093_SB0867enr

 
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 1        AN ACT in relation to the State Comptroller.

 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
 5    Budget Stabilization Act.

 6        Section   5.   Budget   Stabilization  Fund.  The  Budget
 7    Stabilization Fund is a special fund in  the  State  treasury
 8    established  for  the purpose of reducing the need for future
 9    tax increases, maintaining the highest possible bond  rating,
10    reducing   the  need  for  short  term  borrowing,  providing
11    available resources to meet State obligations whenever casual
12    deficits or failures in  revenue  occur,  and  providing  the
13    means  of  addressing  budgetary  shortfalls.  In authorizing
14    transfers  from  the  Budget  Stabilization  Fund,   whenever
15    possible,  priority  consideration should be given to meeting
16    obligations for secondary  and  elementary  education,  child
17    care, and other programs that may provide a direct benefit to
18    children.

19        Section 10. Budget limitations.
20        (a)  In  addition to Section 50-5 of the State Budget Law
21    of the Civil Administrative Code  of  Illinois,  the  General
22    Assembly's  appropriations  and  transfers  or  diversions as
23    required by law from general funds shall not exceed 99.5%  of
24    the estimated general funds revenues for the fiscal year when
25    revenue  estimates  of  the  State's  general  funds revenues
26    exceed  the  prior  fiscal  year's  estimated  general  funds
27    revenues by more than 4%.
28        (b) The General Assembly's appropriations  and  transfers
29    or diversions as required by law from general funds shall not
30    exceed  99%  of  the estimated general funds revenues for the
 
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 1    fiscal year when revenue estimates  of  the  State's  general
 2    funds  revenues  exceed  the  prior  fiscal  year's estimated
 3    general funds  revenues  by  more  than  4%  for  2  or  more
 4    consecutive fiscal years.
 5        (c) For the purpose of this Act, "estimated general funds
 6    revenues" include, for each budget year, all taxes, fees, and
 7    other  revenues  expected  to  be  deposited into the State's
 8    general funds, including recurring transfers from other State
 9    funds into the general funds.
10        Year-over-year  comparisons   used   to   determine   the
11    percentage  growth factor of estimated general funds revenues
12    shall exclude the sum of the following: (i) expected revenues
13    resulting from new taxes or fees or from tax or fee increases
14    during the first year of the change, (ii)  expected  revenues
15    resulting  from  one-time receipts or non-recurring transfers
16    in, (iii) expected proceeds  resulting  from  borrowing,  and
17    (iv)  increases  in  federal  grants  that must be completely
18    appropriated based on the terms of the grants.

19        Section 15. Transfers to Budget  Stabilization  Fund.  In
20    furtherance   of   the   State's  objective  for  the  Budget
21    Stabilization Fund to have resources representing 5%  of  the
22    State's annual general funds revenues:
23        (a)  For  each  fiscal  year  when the General Assembly's
24    appropriations and transfers or diversions as required by law
25    from general funds do  not  exceed  99.5%  of  the  estimated
26    general  funds revenues pursuant to subsection (a) of Section
27    10, the Comptroller shall transfer from the  General  Revenue
28    Fund  as provided by this Section a total amount equal to .5%
29    of  the  estimated  general  funds  revenues  to  the  Budget
30    Stabilization Fund.
31        (b) For each fiscal  year  when  the  General  Assembly's
32    appropriations and transfers or diversions as required by law
33    from general funds do not exceed 99% of the estimated general
 
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 1    funds  revenues pursuant to subsection (b) of Section 10, the
 2    Comptroller shall transfer from the General Revenue  Fund  as
 3    provided  by  this  Section a total amount equal to 1% of the
 4    estimated general funds revenues to the Budget  Stabilization
 5    Fund.
 6        (c)  The  Comptroller  shall  transfer  1/12 of the total
 7    amount to be transferred each fiscal year under this  Section
 8    into  the  Budget Stabilization Fund on the first day of each
 9    month of that fiscal year or as soon thereafter as  possible.
10    The balance of the Budget Stabilization Fund shall not exceed
11    5%  of the total of general funds revenues estimated for that
12    fiscal year except as provided  by  subsection  (d)  of  this
13    Section.
14        (d)  If  the  balance  of  the  Budget Stabilization Fund
15    exceeds 5% of the total general funds revenues estimated  for
16    that  fiscal  year, the additional transfers are not required
17    unless there are outstanding liabilities under Section 25  of
18    the  State  Finance Act from prior fiscal years. If there are
19    such outstanding Section 25 liabilities, then the Comptroller
20    shall  continue  to  transfer  1/12  of  the   total   amount
21    identified  for  transfer to the Budget Stabilization Fund on
22    the first day of each month of that fiscal year  or  as  soon
23    thereafter  as  possible  to be reserved for those Section 25
24    liabilities.  Nothing  in  this  Act  prohibits  the  General
25    Assembly from appropriating additional moneys into the Budget
26    Stabilization Fund.
27        (e) On or before August  31  of  each  fiscal  year,  the
28    amount   determined   to   be   transferred   to  the  Budget
29    Stabilization Fund shall  be  reconciled  to  actual  general
30    funds  revenues  for that fiscal year. The final transfer for
31    each fiscal  year  shall  be  adjusted  so  that  the  amount
32    transferred   is   equal   to  the  percentage  specified  in
33    subsection  (a)  or  (b)  of  Section  10  of  this  Act,  as
34    applicable, based on actual general funds revenues calculated
 
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 1    consistently with subsection (c) of Section 10  of  this  Act
 2    for each fiscal year.
 3        (f)  For  the  fiscal year beginning July 1, 2006 and for
 4    each fiscal year  thereafter,  the  budget  proposal  to  the
 5    General  Assembly  shall  identify  liabilities incurred in a
 6    prior fiscal year under Section 25 of the State  Finance  Act
 7    and  the  budget  proposal shall provide funding as allowable
 8    pursuant to subsection (d) of this Section, if applicable.

 9        Section 90.  The State Finance Act is amended by changing
10    Section 6z-51 as follows:

11        (30 ILCS 105/6z-51)
12        Sec. 6z-51. Budget Stabilization Fund.
13        (a)  The Budget Stabilization Fund, a special fund in the
14    State Treasury,  shall  consist  of  moneys  appropriated  or
15    transferred to that Fund, as provided in Section 6z-43 and as
16    otherwise   provided   by   law.   All   earnings  on  Budget
17    Stabilization Fund investments shall be deposited  into  that
18    Fund.
19        (b)  The State Comptroller may direct the State Treasurer
20    to  transfer moneys from the Budget Stabilization Fund to the
21    General Revenue Fund in order  to  meet  cash  flow  deficits
22    resulting  from  timing  variations between disbursements and
23    the receipt of funds within a fiscal  year.   Any  moneys  so
24    borrowed  shall  be  repaid  by June 30 of the fiscal year in
25    which they were borrowed.
26    (Source: P.A. 92-11, eff. 6-11-01; 92-651, eff. 7-11-02.)

27        Section 99.  Effective date.  This Act takes effect  July
28    1, 2004.