Illinois General Assembly - Full Text of HB3436

LRB104 08420 HLH 18472 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3436

Introduced 2/18/2025, by Rep. Natalie A. Manley

SYNOPSIS AS INTRODUCED:

15 ILCS 20/50-40
25 ILCS 80/5	from Ch. 63, par. 42.93-5
30 ILCS 105/6z-51
30 ILCS 105/9.08
30 ILCS 122/10
30 ILCS 122/15
30 ILCS 122/20

Amends the State Budget Law of the Civil Administrative Code of Illinois and the Balanced Budget Note Act. Provides that the Pension Stabilization Fund is considered a general fund or a State general fund for the purposes of those Acts. Amends the State Finance Act. Provides that certain amounts transferred from the Budget Stabilization Fund to the General Revenue Fund are not required to be repaid into the Budget Stabilization Fund if the amount of accounts payable exceeds $4,000,000,000. Makes changes concerning monthly reports from State agencies to the Comptroller. Amends the Budget Stabilization Act. Provides that, beginning in Fiscal Year 2027, the General Assembly's appropriations and transfers or diversions as required by law from general funds shall not exceed 99% of the estimated general funds revenues for the fiscal year if (i) revenue estimates of the State's general funds revenues for the fiscal year exceed the prior fiscal year's estimated general funds revenues by more than 4% and (ii) projected accounts payable are estimated by the Comptroller to be less than $3,000,000,000 for the fiscal year. Makes other changes concerning transfers from the Budget Stabilization Fund. Effective immediately.

A BILL FOR

AN ACT concerning finance.

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 50-40 as follows:

(15 ILCS 20/50-40)

Sec. 50-40. General funds defined. "General funds" or "State general funds" means the General Revenue Fund, the Common School Fund, the General Revenue Common School Special Account Fund, the Education Assistance Fund, the Fund for the Advancement of Education, the Commitment to Human Services Fund, and the Budget Stabilization Fund, and the Pension Stabilization Fund.

(Source: P.A. 100-23, eff. 7-6-17.)

Section 6. The Balanced Budget Note Act is amended by changing Section 5 as follows:

(25 ILCS 80/5) (from Ch. 63, par. 42.93-5)

Sec. 5. Supplemental appropriation bill defined. For purposes of this Act, "supplemental appropriation bill" means any appropriation bill that is (a) introduced or amended (including any changes to legislation by means of the submission of a conference committee report) on or after July 1 of a fiscal year and (b) proposes (as introduced or as amended as the case may be) to authorize, increase, decrease, or reallocate any general funds appropriation for that same fiscal year. The general funds consist of the General Revenue Fund, the Common School Fund, the General Revenue Common School Special Account Fund, the Education Assistance Fund, the Fund for the Advancement of Education, the Commitment to Human Services Fund, and the Budget Stabilization Fund, and the Pension Stabilization Fund.

(Source: P.A. 100-587, eff. 6-4-18.)

Section 10. The State Finance Act is amended by changing Sections 6z-51 and 9.08 as follows:

(30 ILCS 105/6z-51)

Sec. 6z-51. Budget Stabilization Fund.

(a) The Budget Stabilization Fund, a special fund in the State Treasury, shall consist of moneys appropriated or transferred to that Fund, as provided in Section 6z-43 and as otherwise provided by law. All earnings on Budget Stabilization Fund investments shall be deposited into that Fund.

(b) The State Comptroller may direct the State Treasurer to transfer moneys from the Budget Stabilization Fund to the General Revenue Fund in order to meet cash flow deficits resulting from timing variations between disbursements and the receipt of funds within a fiscal year. Except as provided in subsection (b-5), any Any moneys so borrowed in any fiscal year other than Fiscal Year 2011 shall be repaid by June 30 of the fiscal year in which they were borrowed. Any moneys so borrowed in Fiscal Year 2011 shall be repaid no later than July 15, 2011.

