IVCA Provides Updates for State and Federal Legislative Issues - 12.20.17

IVCA Provides Updates for State and Federal Legislative Issues - 12.20.17


IVCA Illinois Legislative Report
December 20, 2017
David Stricklin / Stricklin & Associates
 
RAUNER/PRITZKER TRADE JABS
 
With a prominent Private Equity executive as the Republican incumbent governor and a prominent Venture Capitalist as the frontrunner for the Democratic nomination to unseat him, our industry will be in the middle of the 2018 election up to (and after) election day.  An example of the volleys being traded by the campaigns and how the media is covering them is included below:
 
Rauner Attacks Pritzker in Battle of the Billionaires
https://www.nbcchicago.com/blogs/ward-room/rauner-pritzker-taxes-illinois-governor-462116963.htmlDemocratic primary front-runner J.B. Pritzker on Wednesday fired back at accusations from Gov. Bruce Rauner that the candidate has avoided paying taxes on his $3 billion fortune by sheltering funds in offshore accounts.
“It’s laughable that Bruce Rauner is complaining about my taxes,” Pritzker said after a Democratic gubernatorial candidates’ forum at the historic Second Presbyterian Church on the South Side. “I released way more information than Bruce Rauner has, and it’s important to recognize that unlike Bruce Rauner, who, yeah, he paid taxes, but you know how he made his money? By cutting jobs. By buying companies and firing people.”https://chicago.suntimes.com/chicago-politics/j-b-pritzker-fires-back-bruce-rauner-tax-avoidance-accusations/ 
Elsewhere on the campaign trail the governor has sought to tie complaints about the Cook County property tax system and high property taxes in general to Pritzker and other Democrats such as County Assessor Joe Berrios and House Speaker Michael J. Madigan.  Pritzker appears to be consolidating the support of Democratic elected officials and interest groups, including an endorsement from the Illinois Federation of Teachers. 
 

GOVERNOR RELEASES FIRST TERM ACCOMPLISHMENTS
 
Governor Rauner on Monday released via his campaign a list of significant accomplishments during his first term, highlighting the education funding reform package which included a tax credit program for private school scholarships and the Discovery Partners Institute which seeks to boost Illinois innovation, research and development:
https://www.brucerauner.com/news/2017-rauner-top-10/ 
 
ILLINOIS BILL BACKLOG HOVERS AT $10 BILLION
 
Illinois’ comptroller used bond proceeds to pay down a backlog of unpaid bills which reached a peak of $16.3 billion at the end of October.  The bond proceeds went entirely to Medicaid and state employee group health insurance and while the backlog is reduced, it sat at $9.7 Billion on 12/18/17. 
MANAGED MEDICAID FILLS THE AGENDA
 
The legislative is out of session but the House and Senate are both conducting oversight hearings into the $60 Billion plan to provide Medicaid services through Managed Care Organizations. 
http://www.chicagobusiness.com/article/20171214/NEWS03/171219944/medicaid-and-gov-bruce-rauners-health-care-headache 
Legislative Democrats have sought to raise questions about the program itself and whether rates will be sufficient to support the delivery of services and a consulting contract which helped the administration select the MCOs chosen to provide those services.
http://www.chicagobusiness.com/article/20171218/NEWS03/171219899/rauner-hiding-insurance-rates-in-medicaid-reboot 
 
BUDGET BATTLE LOOMS
 
Against that backdrop Governor Rauner is preparing his budget plan for FY 19.  The governor is scheduled to present his “State of the State” address on January 31, 2018 and his budget address on February 14, 2018.  Some lawmakers have openly speculated over whether they and the governor will be able to reach agreement on a budget, given the election season and their inability to reach much consensus so far during the governor’s first term.