IVCA Provides Updates for State and Federal Legislative Issues - 01.03.18

IVCA Provides Updates for State and Federal Legislative Issues - 01.03.18


IVCA Illinois Legislative Report
January 3, 2018
David Stricklin / Stricklin & Associates

NEW YEAR / SAME STORY? 
 
Illinois government and politics may sound familiar in 2018 as the legislature and governor assemble in January for the spring session, the FY 19 budget battle, primary elections in March and the general election in November.
 
As we’ve discussed a significant number of legislators in 2017 have decided for various reasons to retire (not seek re-nomination on re-election), are running for Governor or Lt. Governor or another elected office, and some have outright resigned their seats.  This count includes 12 House Democrats and 13 House Republicans, three Senate Democrats and five Senate Republicans.
 
One of the retiring Republicans who is well-liked and respected on both sides of the political aisle in the Capitol is Rep. Chad Hays, whose district includes parts of Champaign and Vermilion counties, was interviewed by the Champaign News-Gazette regarding the upcoming session:
 
            The more interesting question, though, is whether legislators will rebel against Rauner and Madigan again this year and push for a budget resolution, rather than letting a stalemate persist.
"That'll be a very interesting dynamic," said Hays. "All of the ingredients for a budget impasse will be there, but I am one who suspects that the budget situation, if all else fails, will be not dissimilar to last spring where the rank and file provided the pressure necessary to get a budget done. That may be the pathway. We'll have to see."

IVCA OPPORTUNITY
 
The larger number of retirements/resignations and the election in 2018 offer IVCA members an opportunity to help educate new members of the legislature to the value of the VC/PE industry in Illinois and the dynamic economic results from your investments.  As we’ve noted, with both Governor Rauner and the likely democratic nominee, J.B. Pritzker as the candidates for governor, there will be plenty of shots taken at the industry and the investments which have been made by both candidates.  Our work is focused on meeting with elected officials and policy makers at the state level to make sure they understand the value of a vibrant venture and private investment community.
 
GOVERNOR NAMES NEW SENIOR STAFF
 
The Illinois General Assembly returns to regular legislative activity near the end of January.  Governor Rauner delivers the State of the State Address January 31st and the FY19 budget address February 14.  Over the holidays the governor announced several staff changes:
CHICAGO (AP) — Illinois Gov. Bruce Rauner has named a state economist as the head of his office of management and budget.A late Friday statement from Rauner's office says Hans Zigmund will take over the job on Jan. 15. He's replacing Scott Harry, who is taking a position with the Illinois State Board of Education.Zigmund was associate director of the office of management and budget from 2011 to 2013. He's been director of economic policy in the governor's office since August.
Rauner announced other personnel changes as well.He has named Andrew Perkins to become deputy chief of staff for legislative affairs. He replaces Darlene Senger, who is seeking the GOP nomination for state comptroller. Rachel Bold becomes press secretary on Rauner's communications team.

INVEST IN KIDS TAX CREDITS OPEN
 
Tax credits for private school scholarships was a key provision which resulted in an agreement on historic education funding reform approved in Illinois in 2017.  Those tax credits opened up Tuesday, January 2, 2018, and while demand was brisk across the five regions of the state where contributions could be assigned, only about $35M of the $100M available in authorized contributions had been made.  The table below was as of NOON Tuesday.
 
 
 
 
LEGISLATURE CONTINUES OVERSIGHT HEARINGS ON MANAGED MEDICAID
 
The governor and the Illinois Department of Healthcare and Family services is moving ahead with Health Choice Illinois to enroll more Medicaid beneficiaries in managed care while improving health outcomes and controlling costs; Democratic legislators have questioned the process and the pending results in a conversation which is also likely to continue through the 2018 elections.  The latest in a series of hearings is scheduled for this Thursday.