093_SB1758eng

 
SB1758 Engrossed                     LRB093 10026 JAM 10277 b

 1        AN ACT concerning revenue estimates.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  State   Budget   Law   of   the   Civil
 5    Administrative  Code  of  Illinois  is  amended  by  changing
 6    Section 50-5 and by adding Section 50-5.5 as follows:

 7        (15 ILCS 20/50-5) (was 15 ILCS 20/38)
 8        Sec. 50-5.  Governor to submit State budget. The Governor
 9    shall,  as  soon  as  possible  and  not later than the third
10    Wednesday in February of each year beginning in 1998,  submit
11    a  State budget, embracing therein the amounts recommended by
12    the  Governor  to   be   appropriated   to   the   respective
13    departments,  offices,  and  institutions,  and for all other
14    public purposes, the estimated revenues  from  taxation,  the
15    estimated  revenues  from sources other than taxation, and an
16    estimate of the amount required to  be  raised  by  taxation.
17    The  amounts recommended by the Governor for appropriation to
18    the respective departments, offices and institutions shall be
19    formulated according to the various functions and  activities
20    for which the respective department, office or institution of
21    the  State government (including the elective officers in the
22    executive department and including the University of Illinois
23    and the judicial  department)  is  responsible.  The  amounts
24    relating  to  particular  functions  and  activities shall be
25    further   formulated   in   accordance   with   the    object
26    classification  specified  in Section 13 of the State Finance
27    Act.
28        The Governor  shall  not  propose  expenditures  and  the
29    General  Assembly  shall not enact appropriations that exceed
30    the resources estimated to be available, as provided in  this
31    Section.
 
SB1758 Engrossed            -2-      LRB093 10026 JAM 10277 b
 1        For  the  purposes of Article VIII, Section 2 of the 1970
 2    Illinois Constitution, the State  budget  for  the  following
 3    funds   shall  be  prepared  on  the  basis  of  revenue  and
 4    expenditure measurement concepts that  are  in  concert  with
 5    generally accepted accounting principles for governments:
 6             (1)  General Revenue Fund.
 7             (2)  Common School Fund.
 8             (3)  Educational Assistance Fund.
 9             (4)  Road Fund.
10             (5)  Motor Fuel Tax Fund.
11             (6)  Agricultural Premium Fund.
12        These  funds shall be known as the "budgeted funds".  The
13    revenue estimates used in the State budget for  the  budgeted
14    funds  shall  include  the  estimated beginning fund balance,
15    plus revenues estimated to be received  during  the  budgeted
16    year, plus the estimated receipts due the State as of June 30
17    of the budgeted year that are expected to be collected during
18    the  lapse  period  following  the  budgeted  year, minus the
19    receipts collected during the first 2 months of the  budgeted
20    year  that  became  due  to  the State in the year before the
21    budgeted year.  Revenues shall also include estimated federal
22    reimbursements associated with the recognition of Section  25
23    of  the State Finance Act liabilities.  For any budgeted fund
24    for which current year revenues  are  anticipated  to  exceed
25    expenditures,  the  surplus  shall  be  considered  to  be  a
26    resource  available  for  expenditure  in the budgeted fiscal
27    year.
28        Expenditure estimates for the budgeted funds included  in
29    the  State  budget  shall include the costs to be incurred by
30    the State for the budgeted year that are, to be paid  in  the
31    next  fiscal  year, excluding costs paid in the budgeted year
32    which were carried  over  from  the  prior  year,  where  the
33    payment is authorized by Section 25 of the State Finance Act.
34    For  any budgeted fund for which expenditures are expected to
 
SB1758 Engrossed            -3-      LRB093 10026 JAM 10277 b
 1    exceed revenues in the current fiscal year, the deficit shall
 2    be considered as a use of funds in the budgeted fiscal year.
 3        Revenues and expenditures shall  also  include  transfers
 4    between  funds  that  are based on revenues received or costs
 5    incurred during the budget year.
 6        By March 15 of each year and until the Revenue Estimating
 7    Council is established, the Economic  and  Fiscal  Commission
 8    shall   prepare   revenue  and  fund  transfer  estimates  in
 9    accordance with the requirements of this Section  and  report
10    those estimates to the General Assembly and the Governor.
11        For all funds other than the budgeted funds, the proposed
12    expenditures shall not exceed funds estimated to be available
13    for the fiscal year as shown in the budget. Appropriation for
14    a  fiscal  year  shall  not exceed (i) funds estimated by the
15    General  Assembly  to  be  available  during  that  year   as
16    contained  within the joint resolution adopted by the General
17    Assembly in accordance with Section 50-5.5  of  this  Act  or
18    (ii)  funds estimated to be available in accordance with this
19    Section prior to the effective date of this amendatory Act of
20    the 93rd General Assembly.
21    (Source: P.A. 90-479, eff. 8-17-97; 91-239, eff. 1-1-00.)

