HR0554 99TH GENERAL ASSEMBLY

HR0554 LRB099 12648 GRL 36317 r

HOUSE RESOLUTION

WHEREAS, The State of Illinois has failed to consistently budget in a way that provides fiscal stability and employs a long-term approach to Illinois' financial health; and

WHEREAS, The State lacks the fiscal stability necessary to adequately attract and retain new jobs at the levels necessary to support robust economic growth; this lack of stability drives up costs of providing critical services and programs for Illinois residents; and

WHEREAS, The lack of consistent long-term budget strategies, combined with the recent fiscal downturn, have led to a perpetual cycle of crisis budgeting; and

WHEREAS, Crisis-driven budgeting has led to a focus on short-term needs, rather than the long-term needs of the State; and

WHEREAS, The instability of Illinois' fiscal situation limits the ability of the State to adequately fund education, provide for critical human services to those most in need, and address unpaid bills; and

WHEREAS, Addressing the State's unpaid bills on a consistent basis allows other units of government that are dependent on State funds to better plan and more efficiently manage their finances, resulting in lower costs for local taxpayers and more cost-effective management for other providers, such as hospitals, nursing homes, non-profit organizations, and others; and

WHEREAS, Fluctuations in the economy are inevitable; the State must employ budgetary practices to avoid being forced back to the drawing board every time there is a revenue downturn or unexpected but necessary budgetary demand; and

WHEREAS, Consistently carrying billions of dollars of debt has negative impacts on the State and is a drain on our State's resources in numerous ways, including the application of scarce resources to interest payments rather than vital programs and services; a negative impact on Illinois' credit rating; consistent challenges to institutions and service providers in long-term planning; and a lack of confidence in government by many citizens of this State; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the General Assembly to implement the following budgeting practices:

(1) the Illinois General Assembly should apply any revenues which exceed expenditures to the payment of any old bills that are more than 45 days past the due date, including General Revenue Fund and non-General Revenue Fund expenditures, at the close of each fiscal year; and

(2) if there are no pending bills over 45 days past the due date at such a time, such revenues should be directed to the Budget Stabilization Fund (30 ILCS 122 et seq.), also known as the "Rainy Day Fund"; and be it further

RESOLVED, That we urge the Illinois General Assembly to provide for the use and maintenance of the Budget Stabilization Fund, to be funded as follows:

(1) should the growth in the annual revenue estimate exceed 3% from the previous year's estimated revenues, such excess amount should be appropriated "off the top" of estimated available revenues to the Budget Stabilization Fund; and

(2) should no unpaid bills remain due over 45 days at the close of each fiscal year, the Illinois General Assembly should apply any revenues which exceed expenditures to the Budget Stabilization Fund.