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91_SB1716
LRB9111561JMdvA
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.