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92_HB5921eng HB5921 Engrossed LRB9213164JMmb 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 and Reform 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. Transfers to Budget Stabilization Fund and 20 Early Debt Retirement Fund. 21 (a) For fiscal year 2003, if the Economic and Fiscal 22 Commission's estimates of the State's general funds revenues 23 exceed the prior year's estimated general funds revenues by 24 more than 4%, and for each fiscal year thereafter in which 25 the Revenue Estimating Council's report, as adopted by the 26 General Assembly under Section 50-5.5 of the State Budget Law 27 of the Civil Administrative Code of Illinois, estimates 28 revenues into the State's general funds to exceed the prior 29 year's estimated general funds revenues by more than 4%, the 30 Comptroller shall transfer from the General Revenue Fund as HB5921 Engrossed -2- LRB9213164JMmb 1 provided by this Section a total amount equal to 1% of the 2 estimated general funds revenues to the Budget Stabilization 3 Fund or the Early Debt Retirement Fund. Nothing in this Act 4 prohibits the General Assembly from appropriating additional 5 moneys into the Budget Stabilization Fund or the Early Debt 6 Retirement Fund. 7 (b) Except as provided in subsection (c), the 8 Comptroller shall transfer 1/12 of the total amount to be 9 transferred each fiscal year under subsection (a) into the 10 Budget Stabilization Fund on the first day of each month of 11 that fiscal year or as soon thereafter as possible. 12 (c) When the Revenue Estimating Council has estimated 13 that the balance of the Budget Stabilization Fund will exceed 14 4% of the Revenue Estimating Council's estimate of the total 15 general funds revenues, the Comptroller shall: 16 (1) Transfer 1/12 of the total amount identified 17 for transfer to the Budget Stabilization Fund into the 18 Budget Stabilization Fund on the first day of each month 19 of that fiscal year or as soon thereafter as possible; 20 and 21 (2) Transfer 1/12 of the total amount identified 22 for transfer to the Early Debt Retirement Fund into the 23 Early Debt Retirement Fund on the first day of each month 24 of that fiscal year or as soon thereafter as possible. 25 Section 800. The State Budget Law of the Civil 26 Administrative Code of Illinois is amended by changing 27 Sections 50-5 and 50-10 and by adding Section 50-5.5 as 28 follows: 29 (15 ILCS 20/50-5) (was 15 ILCS 20/38) 30 Sec. 50-5. Governor to submit State budget. The Governor 31 shall, as soon as possible and not later than the third 32 Wednesday in February of each year beginning in 1998, submit HB5921 Engrossed -3- LRB9213164JMmb 1 a State budget, embracing therein the amounts recommended by 2 the Governor to be appropriated to the respective 3 departments, offices, and institutions, and for all other 4 public purposes, the estimated revenues from taxation, the 5 estimated revenues from sources other than taxation, and an 6 estimate of the amount required to be raised by taxation. 7 The amounts recommended by the Governor for appropriation to 8 the respective departments, offices and institutions shall be 9 formulated according to the various functions and activities 10 for which the respective department, office or institution of 11 the State government (including the elective officers in the 12 executive department and including the University of Illinois 13 and the judicial department) is responsible. The amounts 14 relating to particular functions and activities shall be 15 further formulated in accordance with the object 16 classification specified in Section 13 of the State Finance 17 Act. 18 The Governor shall not propose expenditures and the 19 General Assembly shall not enact appropriations that exceed 20 the resources estimated to be available, as provided in this 21 Section. 