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91_HB0078
LRB9100513JMpk
1 AN ACT in relation to balancing budgets, amending a named
2 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 Balanced Budget Act.
7 Section 5. Illinois Balanced Budget Commission. There
8 is established the Illinois Balanced Budget Commission,
9 composed of 8 members. The President of the Senate, Senate
10 Minority Leader, Speaker of the House, and House Minority
11 Leader shall each appoint one member. The Governor shall
12 appoint 4 members. No more than 2 of the members appointed
13 by the Governor shall be from the same political party. All
14 members shall be private citizens with substantial
15 professional experience in financial management or expertise
16 in economic forecasting. Members are appointed for 2-year
17 terms, corresponding with sessions of the General Assembly.
18 Members shall elect 2 co-chairpersons, and organize
19 themselves as they deem necessary, at their first meeting.
20 The Commission shall meet as often as the members may deem
21 necessary, but shall meet at least twice each calendar year.
22 Meetings shall be held at a time and place designated by the
23 2 co-chairpersons. Members shall serve without compensation,
24 but shall be reimbursed for expenses.
25 Section 10. Balanced Budget Revenue Estimate. The sole
26 function of the Illinois Balanced Budget Commission shall be
27 to provide a Balanced Budget Revenue Estimate for each fiscal
28 year of the State. The Estimate shall include all funds that
29 make up the general funds of the State. The Estimate shall
30 be based on the most probable and reasonable economic
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1 forecast for Illinois for the fiscal year. The Bureau of the
2 Budget and the Illinois Economic and Fiscal Commission shall
3 provide staff support and information pertaining to their
4 individual revenue estimates as may be requested by the
5 Commission. The Commission may also request staff support
6 and information from the Office of the Comptroller, any of
7 the State's universities, and any department or agency of the
8 State.
9 By January 15 of each year, the Commission shall approve
10 a preliminary Estimate for the fiscal year that begins on the
11 following July 1.
12 By April 30 of each year, the Commission shall approve a
13 final Estimate for the fiscal year that begins on the
14 following July 1.
15 The Commission may revise its final Estimate for a fiscal
16 year at any time between September 1 and January 15 of the
17 fiscal year to reflect changes in the economic forecast or in
18 actual revenue performance for the fiscal year. The
19 Commission may revise its estimate at any time to reflect the
20 passage of legislation that creates new revenue.
21 Section 15. Balanced Budget Limit. The Balanced Budget
22 Revenue Estimate shall serve as a limit on appropriations
23 from the general funds of the State. At no time in any
24 fiscal year shall total general funds appropriations exceed
25 the final Balanced Budget Revenue Estimate, as approved and
26 revised by the Commission and net of any deposits that may be
27 required into the Illinois Fiscal and Economic Stability
28 Fund.
29 By January 31 of each fiscal year, the Comptroller shall
30 certify to the Governor and the 4 leaders of the General
31 Assembly that current general funds appropriations either
32 exceed or do not exceed the Balanced Budget Limit.
33 If current general funds appropriations exceed the Limit,
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1 the Comptroller shall prepare a proposed Balanced Budget
2 Reserve Act for the fiscal year. The proposed Act shall set
3 forth the total Balanced Budget Reserve that would be
4 required to reduce expenditures from general funds
5 appropriations to the Balanced Budget Limit, and the share of
6 the total Reserve to be held by each branch of government and
7 each State department and agency, calculated on a
8 proportional basis. The Comptroller shall submit the
9 proposed Balanced Budget Reserve Act to the Governor and the
10 4 leaders of the General Assembly by January 31. The reserves
11 for each branch of government and each State department and
12 agency may be reallocated so that the total Balanced Budget
13 Reserve is equal to the total Balanced Budget Reserve
14 contained in the proposed Act.
15 Section 20. Proposed Balanced Budget Reserve Act. The
16 substantive provisions of the proposed Balanced Budget
17 Reserve Act for any fiscal year shall be in substantially the
18 following form:
19 "The Balanced Budget Reserve Act of Fiscal Year .....
