State of Illinois
91st General Assembly

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 1        AN ACT concerning State budget stabilization.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 1. Short title. This Act  may  be  cited  as  the
 5    Rainy Day Budget Stabilization Act.

 6        Section   5.   Budget   Stabilization  Fund.  The  Budget
 7    Stabilization Fund is established as a special  fund  in  the
 8    State  treasury  in  order  to reduce the need for future tax
 9    increases, maintain the highest possible bond rating,  reduce
10    the  need  for  short  term  borrowing, and provide available
11    resources to meet State obligations whenever casual  deficits
12    or  failures in revenue occur.  In authorizing transfers from
13    the Budget Stabilization Fund, priority  consideration  shall
14    be  given in meeting obligations for secondary and elementary
15    education, child care, and other programs that may provide  a
16    direct benefit to children.

17        Section 10. Payment into the Budget Stabilization Fund.
18        (a)  During  fiscal  year  2001,  the  Comptroller  shall
19    transfer   a   total   of   $100,000,000   into   the  Budget
20    Stabilization Fund.
21        (b)  Beginning with fiscal year 2002,  for  every  fiscal
22    year  in  which  the  anticipated  revenues  into the State's
23    general funds are estimated by the  Governor  to  exceed  the
24    prior  year's  general  funds  revenues  by more than 4%, the
25    Comptroller shall transfer from the General Revenue Fund into
26    the Budget Stabilization Fund an amount equal to 0.25% of the
27    anticipated general funds  revenues.   Nothing  in  this  Act
28    shall   prohibit  the  General  Assembly  from  appropriating
29    additional moneys into the Budget Stabilization Fund.
30        (c)  The Comptroller shall transfer  1/12  of  the  total
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 1    amount  to  be  transferred  each fiscal year into the Budget
 2    Stabilization Fund under subsection (b) on the first  day  of
 3    each  month  of  that  fiscal  year  or as soon thereafter as
 4    possible.  At any time during the fiscal year  when  failures
 5    in   revenue  are  occurring,  the  Governor  may  order  the
 6    Comptroller  to  suspend  a  transfer  authorized   by   this
 7    subsection.    Thereafter,   transfers  shall  resume  unless
 8    further  suspended  by  the   Governor   pursuant   to   this
 9    subsection.
10        (d)  If  the  balance  in  the  Budget Stabilization Fund
11    exceeds 4% of the Governor's estimate of total general  funds
12    revenues  for  that  fiscal  year,  any  subsequent transfers
13    required by this Section to the Fund shall be  suspended  for
14    that fiscal year.

15        Section 15. Notifications.
16        (a)  At  any time when the Governor determines that there
17    are insufficient resources available within the general funds
18    of the State to meet the State's  obligations,  the  Governor
19    may  request  the  General  Assembly to do one or more of the
20    following:
21             (1)  Enact legislation as it may deem  necessary  to
22        appropriate    the    transfer   of   funds   or   reduce
23        appropriations of the current State budget;
24             (2)  Enact legislation as it may deem  necessary  to
25        transfer  funds from the Budget Stabilization Fund to the
26        general funds; or
27             (3)  Authorize the Governor, in a  written  document
28        certified  by the President of the Senate and the Speaker
29        of  the  House  of   Representatives,   to   direct   the
30        Comptroller   to   make   transfers   from   the   Budget
31        Stabilization  Fund  to  the  general  funds  in order to
32        address cash flow emergencies.
33        (b)  If the General Assembly is not in regular session to
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 1    enact  legislation  as  provided  in  subsection   (a),   the
 2    President  of  the  Senate  and  the  Speaker of the House of
 3    Representatives may certify that the Senate and the House  of
 4    Representatives are not in regular session and approve of the
 5    Governor's   request   to  transfer  funds  from  the  Budget
 6    Stabilization Fund to the general funds in order  to  address
 7    cash flow emergencies.
 8        (c)  The  Comptroller  shall  notify  the  Governor  upon
 9    determination that there is, or may be, a cash flow emergency
10    in meeting the obligations of the State.

11        Section 20. Use of the Budget Stabilization Fund.
12        (a)  Upon receipt of the certification from the President
13    of the Senate and the Speaker of the House of Representatives
14    authorizing   the   transfer   of   funds   from  the  Budget
15    Stabilization Fund, the Governor may direct  the  Comptroller
16    to  transfer a specified amount from the Budget Stabilization
17    Fund to a general fund.  The  directive  to  the  Comptroller
18    shall  state  whether the transfer is in response to failures
19    in revenue where collections  are  not  anticipated  to  meet
20    projections  in  the  current fiscal year or in response to a
21    casual deficit in revenue where collections are  expected  to
22    meet projections in the current fiscal year.
23        (b)  The  Governor  shall  be  authorized  to  direct the
24    Comptroller to transfer funds under this Act until such  time
25    as a quorum of the General Assembly can convene in regular or
26    special session in order to enact the appropriate legislative
27    actions.
28        (c)  If  transfers  authorized  in  subsection  (a)  were
29    deemed   necessary   by  the  Governor  for  the  purpose  of
30    responding to casual deficits in projected revenue within the
31    same fiscal year, the Governor shall direct  the  Comptroller
32    to transfer all amounts transferred for this purpose from the
33    appropriate  general  fund into the Budget Stabilization Fund
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 1    by the end of the same fiscal year or as soon  thereafter  as
 2    possible.

 3        Section  95.  The  State Finance Act is amended by adding
 4    Section 5.541 as follows:

 5        (30 ILCS 105/5.541 new)
 6        Sec. 5.541. The Budget Stabilization Fund.

 7        Section 99. Effective date. This Act takes effect July 1,
 8    2000.

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