|
|||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||
1 | AN ACT concerning State government.
| ||||||||||||||||||||||||||||||
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 Truth | ||||||||||||||||||||||||||||||
5 | in Accounting Act of 2010.
| ||||||||||||||||||||||||||||||
6 | Section 5. Legislative intent. It is the intent of this Act | ||||||||||||||||||||||||||||||
7 | to develop a State budgeting process that:
| ||||||||||||||||||||||||||||||
8 | (1) Reflects the State's duty to report the best | ||||||||||||||||||||||||||||||
9 | estimate of its own financial condition.
| ||||||||||||||||||||||||||||||
10 | (2) Reflects the principle that the purpose of proper | ||||||||||||||||||||||||||||||
11 | State budgeting is to preserve intergenerational equity, | ||||||||||||||||||||||||||||||
12 | in conformity with the understanding of intergenerational | ||||||||||||||||||||||||||||||
13 | equity promulgated by the Governmental Accounting | ||||||||||||||||||||||||||||||
14 | Standards Board (GASB), and to prevent the imposition of | ||||||||||||||||||||||||||||||
15 | undue burdens upon unborn Illinois residents and Illinois | ||||||||||||||||||||||||||||||
16 | residents who, at the time a budget is enacted into law, | ||||||||||||||||||||||||||||||
17 | are too young to vote.
| ||||||||||||||||||||||||||||||
18 | (3) Reflects the principle that it is not proper to | ||||||||||||||||||||||||||||||
19 | incur State debt for operating expenses.
| ||||||||||||||||||||||||||||||
20 | (4) Preserves intergenerational equity in the State | ||||||||||||||||||||||||||||||
21 | budgeting process. Prohibiting one generation from | ||||||||||||||||||||||||||||||
22 | obligating future generations comports with the Government | ||||||||||||||||||||||||||||||
23 | Accounting Standards Board's interpretation of the purpose |
| |||||||
| |||||||
1 | of "balanced public budgets". | ||||||
2 | (5) Resolves the ambiguity under the State's current | ||||||
3 | budgeting process of the State's fiscal deficit. | ||||||
4 | (6) Recognizes the distinction between operating | ||||||
5 | budgets and capital budgets and that it is proper to incur | ||||||
6 | long-term obligations to acquire long-lived assets. | ||||||
7 | (7) Addresses the nebulous nature of expenditures that | ||||||
8 | are defined by their funding sources as "capital | ||||||
9 | expenditures" or "operating expenditures" when they may be | ||||||
10 | expenditures of a different type or multiple types. | ||||||
11 | (8) Develops comprehensive definitions of "capital | ||||||
12 | expenditures" and "capital assets". | ||||||
13 | (9) Adopts the use of a consolidating budget document | ||||||
14 | to eliminate the difficulty of grasping the State's annual | ||||||
15 | shortfall or its accumulated deficits due to the amount of | ||||||
16 | data, the complexity of that data, the relative scale of | ||||||
17 | the State's financial operations, and the inadequate | ||||||
18 | reporting systems. | ||||||
19 | (10) Addresses the State's unusual reliance upon the | ||||||
20 | use of more than 600 special funds. | ||||||
21 | (11) Defines "trust funds" as those with a fiduciary | ||||||
22 | component. | ||||||
23 | (12) Requires production of the Consolidated Annual | ||||||
24 | Financial Report within 90 days after the end of the | ||||||
25 | State's fiscal year. | ||||||
26 | (13) Enables any analysis of the State's budget to be |
| |||||||
| |||||||
1 | conducted in a holistic fashion that requires gross cash | ||||||
2 | flowing into the State's accounts to be adjusted to reflect | ||||||
3 | what is actually available to the State and expenditures | ||||||
4 | flowing out to be similarly modified. | ||||||
5 | (14) Establishes a more certain definition of "funds | ||||||
6 | available", to which the Governor and General Assembly are | ||||||
7 | constitutionally limited for expenditure, by evaluating | ||||||
8 | such concepts as the use of earned revenues only, the | ||||||
9 | sweeping of funds, the characterization of debt proceeds as | ||||||
10 | available funds, and the restricted or unrestricted nature | ||||||
11 | of federal funds. | ||||||
12 | (15) Enables inclusion in the State budget of accurate | ||||||
13 | State obligations, including but not limited to current and | ||||||
14 | future personnel benefit costs and lapse-period | ||||||
15 | expenditures. | ||||||
16 | Section 10. Definitions; prohibition against covering | ||||||
17 | operating expenses or expenditures by incurring certain debt. | ||||||
18 | (a) "General long-term capital debt", "operating debt", | ||||||
19 | "operating expenditures", "capital expenditures", and "debt | ||||||
20 | service expenditures" shall be as defined by Governmental | ||||||
21 | Accounting Standards Board Statement 11. "Full accrual" and | ||||||
22 | "fiduciary funds" shall be as defined by Governmental | ||||||
23 | Accounting Standards Board Statement 34.