(b-5) For Fiscal Year 2027 and each fiscal year thereafter, any moneys transferred into the Budget Stabilization Fund pursuant to Section 15 of the Budget Stabilization Act may be transferred into the General Revenue Fund in order for the Comptroller to address outstanding vouchers and shall not be subject to repayment into the Budget Stabilization Fund if the amount of accounts payable, as determined by the Comptroller on June 30 of the fiscal year in which the transfer into the General Revenue Fund is made, exceeds $4,000,000,000.

(c)(Blank). During Fiscal Year 2017 only, amounts may be expended from the Budget Stabilization Fund only pursuant to specific authorization by appropriation. Any moneys expended pursuant to appropriation shall not be subject to repayment.

(d) (Blank). For Fiscal Years 2020 through 2022, any transfers into the Fund pursuant to the Cannabis Regulation and Tax Act may be transferred to the General Revenue Fund in order for the Comptroller to address outstanding vouchers and shall not be subject to repayment back into the Budget Stabilization Fund.

(e) Beginning July 1, 2023, on the first day of each month, or as soon thereafter as practical, the State Comptroller shall direct and the State Treasurer shall transfer $3,750,000 from the General Revenue Fund to the Budget Stabilization Fund.

(Source: P.A. 101-10, eff. 6-5-19; 102-699, eff. 4-19-22.)

(30 ILCS 105/9.08)

Sec. 9.08. State agency reports; bills held by the agency.

(a) Each State agency shall provide a report to the State Comptroller identifying: (i) current State liabilities held at the agency, by fund source; (ii) whether the liabilities are appropriated; and (iii) an estimate of interest penalties accrued under the State Prompt Payment Act under criteria prescribed by the State Comptroller. The report shall be provided monthly in a time and form prescribed by the State Comptroller in which the State Comptroller may provide a waiver to the monthly reporting requirement if a State agency does not have State liabilities. In the monthly reports under this subsection (a) for January 2026, and in the monthly reports under this subsection (a) for each January thereafter:

(1) the Department on Aging, the Department of Healthcare and Family Services, and the Department of Human Services shall include the total number and aggregate dollar value of the invoices submitted by that agency that may be paid from appropriations in a future fiscal year under Section 25 because appropriations in the current fiscal year are insufficient;

(2) the Department of Central Management Services shall include the total number and aggregate dollar value of the invoices that may be paid from appropriations in future fiscal years under Section 25 due to insufficient resources in the Health Insurance Reserve Fund; and

(3) the Department of Revenue shall include an estimate of the amount of individual and corporate income tax overpayments that will not be refunded before the close of the current fiscal year because deposits into the Income Tax Refund Fund are insufficient to pay those refunds.

(b) As soon as possible after receiving a report from a State agency under subsection (a) of this Section, the State Comptroller shall post on his or her public-facing website the information amount reported by the State agency under subsection (a). The Comptroller shall also include on that website the liabilities reported to the Comptroller as of the close of business on December 31 of the previous calendar year.

(c) For purposes of this Section, "State agency" means: all executive branch officers, boards, commissions and agencies created by the Constitution; all officers, departments, boards, commissions, agencies, institutions, authorities, universities, bodies politic and corporate of the State; and administrative units or corporate outgrowths of the State government which are created by or pursuant to statute, other than units of local government and their officers, school districts and boards of election commissioners; and all administrative units and corporate outgrowths of the above and as may be created by executive order of the Governor. "State agency" does not include any officer, department, board, commission, agency, unit, or authority of the legislative or judicial branch.

(Source: P.A. 100-552, eff. 1-1-18.)

Section 15. The Budget Stabilization Act is amended by changing Sections 10, 15 and 20 as follows:

(30 ILCS 122/10)

Sec. 10. Budget limitations.

