Illinois General Assembly - Full Text of HB4118
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Full Text of HB4118  102nd General Assembly

HB4118 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4118

 

Introduced 9/3/2021, by Rep. Michael Halpin

 

SYNOPSIS AS INTRODUCED:
 
15 ILCS 20/50-40
30 ILCS 105/6z-51
30 ILCS 122/15
30 ILCS 122/20

    Amends the State Budget Law of the Civil Administrative Code of Illinois. Provides that "general funds" or "State general funds" as used under the Act includes the Pension Stabilization Fund. Amends the State Finance Act. Provides that for fiscal year 2024 and subsequent fiscal years, any transfers into the Budget Stabilization Fund may be transferred to 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 bill backlog as determined by the Comptroller on June 30 of that fiscal year exceeds $4,000,000,000. Amends the Budget Stabilization Act. Modifies provisions concerning requirements for and transfers into the Budget Stabilization Fund and the Pension Stabilization Fund regarding the State's backlog of bills. Effective immediately.


LRB102 19031 RJF 27795 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4118LRB102 19031 RJF 27795 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Budget Law of the Civil
5Administrative Code of Illinois is amended by changing Section
650-40 as follows:
 
7    (15 ILCS 20/50-40)
8    Sec. 50-40. General funds defined. "General funds" or
9"State general funds" means the General Revenue Fund, the
10Common School Fund, the General Revenue Common School Special
11Account Fund, the Education Assistance Fund, the Fund for the
12Advancement of Education, the Commitment to Human Services
13Fund, and the Budget Stabilization Fund, and the Pension
14Stabilization Fund.
15(Source: P.A. 100-23, eff. 7-6-17.)
 
16    Section 10. The State Finance Act is amended by changing
17Section 6z-51 as follows:
 
18    (30 ILCS 105/6z-51)
19    Sec. 6z-51. Budget Stabilization Fund.
20    (a) The Budget Stabilization Fund, a special fund in the
21State Treasury, shall consist of moneys appropriated or

 

 

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1transferred to that Fund, as provided in Section 6z-43 and as
2otherwise provided by law. All earnings on Budget
3Stabilization Fund investments shall be deposited into that
4Fund.
5    (b) The State Comptroller may direct the State Treasurer
6to transfer moneys from the Budget Stabilization Fund to the
7General Revenue Fund in order to meet cash flow deficits
8resulting from timing variations between disbursements and the
9receipt of funds within a fiscal year. Any moneys so borrowed
10in any fiscal year other than Fiscal Year 2011 and other than
11as provided in subsection (b-5) shall be repaid by June 30 of
12the fiscal year in which they were borrowed. Any moneys so
13borrowed in Fiscal Year 2011 shall be repaid no later than July
1415, 2011.
15    (b-5) For fiscal year 2024 and subsequent fiscal years,
16any transfers into the Budget Stabilization Fund pursuant to
17Section 15 of the Budget Stabilization Act may be transferred
18to the General Revenue Fund in order for the Comptroller to
19address outstanding vouchers, and shall not be subject to
20repayment into the Budget Stabilization Fund if the bill
21backlog as determined by the Comptroller on June 30 of that
22fiscal year exceeds $4,000,000,000.
23    (c) During Fiscal Year 2017 only, amounts may be expended
24from the Budget Stabilization Fund only pursuant to specific
25authorization by appropriation. Any moneys expended pursuant
26to appropriation shall not be subject to repayment.

 

 

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1    (d) For Fiscal Year 2020, and beyond, any transfers into
2the Fund pursuant to the Cannabis Regulation and Tax Act may be
3transferred to the General Revenue Fund in order for the
4Comptroller to address outstanding vouchers and shall not be
5subject to repayment back into the Budget Stabilization Fund.
6(Source: P.A. 101-10, eff. 6-5-19.)
 