20 Section 1005. Findings. The General Assembly finds
21 that appropriations from general funds for fiscal year
22 ..... exceed the statutory limit established by the
23 Balanced Budget Act. The General Assembly further finds
24 that unless general funds appropriations are reduced
25 immediately, the State shall incur obligations that it
26 cannot pay in a timely manner. Therefore, the General
27 Assembly finds that it is necessary and expedient to
28 implement a procedure for reducing appropriations, and
29 that a procedure creating Balanced Budget Reserves for
30 the State's fiscal year ..... is consistent with the
31 requirements of the Illinois Constitution, the
32 requirements of the Balanced Budget Act, and the policies
33 and priorities adopted by the General Assembly in forming
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1 the fiscal year ..... budget.
2 Section 1010. Definitions.
3 (a) For the purposes of this Act, the term "State
4 agency" is defined as in Section 1-7 of the Illinois
5 State Auditing Act. The term also includes circuit
6 courts and other judicial agencies that receive
7 appropriations of State funds.
8 (b) For the purposes of this Act, the term
9 "certifying officer" means:
10 (1) The Lieutenant Governor as to
11 appropriations made to that officer and as to
12 appropriations from which that officer is authorized
13 to approve expenditures under Section 10 of the
14 State Finance Act.
15 (2) The Attorney General as to appropriations
16 made to that officer and as to appropriations from
17 which that officer is authorized to approve
18 expenditures under Section 10 of the State Finance
19 Act.
20 (3) The Secretary of State as to
21 appropriations made to that officer and as to
22 appropriations from which that officer is authorized
23 to approve expenditures under Section 10 of the
24 State Finance Act.
25 (4) The Treasurer as to appropriations made to
26 that officer and as to appropriations from which
27 that officer is authorized to approve expenditures
28 under the State Finance Act.
29 (5) The Comptroller as to appropriations made
30 to that officer and as to appropriations from which
31 that officer is authorized to approve expenditures
32 under Section 10 of the State Finance Act.
33 (6) The Joint Committee on Legislative Support
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1 Services as to appropriations to the General
2 Assembly, the Auditor General, and the officers,
3 boards, commissions, bureaus, or agencies that are
4 part of the Legislative Branch of government.
5 (7) The Chief Justice of the Illinois Supreme
6 Court as to appropriations to State agencies that
7 are part of the Judicial Branch of government.
8 (8) The Governor as to appropriations made to
9 that officer and as to appropriations from which
10 that officer is authorized to approve expenditures
11 under Section 10 of the State Finance Act.
12 (9) The Governor in all other cases.
13 Section 1015. Designation of Balanced Budget
14 Reserves.
15 (a) Each certifying officer shall designate, by
16 appropriation and line item, amounts to be held in a
17 Balanced Budget Reserve from the amounts appropriated
18 from the General Revenue Fund, the Common School Fund,
19 and the Education Assistance Fund for State fiscal year
20 ..... to the State agencies for which he or she is the
21 certifying officer. The total amount to be designated
22 from each State agency by its certifying officer shall be
23 as follows:
24 State Agency Reserve
25 Legislative Agencies
26 General Assembly and legislative agencies $....
27 Judicial Agencies
28 Supreme Court $....
29 Judicial Inquiry Board $....
30 State Appellate Defender $....
31 State's
32 Attorneys Appellate Prosecutor $....
33 Constitutional Elected Officers
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1 Governor $....
2 Lieutenant Governor $....
3 Attorney General $....
4 Secretary of State $....
5 Comptroller $....
6 Treasurer $....
7 Departments
8 [List all code departments] $....
9 Other Agencies
10 [List all other State agencies] $....
11 Higher Education
12 [List all higher education agencies] $....
13 (b) No certifying officer shall designate amounts
14 to be held in a Balanced Budget Reserve from
15 appropriations for payment of salaries fixed by law for
16 State officers.
17 (c) The amounts held in a Balanced Budget Reserve
18 shall not be transferred, used, obligated, or otherwise
19 encumbered during fiscal year ....., including any time
20 allowed for payment of obligations after the end of the
21 fiscal year under Section 25 of the State Finance Act.
22 (d) Any periodic transfers or expenditures that are
23 based on amounts appropriated shall be reduced to
24 accommodate the Balanced Budget Reserves established
25 under this Act. Any necessary prorating of periodic
26 payments from the Common School Fund or the Education
27 Assistance Fund shall be distributed equally among the
28 remaining payments for fiscal year ......
