case for not having a site (no need, cost prohibitive or lack of time). With an estimated 61 percent of all Internet users turning to the web to research products and services online, it’s clear that it may be a lot to learn but the positive impact on your business may be well worth it. CAVANAUGH L. GRAY (cgray@ecafellc.com) is the Director of Business Development for The Entrepreneur Café, L.L.C (877) 5114820. To read a chapter from his new book The Entrepreneurial Spirit Lives: 25 Tales to Help Entrepreneurs Start, Grow, and Succeed in Small Business log on to www.ecafellc.com. For more information on how to start, grow and succeed in small business, ‘Like’ on Facebook, ‘Follow’ on Twitter @TheECafe or ‘Connect’ on LinkedIn.
FEBRUARY 2014
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Money Matters Do you need long-term care insurance? BY SCOTT MCCLATCHEY SBJ CONTRIBUTOR
There is a good possibility that you or your spouse will eventually require some form of longterm care. According to the U.S. Department of Health and Human Services, about McClatchey 70 percent of people aged 65 or older will enter a nursing home for some period of time during their lifetime. Whether you or your spouse will be among this group is impossible to predict. But it is wise to consider how you might pay for long-term care and whether long-term care insurance is a good idea for you. LTC policies are complex and vary widely. But, in general, LTC insurance typically covers nursing home care, adult day care, visiting nurses, assisted living and in-home assistance with daily activities. LTC includes a range of
nursing, social and rehabilitative services for people who need ongoing assistance due to a chronic illness or disability. LTC insurance can be used by anyone at any age who suffers an accident or debilitating illness, but it is most frequently used by older adults who need assistance with essential physical needs, such as bathing, dressing or eating.
Cost of care Perhaps the first consideration is determining the potential cost of longterm care. Below is a summary of average current costs. $207/day for a semi-private room in a nursing home $230/day for a private room in a nursing home $3,450/month for care in an assisted living facility (for a one-bedroom unit) $19/hour for a home health aide $18/hour for homemaker services $65/day for care in an adult day health care center With health care costs rising every year, these expenses can be expected to
grow substantially over time. Furthermore, neither Medicare nor Medicare supplemental coverage, also known as Medigap insurance, typically covers long-term care. Medicaid will cover a large share of such services, but only if you meet stringent financial and functional criteria. What’s more, most employersponsored or private health insurance plans follow the same general rules as Medicare. Therefore, most people who need long-term care must pay for some or all of it on their own.
Cost of insurance Like life insurance, LTC insurance policy premiums largely depend on your age and health. If you take out a policy when you are young, you can expect to pay comparatively low premiums during the life of the plan, while starting a new policy when you are older will entail significantly higher monthly premiums. A 55-year-old couple in good health can expect to pay between $1,800 and $3,700 a year for a policy that covers nursing home care and
home care, with premiums adjusted for inflation. Most long-term care policies sold today are federally tax qualified, which means the premiums paid and out-ofpocket expenses for long-term care may be applied to the medical expense deduction of the federal tax code. (Typically, taxpayers may deduct the portion of medical and dental expenses that exceed 7.5 percent of adjusted gross income.) Additionally, long-term care benefits received are not taxed as income up to certain limits. Consult with a tax advisor to learn more about the tax implications of LTC insurance. SCOTT MCCLATCHEY is a certified financial planner with Alliance Investment Planning Group, a Carbondale investment firm at 115 S. Washington St. He can be reached at 618-519-9344 or scott@allianceinvestment planning.com. He also provides investment, retirement planning and insurance services to SIU Credit Union members through the SIU Credit Union Investment Services partnership. Securities offered through LPL Financial, member FINRA/SIPC.
Investing in small-cap stocks BY MICHAEL P. TISON SBJ CONTRIBUTOR
There are many different types of publicly-traded equity investments that can be made. Morningstar has many categories of investments or asset classes. One of the Tison basic breakdowns refers to the market capitalization (cap) of the individual equities. Large-cap stocks are considered companies 10 billion and greater, mid-cap stocks are considered from 1 to 10 billion, and small-cap stocks are considered less than 1 billion in market capitalization. In the book, “Investing in Small-Cap
Stocks,” by Christopher Graja and Elizabeth Ungar, they discuss a long-term study by Ibbotson Associates. This study shows that stocks outperformed bonds in every 20-year, rolling periods from 1926 to 1995. Additionally, in a substantial portion of those rolling periods, small-cap stocks outperformed large-cap stocks. Knowing this should make investors with a diversified portfolio consider using smallcap stocks as an asset class they invest in. Why do small-cap stocks outperform all other equity asset classes? Supply and demand is always an easy answer to give. There is usually a decent supply. Most publicly-traded companies start small. Some end small. There are thousands of small-cap stocks to invest in. I think the main factor is demand for several reasons. First, small-cap stocks are often newer companies that investors haven’t heard of. Peter Lynch, the legendary portfolio
manager of Fidelity for many years, instructed investors to invest in what they know. You know Coca-Cola and Microsoft, but you likely haven’t heard of Schweitzer-Mauduit International, Inc. or PDL BioPharma, Inc. Second, small-cap stocks are followed less by Wall Street analysts and don’t have nearly as many “buy” recommendations. Third, small-cap stocks are more risky for several reasons. Many small stocks might have only one product line and, therefore, the company has less room for error if that product fails or if someone builds a better mousetrap. They also have higher borrowing costs and can’t access the capital markets like larger companies can. Last, smaller companies also might not have the developed management teams that larger companies have. So, with these negatives, how do smallcap stocks historically have a higher
return? Ultimately, it falls back to capitalism at its best. Investors have to be rewarded over time with an additional rate of return for the additional risk they take. In the long-run, an investor’s return is directional and proportional to the risk involved. If you take a little more risk, you want a higher rate of return. Small-cap stocks can deliver this, sometimes, because management is often extremely focused on success; smaller companies can be more nimble to react to consumers, and these companies can often have rapidly growing earnings at a moderate valuation. Please make sure you talk with a financial advisor to see if small-cap stocks can work for you. Every investor’s situation is unique, and you should consider your investment goals, risk tolerance and time horizon SEE MONEY / PAGE 17
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Workplace Work experience vs. education: Which is better to hire? BY ANGELA HOLMES-YOUNG SBJ CONTRIBUTOR
