State of Illinois
2019 and 2020


Introduced 1/8/2020, by Rep. Jaime M. Andrade, Jr.


15 ILCS 20/50-5

    Amends the State Budget Law of the Civil Administrative Code of Illinois. Provides specified requirements for State budgets prepared for and after State fiscal year 2021. Makes conforming changes. Effective immediately.

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HB4039LRB101 16187 RJF 65559 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),
11the third Wednesday in February in 2011, the fourth Wednesday
12in February in 2012 (February 22, 2012), the first Wednesday in
13March in 2013 (March 6, 2013), the fourth Wednesday in March in
142014 (March 26, 2014), and the third Wednesday in February of
15each year thereafter, except as otherwise provided in this
16Section, submit a State budget, embracing therein the amounts
17recommended by the Governor to be appropriated to the
18respective departments, offices, and institutions, and for all
19other public purposes, the estimated revenues from taxation,
20and the estimated revenues from sources other than taxation.
21Except with respect to the capital development provisions of
22the State budget, beginning with the revenue estimates prepared
23for fiscal year 2012 through fiscal year 2020, revenue



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1estimates shall be based solely on: (i) revenue sources
2(including non-income resources), rates, and levels that exist
3as of the date of the submission of the State budget for the
4fiscal year and (ii) revenue sources (including non-income
5resources), rates, and levels that have been passed by the
6General Assembly as of the date of the submission of the State
7budget for the fiscal year and that are authorized to take
8effect in that fiscal year. Beginning with budgets prepared for
9fiscal year 2021, revenue estimates shall be determined as
10provided under paragraph (1) of subsection (a-5). Except with
11respect to the capital development provisions of the State
12budget, the Governor shall determine available revenue, deduct
13the cost of essential government services, including, but not
14limited to, pension payments and debt service, and assign a
15percentage of the remaining revenue to each statewide
16prioritized goal, as established in Section 50-25 of this Law,
17taking into consideration the proposed goals set forth in the
18report of the Commission established under that Section. The
19Governor shall also demonstrate how spending priorities for the
20fiscal year fulfill those statewide goals. The amounts
21recommended by the Governor for appropriation to the respective
22departments, offices and institutions shall be formulated
23according to each department's, office's, and institution's
24ability to effectively deliver services that meet the
25established statewide goals. The amounts relating to
26particular functions and activities shall be further



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1formulated in accordance with the object classification
2specified in Section 13 of the State Finance Act. In addition,
3the amounts recommended by the Governor for appropriation shall
4take into account each State agency's effectiveness in
5achieving its prioritized goals for the previous fiscal year,
6as set forth in Section 50-25 of this Law, giving priority to
7agencies and programs that have demonstrated a focus on the
8prevention of waste and the maximum yield from resources.
9    Beginning in fiscal year 2011, the Governor shall
10distribute written quarterly financial reports on operating
11funds, which may include general, State, or federal funds and
12may include funds related to agencies that have significant
13impacts on State operations, and budget statements on all
14appropriated funds to the General Assembly and the State
15Comptroller. The reports shall be submitted no later than 45
16days after the last day of each quarter of the fiscal year and
17shall be posted on the Governor's Office of Management and
18Budget's website on the same day. The reports shall be prepared
19and presented for each State agency and on a statewide level in
20an executive summary format that may include, for the fiscal
21year to date, individual itemizations for each significant
22revenue type as well as itemizations of expenditures and
23obligations, by agency, with an appropriate level of detail.
24The reports shall include a calculation of the actual total
25budget surplus or deficit for the fiscal year to date. The
26Governor shall also present periodic budget addresses



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1throughout the fiscal year at the invitation of the General
3    The Governor shall not propose expenditures and the General
4Assembly shall not enact appropriations that exceed the
5resources estimated to be available, as provided in this
6Section. Appropriations may be adjusted during the fiscal year
7by means of one or more supplemental appropriation bills if any
8State agency either fails to meet or exceeds the goals set
9forth in Section 50-25 of this Law.
10    For the purposes of Article VIII, Section 2 of the 1970
11Illinois Constitution, the State budget for the following funds
12shall be prepared on the basis of revenue and expenditure
13measurement concepts that are in concert with generally
14accepted accounting principles for governments:
15        (1) General Revenue Fund.
16        (2) Common School Fund.
17        (3) Educational Assistance Fund.
18        (4) Road Fund.
19        (5) Motor Fuel Tax Fund.
20        (6) Agricultural Premium Fund.
21    These funds shall be known as the "budgeted funds". The
22revenue estimates used in the State budget for the budgeted
23funds shall include the estimated beginning fund balance, plus
24revenues estimated to be received during the budgeted year,
25plus the estimated receipts due the State as of June 30 of the
26budgeted year that are expected to be collected during the