22 For the purposes of Article VIII, Section 2 of the 1970 23 Illinois Constitution, the State budget for and 24 appropriations from the following funds shall be prepared on 25 the basis of revenue and expenditure measurement concepts 26 that are in concert with generally accepted accounting 27 principles for governments: 28 (1) General Revenue Fund. 29 (2) Common School Fund. 30 (3) Educational Assistance Fund. 31 (4) Road Fund. 32 (5) Motor Fuel Tax Fund. 33 (6) Agricultural Premium Fund. 34 These funds shall be known as the "budgeted funds". The HB5921 Engrossed -4- LRB9213164JMmb 1 revenue estimates used in the State budget for the budgeted 2 funds shall include the estimated beginning fund balance, 3 plus revenues estimated to be received during the budgeted 4 year, plus the estimated receipts due the State as of June 30 5 of the budgeted year that are expected to be collected during 6 the lapse period following the budgeted year, minus the 7 receipts collected during the first 2 months of the budgeted 8 year that became due to the State in the year before the 9 budgeted year. Revenues shall also include estimated federal 10 reimbursements associated with the recognition of Section 25 11 of the State Finance Act liabilities. For any budgeted fund 12 for which current year revenues are anticipated to exceed 13 expenditures, the surplus shall be considered to be a 14 resource available for expenditure in the budgeted fiscal 15 year. 16 Expenditure estimates for the budgeted funds included in 17 the State budget shall include the costs to be incurred by 18 the State for the budgeted year that are
,to be paid in the 19 next fiscal year, excluding costs paid in the budgeted year 20 which were carried over from the prior year, where the 21 payment is authorized by Section 25 of the State Finance Act. 22 For any budgeted fund for which expenditures are expected to 23 exceed revenues in the current fiscal year, the deficit shall 24 be considered as a use of funds in the budgeted fiscal year. 25 Revenues and expenditures shall also include transfers 26 between funds that are based on revenues received or costs 27 incurred during the budget year. 28 By March 15 of each year, the Economic and Fiscal29 Commission shall prepare revenue and fund transfer estimates30 in accordance with the requirements of this Section and31 report those estimates to the General Assembly and the32 Governor.33 For all funds other than the budgeted funds, the proposed 34 expenditures shall not exceed funds estimated to be available HB5921 Engrossed -5- LRB9213164JMmb 1 for the fiscal year as shown in the budget. Appropriation 2 for a fiscal year shall not exceed (i) funds estimated by the 3 General Assembly to be available during that year as 4 contained within the joint resolution adopted by the General 5 Assembly in accordance with Section 50-5.5 of this Act or 6 (ii) for fiscal year 2003, funds estimated to be available in 7 accordance with this Section prior to the effective date of 8 this amendatory Act of the 92nd General Assembly. The 9 General Assembly's appropriations from the general funds for 10 fiscal year 2003 and thereafter may not exceed 99% of the 11 estimated general funds revenues when the revenues exceed the 12 prior year's estimated general funds revenues by more than 13 4%. Appropriations for a fiscal year must include one or 14 more separate line items for payment of liabilities incurred 15 in a prior fiscal year and authorized to be paid during the 16 budget year under Section 25 of the State Finance Act. 17 (Source: P.A. 90-479, eff. 8-17-97; 91-239, eff. 1-1-00.) 18 (15 ILCS 20/50-5.5 new) 19 Sec. 50-5.5. Revenue Estimating Council. 20 (a) There is created a Revenue Estimating Council, 21 consisting of the Director of the Bureau of the Budget, the 22 State Comptroller, and the Director of the Illinois Economic 23 and Fiscal Commission, or their designees. 24 (b) By January 1, 2003 and by January 1 of each year 25 thereafter, the Revenue Estimating Council must prepare 26 revenue and fund transfer estimates in accordance with the 27 requirements of Section 50-5 and report those estimates to 28 the General Assembly. In addition to the revenue and 29 transfer estimates, the Revenue Estimating Council must 30 certify to the following: 31 (1) An estimate of all income of the State from all 32 applicable revenue sources for the next ensuing fiscal 33 year and of any other funds estimated to be available for HB5921 Engrossed -6- LRB9213164JMmb 1 that fiscal year. 2 (2) When estimated general funds revenues exceed 3 the prior year's estimated general funds revenues by more 4 than 4%, the general funds available for appropriation in 5 an amount equal to 99% of the estimated general funds 6 revenues for the fiscal year. 7 (3) When estimated general funds revenues exceed 8 the prior year's estimated general funds revenues by more 9 than 4%, the general funds available for transfer into 10 the Budget Stabilization Fund or the Early Debt 11 Retirement Fund in a total amount equal to 1% of the 12 estimated general funds revenues for the fiscal