The age-old question: What is more valuable to an employer? Experience or education? What is the answer? As an employer, how important is the work experience Holmes-Young component? Is all work experience good work experience? Will education suffice if the candidate has zero social skills and no workplace savvy? I remember when my brother got his first “real” job out of college. He called me to report in. I was so excited for him. However, he was not nearly as excited as I expected him to be. He just kept saying that everybody sat in cubicles and was old. I guess the “real world” was not as glamorous as he envisioned. After I laughed at him, I encouraged him to get to know those old people in the cubicles because, if nothing else, he would need their help. The story got better because he ended up making lots of friends and really loving the job. Now, for some, diving in and getting social and meeting people behind cubicle walls is just not possible. You cannot expect that of every new hire. This must be a consideration point when you are making your hiring decision. You must consider your culture. In regard to my question concerning experience vs. education, I believe that it depends on many variables. However, to get an answer to your specific job, we need to first look at the job very closely. I know every organization is a busy place. We all want the hiring to get done yesterday. We want positions filled fast. We forget filling a job isn’t a fast food scenario. When a job is open and/or vacant, there should be a series of questions that are asked within the organization before the job is filled. This
Find more business news at www.sbj.biz. might be done through a “job requisition” process, or maybe your process is less formal. Either way, this exercise is value-added. The organization needs to ask these important questions: Is this position bringing value to the organization? Is this position directly contributing to the mission and goals of the organization? What are the main responsibilities of this job? Are there other ways that these duties can be handled? After you fulfill these tasks, you will have a better idea of what the needs are. This can lead you to the answer to our question of education vs. experience. Sometimes the answer is clear, but most of the time it is not. Now you know what tasks must be done and what must be accomplished. If you are filling the job, you move forward. This is also the point at which the job description is updated. If it has recently been updated, then please review it again. Now that we understand the duties required, we can try to recruit people who can perform these duties. Here is where you must decide on experience or education or both or neither. However, I do recommend at least one of the above. So, let’s run this down. It seems often that an entry-level position may be the time to look for the educational component. Does the job require someone with specific technical skills or certifications that can only be learned in school? Stop and ask yourself if you are requiring a degree only to require a degree? Would experience suffice? What is really going on here? Many times, managers want to insist on a degree, but cannot justify the need. Either the need is there or not. Make them explain. There are always recent graduates out
The bottom line is that there is no easy answer. Take it slow. Start by considering the job and exactly what needs to get done. Then determine what kind of candidates you would like to see. Does the job allow for experience or education or both? Move slowly. Do not decide to race against the clock. The person you are hiring could be with you forever more. there — ones who truly do need jobs. When I hire someone without experience, I like to see some evidence of work ethic. Did this candidate also work while in school? Pursuing an education while working at any age is a daunting task. Anyone who can successfully do this does have some traits that are worthwhile to transition to the workplace. Also, just because an individual doesn’t have work experience in your industry doesn’t mean that this person has zero work experience. Can the applicant tie former work experience from another job to duties this person would do at your company? Are there similarities? Is this applicant smart enough to realize this? Candidates with internships can be very valuable to your organization. Do not let them slip by. Let’s talk about experience and what it means. I find that experienced workers not only have experience and skills doing the job, but they have experience in a workplace. A person with education will require only some level of training and acclamation to the workplace. The more support that someone new to the workplace can get, oftentimes the better that person will do. A seasoned worker will not require so much of that. What do you have the time for? What can your organization support? What kind of onboarding programs do you have? Training. Mentoring. These are all things to consider. Remember, not all experience is good. When you see a résumé with experience, are you stopping to take the time to look
at the experience? Are you checking into the details? The beauty of a person who lacks experience is that you can teach that individual to do it your way. However, a person with experience can bring ideas regarding different ways to do things, maybe some things that you have never considered. Are you open to new ideas? Are you available to coach someone through bad habits that you may have to break? The bottom line is that there is no easy answer. Take it slow. Start by considering the job and exactly what needs to get done. Then determine what kind of candidates you would like to see. Does the job allow for experience or education or both? Move slowly. Do not decide to race against the clock. The person you are hiring could be with you forever more. An interview is truly not enough time to get to know someone. Think this decision through, and do not rush. Use all the powers of investigation and information that you legally have at your fingertips. Use situational questions to probe for details about how these candidate will handle themselves and how they will make decisions. ANGELA HOLMES-YOUNG is a workplace expert, author and speaker in Southern Illinois. She is a Society for Human Resource Management-certified HR expert with more than 15 years of human resource experience in various industries. Her first book is due out early this year. She can be reached at ang_holmes@yahoo.com or 618-559-9399.
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Retail sales for Southern Illinois cities City Anna Benton Carbondale Carterville Chester Du Quoin Harrisburg Herrin Jonesboro Marion Metropolis Mount Vernon Murphysboro Nashville Pinckneyville Red Bud Sparta Vienna West City West Frankfort REGION ILLINOIS
YTD Nov 2013
2012
2011
2010
2009
2008
112.0 85.5 443.2 39.5 48.9 110.9 177.9 150.1 20.5 666.6 87.1 478.3 125.0 125.6 38.7 69.5 130.3 38.3 84.7 113.3 $3,145.9 $151,455.3
114.1 83.2 552.4 38.9 53.2 114.4 205.1 152.5 11.8 620.1 77.8 494.9 127.5 116.3 38.6 78.4 120.2 38.4 87.1 70.8 $3,192.7 $152,406.7
119.1 86.4 593.5 42.0 55.7 113.5 214.0 154.0 11.4 686.9 84.4 533.6 135.2 110.3 42.3 74.7 128.2 40.1 88.3 122.5 $3,436.1 $154,650.6
120.9 69.5 598.0 42.2 55.3 77.1 195.0 153.4 11.8 683.1 82.0 507.0 130.6 96.6 38.5 75.2 128.5 39.9 87.8 112.4 $3,304.8 $147,232.0
114.5 69.4 565.5 39.9 52.9 100.8 191.9 147.2 12.5 676.0 77.1 476.7 129.1 107.9 37.2 70.1 126.4 37.1 91.9 111.4 $3,235.5 $139,593.2
113.3 71.4 587.7 40.1 51.5 91.9 179.3 135.9 12.4 673.4 75.9 482.8 117.1 101.8 39.0 77.7 130.5 40.5 89.6 111.2 $3,223.0 $157,071.1
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N I L L I Chicago Fed Midwest % change 08-11 Manufacturing Index
0.7% 16.5% 6.0% 3.2% 3.3% 24.5% 14.4% 12.2% 4.8% 7.9% 2.5% 2.5% 8.9% 14.2% 1.0% 0.9% 7.9% 5.2% 2.8% 36.3% 0.9% 14.2%
Alexander Franklin Gallatin Hamilton Hardin Jackson Jefferson Johnson Massac Perry Pope Pulaski Randolph Saline Union Washington White Williamson .,REGION ILLINOIS U.S.
