102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3522

 

Introduced 2/22/2021, by Rep. Keith R. Wheeler

 

SYNOPSIS AS INTRODUCED:
 
15 ILCS 20/50-5

    Amends the State Budget Law of the Civil Administrative Code of Illinois. Provides specified requirements for State budgets prepared for and after State fiscal year 2022. Makes conforming changes. Effective immediately.


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A BILL FOR

 

HB3522LRB102 10232 RJF 15558 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Budget Law of the Civil
5Administrative Code of Illinois is amended by changing Section
650-5 as follows:
 
7    (15 ILCS 20/50-5)
8    Sec. 50-5. Governor to submit State budget.
9    (a) The Governor shall, as soon as possible and not later
10than the second Wednesday in March in 2010 (March 10, 2010),
11the third Wednesday in February in 2011, the fourth Wednesday
12in February in 2012 (February 22, 2012), the first Wednesday
13in March in 2013 (March 6, 2013), the fourth Wednesday in March
14in 2014 (March 26, 2014), and the third Wednesday in February
15of each year thereafter, except as otherwise provided in this
16Section, submit a State budget, embracing therein the amounts
17recommended by the Governor to be appropriated to the
18respective departments, offices, and institutions, and for all
19other public purposes, the estimated revenues from taxation,
20and the estimated revenues from sources other than taxation.
21Except with respect to the capital development provisions of
22the State budget, beginning with the revenue estimates
23prepared for fiscal year 2012 through fiscal year 2021,

 

 

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1revenue estimates shall be based solely on: (i) revenue
2sources (including non-income resources), rates, and levels
3that exist as of the date of the submission of the State budget
4for the fiscal year and (ii) revenue sources (including
5non-income resources), rates, and levels that have been passed
6by the General Assembly as of the date of the submission of the
7State budget for the fiscal year and that are authorized to
8take effect in that fiscal year. Beginning with budgets
9prepared for fiscal year 2022, revenue estimates shall be
10determined as provided under paragraph (1) of subsection
11(a-5). Except with respect to the capital development
12provisions of the State budget, the Governor shall determine
13available revenue, deduct the cost of essential government
14services, including, but not limited to, pension payments and
15debt service, and assign a percentage of the remaining revenue
16to each statewide prioritized goal, as established in Section
1750-25 of this Law, taking into consideration the proposed
18goals set forth in the report of the Commission established
19under that Section. The Governor shall also demonstrate how
20spending priorities for the fiscal year fulfill those
21statewide goals. The amounts recommended by the Governor for
22appropriation to the respective departments, offices and
23institutions shall be formulated according to each
24department's, office's, and institution's ability to
25effectively deliver services that meet the established
26statewide goals. The amounts relating to particular functions

 

 

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1and activities shall be further formulated in accordance with
2the object classification specified in Section 13 of the State
3Finance Act. In addition, the amounts recommended by the
4Governor for appropriation shall take into account each State
5agency's effectiveness in achieving its prioritized goals for
6the previous fiscal year, as set forth in Section 50-25 of this
7Law, giving priority to agencies and programs that have
8demonstrated a focus on the prevention of waste and the
9maximum yield from resources.
10    Beginning in fiscal year 2011, the Governor shall
11distribute written quarterly financial reports on operating
12funds, which may include general, State, or federal funds and
13may include funds related to agencies that have significant
14impacts on State operations, and budget statements on all
15appropriated funds to the General Assembly and the State
16Comptroller. The reports shall be submitted no later than 45
17days after the last day of each quarter of the fiscal year and
18shall be posted on the Governor's Office of Management and
19Budget's website on the same day. The reports shall be
20prepared and presented for each State agency and on a
21statewide level in an executive summary format that may
22include, for the fiscal year to date, individual itemizations
23for each significant revenue type as well as itemizations of
24expenditures and obligations, by agency, with an appropriate
25level of detail. The reports shall include a calculation of
26the actual total budget surplus or deficit for the fiscal year

 

 

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1to date. The Governor shall also present periodic budget
2addresses throughout the fiscal year at the invitation of the
3General Assembly.
4    The Governor shall not propose expenditures and the
5General Assembly shall not enact appropriations that exceed
6the resources estimated to be available, as provided in this
7Section. Appropriations may be adjusted during the fiscal year
8by means of one or more supplemental appropriation bills if
9any State agency either fails to meet or exceeds the goals set
10forth in Section 50-25 of this Law.
11    For the purposes of Article VIII, Section 2 of the 1970
12Illinois Constitution, the State budget for the following
13funds shall be prepared on the basis of revenue and
14expenditure measurement concepts that are in concert with
15generally accepted accounting principles for governments:
16        (1) General Revenue Fund.
17        (2) Common School Fund.
18        (3) Educational Assistance Fund.
19        (4) Road Fund.
20        (5) Motor Fuel Tax Fund.
21        (6) Agricultural Premium Fund.
22    These funds shall be known as the "budgeted funds". The
23revenue estimates used in the State budget for the budgeted
24funds shall include the estimated beginning fund balance, plus
25revenues estimated to be received during the budgeted year,
26plus the estimated receipts due the State as of June 30 of the