year. 13 (4) The amount of transfers into the Budget 14 Stabilization Fund necessary for the balance of the 15 Budget Stabilization Fund to equal 4% of general funds 16 revenues for the budgeted year; and 17 (5) When the Revenue Estimating Council estimates 18 that the balance of the Budget Stabilization Fund shall 19 exceed 4% of the general funds revenues for the budgeted 20 year, the portion of the 1% available for transfer under 21 paragraph (3) for transfer into the Early Debt Retirement 22 Fund. 23 Notwithstanding any other provision of this subsection, for 24 the purpose of determining the estimates under this Section 25 for fiscal year 2003, the Revenue Estimating Council must use 26 the prior year's estimated general funds revenues as 27 determined by the Economic and Fiscal Commission for fiscal 28 year 2002. 29 By April 15 of each year, the Revenue Estimating Council 30 must issue a report updating the estimates required under 31 this subsection as may be required based on more recent 32 information. Upon its issuance, the Revenue Estimating 33 Council must submit the revised report to the Governor and 34 the General Assembly. The House and Senate must adopt the HB5921 Engrossed -7- LRB9213164JMmb 1 report by joint resolution. The joint resolution constitutes 2 the General Assembly's estimate, under paragraph (b) of 3 Section 2 of Article VIII of the Illinois Constitution, of 4 the funds estimated to be available during the next fiscal 5 year. 6 (c) Prior to the beginning of the fiscal year, the 7 Revenue Estimating Council must prepare a cash flow estimate 8 of the general funds, identifying estimated revenues and cash 9 expenditures for each quarter of the fiscal year. Each 10 quarter of the fiscal year, the Revenue Estimating Council 11 must review the revenue and cash expenditure estimates and 12 issue a report to the Governor and the General Assembly 13 containing updates of the estimates required under this 14 subsection and notification of potential budgetary 15 shortfalls. 16 (15 ILCS 20/50-10) (was 15 ILCS 20/38.1) 17 Sec. 50-10. Budget contents. The budget shall be 18 submitted by the Governor with line item and program data. 19 The budget shall also contain performance data presenting an 20 estimate for the current fiscal year, projections for the 21 budget year, and information for the 3 prior fiscal years 22 comparing department objectives with actual accomplishments, 23 formulated according to the various functions and activities, 24 and, wherever the nature of the work admits, according to the 25 work units, for which the respective departments, offices, 26 and institutions of the State government (including the 27 elective officers in the executive department and including 28 the University of Illinois and the judicial department) are 29 responsible. 30 For the fiscal year beginning July 1, 1992 and for each 31 fiscal year thereafter, the budget shall include the 32 performance measures of each department's accountability 33 report. HB5921 Engrossed -8- LRB9213164JMmb 1 For the fiscal year beginning July 1, 1997 and for each 2 fiscal year thereafter, the budget shall include one or more 3 line items appropriating moneys to the Department of Human 4 Services to fund participation in the Home-Based Support 5 Services Program for Mentally Disabled Adults under the 6 Developmental Disability and Mental Disability Services Act 7 by persons described in Section 2-17 of that Act. 8 For the fiscal year beginning July 1, 2003 and for each 9 fiscal year thereafter, the budget must contain one or more 10 line items appropriating moneys to fund all costs in the 11 budget year estimated for payment of liabilities incurred in 12 a prior fiscal year and authorized to be paid in the budget 13 year under Section 25 of the State Finance Act. 14 The budget shall contain a capital development Section in 15 which the Governor will present (1) information on the 16 capital projects and capital programs for which 17 appropriations are requested, (2) the capital spending plans, 18 which shall document the first and subsequent years cash 19 requirements by fund for the proposed bonded program, and (3) 20 a statement that shall identify by year the principal and 21 interest costs until retirement of the State's general 22 obligation debt. In addition, the principal and interest 23 costs of the budget year program shall be presented 24 separately, to indicate the marginal cost of principal and 25 interest payments necessary to retire the additional bonds 26 needed to finance the budget year's capital program. 