99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2273

 

Introduced 1/27/2016, by Sen. Heather A. Steans

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.875 new
30 ILCS 105/5.876 new
30 ILCS 105/6z-51

    Creates the Budget Economic Stabilization Fund Act. Provides that the Comptroller and the Departments of Healthcare and Family Services, Central Management Services, Human Services, Revenue, and Aging shall report to the Governor no later than January 10th of each year the amount of unpaid bills as of the preceding December 31st. Provides that if unpaid bills total more than $1,000,000,000, the Governor shall include in his or her budget for the next fiscal year an amount to pay off unpaid bills equal to the lesser of (i) 50% of above-trend revenues that the Governor projects to be received by the State in the next fiscal year or (ii) the amount of above-trend revenues needed to reduce the unpaid bills to $1,000,000,000. Provides that the Governor shall include in the budget paying unpaid bills equal to the lesser of (i) 50% of above-trend revenues that the Governor projects to be received by the State in the next fiscal year or (ii) the amount of above-trend revenues needed to reduce the unpaid bills to $1,000,000,000 if unpaid bills total more than $1,000,000,000. Creates the Budget Economic Stabilization Fund and provides for transfers into and withdrawals from the Fund. Creates the Bill Backlog Payment Fund and provides for transfers into and withdrawals from the Fund. Amends the State Finance Act to list the Budget Economic Stabilization Fund and Bill Backlog Payment Fund. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2273LRB099 18509 MLM 42888 b

1    AN ACT concerning finance.
 
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 Budget
5Economic Stabilization Fund Act.
 
6    Section 5. Legislative intent.
7    The General Assembly finds that, in order to restore
8Illinois' fiscal health, retaining a share of above-trend State
9revenues for future needs and for reducing the need for new
10taxes or increasing any rate of tax or otherwise modifying the
11tax structure, including the elimination or modification of
12deductions, exclusions, or exemptions, is a priority.
 
13    Section 10. Definitions. As used in this Act:
14    "Above-trend revenues" means general funds revenue
15collections that exceed 2.4% of the prior fiscal year's general
16funds revenue collections.
17    "General funds" means the General Revenue Fund, the Common
18School Fund, the Education Assistance Fund, and the General
19Revenue Common School Special Account Fund.
20    "General funds revenue collections" means, for each fiscal
21year, all gross personal and corporate income taxes, other
22taxes, fees, and other revenues expected to be deposited into

 

 

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1the State's general funds and recurring transfers into general
2funds from the State Lottery and gaming, but does not include
3other transfers and federal funds.
4    "Unpaid bills" means: pending vouchers approved for
5payment but not paid as of December 31st for each fiscal year
6by the Office of the Comptroller; pending transfers required by
7State statute that have been recorded but have not been paid
8from the General Revenue Fund, Common School Fund, or Education
9Assistance Fund; and all vouchers for invoices that have been
10certified as a proper bill, as defined by the State Prompt
11Payment Act, by the Departments of Healthcare and Family
12Services, Central Management Services, Human Services,
13Revenue, and Aging but not yet approved by the Comptroller as
14of December 31st of each fiscal year from the General Revenue
15Fund, Common School Fund, Education Assistance Fund, Health
16Insurance Fund, Income Tax Refund Fund, and Healthcare Provider
17Relief Fund.
 
18    Section 15. Certification of the backlog of bills. The
19amount of unpaid bills shall be reported by the Comptroller and
20the Departments of Healthcare and Family Services, Central
21Management Services, Human Services, Revenue, and Aging to the
22Governor's Office of Management and Budget no later than
23January 10th of each year. By January 15th of each year, the
24Governor's Office of Management and Budget shall notify the
25Comptroller, Treasurer, the Speaker and Minority Leader of the

 

 

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1House, and the President and Minority Leader of the Senate of
2the total amount of unpaid bills as of the preceding December
331st.
 
4    Section 20. Payment of unpaid bills. If unpaid bills total
5more than $1,000,000,000, the Governor shall include in his or
6her budget for the next fiscal year an amount to pay unpaid
7bills equal to the lesser of (i) 50% of above-trend revenues
8that the Governor projects to be received by the State in the
9next fiscal year or (ii) the amount of above-trend revenues
10needed to reduce the unpaid bills to $1,000,000,000. This
11amount to pay off unpaid bills shall be included in the
12Governor's budget as an appropriation to the Bill Backlog
13Payment Fund from the General Revenue Fund. Nothing in this Act
14prohibits the Governor from including in his or her budget, or
15the General Assembly from appropriating, additional moneys for
16the payment of unpaid bills. If for any reason the
17appropriations enacted are insufficient to meet the payment of
18unpaid bills required to be included in the Governor's budget
19under this Section, then there is hereby appropriated, on a
20continuing annual basis in each fiscal year, from the General
21Revenue Fund, the amounts necessary for this payment.
 
22    Section 25. Transfers into the Budget Economic
23Stabilization Fund.
24    (a) If unpaid bills total less than $1,000,000,000 the

 

 

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1Governor shall include in his or her budget for the next fiscal
2year at least 50% of any above-trend revenues that the Governor
3projects to be received in the next fiscal year for deposit to
4the Budget Economic Stabilization Fund as an appropriation from
5the General Revenue Fund. Except as provided in subsection (b)
6of this Section, if for any reason the appropriations enacted
7are insufficient to make the deposit required by this Section,
8then this Section shall constitute a continuing appropriation
9from the General Revenue Fund of all amounts necessary for this
10deposit.
11    (b) If the balance of the Budget Economic Stabilization
12Fund at the beginning of the next fiscal year is projected by
13the Governor to exceed 5% of the general funds revenue
14collections estimated for the next fiscal year, transfers into
15the Budget Economic Stabilization Fund are not required for
16that fiscal year.
 