2,781 16,962 2,446 4,064 1,717 31,077 19,459 5,080 7,161 8,911 1,783 2,708 14,647 12,689 7,717 8,824 7,256 33,916 189,198 6,520,541 154,839,000
292 2,023 226 284 181 2,266 1,646 491 529 975 172 274 1,162 1,165 755 524 532 2,718 16,215 542,820 11,272,000
Oct 2013
Sept 2013
12.5% 12.2% 10.0% 7.0% 11.3% 7.7% 8.8% 10.3% 7.8% 11.0% 9.9% 11.1% 8.0% 9.6% 10.7% 6.2% 7.7% 8.1% 8.6% 8.3% 7.3%
12.0% 12.9% 10.9% 8.8% 12.8% 9.2% 9.4% 11.6% 9.0% 12.7% 11.2% 11.9% 9.1% 10.6% 11.9% 7.7% 8.7% 9.2% 8.4% 8.3% 7.2%
104 103 102
IPMFG Oct 13 97.8
100 98 94 90 88 86 84
81 80
Unemployment rates for Southern Illinois counties, state and nation Jobless
105
82
SOURCE: LATEST STATISTICS AVAILABLE FROM THE ILLINOIS DEPARTMENT OF REVENUE. FIGURES ARE IN MILLIONS.
Labor force
The CFMMI is a monthly estimate by major industry of manufacturing output in the Seventh Federal Reserve District states of Illinois, Indiana, Iowa, Michigan and Wisconsin. It is a composite index of 15 manufacturing industries, including auto and steel, that uses electrical power and hours worked data to measure monthly changes in regional activity. It is compared here to the national Industrial Production index for Manufacturing (IPMFG). Base year is 2007. Starting in November 2005, the index excluded the electricity component.
Oct 2012 11.7% 12.2% 8.9% 8.3% 11.4% 8.4% 8.8% 10.9% 9.0% 11.9% 11.1% 10.8% 8.8% 9.0% 10.8% 7.3% 8.5% 8.8% 8.5% 8.3% 7.9%
Change month
78
Change year
0.2 0.3 0.0 0.5 0.2 0.3 0.3 0.1 0.2 0.1 0.3 0.3 0.1 0.1 0.0 0.1 0.1 0.2 0.2 0.0 0.1
SOURCE: ILLINOIS DEPARTMENT OF EMPLOYMENT SECURITY, U.S. DEPARTMENT OF LABOR. FIGURES ARE NOT SEASONALLY ADJUSTED.
76 74 72
CFMMI Oct 13 97.4
0.9 0.9 70 1.0 68 0.4 66 0.1 64 A M J J A S O N D J F M A M J J A S O N ’12 ’13 0.1 0.5 SOURCE: FEDERAL RESERVE BANK OF CHICAGO 0.0 1.6 0.0 0.2 0.0 Dec 13 Dec 12 Change 0.2 0.9 MONTHLY TOTALS 0.1 855 856 <.01% 0.3 YTD TOTALS 0.1 0.1 10,476 10,170 3.0% 0.1 2012 2011 Change 0.0 ANNUAL TOTALS 0.6 10,170 9,682 5.0%
Williamson County Regional Airport passengers
thesouthern.com 1 most visited news, information and advertising #
website in Southern Illinois.
N
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I S I N Consumer credit score
D
SOURCE: EXPERIAN
A
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693
Herrin
Region
694
688
State
O R S U of I Flash Index
U. S.
Total cars, trucks sold based on title applications filed. Excludes motorcycles, trailers.
New vehicle sales Sept 13 Sept 12 8 113 20 23 6 123 91 39 25 54 9 17 91 95 43 70 58 225 1,110
C
686
Credit scores are numeric reflections of financial behavior and credit worthiness and they are based on information included in a credit report. Ranging from 330 to 830, a higher score means a lower credit risk. Scores are from December 2013.
Alexander Franklin Gallatin Hamilton Hardin Jackson Jefferson Johnson Massac Perry Pope Pulaski Randolph Saline Union Washington White Williamson REGION
I
13 76 12 18 6 123 67 31 17 45 6 13 69 75 39 27 43 194 874
Change
2011
38.5% 48.7% 66.7% 27.8% 0.0% 0.0% 35.8% 25.8% 47.1% 20.0% 50.0% 30.8% 31.9% 26.7% 10.3% 159.3% 11.6% 16.0% 27.0%
142 1,174 265 279 96 1,482 1,025 392 297 606 96 159 975 1,022 502 583 625 2,060 11,780
2010 126 965 222 236 97 1,320 848 327 269 558 73 129 844 793 486 446 571 1,796 10,097
Change
12.7% 21.7% 19.4% 20.8% 1.0% 12.3% 20.9% 19.9% 10.4% 8.6% 31.5% 23.2% 15.5% 28.9% 3.3% 30.7% 9.5% 14.7% 16.7%
J
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A
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A
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S
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SOURCE: INSTITUTE OF GOVERNMENT AND PUBLIC AFFAIRS, UNIVERSITY OF ILLINOIS
Hotel/motel stats
Consumer Price Index
Total amount of revenue generated in Carbondale by hotels and motels for room rentals only.
The CPI measures average price changes of goods and services over time, with a reference base of 100 in 1982-84.To put into context, a current CPI of 194.5 means a market basket of goods and services that cost $100 in 1982-84 now costs $194.50.
Aug 13 Aug 12 MONTHLY TOTALS
Change
$758,938
$815,850
7.5%
234
YTD TOTALS
232
$5,309,375
$5,119,025
2012 ANNUAL TOTALS
2011
3.6%
230
Change
228
U.S. City Average Dec 13 233.0
226
$7,728,261 <0.01%
224
222
Total units sold, including condominiums
Q3 13 Alexander Franklin Gallatin Hamilton Hardin Jackson Jefferson Johnson Massac Perry Pope Pulaski Randolph Saline Union Williamson ILLINOIS
Dec 13 107.0
$7,732,810
SOURCE: ILLINOIS SECRETARY OF STATE’S OFFICE. LATEST DATA AVAILABLE.
Home sales
108 107 106 105 104 103 102 101 100 99 98 97 96 95 94 93 92 91 90 89
The Flash Index is an early indicator of the Illinois economy’s expected performance. It is a weighted average of growth rates in corporate earnings, consumer spending and personal income. An index above 100 indicates expected growth; an index below 100 indicates the economy is contracting.
