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90_HB0035
New Act
30 ILCS 340/3.1 new
Creates the Illinois Fiscal and Economic Stability Act,
and creates a Fund with that name in the State treasury,
separate from State general funds. Requires the Department
of Revenue to deposit a specified portion of monthly net
income tax receipts (called the "Annual Budget Reserve") into
the Fund. Defines the "Maximum Budget Reserve" as a
specified percentage of estimated or actual appropriations
from general funds. Provides that deposits into the Fund
shall cease, starting in FY2002, if the balance in the Fund
exceeds the Maximum Budget Reserve. Provides that moneys in
the Fund may be used, starting April 1, 2001, to cover a
budget shortfall. Contains text of a proposed Act to be
prepared when moneys are sought to be appropriated from the
Fund. Authorizes borrowing to cover a shortfall under
specified circumstances. Amends the Short Term Borrowing Act
by repealing the Act on April 1, 2001. Effective
immediately.
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1 AN ACT to create the Fiscal and Economic Stability Fund,
2 amending a named Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Illinois Fiscal and Economic Stability Act.
7 Section 5. Fiscal and Economic Stability Fund. The
8 Fiscal and Economic Stability Fund is created in the State
9 treasury. The Fund shall be separate from the general fund
10 of the State and shall not be considered part of the general
11 fund of the State. The moneys in the Fund shall not be
12 transferred, used, obligated, appropriated, or otherwise
13 encumbered except as provided in this Act.
14 Section 10. Annual Budget Reserve. In each fiscal year,
15 the Department of Revenue shall deposit a portion of monthly
16 net income tax receipts into the Fund in an amount totaling
17 the Annual Budget Reserve. The Annual Budget Reserve shall
18 be determined by the following method:
19 If the Illinois Balanced Budget Commission has
20 approved a final Balanced Budget Revenue Estimate for the
21 fiscal year, the Annual Budget Reserve shall equal 1% of
22 the final Estimate. If the final Estimate is revised
23 pursuant to the Illinois Balanced Budget Act, the
24 Department shall adjust monthly deposits to meet the
25 Annual Budget Reserve based on the revised Estimate.
26 If the Illinois Balanced Budget Commission has not
27 approved a final Balanced Budget Revenue Estimate for the
28 fiscal year, the Department shall request that the
29 Comptroller certify the total amount of general funds
30 appropriations enacted by the General Assembly for the
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1 fiscal year. The Annual Budget Reserve shall equal 1.01%
2 of the amount certified by the Comptroller.
3 Section 15. Maximum Budget Reserve. Beginning on July
4 1, 2001, no deposits into the Fund shall be made whenever the
5 balance in the Fund exceeds the Maximum Budget Reserve. The
6 Maximum Budget Reserve shall be determined by the following
7 method:
8 If the Illinois Balanced Budget Commission has
9 approved a final Balanced Budget Revenue Estimate for the
10 fiscal year, the Maximum Budget Reserve shall equal 5% of
11 the final Estimate. If the final Estimate is revised
12 pursuant to the Illinois Balanced Budget Act, the
13 Department shall adjust the Maximum Budget Reserve to
14 reflect the revised Estimate and make deposits
15 accordingly.
16 If the Illinois Balanced Budget Commission has not
17 approved a final Balanced Budget Revenue Estimate for the
18 fiscal year, the Department shall request that the
19 Comptroller certify the total amount of general funds
20 appropriations enacted by the General Assembly for the
21 fiscal year. The Maximum Budget Reserve shall equal
22 5.26% of the amount certified by the Comptroller.
23 Section 20. Restriction on use of Fund. Notwithstanding
24 any other provisions of this Act, no moneys in the Fund may
25 be transferred, used, obligated, appropriated, or otherwise
26 encumbered before April 1, 2001.
27 Section 25. Covering a shortfall. The Governor may
28 request that the General Assembly appropriate moneys in the
29 Fund to cover any shortfall in actual general funds revenue
30 below estimated general funds revenue. If the Illinois
31 Balanced Budget Commission has approved a final Balanced
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1 Budget Revenue Estimate for the fiscal year, the moneys in
2 the Fund shall be used only to cover any shortfall in actual
3 general funds revenue below the Estimate approved and revised
4 by the Commission.
5 Section 30. No appropriation before April 1. No
6 appropriation from the Illinois Fiscal and Economic Stability
7 Fund for any fiscal year shall have an effective date prior
8 to April 1 of the fiscal year.
9 Section 35. No increase in appropriations. No
10 appropriation from the Illinois Fiscal and Economic Stability
11 Fund shall serve to increase the appropriation authority of
12 any State agency in any line item for any fiscal year.
13 Whenever any amount is appropriated from the Fund in any
14 fiscal year, corresponding reductions totaling not less than
15 the same amount shall be made in spending from general funds
16 appropriations.