7    Section 15. The Budget Stabilization Act is amended by
8changing Sections 15 and 20 as follows:
 
9    (30 ILCS 122/15)
10    Sec. 15. Transfers to Budget Stabilization Fund. In
11furtherance of the State's objective for the Budget
12Stabilization Fund to have resources representing 5% of the
13State's annual general funds revenues:
14    (a) On January 10, 2023, and for each January 10
15thereafter, the Department on Aging, the Department of
16Healthcare and Family Services, and the Department of Human
17Services shall certify to the Comptroller the amount of
18invoices that may be paid from appropriations in future fiscal
19years resulting from insufficient appropriations in the
20current fiscal year. The Department of Central Management
21Services shall also certify the amount of invoices that may be
22paid from appropriations in future fiscal years due to
23insufficient resources in the Health Insurance Reserve Fund,
24and the Department of Revenue shall certify an estimate of the

 

 

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1amount of individual and corporate income tax overpayments
2that will not be refunded before the close of the current
3fiscal year resulting from insufficient deposits into the
4Income Tax Refund Fund. The Comptroller's Debt Transparency
5Report shall detail the total value of the amounts certified
6by the Department on Aging and the Departments of Central
7Management Services, Healthcare and Family Services, Human
8Services, and Revenue. The report shall also include the
9liabilities payable with the Comptroller at the close of
10business on December 31, 2022 and for each December 31
11thereafter. For each fiscal year when the General Assembly's
12appropriations and transfers or diversions as required by law
13from general funds do not exceed 99% of the estimated general
14funds revenues pursuant to subsection (a) of Section 10, the
15Comptroller shall transfer from the General Revenue Fund as
16provided by this Section a total amount equal to 0.5% of the
17estimated general funds revenues to the Budget Stabilization
18Fund.
19    (b) Beginning May 15, 2023, and for each May 15
20thereafter, the Comptroller shall report to the Governor and
21the General Assembly the estimated backlog of bills for the
22end of the current fiscal year. If the amount of the backlog of
23bills reported by the Comptroller on June 30, 2023 and each
24June 30 thereafter is an amount less than $3,000,000,000, on
25the last day of each month of the next fiscal year, or as soon
26thereafter as possible, the Comptroller shall order

 

 

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1transferred and the Treasurer shall transfer from the General
2Revenue Fund to the Budget Stabilization Fund the lesser of
3(i) $200,000,000 or (ii) the amount necessary to maintain
4resources in the Budget Stabilization Fund that is equal to 5%
5of the total general funds revenues of the prior fiscal year,
6in equal monthly installments. Nothing in this Section
7prohibits the General Assembly from appropriating additional
8moneys into the Budget Stabilization Fund; however, transfers
9or appropriations shall only be made from the Budget
10Stabilization Fund under subsection (d) of this Section. For
11each fiscal year when the General Assembly's appropriations
12and transfers or diversions as required by law from general
13funds do not exceed 98% of the estimated general funds
14revenues pursuant to subsection (b) of Section 10, the
15Comptroller shall transfer from the General Revenue Fund as
16provided by this Section a total amount equal to 1% of the
17estimated general funds revenues to the Budget Stabilization
18Fund.
19    (c) The Comptroller shall transfer 1/12 of the total
20amount to be transferred each fiscal year under this Section
21into the Budget Stabilization Fund on the first day of each
22month of that fiscal year or as soon thereafter as possible.
23The balance of the Budget Stabilization Fund shall not exceed
245% of the total of general funds revenues estimated for that
25fiscal year. If the balance of the Budget Stabilization Fund
26is equal to 5% of the total general funds revenues of the prior

 

 

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1fiscal year, no further transfers shall be made to the Budget
2Stabilization Fund. If the amounts certified to the
3Comptroller that may be paid from future fiscal year resources
4by the Department on Aging and the Departments of Central
5Management Services, Healthcare and Family Services, Human
6Services, and Revenue exceed zero, the Comptroller shall order
7transferred and the Treasurer shall transfer from the General
8Revenue Fund to the Health Insurance Reserve Fund, the
9Healthcare Provider Relief Fund, or the Income Tax Refund Fund
10an amount necessary to reduce those amounts to zero, but not to
11exceed a monthly aggregate of $16,666,666 except as provided
12by subsection (d) of this Section.
13    (d) Upon written notice from the Governor to the Clerk of
14the House of Representatives, the Secretary of the Senate, and
15the Secretary of State pursuant to Section 1.1 of the Short
16Term Borrowing Act, the Comptroller may cease the order of any
17further transfers to the Budget Stabilization Fund and may
18order the transfer and the Treasurer shall transfer from the
19Budget Stabilization Fund to the General Revenue Fund an
20amount deemed necessary to maintain the State's backlog of
21bills to an amount below $3,000,000,000. If the written notice
22has been provided, the General Assembly may make transfers or
23appropriations from the Budget Stabilization Fund for the
24upcoming fiscal year as necessary to provide for the health,
25safety, and welfare of the people of the State of Illinois. If
26the balance of the Budget Stabilization Fund exceeds 5% of the

