093_SB0867ham001











                                     LRB093 02854 JAM 20105 a

 1                    AMENDMENT TO SENATE BILL 867

 2        AMENDMENT NO.     .  Amend Senate Bill 867  by  replacing
 3    everything after the enacting clause with the following:

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

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

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

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

 4        Section  99.  Effective date.  This Act takes effect July
 5    1, 2004.".