97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1229

 

Introduced 2/8/2011, by Sen. Chris Lauzen

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.780 new

    Creates the Taxpayer Bill of Rights Spending Limitation Act. Establishes fiscal year spending limits based on inflation and population changes. Creates an Emergency Reserve Cash Fund, requires transfers to the Fund based on revenues limits, and requires expenditures only for emergencies and from appropriations adopted by a two-thirds vote of the House and Senate. Allows transfer of excess amounts in the Fund. Amends the State Finance Act to create the Fund. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 1. Short title. This Act may be cited as the
5Taxpayer Bill of Rights Spending Limitation Act.
 
6    Section 5. Definitions.
7    "Calendar year" means January 1 of any year through
8December 31 of the same year.
9    "Emergency" means an extraordinary event or occurrence
10that could not have been reasonably foreseen or prevented and
11that requires immediate expenditure to preserve the health,
12safety, and general welfare of the people. "Emergency" does not
13mean a revenue shortfall or budget shortfall.
14    "Fiscal year" means July 1 of any year through June 30 of
15the following year.
16    "Fiscal year spending" means the total amount of moneys
17appropriated by the State except: (1) appropriated funds
18received from the federal government; (2) principal and
19interest on bonded indebtedness; (3) appropriations funded by
20unemployment and disability insurance funds; (4)
21appropriations funded from permanent endowment, trust funds,
22or pension funds; or (5) proceeds of gifts or bequests made for
23purposes specified by the donor.

 

 

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1    "Inflation" means the Consumer Price Index (all items) for
2the United States of America, or any comparable index, as
3computed by the Bureau of Labor Statistics.
4    "Per capita expenditures" mean the quotient derived from
5dividing expenditures of the State for a fiscal year by its
6population on the first day of that fiscal year.
7    "Population" means the number of people residing in the
8State; excluding armed forces stationed overseas, as
9determined by the United States Bureau of Census.
10    "Total State revenues" means all moneys derived from the
11State's own revenue sources.
 
12    Section 10. Spending limits.
13    (a) For any fiscal year that commences on or after July 1,
142011, the maximum annual percentage change in State fiscal year
15spending equals inflation plus the percentage change in State
16population in the prior calendar year, adjusted for approved
17revenue changes. Population shall be determined by annual
18federal census estimates, and that number shall be adjusted as
19the federal census data is adjusted.
20    (b) If the amount of total State revenue for the prior
21fiscal year exceeds the amount of total State revenue for the
22next preceding fiscal year, the maximum amount of total State
23revenues shall be the lesser of the amount of total State
24revenues for the prior State fiscal year or the amount of total
25State revenues limit for the prior fiscal year plus the product

 

 

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1of the applicable amount and the sum of inflation and the
2percentage change in State population in the prior calendar
3year.
4    (c) If the amount of total State revenues for the prior
5fiscal year is less than the amount of total State revenues for
6the next preceding fiscal year, the maximum amount of the total
7State revenues shall be the amount of total State revenues
8limit for the most recent year for which the amount of total
9State revenues exceeded the amount of total State revenues for
10the preceding fiscal year.
 
11    Section 15. Emergency Reserve Fund.
12    (a) For any State fiscal year that commences on or after
13July 1, 2011 and before making any transfers to the Budget
14Stabilization Fund or any refunds as required by this Act, the
15State Treasurer shall transfer revenues in excess of the total
16State revenues limit determined under this Act, to the
17Emergency Reserve Cash Fund, which is hereby created, to the
18extent necessary to ensure that the balance of the Fund at the
19end of the fiscal year is an amount equal to 50% of the total
20State revenues limit. The State shall not be required to
21transfer any moneys other than revenue in excess of the total
22State revenues limit to the fund. Unused revenues apply to the
23next State fiscal year's emergency reserve fund. The Emergency
24Reserve Cash Fund shall be in addition to, and shall not be
25used to meet, any other reserve requirement of law.

 

 

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1    (b) Moneys in the Emergency Reserve Cash Fund may be
2expended for declared emergencies only. Appropriation from the
3Fund can only occur upon a two-thirds vote of all elected
4members of each house of the Illinois General Assembly
5concurring therein. Interest or other income earned on the
6Emergency Reserve Cash Fund shall accrue to the fund.
 
7    Section 20. Budget Stabilization Fund.
8    (a) For any State fiscal year that commences on or after
9July 1, 2011, if revenue from sources not excluded from total
10State revenues exceeds the limit on total State revenues
11calculated in accordance with this Act, for that fiscal year,
12the excess shall be reserved or refunded as follows:
13        (1) The State Treasurer shall first transfer the excess
14    to the Emergency Reserve Cash Fund to the extent necessary
15    to ensure that the balance of the Fund at the end of the
16    fiscal year is an amount equal to 50% of the total State
17    revenues limit for the fiscal year as required by this Act.
18    The State Treasurer shall transfer any additional excess to
19    the Budget Stabilization Fund to the extent necessary to
20    ensure that the balance of the Fund at the end of the
21    fiscal year is an amount equal to 50% of the total State
22    revenues limit for the fiscal year. Interest or other
23    income earned on the Budget Stabilization Fund shall accrue
24    to the Fund.
25        (2) For any State fiscal year that commences on or

 

 

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1    after July 1, 2011, if an amount of the total State
2    revenues is less than the amount of total State revenues
3    for the prior fiscal year, the State Treasurer shall
4    transfer money from the Budget Stabilization Fund to the
5    General Revenue Fund in an amount equal to the difference
6    between the amount of total State revenues for the prior
7    fiscal year and the amount of total State revenues for the
8    fiscal year. Under no other circumstances shall the State
9    Treasurer transfer moneys from the Budget Stabilization
10    Fund.
11        (3) Any excess that remains after the State Treasurer
12    has made the transfers required by paragraph (2) of this
13    Section shall be reserved in the current fiscal year and
14    refunded during the next fiscal year through temporary
15    income or sales tax rate reductions.
 
16    Section 95. The State Finance Act is amended by adding
17Section 5.780 as follows:
 
18    (30 ILCS 105/5.780 new)
19    Sec. 5.780. The Emergency Reserve Cash Fund.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.