5 92 7 0 3 108 92 33 28 28 3 1 33 44 33 225 45,252
Q3 12 5 86 4 5 2 110 69 16 34 21 2 1 38 47 23 182 36,385
Change
0.0% 7.0% 75.0% 100.0% 50.0% 1.8% 33.3% 106.3% 17.6% 33.3% 50.0% 0.0% 13.2% 6.4% 43.5% 23.6% 24.4%
2011 16 283 12 6 14 325 258 66 82 86 10 11 117 148 89 539 103,294
2010 19 259 8 8 8 358 264 78 91 116 8 6 131 122 84 590 103,455
Change
15.8% 9.3% 50.0% 25.0% 75.0% 10.2% 2.3% 15.4% 9.9% 25.9% 20.0% 83.3% 10.7% 21.3 % 6.0% 8.6% 0.2%
MEDIAN SALES PRICE Q3 13 Q3 12 $35,000 $54,000 $59,500 $0 $60,000 $90,500 $110,000 $100,000 $81,000 $69,950 $134,000 $25,000 $63,000 $50,000 $49,000 $105,950 $165,000
$33,000 $64,950 $74,000 $79,500 $70,500 $91,450 $89,000 $79,500 $69,500 $55,000 $28,500 $53,500 $85,000 $55,000 $106,000 $101,750 $145,000
220
Change
218
6.1% Midwest Urban 16.9% Dec 13 221.2 19.6% 100.0% 14.9% 1.0% SOURCE: U.S. DEPARTMENT OF LABOR 23.6% 25.8% 16.5% 27.2% Average price per gallon of regular, unleaded gas 370.2% as of Jann. 27, 2014 and Dec. 23, 2013. 53.3% Jan 14 Dec 13 Jan 13 25.9% $3.36 $3.16 $3.39 9.1% Metro East 53.8% Springfield $3.29 $3.28 $3.28 4.1% Illinois $3.39 $3.33 $3.44 $3.28 $3.25 $3.35 13.8% U.S. 216
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Monthly Unique Visitors:
Monthly Visits:
2,763,501
496,023
947,562
Let us help grow your business. Call (618) 351-5014 *January 2014 omniture
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Prices at the pump
SOURCE: AAA
SOURCE: ILLINOIS ASSOCIATION OF REALTORS
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SOUTHERN BUSINESS JOURNAL
FEBRUARY 2014
Elder Law Get your billion back BY RICHARD HABIGER SBJ CONTRIBUTOR
If the catchy title to this article looks familiar, it ought to. I shamelessly stole it from an advertising campaign of a certain company that prepares individual income Habiger tax returns. No, this article is not about income tax returns, but it is about not leaving money on the table when doing Medicaid asset preservation planning for nursing home and other long-term care. This month’s article, as well as the articles that will appear in the April and May issues of Southern Business Journal , will discuss three cases. Two cases were improperly handled and caused the seniors’ hard-earned savings to be forfeited to the government. In the third case, the senior kept essentially everything that the government challenged. This month’s case, Evans v. State of Illinois, involves a fact pattered that is similar to what this author has seen several times in which an unscrupulous insurance agent preys on a naïve client and conspires with an unscrupulous funeral home. The basic idea is the agent persuades a client, who is on the doorstep of a nursing home, that the client does not need to hire an attorney to assist with Medicaid planning, that he (the non-attorney insurance agent) can
do the planning “free of charge.” Then the insurance agent sells the client an insurance policy that is supposed to pay an inflated sum for a funeral. Later, after the client dies, the funeral home provides a basic funeral, the cost of which is much less than the life insurance death benefit. The client’s family then receives the balance of the insurance proceeds from the funeral home. All of this, of course, is totally illegal in the context of a Medicaid plan. And, if any of the co-conspirators were to be caught, it could result in significant prison time. The Evans case, however, does not involve a criminal prosecution. Instead, it involves conduct that caused the senior and her family to lose a significant sum of money. Peggy Evans, a resident of a nursing home, filed for Medicaid assistance to help pay for her care at the facility. At the urging of an insurance agent and without the involvement of an elder law attorney, Evans purchased a life insurance policy in the amount of $12,000. That same day, the proceeds of the policy were assigned to an irrevocable trust. The trust named plaintiff’s three children as the residual beneficiaries. The trust required the trustee to pay the funeral and burial expenses incurred, as long as evidence of those expenses was presented to the trustee within 45 days of Evans’ death. Under the terms of the trust, the trustee could not pay any expenses after 45 days of Evans’ death. The trust provided that any remaining assets were
to be distributed to the residual beneficiary. The Illinois Medicaid agency approved Evans’ application, but determined she was ineligible for Medicaid funding for a three-month period for the $12,000 insurance purchase. Evans appealed and argued the $12,000 life insurance purchase was exempt from any penalty because its proceeds were assigned to an irrevocable trust to pay an estimated $12,000 in funeral and burial expenses. Evans presented an estimate for anticipated funeral and burial costs by a local funeral home in the amount of $12,136.48. However, Evans conceded she did not enter into any contracts regarding those services. Although Evans created an irrevocable trust funded by a life insurance policy, there was no burial contract. The Medicaid manual defined a prepaid burial contract as an agreement whereby the buyer paid in advance for a burial that the seller agreed to furnish upon the death of the buyer or other designated individual. The appellate court held that a contract was necessary in order to make the life insurance purchase one which is not subject to penalty. In short, it appears the life insurance salesman persuaded Evans that she did not need to consult with an elder law attorney and that he could save her family a sum of money by participating in his scheme. The moral of the case is seniors should always consult with an
experienced elder law attorney when conducting nursing home or other longterm care planning, no matter how much their financial professional tries to persuade them that it is unnecessary to involve an attorney or that the financial professional is the only professional that is needed. To read the appellate court’s opinion in the Evans case, go to http://www. state.il.us/court/Opions/Appellate Court/2013/4thDistrict/4121082.pdf. RICHARD HABIGER is author of the Illinois edition of “How to Protect Your Family’s Assets from Devastating Nursing Home Costs: Medicaid Secrets” and an elder law attorney who focuses on asset protection, Medicaid and VA benefits. He can be reached at 618-549-4529 or info@HabigerElderLaw.com.
