Illinois General Assembly - Full Text of HB3495
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Full Text of HB3495  97th General Assembly




State of Illinois
2011 and 2012


Introduced 2/24/2011, by Rep. Sidney H. Mathias - Sandra M. Pihos - Jason Barickman - John D. Cavaletto - David Harris, et al.


15 ILCS 20/50-5

    Amends the State Budget Law of the Civil Administrative Code of Illinois. With respect to fiscal year appropriations, requires the General Assembly to take into account (i) whether the previous fiscal year's revenues were sufficient to pay for all obligations incurred during that fiscal year or whether those obligations were shifted to future years and (ii) whether revenues for the budgeted fiscal year can be reasonably projected to meet appropriations for the budgeted fiscal year. For each budgeted fiscal year, requires the General Assembly, by the same joint resolution adopted by record vote, to declare that the budget is balanced. Makes revisory changes.

LRB097 10778 RLJ 51207 b






HB3495LRB097 10778 RLJ 51207 b

1    AN ACT concerning State government.
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 Administrative
5Code of Illinois is amended by changing Section 50-5 as
7    (15 ILCS 20/50-5)
8    Sec. 50-5. Governor to submit State budget.
9    (a) The Governor shall, as soon as possible and not later
10than the second Wednesday in March in 2010 (March 10, 2010) and
11the third Wednesday in February of each year beginning in 2011,
12except as otherwise provided in this Section, submit a State
13budget, embracing therein the amounts recommended by the
14Governor to be appropriated to the respective departments,
15offices, and institutions, and for all other public purposes,
16the estimated revenues from taxation, and the estimated
17revenues from sources other than taxation. Except with respect
18to the capital development provisions of the State budget,
19beginning with the revenue estimates prepared for fiscal year
202012, revenue estimates shall be based solely on: (i) revenue
21sources (including non-income resources), rates, and levels
22that exist as of the date of the submission of the State budget
23for the fiscal year and (ii) revenue sources (including



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1non-income resources), rates, and levels that have been passed
2by the General Assembly as of the date of the submission of the
3State budget for the fiscal year and that are authorized to
4take effect in that fiscal year. Except with respect to the
5capital development provisions of the State budget, the
6Governor shall determine available revenue, deduct the cost of
7essential government services, including, but not limited to,
8pension payments and debt service, and assign a percentage of
9the remaining revenue to each statewide prioritized goal, as
10established in Section 50-25 of this Law, taking into
11consideration the proposed goals set forth in the report of the
12Commission established under that Section. The Governor shall
13also demonstrate how spending priorities for the fiscal year
14fulfill those statewide goals. The amounts recommended by the
15Governor for appropriation to the respective departments,
16offices and institutions shall be formulated according to each
17department's, office's, and institution's ability to
18effectively deliver services that meet the established
19statewide goals. The amounts relating to particular functions
20and activities shall be further formulated in accordance with
21the object classification specified in Section 13 of the State
22Finance Act. In addition, the amounts recommended by the
23Governor for appropriation shall take into account each State
24agency's effectiveness in achieving its prioritized goals for
25the previous fiscal year, as set forth in Section 50-25 of this
26Law, giving priority to agencies and programs that have



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1demonstrated a focus on the prevention of waste and the maximum
2yield from resources.
3    Beginning in fiscal year 2011, the Governor shall
4distribute written quarterly financial reports on operating
5funds, which may include general, State, or federal funds and
6may include funds related to agencies that have significant
7impacts on State operations, and budget statements on all
8appropriated funds to the General Assembly and the State
9Comptroller. The reports shall be submitted no later than 45
10days after the last day of each quarter of the fiscal year and
11shall be posted on the Governor's Office of Management and
12Budget's website on the same day. The reports shall be prepared
13and presented for each State agency and on a statewide level in
14an executive summary format that may include, for the fiscal
15year to date, individual itemizations for each significant
16revenue type as well as itemizations of expenditures and
17obligations, by agency, with an appropriate level of detail.
18The reports shall include a calculation of the actual total
19budget surplus or deficit for the fiscal year to date. The
20Governor shall also present periodic budget addresses
21throughout the fiscal year at the invitation of the General
23    The Governor shall not propose expenditures and the General
24Assembly shall not enact appropriations that exceed the
25resources estimated to be available, as provided in this
26Section. Appropriations may be adjusted during the fiscal year