(a) Through Fiscal Year 2026, except Except as provided in subsection (b-5), in addition to Section 50-5 of the State Budget Law of the Civil Administrative Code of Illinois, the General Assembly's appropriations and transfers or diversions as required by law from general funds shall not exceed 99% of the estimated general funds revenues for the fiscal year when revenue estimates of the State's general funds revenues exceed the prior fiscal year's estimated general funds revenues by more than 4%. Beginning in Fiscal Year 2027, in addition to complying with the requirements of Section 50-5 of the State Budget Law of the Civil Administrative Code of Illinois, the General Assembly's appropriations and transfers or diversions as required by law from general funds shall not exceed 99% of the estimated general funds revenues for the fiscal year if (i) revenue estimates of the State's general funds revenues for the fiscal year exceed the prior fiscal year's estimated general funds revenues by more than 4% and (ii) projected accounts payable are estimated by the Comptroller to be less than $3,000,000,000 for the fiscal year.

(b) Through Fiscal Year 2026, except Except as provided in subsection (b-5), the General Assembly's appropriations and transfers or diversions as required by law from general funds shall not exceed 98% of the estimated general funds revenues for the fiscal year when revenue estimates of the State's general funds revenues exceed the prior fiscal year's estimated general funds revenues by more than 4% for 2 or more consecutive fiscal years.

(b-5) The limitations on appropriations and transfers or diversions set forth under subsections (a) and (b) do not apply for State fiscal year 2008.

(c) For the purpose of this Act, through Fiscal Year 2026, "estimated general funds revenues" include, for each budget year, all taxes, fees, and other revenues expected to be deposited into the State's general funds, including recurring transfers from other State funds into the general funds. Beginning in Fiscal Year 2027, "estimated general funds revenues" means the estimate from the Governor's Office of Management and Budget under Section 50-5 of the State Budget Law of the Civil Administrative Code of Illinois of all the taxes, fees, and other revenues expected to be deposited into the State's general funds, including recurring transfers from other State funds into the general funds, but excluding any federal revenue sources.

Through Fiscal Year 2026, year-over-year Year-over-year comparisons used to determine the percentage growth factor of estimated general funds revenues shall exclude the sum of the following: (i) expected revenues resulting from new taxes or fees or from tax or fee increases during the first year of the change, (ii) expected revenues resulting from one-time receipts or non-recurring transfers in, (iii) expected proceeds resulting from borrowing, and (iv) increases in federal grants that must be completely appropriated based on the terms of the grants.

(Source: P.A. 94-839, eff. 6-6-06; 95-707, eff. 1-11-08.)

(30 ILCS 122/15)

Sec. 15. Transfers to Budget Stabilization Fund. In furtherance of the State's objective for the Budget Stabilization Fund to have resources representing 10% 7.5% of the State's annual general funds revenues:

(a) For each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 99% of the estimated general funds revenues pursuant to subsection (a) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 0.5% of the estimated general funds revenues to the Budget Stabilization Fund.

(b) Through the Fiscal Year 2026, For each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 98% of the estimated general funds revenues pursuant to subsection (b) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 1% of the estimated general funds revenues to the Budget Stabilization Fund.

(c) The Comptroller shall transfer 1/12 of the total amount to be transferred each fiscal year under this Section into the Budget Stabilization Fund on the first day of each month of that fiscal year or as soon thereafter as possible.

The balance of the Budget Stabilization Fund shall not exceed 10% 7.5% of the total of general funds revenues estimated for that fiscal year. Beginning in Fiscal Year 2026, once the balance of the Budget Stabilization Fund is equal to 10% of the total general funds revenues of the prior fiscal year, no further transfers shall be made into the Budget Stabilization Fund in that fiscal year. If any of the reports submitted under Section 9.08 by the Department on Aging, the Department of Central Management Services, the Department of Healthcare and Family Services, the Department of Human Services, or the Department of Revenue indicate that there are invoices that have been submitted by that agency that may be paid from appropriations in future fiscal years because appropriations in the then current fiscal year are insufficient to pay those invoices, then the Comptroller shall order transferred and the Treasurer shall transfer from the General Revenue Fund into the Health Insurance Reserve Fund, the Healthcare Provider Relief Fund, or the Income Tax Refund Fund, as applicable, an amount necessary to reduce those amounts to zero, but not to exceed a monthly aggregate combined total for all funds of 1/12 of the total amount identified for transfer into those funds. except as provided by subsection (d) of this Section.