T AR
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COVER: New laws on speed limit, cellphone use impact regional businesses FROM PAGE 4 There may be several reasons patients may not be using healthcare facilities. “We cannot say if the act is driving anymore patients to SIH facilities” said Rex Budde, SIH president and CEO. “We haven’t noticed any significant fluctuations, but also this time of year can cause volumes to fluctuate just
because of the impact of the holidays and peoples desires to stay out of the hospital.” Kasser said it’s too early to tell if more patients have insurance. “Some people who acquire insurance on the exchanges may have done so because they lost their coverage at work. Most of the increased coverage in southern Illinois is projected to come from the Medicaid expansion,” Kasser
said. “Medicaid is by far the worst payer for all Illinois hospitals.” Still, some patients may not have insurance at all. “SIH has had a long established Healthcare Assistance Program and that has not changed,” Budde said. “SIH is very aware of the financial burden being sick can put on a family or individual so we continue to make sure we are sensitive to what we collect from
patients who do not have insurance. We have also adapted some of our policies for both state and federal laws that dictate what we can charge a patient who doesn’t have any insurance.” For more information on these and other new laws, visit www.illinois.gov. DEB SAUERHAGE is a correspondent for the
Southern Business Journal.
14
SOUTHERN BUSINESS JOURNAL
FEBRUARY 2014
Achievements Brokers receive GRI training
Faces in the news
D. Lence
L. Lence
Tomazzoli
Debbie Lence and Lisa Tomazzoli, brokers with Linda Lence Real Estate in Anna, recently graduated from the Graduate Realtor Institute in Itasca, while managing broker Linda Lence, GRI, CRS, attended the GRI graduate course. Debbie Lence and Tomazzoli were two of 55 realtors to earn the GRI designation in Illinois in 2013. A GRI is a mark of a real estate professional that has, over a three-year period, made the commitment to provide a high level of professional services by securing a strong educational foundation. The graduate course is offered to real estate brokers who have achieved the GRI designation. Linda Lence, Debbie Lence and Tomazzoli are joined by fellow GRI designated broker Brian Lence and real estate broker Melody Gamber.
Williams
Davis
Hughes
Latoz
Lambert
Wheeler
Wolaver
Sheley
Faces in the news Have you been promoted? Send a photo. Others in the business community will want to know it, so please consider passing on your employment news and photos to the Southern Business Journal. Feel free to email the information to sbj@thesouthern.com.
Find more business news at www.sbj.biz.
Aisin announces promotion
Jason Zemaitis and Nicholas Williams from White and Borgognoni Architects, a full-service architectural firm in Carbondale, have passed the Architectural Registration Exam. Zemaitis has become a licensed architect in the state of Illinois, and Williams has applied for licensure in the state. Zemaitis has more than 10 years of experience with the firm, and Williams has more than nine. Both earned a bachelor’s degree in architectural studies from SIU.
Aisin Manufacturing Illinois in Marion recently announced promotions to support continued business growth and introduction of new products. Promotions include Gary Willis, section manager, Doors/Locks Manufacturing; Jonathon Steinsultz, section manager, Injection Manufacturing; Brad Staley, section manager, Rim/Glass Manufacturing; Curtis Drake, section manager, Injection Manufacturing Engineering; Jason Green, section manager, Human Development; Paul Gualdoni, assistant manager, Facilities; Dan Griffith, assistant manager, Injection Manufacturing Engineering; Eric Miller, assistant manager, second shift Logistics; Walter Kirslis, assistant manager, Launch; Todd Lingner, assistant manager, Quality Control/Receiving Inspection; Justin Wingate, assistant manager, Rim/Glass Manufacturing; Jason Monchino, assistant manager, Cost; and Jeff Green, assistant manager, Information Systems.
Local leaders attend training institute
Grant to promote dual credit business education
Five local residents recently participated in a four-day inaugural executive education training at Harvard University in Cambridge, Mass. Those selected to attend from Illinois were Dale Fowler of Harrisburg, Peoples National Bank; Michael Tison of Harrisburg, Raymond James Financial Services; John Gulley of Sesser, Franklin County government; Angie Hampton of Eldorado, Egyptian Public Health; and Kim Sanders of Benton, SIU School of Medicine Rural Health. The Delta Regional Authority partnered with Harvard’s John F. Kennedy School of Government to provide a training opportunity exclusively to the Delta Leadership Network. The program, designed and led by Harvard faculty, focused on cutting-edge leadership principles in the U.S.
Southeastern Illinois College has been awarded a Dual Credit Enhancement Grant by the Illinois Community College Board. SIC currently has dual credit arrangements with all nine of its district high schools, which allow students to receive college credit while still in high school. Now that the college offers an Associate in Applied Science in Business Management, available 100 percent online, high school juniors and seniors who qualify for the Early College Program could take these online business courses as a dual-enrolled student. Additionally, the $7,749 grant allows SIC to form a team that includes both high school and SIC faculty and staff to create a plan for high school business and computer courses, taught by high school instructors, that can be taken during high school freshman and sophomore years, to further prepare students for dual credit and dual enrollment courses to be taken during junior and senior years.
Zemaitis, Williams pass ARE Zemaitis
Paducah was recently recognized among the nation’s best by the American College of Cardiology. Baptist Health is one of only 197 hospitals nationwide to receive the NCDR (National Cardiovascular Data Registry) ACTION Registry – Get With the Guidelines Platinum Performance Achievement Award.
Hospital receives national award Heart attack treatment at Baptist Health
FEBRUARY 2014
SOUTHERN BUSINESS JOURNAL
15
Achievements Personal Finance recognizes employees
Diane Davis has been promoted to branch manager of Personal Finance Company in Pinckneyville, Davis joined PFC in 1974. Stephanie Hughes and Melissa Latoz will assist Davis. Hughes recently moved to Pinckneyville and has a background in banking. Latoz will work part time when she is not working for the home office as a trainee specialist.
Lambert named managing partner Ely Lambert of Marion has been promoted to managing partner for Modern Woodmen of America. As a managing partner, Lambert offers career opportunities for local financial representatives. The Marion office is at 502 S. Court St. For more information about fraternal programs or career opportunities, call Lambert at 618-339-5339 or visit mwacareers.org.
Wheeler completes training courses Ann Wheeler of the Carbondalebased Wheeler Therapeutic Massage, recently completed the John Barnes Myofascial Release Cervical-Thoracic and Rebounding courses in Chicago. She now qualifies as an intermediate practitioner. Wheeler is a licensed massage therapist specializing in Barnes MFR for pain relief, relaxation and self care. She received a bachelor’s degree with a specialization in athletic training in 1985 and has practiced as a physical therapist assistant since 1986. She can be reached at 618-201-2938 and via facebook.com/wheelertherapeutic massage.
