IVCA Provides Updates for State Legislative Issues – 08/31/22

Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, August 31, 2022

ILLINOIS GOVERNOR’S RACE

The contest of Governor between Governor Pritzker and challenger State Senator Darren Bailey dominates the political conversation in Illinois. Bailey is a conservative from downstate who has argued that the city of Chicago is a “hell-hole,” which has earned him stiff rebukes from Pritzker and Mayor Lori Lightfoot. On the campaign trail, Pritzker most recently highlights Bailey’s connection to individuals participating in or sporting the Jan. 6 riot in the U.S. capital. 

Bailey Receives Donation from Uihlein

THE GOVERNOR’S RACE “WAR CHEST”

According to Reform for Illinois’ Sunshine Database, as of June 30th, Pritzker has almost $61 million — $60,811,140.76, in his gubernatorial campaign fund while Bailey’s cash on hand right is just $565,545.42.

TREASURER TUSSLE

The office of Treasurer is of particular interest to IVCA members. The Treasurer is responsible for the Technology Development Account, the Illinois Growth, and Innovation Fund. IVCA has worked with Treasurers who are enthusiastic about the fund and at least one who refused to put the fund to work. Our experience with Treasurer Frerichs has been very positive, and his Republican challenger, State Rep. Tom Demmer, has been a staunch ally in the legislature.

LABOR AMENDMENT ON THE NOVEMBER BALLOT

Amendment 1 would create a state constitutional right for employees to organize and bargain collectively through representatives of their choosing to negotiate wages, hours, and working conditions and to protect their economic welfare and safety at work. Illinois’ 4th District Appellate Court has affirmed a Sangamon County court’s decision from June that blocks a petition that tried to remove Amendment 1 from the November ballot, ensuring that the amendment will be on the November ballot.

PENSIONS AND STATE FINANCES

Illinois pension funds remain underfunded. Richard Ennis, a veteran Chicago investment consultant, argues that the benchmarks of many public funds are set too low, and managers are overpaid once performance makes those funds appear better. Among the two dozen funds that Ennis surveyed, the $66 billion Teachers’ Retirement System of the State of Illinois was the fourth-worst performing, reporting an annualized return (8.3%) of 3.23 percentage points lower than an indexed return.