| ||||||
24 | (b) The fiscal deficit of the State is the excess of full | ||||||
25 | accrual expenses over full accrual revenues. A fiscal surplus |
| |||||||
| |||||||
1 | is the excess of full accrual revenues over full accrual | ||||||
2 | expenses.
| ||||||
3 | (c) The State shall not incur general long-term capital | ||||||
4 | debt, and shall not incur operating debt, in order to cover | ||||||
5 | operating expenses or operating expenditures.
| ||||||
6 | Section 15. Electronic publication of appropriation bills; | ||||||
7 | publication deadlines with respect to second and third | ||||||
8 | readings. The General Assembly shall publish, by means of the | ||||||
9 | Internet on a web page controlled by the General Assembly, the | ||||||
10 | texts of all appropriation bills. Each publication shall | ||||||
11 | include an embedded time stamp setting forth the time of | ||||||
12 | electronic publication, and no bill to appropriate funds shall | ||||||
13 | be passed on third reading until at least 72 hours after the | ||||||
14 | time of electronic publication. No amendment to an | ||||||
15 | appropriation bill shall be considered on second reading until | ||||||
16 | at least 72 hours after the amendment has been published | ||||||
17 | electronically.
| ||||||
18 | Section 20. Passage of appropriation bills prohibited | ||||||
19 | before adoption of joint resolution. The General Assembly shall | ||||||
20 | not pass any bill to appropriate funds within any fiscal year | ||||||
21 | prior to its adoption of the joint resolution reflecting the | ||||||
22 | estimate for that fiscal year. | ||||||
23 | Section 25. State funds as fiduciary funds. All State funds |
| |||||||
| |||||||
1 | shall be fiduciary funds unless explicitly provided otherwise | ||||||
2 | by law. | ||||||
3 | Section 90. The State Comptroller Act is amended by | ||||||
4 | changing Sections 6.01 and 20 as follows:
| ||||||
5 | (15 ILCS 405/6.01) (from Ch. 15, par. 206.01)
| ||||||
6 | Sec. 6.01.
Specification and establishment of accounting | ||||||
7 | standards and
principles. The Comptroller shall specify and | ||||||
8 | establish the financial
accounting and reporting standards and | ||||||
9 | principles to be used by all State
government and State | ||||||
10 | agencies. The standards and principles shall be
effective upon | ||||||
11 | filing by the Comptroller with the Auditor General. Effective | ||||||
12 | January 1, 2011, the financial accounting and reporting | ||||||
13 | standards to be used by all State government and State agencies | ||||||
14 | shall be in compliance with full accrual accounting standards | ||||||
15 | as defined by the Governmental Accounting Standards Board | ||||||
16 | (GASB). The
Comptroller shall maintain and publish the | ||||||
17 | standards and principles as a
public document. These standards | ||||||
18 | and principles shall be known as the
Generally Accepted | ||||||
19 | Accounting Standards and Principles for Illinois State
| ||||||
20 | Government, and shall, whenever possible, be compatible with | ||||||
21 | any similar
nationally existing generally accepted accounting | ||||||
22 | standards and principles
for government.
