IVCA Provides Updates for State Legislative Issues – 04/05/2023
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, April 5, 2023
CHICAGO CHOOSES JOHNSON
Chicago Teachers Union executive and Cook County Commissioner Brandon Johnson rolled to victory last night and will be the new Mayor of the City of Chicago. The mayor-Elect soundly defeated his runoff competitor Paul Vallas.
Johnson was enthusiastically supported by many newer members of the Illinois General Assembly and the Illinois Congressional delegation while Vallas was endorsed by “old guard” Democratic leadership including Sen. Richard J. Durbin and former Secretary of State Jesse White. Political analysis this morning on this generational shift away from tried and true to something “bolder” perhaps?
Historically, the Mayor of Chicago has had the political power to influence decisions made in Springfield. That has changed over time, certainly since the days of Mayor Daley(s). Mayor Lightfoot was not a frequent presence in the Capitol and the role of the mayor in statewide politics has surely evolved. It will be important to follow how much of a power source and political base Mayor Johnson develops in the Capitol, where the Governor, House Speaker and Senate President are all seasoned veterans with their own goals and objectives. When and how those alliances develop will play a significant role in guiding state policy the next 18 months.
COMED 4 – BUSINESS AS USUAL OR OVER THE LINE?
Illinois politicos are keeping at least one eye on the trial of the four defendants in federal court charged with a scheme to illegally influence former Illinois House Speaker Michael J. Madigan. Knowing how the evidence is viewed by the jury is difficult to know even if you’re seated in the courtroom. The revelations of various efforts to provide jobs and lobbying contracts to foster a good relationship with the speaker may seem routine to observers steeped in the history of Illinois politics – what matters now is what the jury thinks.
IVCA meets again today with the Illinois Department of Revenue to work on a definition of an investment partnership which will satisfy IVCA members and the IDOR. The issue is well known to IVCA members – the state has decided the current statute categorizes PE funds as a trade or business and not an investment partnership, creating a tax consequence which IVCA contends is not intended. A bill to correct the definition has once again passed the Senate unanimously IVCA PARTNERSHIP BILL SB 1880 and is now in the House, where it is sponsored by the chair of the Illinois House Revenue and Finance Committee. Our discussions with IDOR are likely to continue for a few more weeks, with the goal to produce an acceptable bill by the end of session in mid-May.
ILLINOIS LEGISLATURE ON SPRING BREAK
The legislature is on a two-week Spring Break returning the week of April 18. Adjournment is scheduled for May 19.
The big decisions around the FY 24 budget are being made and will be finalized by the final week of the session. Revenue collections and projections have enabled the state to put additional millions into its “rainy day fund” and perhaps to provide additional room for spending priorities of legislators and the governor. The most updated financial report on the state of the state hit email inboxes this morning and will in part be used to guide and justify spending decisions the rest of the session. The report includes a warning that revenues are expected to slow in the coming months …..
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