 

 

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1total general funds revenues estimated for that fiscal year,
2the additional transfers are not required unless there are
3outstanding liabilities under Section 25 of the State Finance
4Act from prior fiscal years. If there are such outstanding
5Section 25 liabilities, then the Comptroller shall continue to
6transfer 1/12 of the total amount identified for transfer to
7the Budget Stabilization Fund on the first day of each month of
8that fiscal year or as soon thereafter as possible to be
9reserved for those Section 25 liabilities. Nothing in this Act
10prohibits the General Assembly from appropriating additional
11moneys into the Budget Stabilization Fund.
12    (e) (Blank). On or before August 31 of each fiscal year,
13the amount determined to be transferred to the Budget
14Stabilization Fund shall be reconciled to actual general funds
15revenues for that fiscal year. The final transfer for each
16fiscal year shall be adjusted so that the total amount
17transferred under this Section is equal to the percentage
18specified in subsection (a) or (b) of this Section, as
19applicable, based on actual general funds revenues calculated
20consistently with subsection (c) of Section 10 of this Act for
21each fiscal year.
22    (f) For the fiscal year beginning July 1, 2006 and for each
23fiscal year thereafter, the budget proposal to the General
24Assembly shall identify liabilities incurred in a prior fiscal
25year under Section 25 of the State Finance Act and the budget
26proposal shall provide funding as allowable pursuant to

 

 

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1subsection (d) of this Section, if applicable.
2(Source: P.A. 93-660, eff. 7-1-04; 94-839, eff. 6-6-06.)
 
3    (30 ILCS 122/20)
4    (Text of Section WITH the changes made by P.A. 98-599,
5which has been held unconstitutional)
6    Sec. 20. Pension Stabilization Fund.
7    (a) The Pension Stabilization Fund is hereby created as a
8special fund in the State treasury. Moneys in the fund shall be
9used for the sole purpose of making payments to the designated
10retirement systems as provided in Section 25.
11    (b) For each fiscal year through State fiscal year 2014,
12when the General Assembly's appropriations and transfers or
13diversions as required by law from general funds do not exceed
1499% of the estimated general funds revenues pursuant to
15subsection (a) of Section 10, the Comptroller shall transfer
16from the General Revenue Fund as provided by this Section a
17total amount equal to 0.5% of the estimated general funds
18revenues to the Pension Stabilization Fund.
19    (c) For each fiscal year through State fiscal year 2014,
20when the General Assembly's appropriations and transfers or
21diversions as required by law from general funds do not exceed
2298% of the estimated general funds revenues pursuant to
23subsection (b) of Section 10, the Comptroller shall transfer
24from the General Revenue Fund as provided by this Section a
25total amount equal to 1.0% of the estimated general funds

 

 

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1revenues to the Pension Stabilization Fund.
2    (c-5) In addition to any other amounts required to be
3transferred under this Section, in State fiscal year 2016 and
4each fiscal year thereafter through State fiscal year 2045, or
5when each of the designated retirement systems, as defined in
6Section 25, has achieved 100% funding, whichever occurs first,
7the State Comptroller shall order transferred and the State
8Treasurer shall transfer from the General Revenue Fund to the
9Pension Stabilization Fund an amount equal to 10% of (1) the
10sum of the amounts certified by the designated retirement
11systems under subsection (a-5) of Section 2-134, subsection
12(a-10) of Section 14-135.08, subsection (a-10) of Section
1315-165, and subsection (a-10) of Section 16-158 of this Code
14for that fiscal year minus (2) the sum of (i) the transfer
15required under subsection (c-10) of this Section for that
16fiscal year and (ii) the sum of the required State
17contributions certified by the retirement systems under
18subsection (a) of Section 2-134, subsection (a-5) of Section
1914-135.08, subsection (a-5) of Section 15-165, and subsection
20(a-5) of Section 16-158 of this Code for that fiscal year. The
21transferred amount is intended to represent one-tenth of the
22annual savings to the State resulting from the enactment of
23this amendatory Act of the 98th General Assembly.
24    (c-10) In State fiscal year 2019, the State Comptroller
25shall order transferred and the State Treasurer shall transfer
26$364,000,000 from the General Revenue Fund to the Pension