27 For the budget year, the current year, and 3 prior fiscal 28 years, the Governor shall also include in the budget 29 estimates of or actual values for the assets and liabilities 30 for General Assembly Retirement System, State Employees' 31 Retirement System of Illinois, State Universities Retirement 32 System, Teachers' Retirement System of the State of Illinois, 33 and Judges Retirement System of Illinois. 34 The budget submitted by the Governor shall contain, in HB5921 Engrossed -9- LRB9213164JMmb 1 addition, in a separate book, a tabulation of all position 2 and employment titles in each such department, office, and 3 institution, the number of each, and the salaries for each, 4 formulated according to divisions, bureaus, sections, 5 offices, departments, boards, and similar subdivisions, which 6 shall correspond as nearly as practicable to the functions 7 and activities for which the department, office, or 8 institution is responsible. 9 Together with the budget, the Governor shall transmit the 10 estimates of receipts and expenditures, as received by the 11 director of the Bureau of the Budget, of the elective 12 officers in the executive and judicial departments and of the 13 University of Illinois. 14 (Source: P.A. 91-239, eff. 1-1-00.) 15 Section 805. The Illinois Economic and Fiscal Commission 16 Act is amended by changing Section 4 as follows: 17 (25 ILCS 155/4) (from Ch. 63, par. 344) 18 Sec. 4. (a) The Commission shall publish, at the 19 convening of each regular session of the General Assembly, a 20 report on the estimated income of the State from all 21 applicable revenue sources for the next ensuing fiscal year 22 and of any other funds estimated to be available for such 23 fiscal year. On the third Wednesday in March after the 24 session convenes, the Commission shall issue a revised and 25 updated set of revenue figures reflecting the latest 26 available information. The House and Senate by joint27 resolution shall adopt or modify such estimates as may be28 appropriate. The joint resolution shall constitute the29 General Assembly's estimate, under paragraph (b) of Section 230 of Article VIII of the Constitution, of the funds estimated31 to be available during the next fiscal year.32 (b) On the third Wednesday in March, the Commission HB5921 Engrossed -10- LRB9213164JMmb 1 shall issue estimated: 2 (1) pension funding requirements under P.A. 86-273; 3 and 4 (2) liabilities of the State employee group health 5 insurance program. 6 These estimated costs shall be for the fiscal year 7 beginning the following July 1. 8 (c) The requirement for reporting to the General 9 Assembly shall be satisfied by filing copies of the report 10 with the Speaker, the Minority Leader and the Clerk of the 11 House of Representatives and the President, the Minority 12 Leader and the Secretary of the Senate and the Legislative 13 Research Unit, as required by Section 3.1 of "An Act to 14 revise the law in relation to the General Assembly", approved 15 February 25, 1874, as amended, and filing such additional 16 copies with the State Government Report Distribution Center 17 for the General Assembly as is required under paragraph (t) 18 of Section 7 of the State Library Act. 19 (Source: P.A. 87-1142.) 20 Section 810. The State Finance Act is amended by 21 changing Sections 6z-51 and 25 and by adding Section 6z-60 as 22 follows: 23 (30 ILCS 105/6z-51) 24 Sec. 6z-51. Budget Stabilization Fund. 25 (a) The Budget Stabilization Fund, a special fund in the 26 State Treasury, shall consist of moneys appropriated or 27 transferred to that Fund, as provided in Section 6z-43 and as 28 otherwise provided by law. All earnings on Budget 29 Stabilization Fund investments shall be deposited into that 30 Fund. 31 (b) The State Comptroller may direct the State Treasurer 32 to transfer moneys from the Budget Stabilization Fund to the HB5921 Engrossed -11- LRB9213164JMmb 1 General Revenue Fund in order to meet deficits resulting from 2 timing variations between disbursements and the receipt of 3 funds within a fiscal year. Any moneys so borrowed shall be 4 repaid by June 30 of the fiscal year in which they were 5 borrowed. 6 (Source: P.A. 92-11, eff. 6-11-01.) 