| ||||||
23 | In establishing the Generally Accepted Accounting | ||||||
24 | Standards and
Principles for Illinois State Government, the |
| |||||||
| |||||||
1 | Comptroller shall consult with
the Governor and the other | ||||||
2 | members of the Executive Branch, the Chief
Justice of the | ||||||
3 | Supreme Court, and the leadership of the General Assembly
and | ||||||
4 | shall provide to these officials draft copies of any proposed | ||||||
5 | standards
at least 90 days prior to their adoption and shall | ||||||
6 | consider any responses
or suggestions that these officials may | ||||||
7 | present.
| ||||||
8 | (Source: P.A. 86-1415.)
| ||||||
9 | (15 ILCS 405/20) (from Ch. 15, par. 220)
| ||||||
10 | Sec. 20. Annual report. The comptroller shall annually, as | ||||||
11 | soon as possible after the close
of the fiscal year but no | ||||||
12 | later than December 31, make out and present
to the Governor, | ||||||
13 | the President of the Senate, the Speaker of the House
of | ||||||
14 | Representatives, the Minority Leader of the Senate, and the | ||||||
15 | Minority
Leader of the House of Representatives a report, | ||||||
16 | showing the amount of
warrants drawn on the treasury, on other | ||||||
17 | funds held by the State
Treasurer and on any public funds held | ||||||
18 | by State agencies, during the
preceding fiscal year, and | ||||||
19 | stating, particularly, on what account they
were drawn, and if | ||||||
20 | drawn on the contingent fund, to whom and for what
they were | ||||||
21 | issued. He shall, also, at the same time, report to the
| ||||||
22 | Governor, the President of the Senate, the Speaker of the House | ||||||
23 | of
Representatives, the Minority Leader of the Senate, and the | ||||||
24 | Minority
Leader of the House of Representatives the amount of | ||||||
25 | money received into
the treasury, into other funds held by the |
| |||||||
| |||||||
1 | State Treasurer and into any
other funds held by State agencies | ||||||
2 | during the preceding fiscal year, and
stating particularly, the | ||||||
3 | source from which the same may be derived, and
also a general | ||||||
4 | account of all the business of his office during the
preceding | ||||||
5 | fiscal year. The report shall also summarize for the previous
| ||||||
6 | fiscal year the information required under Section 19.
| ||||||
7 | Within 60 days after the expiration of each calendar year, | ||||||
8 | the
comptroller shall compile, from records maintained and | ||||||
9 | available in his
office, a list of all persons including those | ||||||
10 | employed in the office of
the comptroller, who have been | ||||||
11 | employed by the State during the past
calendar year and paid | ||||||
12 | from funds in the hands of the State Treasurer.
| ||||||
13 | The list shall be arranged according to counties and shall | ||||||
14 | state in
alphabetical order the name of each employee, the | ||||||
15 | address in the county
in which he votes, except as specified | ||||||
16 | below, the position and the
total salary paid to him during
the | ||||||
17 | past calendar year. For persons employed by the Department of
| ||||||
18 | Corrections, Department of Children and Family Services and the | ||||||
19 | Department
of State Police no address shall be listed. The list | ||||||
20 | so compiled and
arranged shall be kept
on file in the office of | ||||||
21 | the comptroller and be open to inspection by
the public at all | ||||||
22 | times.
| ||||||
23 | No person who utilizes the names obtained from this list | ||||||
24 | for solicitation
shall represent that such solicitation is | ||||||
25 | authorized by any officer or agency
of the State of Illinois. | ||||||
26 | Violation of this provision is a Business Offense
punishable by |
| |||||||
| |||||||
1 | a fine not to exceed $3,000.
| ||||||
2 | Effective January 1, 2011, the Comptroller shall publish a | ||||||
3 | Consolidated Annual Financial Report (CAFR) no more than 90 | ||||||
4 | days after the end of each State fiscal year. The Report shall | ||||||
5 | be prepared in accordance with the principles of full accrual | ||||||
6 | accounting. The Report shall include explanations of any | ||||||
7 | variance that exists between the estimates adopted by the | ||||||
8 | General Assembly for each fiscal year and the actual numbers | ||||||
9 | reported. The Comptroller shall, by administrative rule, | ||||||
10 | determine a time line and protocol for the publication of this | ||||||
11 | Report. | ||||||
12 | (Source: P.A. 86-1003.)