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1lapse period following the budgeted year, minus the receipts
2collected during the first 2 months of the budgeted year that
3became due to the State in the year before the budgeted year.
4Revenues shall also include estimated federal reimbursements
5associated with the recognition of Section 25 of the State
6Finance Act liabilities. For any budgeted fund for which
7current year revenues are anticipated to exceed expenditures,
8the surplus shall be considered to be a resource available for
9expenditure in the budgeted fiscal year.
10    Expenditure estimates for the budgeted funds included in
11the State budget shall include the costs to be incurred by the
12State for the budgeted year, to be paid in the next fiscal
13year, excluding costs paid in the budgeted year which were
14carried over from the prior year, where the payment is
15authorized by Section 25 of the State Finance Act. For any
16budgeted fund for which expenditures are expected to exceed
17revenues in the current fiscal year, the deficit shall be
18considered as a use of funds in the budgeted fiscal year.
19    Revenues and expenditures shall also include transfers
20between funds that are based on revenues received or costs
21incurred during the budget year.
22    Appropriations for expenditures shall also include all
23anticipated statutory continuing appropriation obligations
24that are expected to be incurred during the budgeted fiscal
26    By March 15 of each year, the Commission on Government



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1Forecasting and Accountability shall prepare revenue and fund
2transfer estimates in accordance with the requirements of this
3Section and report those estimates to the General Assembly and
4the Governor.
5    For all funds other than the budgeted funds, the proposed
6expenditures shall not exceed funds estimated to be available
7for the fiscal year as shown in the budget. Appropriation for a
8fiscal year shall not exceed funds estimated by the General
9Assembly to be available during that year.
10    (a-5) Beginning with budgets prepared for fiscal year 2021:
11        (1) Revenue estimates shall be based solely on receipts
12    from taxes, fees, and federal transfers and shall not
13    include debt incurred, existing debt refinanced, or
14    additional funds appropriated, assigned, or transferred
15    from another State fund.
16        (2) The General Assembly by law shall make
17    appropriations for all expenditures of public funds by the
18    State. Appropriations for a fiscal year shall not exceed
19    revenue estimated by the General Assembly to be available
20    during fiscal that year. Except for deficiency or emergency
21    appropriations, all appropriations are expendable only
22    during the fiscal year for which they were appropriated,
23    except that the General Assembly may provide for
24    appropriations from the Budget Stabilization Fund in
25    excess of revenue estimated by the General Assembly to be
26    available during that fiscal year by adoption of a



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1    resolution approved by a record vote of three-fifths of the
2    members of each house. The excess appropriations may not
3    exceed the total amount available in the Budget
4    Stabilization Fund.
5        (3) No public money shall be expended except pursuant
6    to appropriations made by law. Expenditures for any fiscal
7    year shall not exceed the State's revenues and reserves in
8    the general funds, including proceeds of any debt
9    obligation, for that fiscal year. No debt obligation,
10    except as shall be repaid within the fiscal year of
11    issuance, shall be authorized for the current operation of
12    any State service or program, nor shall the proceeds of any
13    debt obligation be expended for a purpose other than that
14    for which it was authorized.
15        (4) Any law requiring the expenditure of State funds
16    shall be null and void unless, during the session in which
17    the act receives final passage, an appropriation is made
18    for the estimated first year's funding.
19    (b) By February 24, 2010, the Governor must file a written
20report with the Secretary of the Senate and the Clerk of the
21House of Representatives containing the following:
22        (1) for fiscal year 2010, the revenues for all budgeted
23    funds, both actual to date and estimated for the full
24    fiscal year;
25        (2) for fiscal year 2010, the expenditures for all
26    budgeted funds, both actual to date and estimated for the



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1    full fiscal year;
2        (3) for fiscal year 2011, the estimated revenues for
3    all budgeted funds, including without limitation the
4    affordable General Revenue Fund appropriations, for the
5    full fiscal year; and
6        (4) for fiscal year 2011, an estimate of the
7    anticipated liabilities for all budgeted funds, including
8    without limitation the affordable General Revenue Fund
9    appropriations, debt service on bonds issued, and the
10    State's contributions to the pension systems, for the full
11    fiscal year.
12    Between July 1 and August 31 of each fiscal year, the
13members of the General Assembly and members of the public may
14make written budget recommendations to the Governor.
15    Beginning with budgets prepared for fiscal year 2013, the
16budgets submitted by the Governor and appropriations made by
17the General Assembly for all executive branch State agencies
18must adhere to a method of budgeting where each priority must
19be justified each year according to merit rather than according
20to the amount appropriated for the preceding year.
21(Source: P.A. 97-669, eff. 1-13-12; 97-813, eff. 7-13-12; 98-2,
22eff. 2-19-13; 98-626, eff. 2-5-14.)
23    Section 99. Effective date. This Act takes effect upon
24becoming law.