29 (e) By March 1, ....., each certifying officer
30 shall notify the Comptroller of all amounts that he or
31 she has designated to be held in a Balanced Budget
32 Reserve. The notification shall include the total amount
33 and a complete list by line item.
34 (f) By March 15, ....., the Comptroller shall
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1 certify to the Governor, to the President and Minority
2 Leader of the Senate, and to the Speaker and Minority
3 Leader of the House of Representatives whether the
4 amounts designated by each certifying officer to be held
5 in a Balanced Budget Reserve equal the amounts required
6 under this Act.
7 (g) The designated Balanced Budget Reserves shall
8 take effect on April 1, ......
9 Section 1020. Authority to make reductions.
10 Notwithstanding any other Act to the contrary, each State
11 agency is authorized to limit, reduce, or adjust
12 services, payment rates, expenditures, transfers, and
13 eligibility criteria as necessary to implement Balanced
14 Budget Reserves under this Act, to the extent permitted
15 by federal law. Any such adjustment, reduction, or
16 limitation shall expire on July 1, .....
17 Section 1025. Severability. Each of the provisions
18 of this Act, including the amendatory provisions, are
19 severable under Section 1.31 of the Statute on Statutes.
20 Section 1090. Repeal. This Act is repealed on
21 October 1, ......
22 Section 1099. Effective date. This Act takes
23 effect upon becoming law."
24 Section 90. The State Finance Act is amended by changing
25 Section 25 as follows:
26 (30 ILCS 105/25) (from Ch. 127, par. 161)
27 Sec. 25. Fiscal year limitations.
28 (a) All appropriations shall be available for
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1 expenditure for the fiscal year or for a lesser period if the
2 Act making that appropriation so specifies. A deficiency or
3 emergency appropriation shall be available for expenditure
4 only through June 30 of the year when the Act making that
5 appropriation is enacted unless that Act otherwise provides.
6 (b) For fiscal years ending on or before June 30, 2004,
7 outstanding liabilities as of June 30, payable from
8 appropriations which have otherwise expired, may be paid out
9 of the expiring appropriations during the 2-month period
10 ending at the close of business on August 31. For fiscal
11 years ending on June 30, 2005 and all subsequent years,
12 outstanding liabilities as of June 30, payable from
13 appropriations that have otherwise expired, may be paid out
14 of the expiring appropriations during the one-month period
15 ending at the close of business on July 31. Any service
16 involving professional or artistic skills or any personal
17 services by an employee whose compensation is subject to
18 income tax withholding must be performed as of June 30 of the
19 fiscal year in order to be considered an "outstanding
20 liability as of June 30" that is thereby eligible for payment
21 out of the expiring appropriation.
22 However, payment of tuition reimbursement claims under
23 Section 14-7.03 or 18-3 of the School Code may be made by the
24 State Board of Education from its appropriations for those
25 respective purposes for any fiscal year, even though the
26 claims reimbursed by the payment may be claims attributable
27 to a prior fiscal year, and payments may be made at the
28 direction of the State Superintendent of Education from the
29 fund from which the appropriation is made without regard to
30 any fiscal year limitations.
31 Medical payments may be made by the Department of
32 Veterans' Affairs from its appropriations for those purposes
33 for any fiscal year, without regard to the fact that the
34 medical services being compensated for by such payment may
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1 have been rendered in a prior fiscal year.
2 Medical payments may be made by the Department of Public
3 Aid and child care payments may be made by the Department of
4 Human Services (as successor to the Department of Public Aid)
5 from appropriations for those purposes for any fiscal year,
6 without regard to the fact that the medical or child care
7 services being compensated for by such payment may have been
8 rendered in a prior fiscal year; and payments may be made at
9 the direction of the Department of Central Management
10 Services from the Health Insurance Reserve Fund and the Local
11 Government Health Insurance Reserve Fund without regard to
12 any fiscal year limitations.
13 Additionally, payments may be made by the Department of
14 Human Services from its appropriations, or any other State
15 agency from its appropriations with the approval of the
16 Department of Human Services, from the Immigration Reform and
17 Control Fund for purposes authorized pursuant to the
18 Immigration Reform and Control Act of 1986, without regard to
19 any fiscal year limitations.