| ||||||
13 | Section 95. The Commission on Government Forecasting and | ||||||
14 | Accountability Act is amended by changing Section 4 as follows: | ||||||
15 | (25 ILCS 155/4) (from Ch. 63, par. 344)
| ||||||
16 | Sec. 4. (a) The Commission shall publish, at the convening | ||||||
17 | of each regular
session of the General Assembly, a report on | ||||||
18 | the estimated income of the
State from all applicable revenue | ||||||
19 | sources for the next ensuing fiscal
year and of any other funds | ||||||
20 | estimated to be available for such fiscal
year. On the third | ||||||
21 | Wednesday in March after the session convenes, the
Commission | ||||||
22 | shall issue a revised and updated set of revenue figures
| ||||||
23 | reflecting the latest available information. The House and | ||||||
24 | Senate by
joint resolution shall adopt or modify such estimates |
| |||||||
| |||||||
1 | as may be
appropriate. The joint resolution shall constitute | ||||||
2 | the General
Assembly's estimate, under paragraph (b) of Section | ||||||
3 | 2 of Article VIII of
the Constitution, of the funds estimated | ||||||
4 | to be available during the next
fiscal year.
| ||||||
5 | (a-5) The annual March estimates issued by the Commission | ||||||
6 | shall include statements of the State's estimated revenues, | ||||||
7 | estimated balance sheet, estimated cash flow, and estimated | ||||||
8 | fiscal surplus or deficit. These estimates shall be based upon | ||||||
9 | principles of full accrual accounting. The March estimates | ||||||
10 | shall include a variance report of the ongoing fiscal year's | ||||||
11 | budget and appropriations. | ||||||
12 | (a-10) In publishing its estimates, the Commission shall | ||||||
13 | adhere to the standards published by the Governmental | ||||||
14 | Accounting Standards Board (GASB). In adopting and, when | ||||||
15 | appropriate, modifying these estimates prior to adoption of the | ||||||
16 | joint resolution embodying these estimates, the General | ||||||
17 | Assembly shall adhere to the standards published by GASB. | ||||||
18 | (b) On the third Wednesday in March, the Commission shall | ||||||
19 | issue estimated:
| ||||||
20 | (1) pension funding requirements under P.A. 86-273; | ||||||
21 | and
| ||||||
22 | (2) liabilities of the State employee group health | ||||||
23 | insurance program.
| ||||||
24 | These estimated costs shall be for the fiscal year | ||||||
25 | beginning the following
July 1.
| ||||||
26 | (c) The requirement for reporting to the General Assembly |
| |||||||
| |||||||
1 | shall be satisfied
by filing copies of the report with the | ||||||
2 | Speaker, the Minority Leader and
the Clerk of the House of | ||||||
3 | Representatives and the President, the Minority
Leader and the | ||||||
4 | Secretary of the Senate and the Legislative
Research
unit, as | ||||||
5 | required by Section 3.1 of the General Assembly
Organization | ||||||
6 | Act, and filing
such
additional copies with the State | ||||||
7 | Government Report Distribution Center for the
General Assembly | ||||||
8 | as is required under paragraph (t) of Section 7 of the State
| ||||||
9 | Library Act.
| ||||||
10 | (d) For each fiscal year, the General Assembly shall adopt | ||||||
11 | a joint resolution reflecting the estimated income, estimated | ||||||
12 | balance sheet, estimated cash flow, and estimated fiscal | ||||||
13 | surplus or deficit of the State. These estimates shall be based | ||||||
14 | upon principles of full accrual accounting. The General | ||||||
15 | Assembly shall not pass any bill to appropriate funds within | ||||||
16 | any fiscal year prior to its adoption of the joint resolution | ||||||
17 | reflecting the estimate for that fiscal year. | ||||||
18 | (Source: P.A. 93-632, eff. 2-1-04.)
| ||||||
19 | Section 99. Effective date. This Act takes effect upon | ||||||
20 | becoming law.
|