HC0046 97TH GENERAL ASSEMBLY

LRB097 18692 JDS 63926 e

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HOUSE JOINT RESOLUTION
CONSTITUTIONAL AMENDMENT
HC0046

Introduced , by Rep. Mike Bost

SYNOPSIS AS INTRODUCED:

ILCON Art. IV, Sec. 8.1 new

ILCON Art. VIII, Sec. 2.1 new

ILCON Art. VIII, Sec. 2.2 new

Proposes to amend the Legislature Article of the Illinois Constitution concerning the passage of revenue bills. Provides that any bill resulting in the increase of revenue to the State by an increase of a tax on or measured by income or by an increase of a tax on or measured by the selling price of any item of tangible personal property may become law only by a vote of three-fifths of the members in each house of the General Assembly. Proposes to amend the Finance Article of the Illinois Constitution. Beginning in Fiscal Year 2015, limits aggregate appropriations and transfers from the State's general funds in a fiscal year. Allows the Governor to declare a fiscal emergency. If the Comptroller and Treasurer concur in the Governor's declaration, then the General Assembly, by a three-fifths vote, may authorize appropriations and transfers that exceed the limitation by law conditioned upon the approval of a majority of voters in the next general, primary, or special election. Requires excess revenues to be deposited into the Past Due Paydown Fund, State Budget Stabilization Fund, and the Taxpayer Relief Fund. Requires that, in each fiscal year, obligations of the State to retirement systems and pension funds created under the Illinois Pension Code must be met as provided in that Code. Effective upon being declared adopted.

HOUSE JOINT RESOLUTION

CONSTITUTIONAL AMENDMENT

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE SENATE CONCURRING HEREIN, that there shall be submitted to the electors of the State for adoption or rejection at the general election next occurring at least 6 months after the adoption of this resolution a proposition to add Section 8.1 to Article IV and to add Sections 2.1 and 2.2 to Article VIII of the Illinois Constitution as follows:

ARTICLE IV

THE LEGISLATURE

(ILCON Art. IV, Sec. 8.1 new)

SECTION 8.1. PASSAGE OF REVENUE BILLS

A bill that would result in the increase of revenue to the State by an increase of a tax on or measured by income or by an increase of a tax on or measured by the selling price of any item of tangible personal property may become law only with the concurrence of three-fifths of the members elected to each house of the General Assembly.

ARTICLE VIII

FINANCE

(ILCON Art. VIII, Sec. 2.1 new) SECTION 2.1. LIMITATIONS ON APPROPRIATIONS AND TRANSFERS

(a) For the fiscal year ending in 2015 and each fiscal year thereafter, aggregate appropriations and transfers from the general funds are limited as provided in this Section. "General funds" include the General Revenue Fund, the Common School Fund, the General Revenue Common School Special Account Fund, and the Education Assistance Fund and any fund utilized for general or operating expenses. "Appropriations and transfers" do not include (i) reappropriations from a previous fiscal year, (ii) those made for debt service payments, and (iii) those made to a budget stabilization fund.

(b) Aggregate fiscal year appropriations and transfers from the general funds may not exceed the limitation amount. For the fiscal year ending in 2015, the limitation amount is the aggregate amount of appropriations and transfers from the general funds in the fiscal year ending in 2011, as adjusted as provided in this subsection (b) for the fiscal years ending in 2012, 2013, and 2014. For the fiscal year ending in 2016 and each fiscal year thereafter, the limitation amount is the aggregate amount of appropriations and transfers from the general funds in the previous fiscal year, as adjusted as provided in this subsection (b).

For the fiscal year after a fiscal emergency is declared under subsection (c) of this Section, the limitation amount is the aggregate amount of appropriations and transfers from the general funds in the fiscal year in which the fiscal emergency is declared minus the specific dollar amount by which the limitation amount was increased for the fiscal emergency, as adjusted as provided in this subsection (b).

The adjustment is the average annual percentage change in the average per capita personal income for Illinois for the 5 most recent calendar years for which data is available, as defined and reported by the United States Department of Commerce, or its successor.