 

 

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1Stabilization Fund. In State fiscal year 2020 and each fiscal
2year thereafter until terminated under subsection (c-15), the
3State Comptroller shall order transferred and the State
4Treasurer shall transfer $1,000,000,000 from the General
5Revenue Fund to the Pension Stabilization Fund.
6    (c-15) The transfers made beginning in State fiscal year
72020 pursuant to subsection (c-10) of this Section shall
8terminate at the end of State fiscal year 2045 or when each of
9the designated retirement systems, as defined in Section 25,
10has achieved 100% funding, whichever occurs first.
11    (d) The Comptroller shall transfer 1/12 of the total
12amount to be transferred each fiscal year under this Section
13into the Pension Stabilization Fund on the first day of each
14month of that fiscal year or as soon thereafter as possible;
15except that the final transfer of the fiscal year shall be made
16as soon as practical after the August 31 following the end of
17the fiscal year.
18    Until State fiscal year 2015, before the final transfer
19for a fiscal year is made, the Comptroller shall reconcile the
20estimated general funds revenues used in calculating the other
21transfers under this Section for that fiscal year with the
22actual general funds revenues for that fiscal year. The final
23transfer for the fiscal year shall be adjusted so that the
24total amount transferred under this Section for that fiscal
25year is equal to the percentage specified in subsection (b) or
26(c) of this Section, whichever is applicable, of the actual

 

 

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1general funds revenues for that fiscal year. The actual
2general funds revenues for the fiscal year shall be calculated
3in a manner consistent with subsection (c) of Section 10 of
4this Act.
5(Source: P.A. 98-599, eff. 6-1-14.)
 
6    (Text of Section WITHOUT the changes made by P.A. 98-599,
7which has been held unconstitutional)
8    Sec. 20. Pension Stabilization Fund.
9    (a) The Pension Stabilization Fund is hereby created as a
10special fund in the State treasury. Moneys in the fund shall be
11used for the sole purpose of making payments to the designated
12retirement systems as provided in Section 25.
13    (b) If the amount of the backlog of bills reported by the
14Comptroller on June 30, 2023 and for each June 30 thereafter is
15an amount less than $3,000,000,000, on the last day of each
16month of the next fiscal year, or as soon thereafter as
17possible, the Comptroller shall order transferred and the
18Treasurer shall transfer from the General Revenue Fund to the
19Pension Stabilization Fund $200,000,000 in equal monthly
20installments. For each fiscal year when the General Assembly's
21appropriations and transfers or diversions as required by law
22from general funds do not exceed 99% of the estimated general
23funds revenues pursuant to subsection (a) of Section 10, the
24Comptroller shall transfer from the General Revenue Fund as
25provided by this Section a total amount equal to 0.5% of the

 

 

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1estimated general funds revenues to the Pension Stabilization
2Fund.
3    (c) (Blank). For each fiscal year when the General
4Assembly's appropriations and transfers or diversions as
5required by law from general funds do not exceed 98% of the
6estimated general funds revenues pursuant to subsection (b) of
7Section 10, the Comptroller shall transfer from the General
8Revenue Fund as provided by this Section a total amount equal
9to 1.0% of the estimated general funds revenues to the Pension
10Stabilization Fund.
11    (d) (Blank). The Comptroller shall transfer 1/12 of the
12total amount to be transferred each fiscal year under this
13Section into the Pension Stabilization Fund on the first day
14of each month of that fiscal year or as soon thereafter as
15possible; except that the final transfer of the fiscal year
16shall be made as soon as practical after the August 31
17following the end of the fiscal year.
18    Before the final transfer for a fiscal year is made, the
19Comptroller shall reconcile the estimated general funds
20revenues used in calculating the other transfers under this
21Section for that fiscal year with the actual general funds
22revenues for that fiscal year. The final transfer for the
23fiscal year shall be adjusted so that the total amount
24transferred under this Section for that fiscal year is equal
25to the percentage specified in subsection (b) or (c) of this
26Section, whichever is applicable, of the actual general funds

 

 

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1revenues for that fiscal year. The actual general funds
2revenues for the fiscal year shall be calculated in a manner
3consistent with subsection (c) of Section 10 of this Act.
4(Source: P.A. 94-839, eff. 6-6-06.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.