97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HOUSE JOINT RESOLUTION CONSTITUTIONAL AMENDMENT
HC0046

 

Introduced , by Rep. Mike Bost

 

SYNOPSIS AS INTRODUCED:
 
ILCON Art. IV, Sec. 8.1 new
ILCON Art. VIII, Sec. 2.1 new
ILCON Art. VIII, Sec. 2.2 new

    Proposes to amend the Legislature Article of the Illinois Constitution concerning the passage of revenue bills. Provides that any bill resulting in the increase of revenue to the State by an increase of a tax on or measured by income or by an increase of a tax on or measured by the selling price of any item of tangible personal property may become law only by a vote of three-fifths of the members in each house of the General Assembly. Proposes to amend the Finance Article of the Illinois Constitution. Beginning in Fiscal Year 2015, limits aggregate appropriations and transfers from the State's general funds in a fiscal year. Allows the Governor to declare a fiscal emergency. If the Comptroller and Treasurer concur in the Governor's declaration, then the General Assembly, by a three-fifths vote, may authorize appropriations and transfers that exceed the limitation by law conditioned upon the approval of a majority of voters in the next general, primary, or special election. Requires excess revenues to be deposited into the Past Due Paydown Fund, State Budget Stabilization Fund, and the Taxpayer Relief Fund. Requires that, in each fiscal year, obligations of the State to retirement systems and pension funds created under the Illinois Pension Code must be met as provided in that Code. Effective upon being declared adopted.


LRB097 18692 JDS 63926 e

 

HC0046LRB097 18692 JDS 63926 e

1
HOUSE JOINT RESOLUTION
2
CONSTITUTIONAL AMENDMENT

 
3    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
4NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE
5SENATE CONCURRING HEREIN, that there shall be submitted to the
6electors of the State for adoption or rejection at the general
7election next occurring at least 6 months after the adoption of
8this resolution a proposition to add Section 8.1 to Article IV
9and to add Sections 2.1 and 2.2 to Article VIII of the Illinois
10Constitution as follows:
 
11
ARTICLE IV
12
THE LEGISLATURE

13    (ILCON Art. IV, Sec. 8.1 new)
14SECTION 8.1. PASSAGE OF REVENUE BILLS
15    A bill that would result in the increase of revenue to the
16State by an increase of a tax on or measured by income or by an
17increase of a tax on or measured by the selling price of any
18item of tangible personal property may become law only with the
19concurrence of three-fifths of the members elected to each
20house of the General Assembly.
 
21
ARTICLE VIII
22
FINANCE

 

 

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1    (ILCON Art. VIII, Sec. 2.1 new)
2SECTION 2.1. LIMITATIONS ON APPROPRIATIONS AND TRANSFERS
3    (a) For the fiscal year ending in 2015 and each fiscal year
4thereafter, aggregate appropriations and transfers from the
5general funds are limited as provided in this Section. "General
6funds" include the General Revenue Fund, the Common School
7Fund, the General Revenue Common School Special Account Fund,
8and the Education Assistance Fund and any fund utilized for
9general or operating expenses. "Appropriations and transfers"
10do not include (i) reappropriations from a previous fiscal
11year, (ii) those made for debt service payments, and (iii)
12those made to a budget stabilization fund.
13    (b) Aggregate fiscal year appropriations and transfers
14from the general funds may not exceed the limitation amount.
15For the fiscal year ending in 2015, the limitation amount is
16the aggregate amount of appropriations and transfers from the
17general funds in the fiscal year ending in 2011, as adjusted as
18provided in this subsection (b) for the fiscal years ending in
192012, 2013, and 2014. For the fiscal year ending in 2016 and
20each fiscal year thereafter, the limitation amount is the
21aggregate amount of appropriations and transfers from the
22general funds in the previous fiscal year, as adjusted as
23provided in this subsection (b).
24    For the fiscal year after a fiscal emergency is declared
25under subsection (c) of this Section, the limitation amount is

 

 

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1the aggregate amount of appropriations and transfers from the
2general funds in the fiscal year in which the fiscal emergency
3is declared minus the specific dollar amount by which the
4limitation amount was increased for the fiscal emergency, as
5adjusted as provided in this subsection (b).
6    The adjustment is the average annual percentage change in
7the average per capita personal income for Illinois for the 5
8most recent calendar years for which data is available, as
9defined and reported by the United States Department of
10Commerce, or its successor.
11    (c) The Governor may declare a fiscal emergency by filing a
12declaration with the Secretary of State and copies with the
13Senate and House of Representatives. The declaration must be
14limited to only one State fiscal year, set forth compelling
15reasons for declaring a fiscal emergency, and request that the
16limitation amount for that fiscal year be increased by a
17specific dollar amount. If the Comptroller and Treasurer advise
18the General Assembly that they concur in the Governor's
19declaration, then by a record vote of three-fifths of the
20members elected to each house, the General Assembly, by law
21conditioned upon the approval of a majority of voters in the
22next general, primary, or special election, may authorize
23increased appropriations and transfers in a specific dollar
24amount that is no more than the increased amount requested by
25the Governor in the declaration. "Emergency" means
26extraordinary circumstances outside the control of the General