7 (30 ILCS 105/6z-60 new) 8 Sec. 6z-60. Early Debt Retirement Fund. The Early Debt 9 Retirement Fund is created in the State treasury. Moneys in 10 the Early Debt Retirement Fund may be expended, subject to 11 appropriation, for the payment of deferred liabilities under 12 Section 25 of this Act; the early retirement of unfunded 13 pension liabilities; the retirement of bonded indebtedness 14 when practical; and the funding of other long-term fiscal 15 needs of the State. The Early Debt Retirement Fund is exempt 16 from subsections (b) and (c) of Section 5 of this Act. 17 (30 ILCS 105/25) (from Ch. 127, par. 161) 18 Sec. 25. Fiscal year limitations. 19 (a) All appropriations shall be available for 20 expenditure for the fiscal year or for a lesser period if the 21 Act making that appropriation so specifies. A deficiency or 22 emergency appropriation shall be available for expenditure 23 only through June 30 of the year when the Act making that 24 appropriation is enacted unless that Act otherwise provides. 25 (b) Outstanding liabilities as of June 30, payable from 26 appropriations which have otherwise expired, may be paid out 27 of the expiring appropriations during the 2-month period 28 ending at the close of business on August 31. Any service 29 involving professional or artistic skills or any personal 30 services by an employee whose compensation is subject to 31 income tax withholding must be performed as of June 30 of the 32 fiscal year in order to be considered an "outstanding HB5921 Engrossed -12- LRB9213164JMmb 1 liability as of June 30" that is thereby eligible for payment 2 out of the expiring appropriation. 3 Notwithstanding the provisions of subsections (b-5) and 4 (c) of this Section, when a State agency receives and 5 approves a request for payment of an outstanding liability 6 prior to June 30 of a fiscal year, the payment must be made 7 from the appropriations for that purpose for the fiscal year 8 in which the State agency received and approved the request 9 for payment. 10 (b-5) However,Payment of tuition reimbursement claims 11 under Section 14-7.03 or 18-3 of the School Code may be made 12 by the State Board of Education from its appropriations for 13 those respective purposes for any fiscal year, even though 14 the claims reimbursed by the payment may be claims 15 attributable to a prior fiscal year, and payments may be made 16 at the direction of the State Superintendent of Education 17 from the fund from which the appropriation is made without 18 regard to any fiscal year limitations. 19 Medical payments may be made by the Department of 20 Veterans' Affairs from its appropriations for those purposes 21 for any fiscal year, without regard to the fact that the 22 medical services being compensated for by such payment may 23 have been rendered in a prior fiscal year. 24 Medical payments may be made by the Department of Public 25 Aid and child care payments may be made by the Department of 26 Human Services (as successor to the Department of Public Aid) 27 from appropriations for those purposes for any fiscal year, 28 without regard to the fact that the medical or child care 29 services being compensated for by such payment may have been 30 rendered in a prior fiscal year; and payments may be made at 31 the direction of the Department of Central Management 32 Services from the Health Insurance Reserve Fund and the Local 33 Government Health Insurance Reserve Fund without regard to 34 any fiscal year limitations. HB5921 Engrossed -13- LRB9213164JMmb 1 Additionally, payments may be made by the Department of 2 Human Services from its appropriations, or any other State 3 agency from its appropriations with the approval of the 4 Department of Human Services, from the Immigration Reform and 5 Control Fund for purposes authorized pursuant to the 6 Immigration Reform and Control Act of 1986, without regard to 7 any fiscal year limitations. 8 (c) Further, payments may be made by the Department of 9 Public Health and the Department of Human Services (acting as 10 successor to the Department of Public Health under the 11 Department of Human Services Act) from their respective 12 appropriations for grants for medical care to or on behalf of 13 persons suffering from chronic renal disease, persons 14 suffering from hemophilia, rape victims, and premature and 15 high-mortality risk infants and their mothers and for grants 16 for supplemental food supplies provided under the United 17 States Department of Agriculture Women, Infants and Children 18 Nutrition Program, for any fiscal year without regard to the 19 fact that the services being compensated for by such payment 20 may have been rendered in a