IVCA Provides Updates for State Legislative Issues – 06/28/2023
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, June 28, 2023
ISBI LOSES FARHADIEH
The well-regarded leader of the Illinois State Board of Investment, Johara Farhadieh, is leaving the state for the CIO role at Westpath Benefits and Investments. IVCA has consistently viewed ISBI and its management and reporting metrics as an example for other state funds to follow, and Ms. Farhadieh was recently a keynote speaker at an IVCA luncheon. She will be missed.
S&P SENDS WARNING SIGNAL
Illinois begins a new fiscal year July 1. The budget passed in May was lauded by legislative Democrats and Governor Pritzker for its many provisions to pay down debt, put reserves into the “rainy day fund” and to take other measures which have earned the state an upgrade by the credit rating agencies.
One of the approaches which has been emphasized is the additional deposits made into the underfunded pension plans. Even at that, the ratings agencies are writing cautionary reports that more needs to be done:
Says Jay Henderson, chair of the Civic Committee’s State Finance Working Group:
“We continue to support legislative action that will require the state to increase annual pension funding from current levels, which will save the state more than $35 billion in pension contributions over the next 22 years and fully fund 100% of the State’s pension liabilities by 2053. A new funding plan of this nature will provide important benefits for the people of Illinois.”
“[F]ixed pension costs related to the five state-sponsored plans … are projected to increase at an annual average rate of more than 2.2% over the next 10 years,” the report said. “With the additional payments from the pension stabilization fund, the state will have contributed an additional $700 million to the five state-sponsored plans. However, contributions are still short of an amount we consider indicates funding progress.”
PRESIDENT TOUTS “BIDENOMICS” IN CHICAGO
If you’ve received an out of office message this morning from a local elected official it might be because most of the state’s Democrats are at the Noon event featuring President Joe Biden. Watch your local news source for further details as the president used the Union Station backdrop and the City of Big Shoulders to tout his economic approach.