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1by means of one or more supplemental appropriation bills if any
2State agency either fails to meet or exceeds the goals set
3forth in Section 50-25 of this Law.
4    For the purposes of Article VIII, Section 2 of the 1970
5Illinois Constitution, the State budget for the following funds
6shall be prepared on the basis of revenue and expenditure
7measurement concepts that are in concert with generally
8accepted accounting principles for governments:
9        (1) General Revenue Fund.
10        (2) Common School Fund.
11        (3) Educational Assistance Fund.
12        (4) Road Fund.
13        (5) Motor Fuel Tax Fund.
14        (6) Agricultural Premium Fund.
15    These funds shall be known as the "budgeted funds". The
16revenue estimates used in the State budget for the budgeted
17funds shall include the estimated beginning fund balance, plus
18revenues estimated to be received during the budgeted year,
19plus the estimated receipts due the State as of June 30 of the
20budgeted year that are expected to be collected during the
21lapse period following the budgeted year, minus the receipts
22collected during the first 2 months of the budgeted year that
23became due to the State in the year before the budgeted year.
24Revenues shall also include estimated federal reimbursements
25associated with the recognition of Section 25 of the State
26Finance Act liabilities. For any budgeted fund for which



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1current year revenues are anticipated to exceed expenditures,
2the surplus shall be considered to be a resource available for
3expenditure in the budgeted fiscal year.
4    Expenditure estimates for the budgeted funds included in
5the State budget shall include the costs to be incurred by the
6State for the budgeted year, to be paid in the next fiscal
7year, excluding costs paid in the budgeted year which were
8carried over from the prior year, where the payment is
9authorized by Section 25 of the State Finance Act. For any
10budgeted fund for which expenditures are expected to exceed
11revenues in the current fiscal year, the deficit shall be
12considered as a use of funds in the budgeted fiscal year.
13    Revenues and expenditures shall also include transfers
14between funds that are based on revenues received or costs
15incurred during the budget year.
16    Appropriations for expenditures shall also include all
17anticipated statutory continuing appropriation obligations
18that are expected to be incurred during the budgeted fiscal
20    By March 15 of each year, the Commission on Government
21Forecasting and Accountability shall prepare revenue and fund
22transfer estimates in accordance with the requirements of this
23Section and report those estimates to the General Assembly and
24the Governor.
25    For all funds other than the budgeted funds, the proposed
26expenditures shall not exceed funds estimated to be available



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1for the fiscal year as shown in the budget. Appropriation for a
2fiscal year shall not exceed funds estimated by the General
3Assembly to be available during that year. The General Assembly
4shall take into account (i) whether the previous fiscal year's
5revenues were sufficient to pay for all obligations incurred
6during that fiscal year or whether those obligations were
7shifted to future years and (ii) whether revenues for the
8budgeted fiscal year can be reasonably projected to meet
9appropriations for the budgeted fiscal year. For each budgeted
10fiscal year, the General Assembly, by the same joint resolution
11adopted by record vote, shall declare that the budget is
13    (b) By February 24, 2010, the Governor must file a written
14report with the Secretary of the Senate and the Clerk of the
15House of Representatives containing the following:
16        (1) for fiscal year 2010, the revenues for all budgeted
17    funds, both actual to date and estimated for the full
18    fiscal year;
19        (2) for fiscal year 2010, the expenditures for all
20    budgeted funds, both actual to date and estimated for the
21    full fiscal year;
22        (3) for fiscal year 2011, the estimated revenues for
23    all budgeted funds, including without limitation the
24    affordable General Revenue Fund appropriations, for the
25    full fiscal year; and
26        (4) for fiscal year 2011, an estimate of the



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1    anticipated liabilities for all budgeted funds, including
2    without limitation the affordable General Revenue Fund
3    appropriations, debt service on bonds issued, and the
4    State's contributions to the pension systems, for the full
5    fiscal year.
6    Between July 1 and August 31 of each fiscal year, the
7members of the General Assembly and members of the public may
8make written budget recommendations to the Governor.
9    Beginning with budgets prepared for fiscal year 2013, the
10budgets submitted by the Governor and appropriations made by
11the General Assembly for all executive branch State agencies
12must adhere to a method of budgeting where each priority must
13be justified each year according to merit rather than according
14to the amount appropriated for the preceding year.
15(Source: P.A. 96-1, eff. 2-17-09; 96-320, eff. 1-1-10; 96-881,
16eff. 2-11-10; 96-958, eff. 7-1-10; 96-1000, eff. 7-2-10;
1796-1529, eff. 2-16-11; 96-1531, eff. 2-16-11; revised