 

 

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1Assembly, including catastrophic events, such as a natural
2disaster, terrorism, fire, war, and riot, and court orders or
3decrees.
4    (d) If the general funds revenues for a fiscal year exceed
5the limitation amount for that fiscal year, then those excess
6revenues must be deposited into the Past Due Paydown Fund,
7State Budget Stabilization Fund, and the Taxpayer Relief Fund
8as provided in subsections (e), (f), and (g).
9    (e) The Past Due Paydown Fund is established as a special
10fund in the State treasury and must be administered for the
11purposes identified in this Section. At the close of the lapse
12period for each fiscal year beginning in 2012, the State
13Comptroller shall identify the amount of General Fund
14unappropriated surplus above the Spending Growth Index
15limitation and transfer to the fund any amount necessary up to
16the total past due operating debt owed by the State as of the
17close of fiscal year 2011.
18    The General Assembly may authorize transfers,
19appropriations, and allocations from the fund only to fund the
20costs of paying down the remaining past due debt until such
21debt is zero. Any remaining funds shall be transferred to the
22State Budget Stabilization Fund.
23    (f) The State Budget Stabilization Fund is established as a
24special fund in the State treasury and must be administered for
25the purposes identified in this Section. At the close of the
26lapse period of each fiscal year, the State Comptroller shall

 

 

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1identify the amount of General Fund unappropriated surplus
2above the expenditure limitation described in subsection (b) of
3this Section and above the amount necessary to fully fund and
4pay down the past due operating debt to zero. The fund may not
5exceed 8% of the total General Fund revenues received in the
6immediately preceding fiscal year.
7    The General Assembly may authorize transfers,
8appropriations, and allocations from the fund only to fund the
9costs of State government up to the expenditure limit
10calculated by law in years when State revenues are less than
11the amount necessary to finance the level of expenditures
12permitted by law. Transfers require a three-fifths
13supermajority vote of the General Assembly.
14    The money in the fund may be invested as provided by law,
15with the earnings credited to the fund. At the close of every
16month during which the fund is at the 8% limitation, the State
17Comptroller shall transfer the excess to the Taxpayer Relief
18Fund.
19    (g) The Taxpayer Relief Fund is established as a special
20fund in the State treasury and must be administered for the
21purposes identified in this Section. At the close of the lapse
22period of each fiscal year, the State Comptroller shall
23identify the amount of General Fund unappropriated surplus
24above the State expenditure limitation and above the amount
25necessary to fully fund the Past Due Paydown Fund and the
26Budget Stabilization Fund.

 

 

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1    By September 1st annually, the State Comptroller shall
2notify the Commission on Government Forecasting and
3Accountability and the Department of Revenue of the amount in
4the fund as a result of the transfers.
5    If the amount in the fund exceeds 1% of General Fund
6expenditures, then the General Assembly shall, by September
715th, enact legislation to provide for the refund to taxpayers
8of amounts in the fund. Refunds may take the form only of
9temporary or permanent broad-based tax rate reductions.
10    If the General Assembly does not enact legislation by
11September 15th to provide refunds, then the State Comptroller
12shall, by September 30th, notify the Department of Revenue of
13the amount in the fund. The Department of Revenue shall
14calculate a one-time bonus personal exemption refund. The
15amount of the personal exemption refund must be calculated by
16dividing the amount in the fund identified by the State
17Comptroller by the number of personal exemptions claimed on
18income tax returns filed for tax year beginning in the previous
19calendar year. The Department of Revenue shall issue a refund
20by October 30th to a taxpayer who filed an income tax return by
21April 15th of the same calendar year based on the number of
22exemptions claimed (times refund per exemption) on the
23taxpayer's return without regard to the taxpayer's tax
24liability for the year.
 
25    (ILCON Art. VIII, Sec. 2.2 new)

 

 

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1SECTION 2.2. OBLIGATIONS TO RETIREMENT SYSTEMS AND PENSION
2FUNDS
3    In each fiscal year, obligations of the State to retirement
4systems and pension funds created under the Illinois Pension
5Code must be met as provided in that Code.
 
6
SCHEDULE
7    This Constitutional Amendment takes effect upon being
8declared adopted in accordance with Section 7 of the Illinois
9Constitutional Amendment Act.