Crocker to serve on advisory committee Franklin County Chairman Randall Crocker has been elected to a four-year term on the Advisory Committee of Governmental Interinsurance Exchange, known as GIE. As a participant of the five-member committee, Crocker will review current financial information and risk management activities and provide
feedback, ideas and suggestions regarding GIE’s operations, products and services. Crocker was originally appointed to the GIE Advisory Committee in 2006 and recently elected to serve for the 2014-2017 term.
Rajamahanty is a board certified urologist who began offering a clinic at Marshall Browning Hospital in July 2012. Due to the increased demand, he will offer an additional clinic each month and outpatient cystoscopy services at the hospital.
Campbell honored for excellence Tammy Campbell has been named Exceptional Employee of the Year at Shawnee Professional Services, formerly Shawnee Survey & Consulting, Inc. She was recognized Dec. 13 at the company’s Christmas banquet. Campbell received the honor for her service as grant administrator for Shawnee. She has been employed in this capacity for the last 23 years. Headquartered in Vienna, the fullservice surveying and engineering firm serves local clientele, municipalities and the energy sector, with satellite offices in Benton and Paducah.
Bank of Whittington earns top rating BauerFinancial has recognized State Bank of Whittington in Benton on its 5-star rating. This rating, based on Sept. 30 financial data, indicates that State Bank of Whittington is one of the strongest banks in the nation. In fact, the bank has earned a 5-star or 4-star BauerFinancial rating for the last 97 consecutive quarters.
Eldorado, operated by Wolaver. He will continue to manage those offices in addition to his involvement in the Carbondale practice. Ron Barnett, Mort Levine and Jerry Starnes will remain active in the firm.
Sheley named general manager Mocabys join Boondock’s Seafood Co.
Jameson Sheley of Glen Carbon, who has managed athletic field projects at SIU, has been named general manager of John and Staci Mocaby, a husband and wife team, have accepted positions at the sports division for the St. Louisbased Byrne & Jones Construction. Boondock’s Seafood Co. in Carbondale. Sheley has managed some of the John has been named general manager company’s largest athletic field projects, and executive chef, with Staci as including work for SIU, Southeast assistant manager. Missouri State University and SIUOriginally from Southern Illinois, Edwardsville. He earned a degree in John’s culinary career took him to construction management from SIUFlorida, where he worked for BRAVO, Edwardsville. Wolfgang Puck’s Restaurant at Walt A commercial paving contractor, Byrne Disney Resort and the Floridian Yacht & Jones Construction builds and Club in Naples. maintains parking lots, roads and Staci, a native of central Illinois, has highways, athletic fields, running tracks, worked as supervisor at Walt Disney’s tennis courts, underground drainage Planet Hollywood, where she catered systems and paved surfaces. several movie premiers.
Wolaver joins Barnett & Levine Earon Wolaver has joined Barnett & Levine, CPAs. He graduated from SIU in 1995 with degrees in accounting and finance and has 17 years experience in auditing and taxation. Barnett & Levine, founded in 1977, is acquiring the former Krehbiel & Associates LLC offices in Marion and
Larry’s Towing earns national award Larry’s Towing, a longtime Carbondale business, has received the American Towman 500 Award. Larry’s Towing has ranked on the Towman 500, “Most Experienced Towmen in America.” Compiled by American Towman Magazine, the
Aisin achieves safety milestone Aisin Manufacturing Illinois, LLC, in Marion achieved a safety milestone and established a new plant standard as the team surpassed 4 million hours worked without a lost-time accident. AMI had previously achieved 1 million hours on two different occasions, 2 million hours in early 2012 and 3 million hours in early 2013. Aisin Mfg. also has received seven consecutive safety awards from the parent company, Aisin Holdings of America.
Rajamahanty to expand clinic hours Dr. Srinivas Rajamahanty will expand his clinic hours at Marshall Browning Hospital in Du Quoin and begin offering urologic endoscopy services.
PROVIDED
Committed to Regional Economic and Community Development and Growth With the help of low interest commercial loan programs, CCI has been able to meet the financial needs of eligible new and established businesses by: • Direct loans to businesses • Partnerships with banks to create attractive loan packages • Partnerships with the small business development centers in the region to provide technical assistance. • Working with local economic development professionals to gain local government support for projects. • Creating business-to-business deals that are mutually beneficial.
Want to learn more about Champion Community Investments? For general inquiries:
Rex Duncan, 618-453-1268
Need help financing your small business? Champion Community Investments is proud to be one of the leading lenders to eligible new and established businesses in select counties in southern Illinois. Our mission is to ensure that sufficient capital is available to fuel business growth and job creation for promising small businesses.
Champion Community Investments is now a Certified Community Development Financial Institution (CDFI)
For loan inquiries:
Jeff Ashauer, 618-357-2940 For technical assistance:
618-563-2424
www.ccinvestments.org Growing the Region One Business at a Time
FEBRUARY 2014
SOUTHERN BUSINESS JOURNAL
STATE FOCUS: Tax on trusts is unconstitutional if no connection to Illinois FROM PAGE 5 The Linn decision provides a good reason to re-evaluate if an Illinois trust continues to have sufficient connections to the state to be taxed. In particular, under Illinois law, if the grantor of a trust resides in Illinois when it becomes irrevocable, the state considers it to be an Illinois trust for tax purposes. The Linn decision effectively invalidates that position when a trust no longer has any connections to Illinois. In the wake of the Linn decision, it is advisable to review any trusts established in Illinois and ask a variety of questions, including: Have any of the original connections — trustee, beneficiaries or location of assets — migrated away from Illinois, so that there are no longer sufficient connections with Illinois? Does the trust agreement, like that in Linn, allow for a power of appointment permitting a new trustee or trust to be established outside of Illinois? If a trust has had no connections with Illinois for many years, but has still filed Illinois returns and paid taxes, should the trust file for refunds? Should such a trust file a return for 2013? Is a trust that is created by a revocable trust of an Illinois grantor at the
grantor’s death, that otherwise has no Illinois connections, closer to a testamentary trust or inter vivos trust for tax purposes? If a trust’s only current connection with Illinois is a trustee who resides here, should that trustee be replaced by a non-resident? If a trust with some connections to Illinois is “decanted” (that is, its assets transferred) to an out-of-state trust, would that trust cease to have the minimum connections to Illinois? The state of Illinois has until Feb. 26 to petition the Illinois Supreme Court to review the Linn case. But unless the Supreme Court first accepts review and then overturns or alters the decision, it remains the law of Illinois. As such, if you are a beneficiary or a trustee of a trust originally created in Illinois, and there is any question as to whether the trust still has sufficient connections to Illinois to be taxed, you may wish to discuss the Linn decision with your trust lawyer. E. KING POOR, a partner at Quarles & Brady LLP in Chicago, concentrates on the trial and appellate practice involving business and commercial litigation. KIRK HOOPINGARNER is a partner in the firm’s Trusts and Estates and Tax-Exempt Organizations practice groups.