17 Section 40. Proposed Fiscal and Economic Stability
18 Implementation Act. The Governor's request that moneys be
19 appropriated from the Fund shall provide for offsetting
20 reserves from existing general funds appropriations. The
21 Governor's request that moneys be appropriated from the Fund
22 in any fiscal year shall be made separately from and in
23 addition to any bills appropriating moneys from the Fund, and
24 its substantive provisions shall be in substantially the
25 following form:
26 "The Fiscal and Economic Stability Reserve Act of
27 Fiscal Year .....
28 Section 1005. Findings. The General Assembly finds
29 that economic events beyond the control of the State
30 shall cause general funds revenue for fiscal year .....
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1 to fall below the amount estimated pursuant to the
2 Illinois Constitution and all applicable Illinois
3 Statutes. The General Assembly further finds that the
4 State shall incur obligations that it cannot pay in a
5 timely manner because of the shortfall in general funds
6 revenue. The General Assembly further finds that
7 reducing appropriations or increasing revenue would
8 negatively affect both the Illinois economy and the long
9 term fiscal health of the State. Therefore, the General
10 Assembly finds it necessary and expedient to provide for
11 expenditures under the Illinois Fiscal and Economic
12 Stability Act, and to provide for reserves in existing
13 general funds appropriations.
14 Section 1010. Definitions.
15 (a) For the purposes of this Act, the term "State
16 agency" is defined as in Section 1-7 of the Illinois
17 State Auditing Act. The term also includes circuit
18 courts and other judicial agencies that receive
19 appropriations of State funds.
20 (b) For the purposes of this Act, the term
21 "certifying officer" means:
22 (1) The Lieutenant Governor as to
23 appropriations made to that officer and as to
24 appropriations from which that officer is authorized
25 to approve expenditures under Section 10 of the
26 State Finance Act.
27 (2) The Attorney General as to appropriations
28 made to that officer and as to appropriations from
29 which that officer is authorized to approve
30 expenditures under Section 10 of the State Finance
31 Act.
32 (3) The Secretary of State as to
33 appropriations made to that officer and as to
34 appropriations from which that officer is authorized
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1 to approve expenditures under Section 10 of the
2 State Finance Act.
3 (4) The Treasurer as to appropriations made to
4 that officer and as to appropriations from which
5 that officer is authorized to approve expenditures
6 under the State Finance Act.
7 (5) The Comptroller as to appropriations made
8 to that officer and as to appropriations from which
9 that officer is authorized to approve expenditures
10 under Section 10 of the State Finance Act.
11 (6) The Joint Committee on Legislative Support
12 Services as to appropriations to the General
13 Assembly, the Auditor General, and the officers,
14 boards, commissions, bureaus, or agencies that are
15 part of the Legislative Branch of government.
16 (7) The Chief Justice of the Illinois Supreme
17 Court as to appropriations to State agencies that
18 are part of the Judicial Branch of government.
19 (8) The Governor as to appropriations made to
20 that officer and as to appropriations from which
21 that officer is authorized to approve expenditures
22 under Section 10 of the State Finance Act.
23 (9) The Governor in all other cases.
24 Section 1015. Designation of Fiscal and Economic
25 Stability Reserves.
26 (a) Each certifying officer shall designate, by
27 appropriation and line item, amounts to be held in
28 reserve for State fiscal year ....., which shall be not
29 less than appropriations from the Illinois Fiscal and
30 Economic Stability Fund for each of the State agencies
31 for which he or she is the certifying officer. The total
32 amount to be designated for each State agency by its
33 certifying officer shall be as follows:
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1 State Agency Reserve
2 Legislative Agencies
3 General Assembly and legislative agencies $....
4 Judicial Agencies
5 Supreme Court $....
6 Judicial Inquiry Board $....
7 State Appellate Defender $....
8 State's
9 Attorneys Appellate Prosecutor $....
10 Constitutional Elected Officers
11 Governor $....
12 Lieutenant Governor $....
13 Attorney General $....
14 Secretary of State $....
15 Comptroller $....
16 Treasurer $....
17 Departments
18 [List all code departments] $....
19 Other Agencies
20 [List all other State agencies] $....
21 Higher Education
22 [List all higher education agencies] $....
23 (b) No certifying officer shall designate amounts
24 to be held in a Fiscal and Economic Stability Reserve
25 from appropriations for payment of salaries fixed by law
26 for State officers.
27 (c) The amounts held in a Fiscal and Economic
28 Stability Reserve shall not be transferred, used,
29 obligated, or otherwise encumbered during fiscal year
30 ....., including any time allowed for payment of
31 obligations after the end of the fiscal year under
32 Section 25 of the State Finance Act.
33 (d) Any periodic transfers or expenditures that are
34 based on amounts appropriated shall be reduced to
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1 accommodate the Fiscal and Economic Stability Reserves
2 established under this Act. Any necessary prorating of
3 periodic payments from the Common School Fund or the
4 Education Assistance Fund shall be distributed equally
5 among the remaining payments for fiscal year ......
