IVCA Provides Updates for State Legislative Issues - 05/11/22

Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, May 11, 2022

Status of SB 3777 
SB3777 which amends the Technology Development acts by providing for additional specified information to be reported by a TDA II-Recipient Fund to the State Treasurer on a quarterly or annual basis for all investments was sent to the Governor for signing on April 29,2022. This bill passed both the house and the senate unanimously during the Spring legislative session, and it is expected that the Governor will sign the bill.
 
Illinois State Credit Upgrades 
Illinois has received six credit upgrades in less than a year. On Friday, May 6th S&P Global Ratings announced on its second upgrade of Illinois’ bonds since July 2021. Fitch Ratings upgraded Illinois’ bonds by two notches this week citing fundamental improvement in Illinois fiscal resilience. This is the first Fitch upgrade for Illinois’ General Obligation bonds since June 2000. Additionally, Illinois received an upgrade from Moody’s Investor Service last month, the second such upgrade by Moody’s in 10 months.
 
BGA Report on Ukraine Divestment Bills 
During the spring legislative session, top state officials, including Gov. J.B. Pritzker, demanded public pension funds divest more than $100 million in Russia-based assets. According to a review of pension audit reports for nine of the major public pension funds, including five in the City of Chicago and three state pension funds, a combined total of nearly 112 million was invested in Russian equities, bonds, and other assets at the start of the invasion. During the Spring legislative session, a key legislative proposal to force the disinvestment died in a Senate committee hearing leading to no legislation passing. Now lawmakers say they won’t act on this issue until the fall veto session.
 
COGFA Report On State Finances 
For April, COGFA reported a record of Income Tax Revenues which created a $3.024 billion general funds increase for $8.037 billion receipts in April. This is the highest base revenue total in any month in the State's history. While an increase in general funds was expected for April because of last year's delay in the individual income tax deadline from April to May, the growth has surpassed expectations. Due to this month's personal income tax revenues comparison to May 2021 figures which will contain delayed final payments, a revenue reduction is anticipated for May.
 
Griffin Puts an Additional $25M Into Irvin’s Campaign 
Billionaire Ken Griffin has increased his investment in Aurora Mayor Richard Irvin’s Republican bid for Governor by $25 million. This brings his total contribution to Irvin’s campaign to $45 million. Recent campaign finance reports show Irvin’s outlay on advertising in the first quarter was on par with Governor Pritzker.
 
“Richard Irvin is the best candidate to tackle the severe problems facing our state,” Griffin said in a statement. “Richard will create jobs, fight corruption and reverse Illinois’ economic decline. As a former prosecutor he also has the expertise to reduce the senseless violence that is tearing apart our communities. Unlike the current governor, Richard will put people ahead of politics, which is what every citizen of Illinois wants, needs and deserves.” – Ken Griffin