093_SB0867enr SB867 Enrolled LRB093 02854 RCE 02870 b 1 AN ACT in relation to the State Comptroller. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 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 22 Assembly's appropriations and transfers or diversions as 23 required by law from general funds shall not exceed 99.5% of 24 the estimated general funds revenues for the fiscal year when 25 revenue estimates of the State's general funds revenues 26 exceed the prior fiscal year's estimated general funds 27 revenues by more than 4%. 28 (b) The General Assembly's appropriations and transfers 29 or diversions as required by law from general funds shall not 30 exceed 99% of the estimated general funds revenues for the SB867 Enrolled -2- LRB093 02854 RCE 02870 b 1 fiscal year when revenue estimates of the State's general 2 funds revenues exceed the prior fiscal year's estimated 3 general funds revenues by more than 4% for 2 or more 4 consecutive fiscal years. 5 (c) For the purpose of this Act, "estimated general funds 6 revenues" include, for each budget year, all taxes, fees, and 7 other revenues expected to be deposited into the State's 8 general funds, including recurring transfers from other State 9 funds into the general funds. 10 Year-over-year comparisons used to determine the 11 percentage growth factor of estimated general funds revenues 12 shall exclude the sum of the following: (i) expected revenues 13 resulting from new taxes or fees or from tax or fee increases 14 during the first year of the change, (ii) expected revenues 15 resulting from one-time receipts or non-recurring transfers 16 in, (iii) expected proceeds resulting from borrowing, and 17 (iv) increases in federal grants that must be completely 18 appropriated based on the terms of the grants. 19 Section 15. Transfers to Budget Stabilization Fund. In 20 furtherance of the State's objective for the Budget 21 Stabilization Fund to have resources representing 5% of the 22 State's annual general funds revenues: 23 (a) For each fiscal year when the General Assembly's 24 appropriations and transfers or diversions as required by law 25 from general funds do not exceed 99.5% of the estimated 26 general funds revenues pursuant to subsection (a) of Section 27 10, the Comptroller shall transfer from the General Revenue 28 Fund as provided by this Section a total amount equal to .5% 29 of the estimated general funds revenues to the Budget 30 Stabilization Fund. 31 (b) For each fiscal year when the General Assembly's 32 appropriations and transfers or diversions as required by law 33 from general funds do not exceed 99% of the estimated general SB867 Enrolled -3- LRB093 02854 RCE 02870 b 1 funds revenues pursuant to subsection (b) of Section 10, the 2 Comptroller shall transfer from the General Revenue Fund as 3 provided by this Section a total amount equal to 1% of the 4 estimated general funds revenues to the Budget Stabilization 5 Fund. 6 (c) The Comptroller shall transfer 1/12 of the total 7 amount to be transferred each fiscal year under this Section 8 into the Budget Stabilization Fund on the first day of each 9 month of that fiscal year or as soon thereafter as possible. 10 The balance of the Budget Stabilization Fund shall not exceed 11 5% of the total of general funds revenues estimated for that 12 fiscal year except as provided by subsection (d) of this 13 Section. 14 (d) If the balance of the Budget Stabilization Fund 15 exceeds 5% of the total general funds revenues estimated for 16 that fiscal year, the additional transfers are not required 17 unless there are outstanding liabilities under Section 25 of 18 the State Finance Act from prior fiscal years. If there are 19 such outstanding Section 25 liabilities, then the Comptroller 20 shall continue to transfer 1/12 of the total amount 21 identified for transfer to the Budget Stabilization Fund on 22 the first day of each month of that fiscal year or as soon 23 thereafter as possible to be reserved for those Section 25 24 liabilities. Nothing in this Act prohibits the General 25 Assembly from appropriating additional moneys into the Budget 26 Stabilization Fund. 27 (e) On or before August 31 of each fiscal year, the 28 amount determined to be transferred to the Budget 29 Stabilization Fund shall be reconciled to actual general 30 funds revenues for that fiscal year. The final transfer for 31 each fiscal year shall be adjusted so that the amount 32 transferred is equal to the percentage specified in 33 subsection (a) or (b) of Section 10 of this Act, as 34 applicable, based on actual general funds revenues calculated SB867 Enrolled -4- LRB093 02854 RCE 02870 b 1 consistently with subsection (c) of Section 10 of this Act 2 for each fiscal year. 3 (f) For the fiscal year beginning July 1, 2006 and for 4 each fiscal year thereafter, the budget proposal to the 5 General Assembly shall identify liabilities incurred in a 6 prior fiscal year under Section 25 of the State Finance Act 7 and the budget proposal shall provide funding as allowable 8 pursuant to subsection (d) of this Section, if applicable. 9 Section 90. The State Finance Act is amended by changing 10 Section 6z-51 as follows: 11 (30 ILCS 105/6z-51) 12 Sec. 6z-51. Budget Stabilization Fund. 13 (a) The Budget Stabilization Fund, a special fund in the 14 State Treasury, shall consist of moneys appropriated or 15 transferred to that Fund, as provided in Section 6z-43 and as 16 otherwise provided by law. All earnings on Budget 17 Stabilization Fund investments shall be deposited into that 18 Fund. 19 (b) The State Comptroller may direct the State Treasurer 20 to transfer moneys from the Budget Stabilization Fund to the 21 General Revenue Fund in order to meet cash flow deficits 22 resulting from timing variations between disbursements and 23 the receipt of funds within a fiscal year. Any moneys so 24 borrowed shall be repaid by June 30 of the fiscal year in 25 which they were borrowed. 26 (Source: P.A. 92-11, eff. 6-11-01; 92-651, eff. 7-11-02.) 27 Section 99. Effective date. This Act takes effect July 28 1, 2004.