20 (c) Further, payments may be made by the Department of
21 Public Health and the Department of Human Services (acting as
22 successor to the Department of Public Health under the
23 Department of Human Services Act) from their respective
24 appropriations for grants for medical care to or on behalf of
25 persons suffering from chronic renal disease, persons
26 suffering from hemophilia, rape victims, and premature and
27 high-mortality risk infants and their mothers and for grants
28 for supplemental food supplies provided under the United
29 States Department of Agriculture Women, Infants and Children
30 Nutrition Program, for any fiscal year without regard to the
31 fact that the services being compensated for by such payment
32 may have been rendered in a prior fiscal year.
33 (d) The Department of Public Health and the Department
34 of Human Services (acting as successor to the Department of
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1 Public Health under the Department of Human Services Act)
2 shall each annually submit to the State Comptroller, Senate
3 President, Senate Minority Leader, Speaker of the House,
4 House Minority Leader, and the respective Chairmen and
5 Minority Spokesmen of the Appropriations Committees of the
6 Senate and the House, on or before December 31, a report of
7 fiscal year funds used to pay for services provided in any
8 prior fiscal year. This report shall document by program or
9 service category those expenditures from the most recently
10 completed fiscal year used to pay for services provided in
11 prior fiscal years.
12 (e) The Department of Public Aid and the Department of
13 Human Services (acting as successor to the Department of
14 Public Aid) shall each annually submit to the State
15 Comptroller, Senate President, Senate Minority Leader,
16 Speaker of the House, House Minority Leader, the respective
17 Chairmen and Minority Spokesmen of the Appropriations
18 Committees of the Senate and the House, on or before November
19 30, a report that shall document by program or service
20 category those expenditures from the most recently completed
21 fiscal year used to pay for (i) services provided in prior
22 fiscal years and (ii) services for which claims were received
23 in prior fiscal years.
24 (f) The Department of Human Services (as successor to
25 the Department of Public Aid) shall annually submit to the
26 State Comptroller, Senate President, Senate Minority Leader,
27 Speaker of the House, House Minority Leader, and the
28 respective Chairmen and Minority Spokesmen of the
29 Appropriations Committees of the Senate and the House, on or
30 before December 31, a report of fiscal year funds used to pay
31 for services (other than medical care) provided in any prior
32 fiscal year. This report shall document by program or
33 service category those expenditures from the most recently
34 completed fiscal year used to pay for services provided in
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1 prior fiscal years.
2 (g) In addition, each annual report required to be
3 submitted by the Department of Public Aid under subsection
4 (e) shall include the following information with respect to
5 the State's Medicaid program:
6 (1) Explanations of the exact causes of the
7 variance between the previous year's estimated and actual
8 liabilities.
9 (2) Factors affecting the Department of Public
10 Aid's liabilities, including but not limited to numbers
11 of aid recipients, levels of medical service utilization
12 by aid recipients, and inflation in the cost of medical
13 services.
14 (3) The results of the Department's efforts to
15 combat fraud and abuse.
16 (h) As provided in Section 4 of the General Assembly
17 Compensation Act, any utility bill for service provided to a
18 General Assembly member's district office for a period
19 including portions of 2 consecutive fiscal years may be paid
20 from funds appropriated for such expenditure in either fiscal
21 year.
22 (i) An agency which administers a fund classified by the
23 Comptroller as an internal service fund may issue rules for:
24 (1) billing user agencies in advance based on
25 estimated charges for goods or services;
26 (2) issuing credits during the subsequent fiscal
27 year for all user agency payments received during the
28 prior fiscal year which were in excess of the final
29 amounts owed by the user agency for that period; and
30 (3) issuing catch-up billings to user agencies
31 during the subsequent fiscal year for amounts remaining
32 due when payments received from the user agency during
33 the prior fiscal year were less than the total amount
34 owed for that period.
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1 User agencies are authorized to reimburse internal service
2 funds for catch-up billings by vouchers drawn against their
3 respective appropriations for the fiscal year in which the
4 catch-up billing was issued.
5 (Source: P.A. 89-235, eff. 8-4-95; 89-507, eff. 7-1-97;
6 89-511, eff. 1-1-97; 90-14, eff. 7-1-97; 90-168, eff.
7 7-23-97.)
8 Section 999. Effective date. This Act takes effect upon
9 becoming law.