IVCA Provides Updates for State Legislative Issues – 12/21/22
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, December 21, 2022
ILLINOIS FINANCES INFORM LOOK AHEAD TO 2023 SESSION
Lawmakers convene for the 2023 session in January and will receive the governor’s budget address mid-February. Watch for the legislature and governor to debate over how much of the growing revenue the state is collecting is spent or saved.
PENSION REPORTPENSION DEBT GROWS
Illinois’ state pension debt now stands at $139.7 billion, according to a new report from the Illinois General Assembly’s Commission on Government Forecasting and Accountability. That is up $9.8 billion from 2021, when state pensions were benefitting from healthy investment returns. After markets cooled substantially, state pension debt in the fiscal year that ended July 1 continued to grow, increasing for the 11th time in 15 years.
REVENUE REPORT
REVENUE: DESPITE ECONOMIC CONCERNS, GENERAL FUNDS REVENUES CONTINUE TO AMAZE, PROMPTING UPWARD ADJUSTMENT OF FY 2023 OUTLOOK
Eric Noggle, Revenue Manager
While there continues to be concerns that an economic slow down, or possibly a recession, is on the horizon in Illinois, there have been few signs of this slow down as it relates to General Funds receipts so far this fiscal year, especially in regard to economically driven revenue sources. General Funds base receipts increased another $277 million in November… Through the first five months of the fiscal year, overall general funds receipts are up an amazing $1.945 billion.
In mid-November the Commission released an updated outlook for FY 2023 general funds revenues for the State of Illinois. The strength of the primary revenue sources so far this fiscal year in combination with the expected influx of additional revenues from State Transfers and one-time federal reimbursement dollars has prompted the Commission to increase its revenue outlook for FY 2023 by $4.9 billion.
Later in the report there is the caution that out-year-revenue may not match this pace.
IVCA BILLS
Work continues on IVCA legislation to resolve an issue with the Illinois Department of Revenue on whether PE funds are a “trade or business” (as asserted by IDOR) or an investment partnership. Clarifying legislation passed the Senate unanimously and has been held in the House of Representatives for further review. It is possible there will be an opportunity to move our solution in the “Lame Duck” session in early January.
ASSAULT WEAPONS BAN HEARD
Rep. Bob Morgan of Highland Park was at the 4th of July parade where a gunman opened fire on the crowd and killed 7 people and wounded many more. Rep. Morgan introduced legislation to ban the type of weapon the shooter used and has been holding hearings on the proposal leading up to the “Lame Duck” session in January or in preparation for the regular 2023 session.
As you would expect, the support and opposition have both been intense:
ASSAULT WEAPONS HEARINGSOPPONENTS ON GUN MEASURE
LEGISLATURE MOURNS LOSS OF SENATOR SCOTT BENNETT
Senator Scott Bennett was easily one of the most well-liked and universally appreciated legislators in the Capitol. Sen. Bennett died unexpectedly December 9 from a brain tumor.
The Democrat from Champaign was one of three key Senate Democratic sponsors of an amendment to the SAFE-T Act, which cleared the Illinois General Assembly last week. Sen. Bennett, a former prosecutor, was also a practicing personal injury attorney. He is survived by his wife, Stacy, and two children.
“We are devastated to share that our beloved Scott has passed away. We remain in complete shock because it was all so sudden and unexpected,” Stacy Bennett said in a statement. “Scott will forever be known for being an extraordinary father, husband and friend. His quick humor and wit could light up any room he entered. We will miss his stories, the way he could always make people laugh and his genuine kindness.” Stacy Bennett said her husband “lived a life full of service and constantly looked for ways to lend his time and energy to helping our community and state.”