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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. LRB9000691DNmb LRB9000691DNmb 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 -2- LRB9000691DNmb 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 -3- LRB9000691DNmb 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 ..... -4- LRB9000691DNmb 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 -5- LRB9000691DNmb 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: -6- LRB9000691DNmb 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 -7- LRB9000691DNmb 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 -8- LRB9000691DNmb 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, -9- LRB9000691DNmb 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: -10- LRB9000691DNmb 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.
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