IVCA Provides Updates for State Legislative Issues – 11/15/2023
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, November 15, 2023
VETO SESSION ROUND UP
The Veto session ended on November 9th. The General Assembly passed 22 that will go to the Governor. Of the six gubernatorial vetoes under consideration, only one was accepted. This was the amendatory veto of the procurement omnibus bill. The legislation calls for IDFPR to contract with a technology vendor to build a new computer software system within three months of Gov. JB Pritzker’s signature on the bill, and to have that system up and running three months after that. The energy omnibus and the bill lifting the moratorium on building nuclear plants were handled by passing new legislation. Each chamber passed their own version of a Chicago school board map but could not agree on a final version.
ILLINOIS EARNS CREDIT RATING UPGRADE
Illinois’ fiscal outlook continues to improve after receiving a ninth credit upgrade in two years. The Illinois’ Issuer Default rating (IDR) has been upgraded from a BBB+ to an A-. The credit rating reflects the state’s ability to execute on significant planned reserve contributions and maintain improvements in budget management including normalized accounts payable, thereby improving the state’s overall operating profile.
“It’s been a long time coming, but Illinois has now earned our NINTH credit rating upgrade. Our state is back in the A’s with all three agencies now — a complete turnaround from the past administration’s fiscal failures. And it means saving Illinoisans millions of dollars.” Governor Pritzker
ILLINOIS TAX CREDIT SCHOLARSHIP ENDING
During the VETO Session Illinois lawmakers decided to let the tax credit program lapse on December 31 2023. Governor Pritzker took a neutral stand. The Invest in Kids act allows individuals or corporations to donate to scholarship-granting organizations that then distribute money to students from low-income families who need help paying tuition for private schools. Donors get a tax credit worth 75 cents for every dollar donated, up to $1 million. The state capped donations at $100 million and credits at $75 million — limits that were never hit, according to state data. Students who are already receiving scholarships will have their tuition paid for through the end of the school year.
MAYOR BRANDON JOHNSONS FIRST BUDGET
Mayor Brandon Johnson’s first budget goes before City Council on November 15th at 10am. The $16 billion city budget includes a promise of no property tax increase. The plan prioritizes new investments in affordable housing, mental health services, and environmental justice. It does not include new taxes or fees and continues pension contributions from the city. The budget also includes the hiring of civilian positions within the Chicago Police Department. It has $150 million allocated for incoming migrants.
“I’m proud to present a budget that reflects both our challenges and our opportunities to begin the critical investments necessary to build a better, stronger, safer Chicago. This budget is the people’s budget; we will ensure that every resident of this city can thrive in peace and prosperity, connected to all the amenities and resources they deserve.” Mayor Brandon Johnson