(c) The Governor may declare a fiscal emergency by filing a declaration with the Secretary of State and copies with the Senate and House of Representatives. The declaration must be limited to only one State fiscal year, set forth compelling reasons for declaring a fiscal emergency, and request that the limitation amount for that fiscal year be increased by a specific dollar amount. If the Comptroller and Treasurer advise the General Assembly that they concur in the Governor's declaration, then by a record vote of three-fifths of the members elected to each house, the General Assembly, by law conditioned upon the approval of a majority of voters in the next general, primary, or special election, may authorize increased appropriations and transfers in a specific dollar amount that is no more than the increased amount requested by the Governor in the declaration. "Emergency" means extraordinary circumstances outside the control of the General Assembly, including catastrophic events, such as a natural disaster, terrorism, fire, war, and riot, and court orders or decrees.

(d) If the general funds revenues for a fiscal year exceed the limitation amount for that fiscal year, then those excess revenues must be deposited into the Past Due Paydown Fund, State Budget Stabilization Fund, and the Taxpayer Relief Fund as provided in subsections (e), (f), and (g).

(e) The Past Due Paydown Fund is established as a special fund in the State treasury and must be administered for the purposes identified in this Section. At the close of the lapse period for each fiscal year beginning in 2012, the State Comptroller shall identify the amount of General Fund unappropriated surplus above the Spending Growth Index limitation and transfer to the fund any amount necessary up to the total past due operating debt owed by the State as of the close of fiscal year 2011.

The General Assembly may authorize transfers, appropriations, and allocations from the fund only to fund the costs of paying down the remaining past due debt until such debt is zero. Any remaining funds shall be transferred to the State Budget Stabilization Fund.

(f) The State Budget Stabilization Fund is established as a special fund in the State treasury and must be administered for the purposes identified in this Section. At the close of the lapse period of each fiscal year, the State Comptroller shall identify the amount of General Fund unappropriated surplus above the expenditure limitation described in subsection (b) of this Section and above the amount necessary to fully fund and pay down the past due operating debt to zero. The fund may not exceed 8% of the total General Fund revenues received in the immediately preceding fiscal year.

The General Assembly may authorize transfers, appropriations, and allocations from the fund only to fund the costs of State government up to the expenditure limit calculated by law in years when State revenues are less than the amount necessary to finance the level of expenditures permitted by law. Transfers require a three-fifths supermajority vote of the General Assembly.

The money in the fund may be invested as provided by law, with the earnings credited to the fund. At the close of every month during which the fund is at the 8% limitation, the State Comptroller shall transfer the excess to the Taxpayer Relief Fund.

(g) The Taxpayer Relief Fund is established as a special fund in the State treasury and must be administered for the purposes identified in this Section. At the close of the lapse period of each fiscal year, the State Comptroller shall identify the amount of General Fund unappropriated surplus above the State expenditure limitation and above the amount necessary to fully fund the Past Due Paydown Fund and the Budget Stabilization Fund.

By September 1st annually, the State Comptroller shall notify the Commission on Government Forecasting and Accountability and the Department of Revenue of the amount in the fund as a result of the transfers.

If the amount in the fund exceeds 1% of General Fund expenditures, then the General Assembly shall, by September 15th, enact legislation to provide for the refund to taxpayers of amounts in the fund. Refunds may take the form only of temporary or permanent broad-based tax rate reductions.

If the General Assembly does not enact legislation by September 15th to provide refunds, then the State Comptroller shall, by September 30th, notify the Department of Revenue of the amount in the fund. The Department of Revenue shall calculate a one-time bonus personal exemption refund. The amount of the personal exemption refund must be calculated by dividing the amount in the fund identified by the State Comptroller by the number of personal exemptions claimed on income tax returns filed for tax year beginning in the previous calendar year. The Department of Revenue shall issue a refund by October 30th to a taxpayer who filed an income tax return by April 15th of the same calendar year based on the number of exemptions claimed (times refund per exemption) on the taxpayer's return without regard to the taxpayer's tax liability for the year.

(ILCON Art. VIII, Sec. 2.2 new) SECTION 2.2. OBLIGATIONS TO RETIREMENT SYSTEMS AND PENSION FUNDS

In each fiscal year, obligations of the State to retirement systems and pension funds created under the Illinois Pension Code must be met as provided in that Code.

SCHEDULE

This Constitutional Amendment takes effect upon being declared adopted in accordance with Section 7 of the Illinois Constitutional Amendment Act.