17    Section 30. Withdrawal from Budget Economic Stabilization
18Fund.
19    (a) Upon the direction of the Governor at any time within a
20fiscal year and within the limitations set forth in this
21Section, the Comptroller and the Treasurer shall transfer the
22amounts designated by the Governor from the Budget Economic
23Stabilization Fund to general funds as specified by the
24Governor. The transfer shall be made as soon as practicable on
25or after the 30th day after the Governor has provided written

 

 

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1notice of his or her direction to transfer to the Clerk of the
2House of Representatives, the Secretary of the Senate, and the
3Index Department of the Office of the Secretary of State, with
4copies of the notice provided to the Comptroller and Treasurer.
5The notice shall be published on the website of the Governor's
6Office of Management and Budget. The amount directed to be
7transferred may not exceed the limits set forth in subsection
8(c) of this Section. The Governor may direct a transfer from
9the Budget Economic Stabilization Fund to any of the general
10funds only if: he or she estimates that general funds revenue
11collections for the current fiscal year will be less than the
12general funds revenue collections as estimated at the time of
13enactment of appropriations for the current fiscal year; the
14transfer is necessary to provide for the health, safety, and
15welfare of the people of the State of Illinois; and the funds
16transferred are to be spent within previously enacted
17appropriations.
18    (b) In addition to transfers directed by the Governor
19within a fiscal year, transfers or appropriations from the
20Budget Economic Stabilization Fund for the current or next
21fiscal year may be made by vote of the General Assembly if:
22        (1) the General Assembly projects that general funds
23    revenue collections for the current or next fiscal year are
24    less than the general funds revenue collections as
25    estimated at the time of enactment of appropriations for
26    the current fiscal year for the preceding year;

 

 

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1        (2) the General Assembly finds that general funds
2    revenue collections have remained stagnant or dropped
3    during 2 consecutive fiscal quarters within the preceding
4    12 months as compared to the corresponding 2 fiscal
5    quarters of the prior fiscal year; or
6        (3) that the State Coincident Index for the State of
7    Illinois has remained stagnant or dropped over 2
8    consecutive quarters within the preceding 12 months, as
9    published in the Federal Reserve Bank of Philadelphia's
10    publication entitled "State Coincident Indexes" or its
11    successor publication.
12    (c) Transfers or appropriations from the Budget Economic
13Stabilization Fund may not, during any fiscal year, exceed the
14lesser of:
15        (1) 50% of the Budget Economic Stabilization Fund's
16    balance;
17        (2) in the case of appropriation enacted by the General
18    Assembly, 50% of the difference between (i) general funds
19    revenue collections, as projected by the Commission on
20    Government Forecasting and Accountability to be received
21    in the next fiscal year, and (ii) a revised general fund
22    revenue collections projection for the current fiscal year
23    presented to the General Assembly by the Commission on
24    Government Forecasting and Accountability; or
25        (3) in the case of transfers to be directed by the
26    Governor within a fiscal year, 50% of the difference

 

 

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1    between (i) general funds revenue collections, to be
2    received in the next fiscal year as projected by the
3    Governor, and (ii) a revised general fund revenue
4    collections projection for the current fiscal year as
5    projected by the Governor.
 
6    Section 35. Fund creation.
7    (a) There is created the Budget Economic Stabilization Fund
8as a special fund in the State Treasury consisting of moneys
9appropriated or transferred to that Fund as provided in Section
1030 of this Act and as otherwise provided by law. All earnings
11on Budget Economic Stabilization Fund investments shall be
12deposited into that Fund.
13    (b) There is created the Bill Backlog Payment Fund as a
14special fund in the State Treasury consisting of moneys
15appropriated or transferred to that Fund as provided in Section
1625 of this Act and as otherwise provided by law. All earnings
17on Bill Backlog Payment Fund investments shall be deposited
18into that Fund.
 
19    Section 40. The State Finance Act is amended by changing
20Section 6z-51 and by adding Sections 5.875 and 5.876 as
21follows:
 
22    (30 ILCS 105/5.875 new)
23    Sec. 5.875. The Budget Economic Stabilization Fund.
 

 

 

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1    (30 ILCS 105/5.876 new)
2    Sec. 5.876. The Bill Backlog Payment Fund.
 
3    (30 ILCS 105/6z-51)
4    Sec. 6z-51. Budget Stabilization Fund.
5    (a) The Budget Stabilization Fund, a special fund in the
6State Treasury, shall consist of moneys appropriated or
7transferred to that Fund, as provided in Section 6z-43 and as
8otherwise provided by law. All earnings on Budget Stabilization
9Fund investments shall be deposited into that Fund.
10    (b) Until an initial transfer has been made to the Budget
11Economic Stabilization Fund under Section 30 of the Budget
12Economic Stabilization Fund Act, the The State Comptroller may
13direct the State Treasurer to transfer moneys from the Budget
14Stabilization Fund to the General Revenue Fund in order to meet
15cash flow deficits resulting from timing variations between
16disbursements and the receipt of funds within a fiscal year.
17Any moneys so borrowed in any fiscal year other than Fiscal
18Year 2011 shall be repaid by June 30 of the fiscal year in
19which they were borrowed. Any moneys so borrowed in Fiscal Year
202011 shall be repaid no later than July 15, 2011.
21(Source: P.A. 97-44, eff. 6-28-11.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.