SB2614 95TH GENERAL ASSEMBLY

LRB095 19122 RCE 45333 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2614

Introduced 2/15/2008, by Sen. Christine Radogno

SYNOPSIS AS INTRODUCED:

30 ILCS 122/12 new
30 ILCS 122/15

Amends the Budget Stabilization Act. Requires the Governor's Office of Management and Budget to make public a certified general funds revenue estimate for the current fiscal year at the same time the Governor submits a budget for the upcoming fiscal year. Requires actual revenues that exceed the certified estimate to be deposited into the Budget Stabilization Fund to be used to pay prior fiscal year liabilities, pension liabilities, and bond debt. Effective July 1, 2008.

FISCAL NOTE ACT MAY APPLY

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 Budget Stabilization Act is amended by changing Section 15 and by adding Section 12 as follows:

(30 ILCS 122/12 new)

Sec. 12. Certified revenue estimate.

(a) For the purposes of Section 15(g) only of this Act, "certified general funds revenue estimate" includes, 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.

(b) The Governor's Office of Management and Budget shall make public a certified general funds revenue estimate for the current fiscal year at the same time the Governor is required to submit a State budget for the upcoming fiscal year as set forth in Section 50-5 of the State Budget Law (15 ILCS 20/50-5).

(c) The certified general funds revenue estimate shall be the Governor's Office of Management and Budget's best estimate on the total general funds revenue collections for the current fiscal year, given the revenues deposited into the general funds to date.

(d) The Governor's Office of Management and Budget shall include in any document required by Section 50-10 of the State Budget Law (15 ILCS 20/50-10) a detailed accounting of the certified general funds revenue estimate for the current fiscal year by revenue source.

(e) The Governor's Office of Management and Budget shall distribute a letter to the President of the Senate, the Minority Leader of the Senate, the Speaker of the House, the Minority Leader of the House, the Comptroller, and the Treasurer that details the certified general funds revenue estimate for the current fiscal year.

(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 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) 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 5% of the total of general funds revenues estimated for that fiscal year except as provided by subsection (d) of this Section.

(d) If the balance of the Budget Stabilization Fund exceeds 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) 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) For each fiscal year in which the general funds revenues as of June 30 exceed the certified general funds revenue estimate as defined in Section 12 of this Act, the difference of the actual general funds revenues collections less the certified general funds estimate shall be deposited into the Budget Stabilization Fund and used for the following purposes:

(1) Funds deposited into the Budget Stabilization Fund as a result of actual general revenues funds collections exceeding the certified general funds estimate shall first be used for payment of liabilities as defined by Section 25 of the State Finance Act.

(2) If no liabilities as defined by Section 25 of the State Finance Act exist or if the deposit into the Budget Stabilization Fund as defined in this subsection (g) exceeds the amount of liabilities as defined by Section 25 of the State Finance Act, then the remaining amount of the deposit shall remain in the Budget Stabilization Fund up to 5% of the State's annual general funds revenues.

(3) If the requirements of items (1) and (2) of this subsection (g) are met the remaining portion of the deposit as defined in this subsection (g) shall be deposited into the Pension Stabilization Fund.

(4) If the requirements of items (1), (2), and (3) of this subsection (g) are met, the remaining portion of the deposit as defined in this subsection (g) shall be used to reduce the State's general obligation debt.

(Source: P.A. 93-660, eff. 7-1-04; 94-839, eff. 6-6-06.)

Section 99. Effective date. This Act takes effect July 1, 2008.