SB2332eng 95TH GENERAL ASSEMBLY

SB2332 Engrossed LRB095 17991 JAM 44074 b

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 by adding Section 50-5.5 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.

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 that are , 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 and until the Revenue Estimating Council is established, 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 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 20/50-5.5 new)

Sec. 50-5.5. Revenue Estimating Council.

(a) There is created a Revenue Estimating Council, consisting of the Governor, the State Comptroller, and the co-chairs of the Commission on Government Forecasting and Accountability (who together shall have one vote on the Council), or their designees.

(b) By February 1, 2009 and by February 1 of each year thereafter, the Revenue Estimating Council must prepare revenue and fund transfer estimates in accordance with the requirements of Section 50-5 and report those estimates to the General Assembly. In addition to the revenue and transfer estimates, the Revenue Estimating Council must certify an estimate of all 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 that fiscal year.

Notwithstanding any other provision of this subsection, for the purpose of determining the estimates under this Section for fiscal year 2010, the Revenue Estimating Council must use the prior year's estimated general funds revenues as determined by the Commission on Government Forecasting and Accountability.

By May 1, 2009 and by May 1 of each year thereafter, the Revenue Estimating Council must issue a report updating the estimates required under this subsection as may be required based on more recent information. Upon its issuance, the Revenue Estimating Council must submit the revised report to the Governor and the General Assembly. The General Assembly may disapprove the report in whole or in part within 60 calendar days after its delivery to the General Assembly by adoption of a resolution by a record vote of a majority of the members elected in one house.

(c) Prior to the beginning of the fiscal year, the Revenue Estimating Council must prepare a cash flow estimate of the general funds, identifying estimated revenues and cash expenditures for each quarter of the fiscal year. Each quarter of the fiscal year, the Revenue Estimating Council must review the revenue and cash expenditure estimates and issue a report to the Governor and the General Assembly containing updates of the estimates required under this subsection and notification of potential budgetary shortfalls.

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