HB6688 95TH GENERAL ASSEMBLY

LRB095 22036 JAM 52308 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB6688

Introduced , by Rep. Bill Mitchell

SYNOPSIS AS INTRODUCED:

15 ILCS 20/50-5	was 15 ILCS 20/38
15 ILCS 20/50-25 new
25 ILCS 155/4	from Ch. 63, par. 344

Amends the State Budget Law of the Civil Administrative Code of Illinois and the Commission on Government Forecasting and Accountability Act. Prohibits the Governor's proposed expenditures for a fiscal year, and the General Assembly's appropriations therefor, from exceeding the available revenue estimated by the Commission on Government Forecasting and Accountability (now, may not exceed revenues estimated to be available). Requires that the Commission estimate the revenues available for the next fiscal year's appropriation by each February 1 (now, at the convening of each regular General Assembly session) and revise the estimate by each May 1 (now, by the third Wednesday in each March). Eliminates the requirement that the General Assembly adopt the estimates by joint resolution. Requires that the Commission revise its estimate of revenues available for each current fiscal year's appropriation by October 1, February 1, and May 1, and prohibits supplemental appropriations in excess of the most recent estimate. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Budget Law of the Civil Administrative Code of Illinois is amended by changing Section 50-5 and adding Section 50-25 as follows:

(15 ILCS 20/50-5) (was 15 ILCS 20/38)

Sec. 50-5. Governor to submit State budget. The Governor shall, as soon as possible and not later than the first Wednesday in March in 2007 (March 7, 2007) and the third Wednesday in February of each year beginning in 2008, except as otherwise provided in this Section, submit a State budget, embracing therein the amounts recommended by the Governor to be appropriated to the respective departments, offices, and institutions, and for all other public purposes, the estimated revenues from taxation, the estimated revenues from sources other than taxation, and an estimate of the amount required to be raised by taxation. In 2004 only, the Governor shall submit the capital development section of the State budget not later than the fourth Tuesday of March (March 23, 2004). The amounts recommended by the Governor for appropriation to the respective departments, offices and institutions shall be formulated according to the various functions and activities for which the respective department, office or institution of the State government (including the elective officers in the executive department and including the University of Illinois and the judicial department) is responsible. The amounts relating to particular functions and activities shall be further formulated in accordance with the object classification specified in Section 13 of the State Finance Act.

The Governor shall not propose expenditures and the General Assembly shall not enact appropriations that exceed the resources estimated to be available, as provided in this Section, by the Commission on Government Forecasting and Accountability under subsection (a) of Section 4 of the Commission on Government Forecasting and Accountability Act.

For the purposes of Article VIII, Section 2 of the 1970 Illinois Constitution, the State budget for the following funds shall be prepared on the basis of revenue and expenditure measurement concepts that are in concert with generally accepted accounting principles for governments:

(1) General Revenue Fund.

(2) Common School Fund.

(3) Educational Assistance Fund.

(4) Road Fund.

(5) Motor Fuel Tax Fund.

(6) Agricultural Premium Fund.

These funds shall be known as the "budgeted funds". The revenue estimates used in the State budget for the budgeted funds shall include the estimated beginning fund balance, plus revenues estimated to be received during the budgeted year, plus the estimated receipts due the State as of June 30 of the budgeted year that are expected to be collected during the lapse period following the budgeted year, minus the receipts collected during the first 2 months of the budgeted year that became due to the State in the year before the budgeted year. Revenues shall also include estimated federal reimbursements associated with the recognition of Section 25 of the State Finance Act liabilities. For any budgeted fund for which current year revenues are anticipated to exceed expenditures, the surplus shall be considered to be a resource available for expenditure in the budgeted fiscal year.

Expenditure estimates for the budgeted funds included in the State budget shall include the costs to be incurred by the State for the budgeted year, to be paid in the next fiscal year, excluding costs paid in the budgeted year which were carried over from the prior year, where the payment is authorized by Section 25 of the State Finance Act. For any budgeted fund for which expenditures are expected to exceed revenues in the current fiscal year, the deficit shall be considered as a use of funds in the budgeted fiscal year.

Revenues and expenditures shall also include transfers between funds that are based on revenues received or costs incurred during the budget year.

By March 15 of each year, the Commission on Government Forecasting and Accountability shall prepare revenue and fund transfer estimates in accordance with the requirements of this Section and report those estimates to the General Assembly and the Governor.

For all funds other than the budgeted funds, the proposed expenditures shall not exceed, and the appropriations for those expenditures shall not exceed, the revenues estimated by the Commission on Government Forecasting and Accountability to be available for those funds for that fiscal year. funds estimated to be available for the fiscal year as shown in the budget. Appropriation for a fiscal year shall not exceed funds estimated by the General Assembly to be available during that year.

(Source: P.A. 93-1, eff. 2-6-03; 93-662, eff. 2-11-04; 93-1067, eff. 1-15-05; 94-1108, eff. 2-16-07.)

(15 ILCS 20/50-25 new)

Sec. 50-25. Current fiscal year appropriations. Funds may not be appropriated during a fiscal year for expenditure or obligation during that same fiscal year in excess of the estimate of unobligated revenues contained in the most recent revenue estimate report for that fiscal year by the Commission on Government Forecasting and Accountability under subsection (a) or (a-5) of Section 4 of the Commission on Government Forecasting and Accountability Act.

Section 10. The Commission on Government Forecasting and Accountability Act is amended by changing Section 4 as follows:

(25 ILCS 155/4) (from Ch. 63, par. 344)

Sec. 4. Revenue estimates.

(a) By each February 1, the Commission shall report to the General assembly and the Governor estimates of revenues available to the State for appropriation and fund transfer for the next fiscal year, as provided in Section 50-5 of the State Budget Law. By each May 1, the Commission shall revise and report to the General Assembly and the Governor estimates of revenues available for appropriation and fund transfer for the next fiscal year, reflecting the most current information.

The Commission report required by May 1 The Commission shall publish, at the convening of each regular session of the General Assembly, a report on the estimated income of the State from all applicable revenue sources for the next ensuing fiscal year and of any other funds estimated to be available for such fiscal year. On the third Wednesday in March after the session convenes, the Commission shall issue a revised and updated set of revenue figures reflecting the latest available information. The House and Senate by joint resolution shall adopt or modify such estimates as may be appropriate. The joint resolution shall constitute the General Assembly's estimate, under paragraph (b) of Section 2 of Article VIII of the Constitution, of the funds estimated to be available during the next fiscal year.

(a-5) By October 1, February 1, and May 1 of each fiscal year, the Commission shall report to the General Assembly and the Governor estimates of unobligated revenues available for appropriation for that fiscal year.

(b) On the third Wednesday in March, the Commission shall issue estimated:

(1) pension funding requirements under P.A. 86-273; and

(2) liabilities of the State employee group health insurance program.

These estimated costs shall be for the fiscal year beginning the following July 1.

(c) The requirement for reporting to the General Assembly shall be satisfied by filing copies of the report with the Speaker, the Minority Leader and the Clerk of the House of Representatives and the President, the Minority Leader and the Secretary of the Senate and the Legislative Research unit, as required by Section 3.1 of the General Assembly Organization Act, and filing such additional copies with the State Government Report Distribution Center for the General Assembly as is required under paragraph (t) of Section 7 of the State Library Act.

(Source: P.A. 93-632, eff. 2-1-04.)

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