6 (e) By March 1, ....., each certifying officer
7 shall notify the Comptroller of all amounts that he or
8 she has designated to be held in a Fiscal and Economic
9 Stability Reserve. The notification shall include the
10 total amount and a complete list by line item.
11 (f) By March 15, ....., the Comptroller shall
12 certify to the Governor, to the President and Minority
13 Leader of the Senate, and to the Speaker and Minority
14 Leader of the House of Representatives whether the
15 amounts designated by each certifying officer to be held
16 in a Fiscal and Economic Stability Reserve are equal the
17 amounts required under this Act.
18 (g) The designated Fiscal and Economic Stability
19 Reserves shall take effect on April 1, ......
20 Section 1020. Authority to make reductions.
21 Notwithstanding any other Act to the contrary, each State
22 agency is authorized to limit, reduce or adjust services,
23 payment rates, expenditures, transfers and eligibility
24 criteria as necessary to implement Fiscal and Economic
25 Stability Reserves under this Act, to the extent
26 permitted by federal law. Any such adjustment, reduction
27 or limitation shall expire on July 1, ......
28 Section 1025. Severability. Each of the provisions
29 of this Act, including the amendatory provisions, are
30 severable under Section 1.31 of the Statute on Statutes.
31 Section 1090. Repeal. This Act is repealed on
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1 October 1, ......
2 Section 1099. Effective date. This Act takes
3 effect upon becoming law."
4 Section 45. Contracting debts to cover a shortfall.
5 (a) Whenever appropriations made from the Fund would
6 cause the balance in the Fund to be less than the Casual
7 Deficit Threshold, the Governor may request that the
8 Comptroller and Treasurer agree to contract debts to cover a
9 portion of the general funds revenue shortfall. The Casual
10 Deficit Threshold shall be determined by the following
11 method:
12 If the Illinois Balanced Budget Commission has
13 approved a final Balanced Budget Revenue Estimate for the
14 fiscal year, the Casual Deficit Threshold shall equal 2%
15 of the final Estimate as it has been revised by the
16 Commission.
17 If the Illinois Balanced Budget Commission has not
18 approved a final Balanced Budget Revenue Estimate for the
19 fiscal year, the Governor shall request that the
20 Comptroller certify the total amount of general funds
21 appropriations enacted by the General Assembly and signed
22 by the Governor for the fiscal year. The Casual Deficit
23 Threshold shall equal 2.04% of the amount certified by
24 the Comptroller.
25 The total amount of debt may not exceed an amount equal
26 to 5 times the Casual Deficit Threshold for the fiscal year,
27 and must be paid in full within one year. The moneys
28 borrowed pursuant to this Section shall be deposited into the
29 Illinois Fiscal and Economic Stability Fund, and appropriated
30 pursuant to this Act.
31 (b) Whenever the borrowing of money under this Section
32 is contemplated, it shall be the duty of the Governor,
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1 Comptroller and Treasurer to advertise for proposals for the
2 loan, for 10 days, in one of the daily newspapers printed in
3 each of the cities of New York, Chicago and Springfield,
4 setting forth in the advertisements the amount of debt
5 proposed to be contracted and the time and place for the
6 payment of the principal and interest. The loan shall be
7 awarded to the person or persons agreeing to take it at the
8 lowest rate of interest not exceeding the maximum rate
9 authorized by the Bond Authorization Act.
10 There shall be prepared under the direction of the
11 officers named in this subsection (b) such form of bonds or
12 certificates as they shall deem advisable, which, when
13 issued, shall be signed by the Governor, Comptroller, and
14 Treasurer, and shall be registered by the Comptroller in a
15 book to be kept by her or him for that purpose. The interest
16 and principal of the loan shall be paid by the Treasurer out
17 of the General Obligation Bond Retirement and Interest Fund.
18 This Act constitutes an irrevocable and continuing
19 appropriation of amounts from the State Treasury sufficient
20 for the payment of the interest and principal of any debts
21 contracted under this Act.
22 The Governor, Comptroller, and Treasurer are authorized
23 to order, pursuant to the proceedings authorizing those
24 debts, the transfer of any moneys on deposit in the treasury
25 into the General Obligation Bond Retirement and Interest Fund
26 at times and in amounts they deem necessary to provide for
27 the payment of that interest and principal.
28 The Comptroller is hereby authorized and directed to draw
29 her or his warrant on the State Treasurer for the amount of
30 all such payments.
31 Section 900. The Short Term Borrowing Act is amended by
32 adding Section 3.1 as follows:
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1 (30 ILCS 340/3.1 new)
2 Sec. 3.1. Repeal. This Act is repealed on April 1,
3 2001.
4 Section 999. Effective date. This Act takes effect upon
5 becoming law.