IVCA Provides Updates for State and Federal Legislative Issues - 06.07.17

IVCA Provides Updates for State and Federal Legislative Issues

UPDATE provided by Stricklin & Associates on June 7, 2017:

Stricklin & Associates Report- June 7, 2017

The Illinois General Assembly is in “continuous session” following its May 31st scheduled adjournment without passing a budget for fy18.  Both chambers are expected to return the last week in June, with hopes that some funding measure will be passed prior to the end of fy17 on June 30th.

SB 1719, sponsored by Senator Daniel Biss and Representative Chris Welch, passed the Senate at the end of May and is currently on “second reading” in the House, after being approved on a partisan roll call in the House Revenue and Finance Committee.  Representative Welch received a deadline extension until June 30th to pass this bill out of the House.  The bill currently has an immediate effective date of July 1, 2017 and so would require a ⅗ vote--which would require the support of all 67 House Democrats, which we believe is a highly unlikely result. 

Alternatively, Representative Welch could amend the bill to be effective January 1, 2017, or a later date, and only require a simple majority.  However, given effective coalition building and lobbying, we believe this bill does not have the requisite votes to pass. 

We still recommend contacting the following members of the Illinois House:

Representative Deb Conroy- 217.782.8158 [email protected] 
Representative Lou Lang- 217.782.1252 [email protected]
Representative Anthony DeLuca- 217.782.1719 [email protected] 
Representative Robyn Gabel- 217.782-8052 [email protected] 
Representative Laura Fine- 217.782.4194 [email protected]
Representative Scott Drury- 217.782.0902 [email protected] 
Representative Carol Sente- 217.782.0499 [email protected]
Representative Mike Zalewski- 217.782.5280 [email protected] 
Representative Elaine Nekritz- 217.558.1004 [email protected] 
Representative Jerry Costello- 217.782.1018 [email protected]
Representative Brandon Phelps- 217.782.5131 [email protected]

(See sample email below)

It has simultaneously been suggested by both House and Senate democratic members and staff that this proposal might be incorporated into a broader revenue package that is tied to a spending bill.  If that is the case, it will be very difficult for members of the General Assembly to vote against the entire package on the merits of this one specific provision if it is in fact included.

SB 778 (Senator Biss) to make private equity investments of pensions funds FOIA-able under statute did not receive a vote this session.  SB 779 (Senator Biss) which requires public retirement systems to disclose various expenses and fees that are paid to investment funds, passed out of the Senate, but was not heard in the House, where Rep. Elaine Nekritz is the sponsor.

SB 2012 extends and expands the ‘angel tax’ credit to 2021.  The bill was sponsored by Senator Chuck Weaver (D-Peoria) and Representative Carol Sente (D-Vernon Hills) and passed unanimously out of both chambers and is expected to be signed by the Governor.

No budget bills were sent to the Governor at the end of regularly scheduled session.  The Senate passed several measures of its ‘Grand Bargain’ with solely Democratic votes.  These included a gaming expansion, procurement reform, local government consolidation, a spending budget, and a revenue proposal.  The House, however, did not take up the spending or revenue bills, and did not introduce its own proposals.

Any budget passed in June, whether that be a full measure or a stopgap, will require a ⅗ vote, bipartisan cooperation and the support of the Governor.  Governor Rauner has stated he will not sign a stopgap budget without some of his ‘Turnaround Agenda’ reforms.  To date, both parties have not come to agreement on these reforms--with a primary point of contention remaining the length of a property tax freeze.

The one budget bill which has been passed effectively every year under the Governor’s tenure has been K-12 funding, with neither party willing to risk the public reaction if schools are not open or spending their reserves to stay open.  More and more we hear of of both parties indicate they will not vote for the K-12 measure without a budget for the remainder of state government. If schools were to not open on time there may finally be sufficient public pressure to end the budget impasse.

Similarly, the courts are deciding June 7 whether healthcare provider payments from the state must have priority over other types of payments.  If the judge rules as such, it will place tremendous strain on the Comptroller who has numerous other court orders and consent decrees to follow with limited revenues and a $14 billion unpaid bill backlog.

In addition, following the end of session without a budget, Illinois’ credit ratings declined further.  With both Moody’s and S&P downgrading the bond rating to just above junk status, at BBB-. 

SAMPLE EMAIL:

Subject: Vote “no” on SB 1719

Dear Rep. ______,

I am deeply concerned that the Illinois Legislature has chosen to target Investment Advisors with a 20% tax on gross fee income. 

Investment is the engine of our economy.  Without investor dollars to back management growing a company’s property, plant, equipment, and human resources, Illinois’ economy will stagnate and then decline precipitously. Please ensure that the poorly considered bill does not move forward.

I strongly encourage you to vote “no” on SB 1719.

Sincerely,

NAME
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