prior fiscal year. 21 (d) The Department of Public Health and the Department 22 of Human Services (acting as successor to the Department of 23 Public Health under the Department of Human Services Act) 24 shall each annually submit to the State Comptroller, Senate 25 President, Senate Minority Leader, Speaker of the House, 26 House Minority Leader, and the respective Chairmen and 27 Minority Spokesmen of the Appropriations Committees of the 28 Senate and the House, on or before December 31, a report of 29 fiscal year funds used to pay for services provided in any 30 prior fiscal year. This report shall document by program or 31 service category those expenditures from the most recently 32 completed fiscal year used to pay for services provided in 33 prior fiscal years. 34 (e) The Department of Public Aid and the Department of HB5921 Engrossed -14- LRB9213164JMmb 1 Human Services (acting as successor to the Department of 2 Public Aid) shall each annually submit to the State 3 Comptroller, Senate President, Senate Minority Leader, 4 Speaker of the House, House Minority Leader, the respective 5 Chairmen and Minority Spokesmen of the Appropriations 6 Committees of the Senate and the House, on or before November 7 30, a report that shall document by program or service 8 category those expenditures from the most recently completed 9 fiscal year used to pay for (i) services provided in prior 10 fiscal years and (ii) services for which claims were received 11 in prior fiscal years. 12 (f) The Department of Human Services (as successor to 13 the Department of Public Aid) shall annually submit to the 14 State Comptroller, Senate President, Senate Minority Leader, 15 Speaker of the House, House Minority Leader, and the 16 respective Chairmen and Minority Spokesmen of the 17 Appropriations Committees of the Senate and the House, on or 18 before December 31, a report of fiscal year funds used to pay 19 for services (other than medical care) provided in any prior 20 fiscal year. This report shall document by program or 21 service category those expenditures from the most recently 22 completed fiscal year used to pay for services provided in 23 prior fiscal years. 24 (g) In addition, each annual report required to be 25 submitted by the Department of Public Aid under subsection 26 (e) shall include the following information with respect to 27 the State's Medicaid program: 28 (1) Explanations of the exact causes of the 29 variance between the previous year's estimated and actual 30 liabilities. 31 (2) Factors affecting the Department of Public 32 Aid's liabilities, including but not limited to numbers 33 of aid recipients, levels of medical service utilization 34 by aid recipients, and inflation in the cost of medical HB5921 Engrossed -15- LRB9213164JMmb 1 services. 2 (3) The results of the Department's efforts to 3 combat fraud and abuse. 4 (h) As provided in Section 4 of the General Assembly 5 Compensation Act, any utility bill for service provided to a 6 General Assembly member's district office for a period 7 including portions of 2 consecutive fiscal years may be paid 8 from funds appropriated for such expenditure in either fiscal 9 year. 10 (i) An agency which administers a fund classified by the 11 Comptroller as an internal service fund may issue rules for: 12 (1) billing user agencies in advance based on 13 estimated charges for goods or services; 14 (2) issuing credits during the subsequent fiscal 15 year for all user agency payments received during the 16 prior fiscal year which were in excess of the final 17 amounts owed by the user agency for that period; and 18 (3) issuing catch-up billings to user agencies 19 during the subsequent fiscal year for amounts remaining 20 due when payments received from the user agency during 21 the prior fiscal year were less than the total amount 22 owed for that period. 23 User agencies are authorized to reimburse internal service 24 funds for catch-up billings by vouchers drawn against their 25 respective appropriations for the fiscal year in which the 26 catch-up billing was issued. 27 (Source: P.A. 89-235, eff. 8-4-95; 89-507, eff. 7-1-97; 28 89-511, eff. 1-1-97; 90-14, eff. 7-1-97; 90-168, eff. 29 7-23-97.) 30 Section 900. Severability. The provisions of this Act 31 are severable under Section 1.31 of the Statute on Statutes. 32 Section 999. Effective date. This Act takes effect upon HB5921 Engrossed -16- LRB9213164JMmb 1 becoming law.
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