* Tribune…

Bickering between Democrats and Republicans that once again has left Illinois without a budget and dominated state politics, but lawmakers still managed to approve about 500 pieces of legislation in their spring session.

That means Gov. Bruce Rauner’s desk is set to be cluttered with bills this summer, leaving him with lots of decisions to make even as he continues to tangle with lawmakers over big budget questions like whether schools will open in the fall.

Several of those proposals were pushed through by Democrats that control the General Assembly in an effort to put the Republican governor in a tough spot politically as he asks voters for a second term in office. Other bills are aimed at President Donald Trump’s administration.

* Maura O’Hara​, executive director of the Illinois Venture Capital Association, writing in Crain’s…

It is ironic, then, that just as Illinois’ venture ecosystem has reached liftoff, the Illinois Legislature seems determined to undo this progress and drive away the private company investors who have helped finance hundreds of new and expanding companies in our state. The Illinois Senate in late May passed SB 1719, which would impose a 20 percent tax on capital gains earned by investors in private companies. The House is expected to consider corollary HB 3393 bill in the overtime session. Chief sponsors of the bill—Sen. Daniel Biss, D-Evanston, and Rep. Emanuel Chris Welch, D-Westchester—call it a “privilege” tax.

Let’s look in simple terms at the business of investing in private companies. Imagine that you are adept at identifying a good company. Because of your experience and reputation, friends pool their money and ask you to invest in companies on their behalf. You spend five to 10 years finding great portfolio companies and management teams; help them to identify and generate new customers; and invest in improved operations in the belief that these companies at some unknown future date can be sold for more than you paid for them. Recognize, too, that while you are finding and nurturing these great companies, you may forego a salary.

But it’s worth it because when all the companies are sold, you, as the general investor, will be in line for one-fifth of the increased value or “capital gain,” created by your hard work and expertise. The remaining four-fifths of the capital gain is divvied up among your “friends” who pooled the money you invested. In the real world, these friends are limited partners—often pension funds and endowments that seek a greater return with private company investors than they can find in public markets.

Now here comes the state of Illinois using tax policy, which is generally designed to promote or discourage certain types of economic activity, telling you to fork over 20 percent of your hard-earned and highly uncertain capital gain for the “privilege” of doing business in Illinois. That’s a tax policy that will drive private company investors right out of the state.

Never mind that it usually takes five to 10 years for a private company investment adviser to receive any capital gain from the sale of a portfolio company or investment. Or that a capital gain only occurs if the investment increases significantly in value—in part reflecting the investment adviser’s expertise.

More on that topic is here.

* Kerry Lester…

Suburban police chiefs don’t oppose a law that would make them ineligible for a second pension, but they don’t like the term “double-dipping.”

Oak Brook Police Chief James Kruger, president of the Illinois Association of Chiefs of Police and the DuPage County Chiefs of Police Association, noted the statewide group has been working on the bill for years with state Rep. Grant Werhli and state Sen. Mike Connelly, both Naperville Republicans.

He noted it was “the only public safety entity to support the legislation,” which would prevent retired cops from returning to work and being eligible for a second police pension or one through the Illinois Municipal Retirement Fund.

Instead, police retirees on the public payroll will enroll in a 401(k)-style plan if Gov. Bruce Rauner signs the bill.

The issue arose when Robert Marshall retired from a 28-year career with the Naperville Police Department and took a job as the assistant city manager, where he became eligible for a second, IMRF pension. He later became the police chief while receiving his police pension and participating in IMRF.

Double-dipping “implies a police officer is receiving two pensions from the same source,” Kruger said. Still, he said, the association views the measure as a “a template that should be put in place for other public employees in Illinois as well.”