IVCA Provides Updates for State Legislative Issues – 02/15/2023
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, February 15, 2023
Governor JB Pritzker submitted his FY 24 budget today to the Illinois General Assembly in a combined State of the State / Budget Address.
Governor Pritzker and the two Democratic leaders now go about the work of putting an actual budget together which can be passed by the mid-May deadline for adjournment. Buoyed by strong revenue streams there will be plenty of calls for new spending and new programs. Others argue for keeping spending level, keeping new programs to a minimum, and applying most if not all “surplus” into the rainy-day fund, pension payments, or other actions which would improve the financial condition of the state.
HOLD THE LINE OR OPEN THE BUDGET DOOR
The last time I stood here seems like a lifetime ago. So many fiscal challenges laid ahead. And so much progress has been made.
What was once an Illinois with $17 billion in overdue bills is now an Illinois that pays its bills on time. What was once an Illinois that went years without a budget is now an Illinois that has passed four balanced budgets in a row. What was once a state with no cushion to protect it in an economic downturn is now an Illinois on track to have a $2.3 billion Rainy Day Fund. What was once an Illinois with a credit rating on the verge of junk status is now an Illinois getting credit upgrades.
Our fiscal progress is remarkable.
Remember the $230 million in College Illinois debt? Paid. Remember the $900 million in group health insurance debt? Paid. How about the $800 million Thompson center liability? Paid. $4.5 billion Unemployment Trust Fund debt? Paid. The $1.3 billion debt owed to Illinois’ treasury funds swept by previous governors? Paid. $8 billion of overdue bills? Paid.
PREVIEWS / POSTCRIPTS
The governor offers extensive previews to news media outlets – here are a few summaries of key portions of the budget:
* House Minority Leader Tony McCombie…
“Today we heard a long list of expensive promises totaling $2.7 billion in new spending, when the Governor himself projects revenue to be down $1.42 billion. This will require future tax increases or cuts to vital programs serving our most vulnerable.”
* Rep. Dan Ugaste (R-Geneva)…
“In response to the glaring issues which Illinois faces – sky high property taxes, endless regulations, and other unnecessary costs – Governor Pritzker is proposing new spending on Illinois’ budgetary house of cards. This budget proposal will do nothing but hinder our terrible climate for job creators and cause Illinois families to find moving trucks out of our unaffordable state.”
The IVCA has introduced a pair of bills to address the definition of an investment partnership which we have sought to correct for several years. Senator Bill Cunningham passed the bill out of the Senate in the 102nd General Assembly, it did not make it out of committee in the House. Sen. Cunningham and House Revenue Committee Chair Kelly Burke are the sponsors in the 103rd General Assembly.
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