093_SB1757

 
                                     LRB093 10006 JAM 10256 b

 1        AN ACT concerning 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    Budget Stabilization Act.

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

19        Section 10.  Budget limitations.
20        (a)  In  addition to Section 50-5 of the State Budget Law
21    of the Civil Administrative Code  of  Illinois,  the  General
22    Assembly's appropriations from general funds shall not exceed
23    99.5%  of the estimated general funds revenues for the fiscal
24    year when revenue estimates  of  the  State's  general  funds
25    revenues  exceed  the  prior  fiscal year's estimated general
26    funds revenues by more than 4%.
27        (b)  The General Assembly's appropriations  from  general
28    funds  shall  not  exceed  99% of the estimated general funds
29    revenues for the fiscal year when revenue  estimates  of  the
30    State's general funds revenues exceed the prior fiscal year's
 
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 1    estimated  general  funds  revenues  by more than 4% for 2 or
 2    more consecutive fiscal years.

 3        Section 15.  Transfers to Budget Stabilization  Fund  and
 4    Early Debt Retirement Fund.
 5        (a)  For  each  fiscal  year  when the General Assembly's
 6    appropriations from general funds do not exceed 99.5% of  the
 7    estimated  general  funds revenues pursuant to subsection (a)
 8    of Section  10,  the  Comptroller  shall  transfer  from  the
 9    General  Revenue  Fund  as  provided  by this Section a total
10    amount equal to .5% of the estimated general  funds  revenues
11    to the Budget Stabilization Fund or the Early Debt Retirement
12    Fund.
13        (b)  For  each  fiscal  year  when the General Assembly's
14    appropriations from general funds do not exceed  99%  of  the
15    estimated  general  funds revenues pursuant to subsection (b)
16    of Section  10,  the  Comptroller  shall  transfer  from  the
17    General  Revenue  Fund  as  provided  by this Section a total
18    amount equal to 1% of the estimated general funds revenues to
19    the Budget Stabilization Fund or the  Early  Debt  Retirement
20    Fund.
21        (c)  The  Comptroller  shall  transfer  1/12 of the total
22    amount to be transferred each fiscal year under this  Section
23    into  the  Budget Stabilization Fund on the first day of each
24    month of that fiscal year or as soon thereafter as  possible.
25    The balance of the Budget Stabilization Fund shall not exceed
26    4%  of the total of general funds revenues estimated for that
27    fiscal year.
28        (d)  If the balance  of  the  Budget  Stabilization  Fund
29    exceeds  4% of the total general funds revenues estimated for
30    that fiscal year, the Comptroller shall transfer 1/12 of  the
31    total  amount  identified  for  transfer  to  the  Early Debt
32    Retirement Fund into the Early Debt Retirement  Fund  on  the
33    first  day  of  each  month  of  that  fiscal year or as soon
 
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 1    thereafter as possible.
 2        (e)  Nothing in this Act prohibits the  General  Assembly
 3    from   appropriating   additional   moneys  into  the  Budget
 4    Stabilization Fund or the Early Debt Retirement Fund.

 5        Section 90.  The State Finance Act is amended by changing
 6    Sections 6z-51 and by adding  Sections  5.595  and  6z-65  as
 7    follows:

 8        (30 ILCS 105/5.595 new)
 9        Sec. 5.595. The Early Debt Retirement Fund.

10        (30 ILCS 105/6z-51)
11        Sec. 6z-51. Budget Stabilization Fund.
12        (a)  The Budget Stabilization Fund, a special fund in the
13    State  Treasury,  shall  consist  of  moneys  appropriated or
14    transferred to that Fund, as provided in Section 6z-43 and as
15    otherwise  provided  by   law.   All   earnings   on   Budget
16    Stabilization  Fund  investments shall be deposited into that
17    Fund.
18        (b)  The State Comptroller may direct the State Treasurer
19    to transfer moneys from the Budget Stabilization Fund to  the
20    General Revenue Fund in order to meet deficits resulting from
21    timing  variations  between  disbursements and the receipt of
22    funds within a fiscal year.  Any moneys so borrowed shall  be
23    repaid  by  June  30  of  the  fiscal year in which they were
24    borrowed.
25    (Source: P.A. 92-11, eff. 6-11-01; 92-651, eff. 7-11-02.)

26        (30 ILCS 105/6z-65 new)
27        Sec. 6z-65. Early Debt Retirement Fund.  The  Early  Debt
28    Retirement  Fund  is  created  as a special fund in the State
29    treasury. Moneys in the Early Debt  Retirement  Fund  may  be
30    expended,  subject  to  appropriation,  for  the  payment  of
 
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 1    deferred  liabilities under Section 25 of this Act; the early
 2    retirement of unfunded pension liabilities; the retirement of
 3    bonded indebtedness when practical; and the funding of  other
 4    long-term fiscal needs of the State.

 5        Section  99.  Effective date.  This Act takes effect upon
 6    becoming law.