22        (15 ILCS 20/50-5.5 new)
23        Sec. 50-5.5. Revenue Estimating Council.
24        (a)  There  is  created  a  Revenue  Estimating  Council,
25    consisting of the Director of the Bureau of the  Budget,  the
26    State  Comptroller, and the Director of the Illinois Economic
27    and Fiscal Commission, or their designees.
28        (b)  By January 1, 2005 and by January  1  of  each  year
29    thereafter,  the  Revenue  Estimating  Council  must  prepare
30    revenue  and  fund  transfer estimates in accordance with the
31    requirements of Section 50-5 and report  those  estimates  to
32    the General Assembly. In addition to the revenue and transfer
33    estimates,  the  Revenue  Estimating  Council must certify an
 
SB1758 Engrossed            -4-      LRB093 10026 JAM 10277 b
 1    estimate of all income  of  the  State  from  all  applicable
 2    revenue  sources  for the next ensuing fiscal year and of any
 3    other funds estimated to be available for that fiscal year.
 4        Notwithstanding any other provision of  this  subsection,
 5    for  the  purpose  of  determining  the  estimates under this
 6    Section for fiscal year 2006, the Revenue Estimating  Council
 7    must use the prior year's estimated general funds revenues as
 8    determined  by  the Economic and Fiscal Commission for fiscal
 9    year 2005.
10        By  April  15,  2005  and  by  April  15  of  each   year
11    thereafter,  the  Revenue  Estimating  Council  must  issue a
12    report updating the estimates required under this  subsection
13    as may be required based on more recent information. Upon its
14    issuance,  the  Revenue  Estimating  Council  must submit the
15    revised report to the Governor and the General Assembly.  The
16    House  of Representatives and Senate must adopt the report by
17    joint  resolution.  The  joint  resolution  constitutes   the
18    General  Assembly's estimate, under subsection (b) of Section
19    2 of Article VIII of the Illinois Constitution, of the  funds
20    available during the next fiscal year.
21        (c)  Prior  to  the  beginning  of  the  fiscal year, the
22    Revenue Estimating Council must prepare a cash flow  estimate
23    of the general funds, identifying estimated revenues and cash
24    expenditures  for  each  quarter  of  the  fiscal  year. Each
25    quarter of the fiscal year, the  Revenue  Estimating  Council
26    must  review  the  revenue and cash expenditure estimates and
27    issue a report to  the  Governor  and  the  General  Assembly
28    containing  updates  of  the  estimates  required  under this
29    subsection   and   notification   of   potential    budgetary
30    shortfalls.

31        Section  10.  The Illinois Economic and Fiscal Commission
32    Act is amended by changing Section 4 as follows:
 
SB1758 Engrossed            -5-      LRB093 10026 JAM 10277 b
 1        (25 ILCS 155/4) (from Ch. 63, par. 344)
 2        Sec.  4.  (a)  The  Commission  shall  publish,  at   the
 3    convening  of each regular session of the General Assembly, a
 4    report  on  the  estimated  income  of  the  State  from  all
 5    applicable revenue sources for the next ensuing  fiscal  year
 6    and  of  any  other  funds estimated to be available for such
 7    fiscal year. On  the  third  Wednesday  in  March  after  the
 8    session  convenes,  the  Commission shall issue a revised and
 9    updated  set  of  revenue  figures  reflecting   the   latest
10    available information. In 2004, the House and Senate by joint
11    resolution  shall  adopt  or  modify such estimates as may be
12    appropriate.  The  joint  resolution  shall  constitute   the
13    General Assembly's estimate, under paragraph (b) of Section 2
14    of  Article  VIII of the Constitution, of the funds estimated
15    to be available during the next fiscal year.
16        (b)  On the third  Wednesday  in  March,  the  Commission
17    shall issue estimated:
18             (1)  pension funding requirements under P.A. 86-273;
19        and
20             (2)  liabilities  of the State employee group health
21        insurance program.
22        These estimated  costs  shall  be  for  the  fiscal  year
23    beginning the following July 1.
24        (c)  The   requirement   for  reporting  to  the  General
25    Assembly shall be satisfied by filing copies  of  the  report
26    with  the  Speaker,  the Minority Leader and the Clerk of the
27    House of Representatives  and  the  President,  the  Minority
28    Leader  and  the  Secretary of the Senate and the Legislative
29    Research Unit, as required by  Section  3.1  of  "An  Act  to
30    revise the law in relation to the General Assembly", approved
31    February  25,  1874,  as  amended, and filing such additional
32    copies with the State Government Report  Distribution  Center
33    for  the  General Assembly as is required under paragraph (t)
34    of Section 7 of the State Library Act.
 
SB1758 Engrossed            -6-      LRB093 10026 JAM 10277 b
 1    (Source: P.A. 87-1142.)

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