ICYMI: A pdf. version of last week's
2018 End of Session Report can be found
here.
The General Assembly returns to Springfield for the fall veto session on November 13. The House and Senate are scheduled to be in session November 13 through 15 and November 27 through 29.
Over the summer, the Government Affairs Report will be sent out every other week or as necessary.
RAUNER SIGNS FY19 BUDGET
On Monday, Gov. Rauner joined a bipartisan group of legislators to sign the FY19 budget into law. The budget consists of two bills. One bill,
HB 109, which contains FY19 appropriations. And the other,
HB 3342, otherwise known as the BIMP bill or budget implementation bill. The BIMP is the substantive language that is necessary to implement the appropriations.
Most notably, the budget does not contain any new tax increases on businesses. Lawmakers indicate that the state will bring in $38.5 billion for the fiscal year. They contend the budget is balanced through a combination of higher revenues from both the 2017 tax increase and changes to tax policies from federal tax reform. The new budget also contains several cuts from state agencies.
The budget includes $350 million in new funding for public schools, as established in the new, evidence-based formula passed last year, and an additional $50 million for early education. Higher education institutions receive a 2 percent increase in funding, and MAP grants are extended to four years. The new budget also includes a new merit-based grant program designed to halt the so-called 'brain-drain' that is occurring in the State. $25 million is set aside for the new grant program, AIM HIGH, that will provide additional tuition assistance. Universities would be able to match state funds potentially increasing to total program to $50 million.
The budget sets aside $2.2 billion in infrastructure spending. Of that figure, $53 million is set aside to cover the first-year costs of constructing a new veterans home in Quincy. $500 million in start-up money is grated to the University of Illinois System for the Discovery Partners Institute, a research and business public-private partnership set to launch in Chicago's South Loop that involves the entire Illinois university system and business innovators.
The legislature also addressed pension costs by offering a voluntary pension buyout program for vested but inactive members, as well as COLA buyouts of Tier 1 pensioners.
The budget does make several changes to the governor's proposal. Instead of shifting the cost of pensions to local schools, the budget includes a pension buyout option estimated to save roughly $445 million. Group health for state employees will also continue to be fully funded, and the governor's proposed 4 percent cut to Medicaid rates was not included.
As was noted in last week's End of Session Report, the BIMP did include several tax changes. The BIMP contains a new adoption tax credit for individual taxpayers. The Illinois credit is a credit in an amount equal to the amount of the federal adoption tax credit up to $2,000 ($1,000 in the case of a married individuals filing a separate return). The credit is increased up to $5,000 in the case of the adoption of a child of at least one year of age who resides in Illinois at the time the expenses are paid or incurred.
The BIMP also amends the nexus provisions of the Use Tax Act to adopt the language currently before the U.S. Supreme Court in South Dakota v. Wayfair, Inc. This particular provision is scheduled to become effective beginning October 1, 2018. The Chamber suspects that by making the language effective October 1, it is anticipated that the U.S. Supreme Court will have ruled on the constitutionality of the South Dakota language in Wayfair. The legislation provides that a retailer making sales of tangible personal property to Illinois purchasers from outside the state will Property of Last Updated 6/1/2018 be required charge and collect Illinois use taxes if the cumulative gross receipts from sales of tangible personal property to Illinois purchasers are $100,000 or more or the retailer enters into 200 or more separate transactions for the sale of tangible personal property to purchasers in Illinois.
While the the Chamber is
disappointed that business reforms fell to the wayside,
we acknowledge that this budget is a short-term solution that addresses no new revenues and enacts spending constraints.
THIS SUMMER: CHAMBER HAPPENINGS
The Illinois Chamber and the Chamber's Business Services division has several events and webinars scheduled for this summer. Check out or
events calendar for more information or see below for some of the featured events this summer!
June 20th: Mid-Year Economic Breakfast Summit
Illinois Chamber of Commerce President & CEO Todd Maisch is a featured panelist a the MId-Year Economic Breakfast Summit, presented by the Illinois Chamber of Commerce and multiple suburban Chambers of Commerce.
July 24th: 3rd Annual Cybersecurity Conference
Cybersecurity is an issue that impacts all of us, regardless of who we or what we do. Collaboration and communication between government entities and the private sector is essential to our success combating cyber threats. This event brings together public and private entities to discuss policy and best practice in cybersecurity to help businesses be prepared for whatever the future brings for both small and large businesses.
Registration is available now!
September 20th: Annual Luncheon
Mark September 20, 2018 in your calendar to join us at the Hilton Chicago for the 2018 Illinois Chamber of Commerce Annual Meeting. This fall Lance Fritz, the chairman, president, and chief executive officer of
Union Pacific Railroad will keynote this exciting event.
Union Pacific Railroad is one of two western-U.S. railroads that connects Illinois agriculture and industry to the West Coast and international markets. In addition, their heritage traces back to Abraham Lincoln, who signed the Pacific Railway Act of 1862, setting the wheels in motion that eventually connected the Pacific to the Mississippi River by rail-a fitting story for Illinois' bicentennial celebration!
IS AN EDIE AWARD IN YOUR FUTURE?
The Illinois Chamber of Commerce is now accepting nominations for the 10th Annual Economic Development in Illinois Awards - the Edies. The Edies honor outstanding economic development projects completed in the calendar year of 2017 that imagine, design, invest, build and bring jobs, growth and prosperity to Illinois communities.
Traditionally nominations are made by economic development leaders. Nominations are being accepted now until 5 p.m. June 15, 2018. For additional questions, please contact Katie Stonewater at [email protected].