(d) Upon written notice from the Governor to the Clerk of the House of Representatives, the Secretary of the Senate, and the Secretary of State pursuant to Section 1.1 of the Short Term Borrowing Act, the Comptroller may cease the order of any further transfers into the Budget Stabilization Fund and may order the transfer, and the Treasurer shall transfer, from the Budget Stabilization Fund into the General Revenue Fund an amount deemed necessary to maintain the State's accounts payable at an amount less than $3,000,000,000. If the written notice has been provided, the General Assembly may make transfers or appropriations from the Budget Stabilization Fund for the upcoming fiscal year as necessary to provide for the health, safety, and welfare of the people of the State of Illinois. If the balance of the Budget Stabilization Fund exceeds 7.5% of the total general funds revenues estimated for that fiscal year, the additional transfers are not required unless there are outstanding liabilities under Section 25 of the State Finance Act from prior fiscal years. If there are such outstanding Section 25 liabilities, then the Comptroller shall continue to transfer 1/12 of the total amount identified for transfer to the Budget Stabilization Fund on the first day of each month of that fiscal year or as soon thereafter as possible to be reserved for those Section 25 liabilities. Nothing in this Act prohibits the General Assembly from appropriating additional moneys into the Budget Stabilization Fund.

(e) (Blank). On or before August 31 of each fiscal year, the amount determined to be transferred to the Budget Stabilization Fund shall be reconciled to actual general funds revenues for that fiscal year. The final transfer for each fiscal year shall be adjusted so that the total amount transferred under this Section is equal to the percentage specified in subsection (a) or (b) of this Section, as applicable, based on actual general funds revenues calculated consistently with subsection (c) of Section 10 of this Act for each fiscal year.

(f) For the fiscal year beginning July 1, 2006 and for each fiscal year thereafter, the budget proposal to the General Assembly shall identify liabilities incurred in a prior fiscal year under Section 25 of the State Finance Act and the budget proposal shall provide funding as allowable pursuant to subsection (d) of this Section, if applicable.

(g) Beginning in Fiscal Year 2027, the Commission on Government Forecasting and Accountability shall provide in a report to the General Assembly, the Governor, and the Comptroller, by January 10 of every year, a review of the first 6 months of revenue for the current fiscal year. If the general funds revenues for the first 6 months of the then current fiscal year exceed 4% growth over the first 6 months of the previous fiscal year and the Comptroller has reported accounts payable of less than $3,000,000,000, then, by the end of the fiscal year, the Comptroller shall order the transfer and the Treasurer shall transfer 0.5% of the updated estimated revenues for that fiscal year into the Budget Stabilization Fund and 0.5% of the updated estimated revenues for that fiscal year into the Pension Stabilization Fund.

(Source: P.A. 102-1115, eff. 1-9-23.)

(30 ILCS 122/20)

(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)

Sec. 20. Pension Stabilization Fund.

(a) The Pension Stabilization Fund is hereby created as a special fund in the State treasury. Moneys in the fund shall be used for the sole purpose of making payments to the designated retirement systems as provided in Section 25.

(b) For each fiscal year through State fiscal year 2014, when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 99% of the estimated general funds revenues pursuant to subsection (a) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 0.5% of the estimated general funds revenues to the Pension Stabilization Fund.

(c) For each fiscal year through State fiscal year 2014, when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 98% of the estimated general funds revenues pursuant to subsection (b) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 1.0% of the estimated general funds revenues to the Pension Stabilization Fund.