 

 

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1budgeted year that are expected to be collected during the
2lapse period following the budgeted year, minus the receipts
3collected during the first 2 months of the budgeted year that
4became due to the State in the year before the budgeted year.
5Revenues shall also include estimated federal reimbursements
6associated with the recognition of Section 25 of the State
7Finance Act liabilities. For any budgeted fund for which
8current year revenues are anticipated to exceed expenditures,
9the surplus shall be considered to be a resource available for
10expenditure in the budgeted fiscal year.
11    Expenditure estimates for the budgeted funds included in
12the State budget shall include the costs to be incurred by the
13State for the budgeted year, to be paid in the next fiscal
14year, excluding costs paid in the budgeted year which were
15carried over from the prior year, where the payment is
16authorized by Section 25 of the State Finance Act. For any
17budgeted fund for which expenditures are expected to exceed
18revenues in the current fiscal year, the deficit shall be
19considered as a use of funds in the budgeted fiscal year.
20    Revenues and expenditures shall also include transfers
21between funds that are based on revenues received or costs
22incurred during the budget year.
23    Appropriations for expenditures shall also include all
24anticipated statutory continuing appropriation obligations
25that are expected to be incurred during the budgeted fiscal
26year.

 

 

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1    By March 15 of each year, the Commission on Government
2Forecasting and Accountability shall prepare revenue and fund
3transfer estimates in accordance with the requirements of this
4Section and report those estimates to the General Assembly and
5the Governor.
6    For all funds other than the budgeted funds, the proposed
7expenditures shall not exceed funds estimated to be available
8for the fiscal year as shown in the budget. Appropriation for a
9fiscal year shall not exceed funds estimated by the General
10Assembly to be available during that year.
11    (a-5) Beginning with budgets prepared for fiscal year
122022:
13        (1) Revenue estimates shall be based solely on
14    receipts from taxes, fees, and federal transfers and shall
15    not include debt incurred, existing debt refinanced, or
16    additional funds appropriated, assigned, or transferred
17    from another State fund.
18        (2) The General Assembly by law shall make
19    appropriations for all expenditures of public funds by the
20    State. Appropriations for a fiscal year shall not exceed
21    revenue estimated by the General Assembly to be available
22    during fiscal that year. Except for deficiency or
23    emergency appropriations, all appropriations are
24    expendable only during the fiscal year for which they were
25    appropriated, except that the General Assembly may provide
26    for appropriations from the Budget Stabilization Fund in

 

 

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1    excess of revenue estimated by the General Assembly to be
2    available during that fiscal year by adoption of a
3    resolution approved by a record vote of three-fifths of
4    the members of each house. The excess appropriations may
5    not exceed the total amount available in the Budget
6    Stabilization Fund.
7        (3) No public money shall be expended except pursuant
8    to appropriations made by law. Expenditures for any fiscal
9    year shall not exceed the State's revenues and reserves in
10    the general funds, including proceeds of any debt
11    obligation, for that fiscal year. No debt obligation,
12    except as shall be repaid within the fiscal year of
13    issuance, shall be authorized for the current operation of
14    any State service or program, nor shall the proceeds of
15    any debt obligation be expended for a purpose other than
16    that for which it was authorized.
17        (4) Any law requiring the expenditure of State funds
18    shall be null and void unless, during the session in which
19    the act receives final passage, an appropriation is made
20    for the estimated first year's funding.
21    (b) By February 24, 2010, the Governor must file a written
22report with the Secretary of the Senate and the Clerk of the
23House of Representatives containing the following:
24        (1) for fiscal year 2010, the revenues for all
25    budgeted funds, both actual to date and estimated for the
26    full fiscal year;

 

 

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1        (2) for fiscal year 2010, the expenditures for all
2    budgeted funds, both actual to date and estimated for the
3    full fiscal year;
4        (3) for fiscal year 2011, the estimated revenues for
5    all budgeted funds, including without limitation the
6    affordable General Revenue Fund appropriations, for the
7    full fiscal year; and
8        (4) for fiscal year 2011, an estimate of the
9    anticipated liabilities for all budgeted funds, including
10    without limitation the affordable General Revenue Fund
11    appropriations, debt service on bonds issued, and the
12    State's contributions to the pension systems, for the full
13    fiscal year.
14    Between July 1 and August 31 of each fiscal year, the
15members of the General Assembly and members of the public may
16make written budget recommendations to the Governor.
17    Beginning with budgets prepared for fiscal year 2013, the
18budgets submitted by the Governor and appropriations made by
19the General Assembly for all executive branch State agencies
20must adhere to a method of budgeting where each priority must
21be justified each year according to merit rather than
22according to the amount appropriated for the preceding year.
23(Source: P.A. 97-669, eff. 1-13-12; 97-813, eff. 7-13-12;
2498-2, eff. 2-19-13; 98-626, eff. 2-5-14.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.