Achievements Towman 500 is based on the oldest established towing businesses in America. Larry’s Towing was established in 1969. The award recognizes the nation’s oldest family-run towing companies with excellent safety records. Owned by Donna and Dan Throgmorton, Larry’s Towing is based at 820 N. Washington St.
Bank opens up new location First Southern Bank has opened at 505 Commerce Drive in Carterville, making this location the first in Williamson County for the bank. Construction for a permanent location in Carterville will begin as early as spring. “Carterville was an ideal location for our customers, and this new branch opening is part of First Southern Bank’s continued commitment and approach to providing outstanding customer service and convenience.” said John Dosier, president and CEO of First Southern Bank. The Carterville banking staff brings more than 100 years of banking experience to the new First Southern Bank location.
Laura Hughes Agency honored
MONEY: Investing in small-cap stocks FROM PAGE 7 before making any investment. Investing involves risk, and you may incur a profit or loss, regardless of strategy selected. The forgoing is not a recommendation to buy or sell any individual security or any combination of securities. Any opinions are those of Michael P. Tison and not necessarily those of RJFS or Raymond
James. Expressions of opinion, as of this date, are subject to change without notice. MICHAEL P. TISON is a registered principal/financial advisor with Raymond James Financial Services, Inc., member FINRA/SIPC. Raymond James has offices in Marion and Harrisburg at 37 S. Main St. He can be reached at 618-253-4444.
17
The Laura Hughes Agency in Carbondale has been designated an Allstate Premier Agency for 2013. The Allstate Premier Agency designation is bestowed upon less than 38 percent of Allstate’s nearly 10,000 agency owners across the country. Hughes received this designation for her outstanding performance and commitment to putting customers at the center of her agency’s work. The Laura Hughes Agency is located at 305 S. University Ave.
Rice, O’Keefe to speak at national conference Southeastern Illinois College’s Jonah Rice and John A. Logan College’s Steve O’Keefe have been selected as presenters at the national conference of the Higher Learning Commission. The conference will be April 10 to 14 in Chicago. Rice is president of SIC, and O’Keefe is director of college relations at JALC. The two collaborated on a project titled, “Anticipating the Community College Leadership Void with an Internal Development Plan.” The project is based on an internal leadership program that Rice helped develop at SIC and O’Keefe’s doctoral research on the effect that recent, massive retirements are having on community college leadership.
Ashe, Ross elected to builders association Steve Ashe from E.T. Simonds Construction Company in Carbondale has been elected second vice president of Southern Illinois Builders Association, and Jerry Ross from Ross Construction, Inc., in Marion was elected as a three-year director. Also elected were Bill Tindall of Pontoon Beach, president; Harvey Wolf of Granite City, first vice president; Kent Richardson of St. Louis, secretary/treasurer; Ken Kilian of Mascoutah, three-year director; Terry Yates of Wood River, three-year director; R. Mark Darr of East Alton, three-year associate director; and Pat Mandeville of Shiloh, three-year associate director.
POWER CHECK EMPOWER YOURSELF
FEBRUARY 22 SIH THE PLACE UNIVERSITY MALL 8:00 AM - NOON
SCREENINGS CHOLESTEROL BLOOD PRESSURE GLUCOSE WALK WITH A DOC Take a POWER Trip around the mall with experts in heart
ONE-ON-ONE CARDIAC RISK ASSESSMENT POWERFUL HEART TOPICS
Registration is required for screenings. Space limited.
CALL 866-744-2468
FEBRUARY 2014
SOUTHERN BUSINESS JOURNAL
19
Business Fine Print Building permits Carbondale Gordon Plumb, 708 S. Emerald Lane, $2,500 E. Godinez and J. Mejia, 250 Kelly Rae Lane, $60,000 Muhammad Isa, 2950 Alveria Drive, $50,000 Home Rentals, 504 S. Beveridge St., $1,500 Sigma Pi Beta Nu, 403 W. College St., $20,000 Amelia Sobery, 505 W. Pecan St., $2,500 Patricia Goodman, 1107 W. Walkup Ave., $500 Selective Site Consultants, 300 S. Marion St., $50,000 Southern Illinois Healthcare, 1237 E. Main St., $72,500 Collectibles and Things, 1301 W. Main St., $5,000
Marion Erica Pancoast, 1012 W. Main St., $80,900
Metropolis Liberty Energy Mid-States, 615 10th St. East, $6,000 William Souders, 2 Joann Drive, $12,000 Mike Souders, 606 Seventh St., $15, 250 Thomas Helm, 24 Hilanoa Drive, $350 Chris Cromeens, 751 12th St. East, $850 Linwood Real Estate LLC., 1 Marys Lane, $5,000 Metropolis Drugs II, 1201 10th St. West, $10,000 Michael Shearer, 800 Seventh St. East,$59,450
Mount Vernon Kirlin’s Hallmark – Times Square Mall, 417 S. 42nd St., $150,000 Gallery 223 – Kip Bauer, 120 S. Ninth St., $160,530 Dollar General, 1310 Salem Road, $6,813 Dollar General, 1310 Salem Road, $600,000 Archway RV Park, 9746 Illinois 15, $1,630 Archway RV Park, 9746 Illinois 15, $1,947 Joy Global, 4111 N. Water Tower, $7,850 Wendy McClanahan, 825 Newby, $0 Magnum Steel, 200 Shiloh Drive, $10,000 Vaporz, 604-C S. 42nd St., $1,500 Asian Buffet, 415 S. 42nd St., 419, $165,000 Country Financial, 2511 Broadway, $1,890 Mount Vernon Eye Care – Times Square Mall Remodel, 3917 Broadway, $67,284 Tyler Jefferson Motors, 200 S. 45th St., $16,861 Vanex, Inc., 1700 Shawnee, $20,281 William Cook, 101 McCauley Road, $961 Central Church, 324 N. 12th St., $0 Guy Henry, 625 S. 12th St., $0 Ryan Lynch, 623 N. 12th St., $4,200 Krazy Klowns, various locations, $0