(c-5) In addition to any other amounts required to be transferred under this Section, in State fiscal year 2016 and each fiscal year thereafter through State fiscal year 2045, or when each of the designated retirement systems, as defined in Section 25, has achieved 100% funding, whichever occurs first, the State Comptroller shall order transferred and the State Treasurer shall transfer from the General Revenue Fund to the Pension Stabilization Fund an amount equal to 10% of (1) the sum of the amounts certified by the designated retirement systems under subsection (a-5) of Section 2-134, subsection (a-10) of Section 14-135.08, subsection (a-10) of Section 15-165, and subsection (a-10) of Section 16-158 of this Code for that fiscal year minus (2) the sum of (i) the transfer required under subsection (c-10) of this Section for that fiscal year and (ii) the sum of the required State contributions certified by the retirement systems under subsection (a) of Section 2-134, subsection (a-5) of Section 14-135.08, subsection (a-5) of Section 15-165, and subsection (a-5) of Section 16-158 of this Code for that fiscal year. The transferred amount is intended to represent one-tenth of the annual savings to the State resulting from the enactment of this amendatory Act of the 98th General Assembly.

(c-10) In State fiscal year 2019, the State Comptroller shall order transferred and the State Treasurer shall transfer $364,000,000 from the General Revenue Fund to the Pension Stabilization Fund. In State fiscal year 2020 and each fiscal year thereafter until terminated under subsection (c-15), the State Comptroller shall order transferred and the State Treasurer shall transfer $1,000,000,000 from the General Revenue Fund to the Pension Stabilization Fund.

(c-15) The transfers made beginning in State fiscal year 2020 pursuant to subsection (c-10) of this Section shall terminate at the end of State fiscal year 2045 or when each of the designated retirement systems, as defined in Section 25, has achieved 100% funding, whichever occurs first.

(d) The Comptroller shall transfer 1/12 of the total amount to be transferred each fiscal year under this Section into the Pension Stabilization Fund on the first day of each month of that fiscal year or as soon thereafter as possible; except that the final transfer of the fiscal year shall be made as soon as practical after the August 31 following the end of the fiscal year.

Until State fiscal year 2015, before the final transfer for a fiscal year is made, the Comptroller shall reconcile the estimated general funds revenues used in calculating the other transfers under this Section for that fiscal year with the actual general funds revenues for that fiscal year. The final transfer for the fiscal year shall be adjusted so that the total amount transferred under this Section for that fiscal year is equal to the percentage specified in subsection (b) or (c) of this Section, whichever is applicable, of the actual general funds revenues for that fiscal year. The actual general funds revenues for the fiscal year shall be calculated in a manner consistent with subsection (c) of Section 10 of this Act.

(Source: P.A. 98-599, eff. 6-1-14.)

(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)

Sec. 20. Pension Stabilization Fund.

(a) The Pension Stabilization Fund is hereby created as a special fund in the State treasury. Moneys in the fund shall be used for the sole purpose of making payments to the designated retirement systems as provided in Section 25.

(b) For each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 99% of the estimated general funds revenues pursuant to subsection (a) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 0.5% of the estimated general funds revenues to the Pension Stabilization Fund. Beginning in Fiscal Year 2027, for each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 99% of the estimated general funds revenues pursuant to subsection (a) of Section 10 and the Budget Stabilization Fund is equal to 10% of general funds revenues, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 1% of the estimated general funds revenues into the Pension Stabilization Fund.

(c) Through Fiscal Year 2026, For each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 98% of the estimated general funds revenues pursuant to subsection (b) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 1.0% of the estimated general funds revenues to the Pension Stabilization Fund.

(d) The Comptroller shall transfer 1/12 of the total amount to be transferred each fiscal year under this Section into the Pension Stabilization Fund on the first day of each month of that fiscal year or as soon thereafter as possible; except that the final transfer of the fiscal year shall be made as soon as practical after the August 31 following the end of the fiscal year.

Before the final transfer for a fiscal year is made, the Comptroller shall reconcile the estimated general funds revenues used in calculating the other transfers under this Section for that fiscal year with the actual general funds revenues for that fiscal year. The final transfer for the fiscal year shall be adjusted so that the total amount transferred under this Section for that fiscal year is equal to the percentage specified in subsection (b) or (c) of this Section, whichever is applicable, of the actual general funds revenues for that fiscal year. The actual general funds revenues for the fiscal year shall be calculated in a manner consistent with subsection (c) of Section 10 of this Act.

(Source: P.A. 94-839, eff. 6-6-06.)

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