Murphysboro Lana Agnew, 604 S. 23 rd St., $2,122 Chris Grither, 104 E. Walnut St., $2,600 Adam Beck, 142 Ruble Drive, $5,000
Todd Pierson, 114 S. 14th St., $100,000 Randy Wood, 909 N. Sixth St., $6,350 Mr. Jecc, LLC, 2120 Hortense, $3,000
West Frankfort David and Cherri Horsley, 116 N. Benton Road, $26,000
Bankruptcies Chapter 7 Kyle A. and Megan K.N. Brooks, P.O. Box 722, Shawneetown Brian R. Ervin, 700 W. Parrish, Harrisburg Jack H. and Sonya R. Bowsher, 501 E. Robinson, Wayne City Carl P. and Juanita L. Pierce, 211 Washington, P.O. Box 65, Browns Adam L. and Rachael M. Baggett, 235 Shawnee Drive, Goreville Bentley J. Bender, 6143 Chautauqua Road, Murphysboro Gus George and Joy Leslie Macropoulos, 307 E. Emma, Christopher Jimmy A. McGhee Jr. and Sandra J. McGhee, 611 Baggott St., Zeigler Richard Keling, 1511 Goldenrod Road, Coulterville Anthony and Delois J. Ford, 1705 N. Smith St., Marion Gary D. and Freda K. Treece, P.O. Box 162, West Salem Donald Matthew Norman, 2230 Masonic Cemetery Road, Raleigh Tyler J. and Donna M. Walters, 1104 Brook Lane, Harrisburg Donald and Christy McClenahan, P.O. Box 435, Elizabethtown Randall L. Leverette, 301 N. 14th St., Apt. 606, Herrin Melody Renee Olguin, 800 N. Eighth, Murphysboro Wilma J. Shadowens, 1501 Morgan Ave., Marion Kevin R. and Trina S. Darnell, 3963 Illinois 37, Marion Marsha Kay and Keith A. Parker, 7975 Riepe Ridge Road, Metropolis Chad F. Hudson, 1250 Old Illinois 146 Loop, Vienna Charles Douglas and Debra Diane Hook, 86 Honeysuckle Road, Marissa William H. and Kathy Chapman, 800 Springville Hill Road, Jonesboro Max H. McCollum Jr., 210 N. Linden, Du Quoin Patrick R. Steinmetz, 2076 Herrin Road, Carterville Tlisa Cargill, 126 Illinois 145 South, Grantsburg Mary F. Keller, 900 Brady Mill Road, Apt. 4C, Anna Michael L. and Jamie Lynn Watson, 16768 E.
Beal Road, Mount Vernon Devon E. Almaroad, 19661 Illinois 14, Macedonia Angela M. Downen, 306A Park Ave., Ina Mia Elizabeth Travelstead, 16495 Illinois 37, Johnston City Danton W. and Melissa L. Stewart, 1314 W. Delaware St., Fairfield John C. and Cathy A. Terry, 21455 Shawneetown Road, Thompsonville John D. Koval, 2306 Old Broughton Road, Eldorado Myra L. Jones, 1913 East B St., West Frankfort Steven L. Shales, 136 Illinois 146 West, Golconda Willard E. Hughes II, 624 Truax Traer Road, Elkville Meredith J. Harvel, 801 Laminack Road, Carterville Darla J. Mills, 208 S. Sixth St., Elkville Dorothy Kathleen Eller, 1115 Oakland Ave., Mount Vernon Jeff A. and Glenda R. McKinney, 132 Hillside Terrace, Anna Mildred Renate Isom, P.O. Box 164, Raleigh Larry D. Cantrell, 1021 N. Ninth St., Benton Allan T. Nicholson, 14751 N. Paul Lane, Bluford Amy Bigham, 75 Walton Lane, Apt. A., Anna Daniel E. and Kristina N. Richardson, 13632 E. Bakerville, Mount Vernon Vicky D. Karcher, 700 N. 11th, Mount Vernon Billie Jo Allen, 200 A. Harmsen Circle, Chester
Chapter 13 Phillip L. and Angela M. Bailey, 419 N. Thompson St., Carrier Mills Roxanne Bryant, 11268 Linck Road, Marion John A. and Darla B. Shelby, 605 First St., Carterville James L. White, 203 E. Boulevard, Marion Gerald T. and Ellen L. Gooden, 401 W. Grand, Carterville Joshua Cluck, 1315 Pearl Ave., Centralia Philip A. Wilkerson, 710 E. Taylor, Benton John Michael and Gloria D. Gwaltney, 370 Country Acres Lane, Eldorado Donald L. and Sharon L. Greathouse, 106 W. Seventh, West Frankfort Gregory Brandon, 921 N. Marion, Carbondale Shantone M. Edwards, 702 Fourth St., Mounds Steven J. and Katrina G. Barnes, P.O. Box 228, Goreville Daniel A. and Stacy L. Bertrand, 2884 Tick Ridge Road, Grand Chain Rita J. McCluskey, 14558 Blackie Lane, Marion Detrick Woods, 503 N. Miller St., Sparta Thomas A. and Sherry L. Stevers, 5505 Illinois 154, Pinckneyville Carie L. Markus, 1303 White Pine Lane, Metropolis Jonathan A. Owens, 92 Blossom Lane, Carbondale
Penny S. Ferrari, 202 Mill St., Benton Danny W. and Dawn N. Stephens, 1130 Chestnut St., Mount Carmel Anitra D. Burris, 121 Second St., Mounds Helen J. Willett, P.O. Box 141, Logan Jessica G. Manus, 408 E. Cross St., Dongola Stacy R. Brown, 401 S. Charles, Steeleville David A. and Shandale Bloodworth, 502 N. Eighth, Herrin Emery L. Bond, 590 Hocbriar Court, Carbondale Cleta Jo Shirley, 5898 Winterser Drive, Carterville Tina S. Acree, 511 Pearl St., Mound City Dale R. and Stacey J. Yates, 302 Sixth St., Percy Ricardo and Irma Z. Villagomez, 17264 Williams Road, Tamms Linda L. Stefan, 14562 N. Concordia, Woodlawn Joseph B. McClanahan, P.O. Box 76, Tamaroa Timmy L. Scroggins, P.O. Box 68, Christopher Marcus W. and Cassandra A. Rush, 600 S. Emma St., Christopher Fran L. and Andrea L. Rice, 250 Elkins Lane, Vienna Sherman and Kendra Taylor, 4194 Sycamore St., Carterville Weston L. and Rhonda A. Mescher, 721 Joppa Road, Metropolis Joshua J. and Kimberly M. Wougamon, 516 N. Stephen Drive, Murphysboro Harley T. Roehm, 21654 Benton St., Thompsonville Darren W. and Tina Marie Lovel, 8099 Bluebird Road, Tamaroa
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