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91_HB0417eng HB0417 Engrossed LRB9101557JMmbD 1 AN ACT concerning State budget stabilization. 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 Rainy Day Budget Stabilization and Children First Act. 6 Section 5. Budget Stabilization Fund. The Budget 7 Stabilization Fund is established as a special fund in the 8 State treasury in order to reduce the need for future tax 9 increases, maintain the highest possible bond rating, reduce 10 the need for short term borrowing, and provide available 11 resources to meet State obligations whenever casual deficits 12 or failures in revenue occur. 13 Section 10. Children First Reserve Fund. The Children 14 First Reserve Fund is established as a special fund in the 15 State treasury to retain State revenues for the education, 16 care, health, and safety of children. 17 Section 15. Payments into the Budget Stabilization Fund 18 and the Children First Reserve Fund. 19 (a) During fiscal year 2000, the Comptroller shall 20 transfer a total of $50,000,000 into the Budget Stabilization 21 Fund and shall transfer a total of $50,000,000 into the 22 Children First Reserve Fund. 23 (b) Beginning with fiscal year 2001, for every fiscal 24 year in which the anticipated revenues into the State's 25 general funds are estimated by the Governor to exceed the 26 prior year's general funds revenue by more than 4%, the 27 Comptroller shall transfer from the General Revenue Fund into 28 the Budget Stabilization Fund an amount equal to 0.125% of 29 the anticipated general funds revenues and shall transfer HB0417 Engrossed -2- LRB9101557JMmbD 1 from the General Revenue Fund into the Children First Reserve 2 Fund an amount equal to 0.125% of the anticipated general 3 funds revenues. 4 (c) The Comptroller shall transfer 1/12 of the total 5 amount to be transferred each fiscal year into the 6 appropriate fund under subsection (b) on the first day of 7 each month of that fiscal year or as soon thereafter as 8 possible. 9 (d) At any time during the fiscal year, the Governor, 10 Comptroller, and Treasurer may agree to suspend any payment, 11 or a portion of any payment, that is required by this 12 Section. Payments into the Budget Stabilization Fund and 13 Children First Reserve Fund shall resume upon the agreement 14 of the Governor, Comptroller, and Treasurer. 15 (e) If the balance in the Budget Stabilization Fund or 16 in the Children First Reserve Fund exceeds 2% of the 17 Governor's estimate of total general funds revenues for that 18 fiscal year, any subsequent transfers required by this 19 Section to the fund shall be suspended for that fiscal year. 20 Section 20. Use of the Budget Stabilization Fund. 21 (a) The Governor, Comptroller, and Treasurer may, upon a 22 determination that there are insufficient resources available 23 within the general funds of the State to meet the State's 24 obligations, direct the transfer of moneys in the Budget 25 Stabilization Fund to the general funds of the State. The 26 timing and the amount of these transfers shall be specified 27 and agreed upon by the Governor, Comptroller, and Treasurer. 28 (b) If the transfers in subsection (a) were deemed 29 necessary by the Governor, Comptroller, and Treasurer solely 30 for the purpose of facilitating cash flow within the same 31 fiscal year, the Governor, Comptroller, and Treasurer shall 32 direct the repayment from the general funds into the Budget 33 Stabilization Fund of the amounts transferred under HB0417 Engrossed -3- LRB9101557JMmbD 1 subsection (a) by the end of the same fiscal year or as soon 2 thereafter as possible. 3 Section 25. Use of the Children First Reserve Fund. 4 (a) The Governor, Comptroller, and Treasurer may, upon a 5 determination that there are insufficient resources available 6 to meet the State's obligations in funding educational and 7 child care programs, direct the transfer of moneys in the 8 Children First Reserve Fund to the appropriate funds of the 9 State. The transfer of such funds shall be limited to 10 programs for (i) elementary and secondary education, (ii) 11 child care, and (iii) other programs that provide a direct 12 benefit to children. The timing and the amount of the 13 transfers shall be specified and agreed upon by the Governor, 14 Comptroller, and Treasurer. 15 (b) If the transfers in subsection (a) were deemed 16 necessary by the Governor, Comptroller, and Treasurer solely 17 for the purpose of facilitating cash flow within the same 18 fiscal year, the Governor, Comptroller, and Treasurer shall 19 direct the repayment from the appropriate fund into the 20 Children First Reserve Fund of the amounts transferred under 21 subsection (a) by the end of the same fiscal year or as soon 22 thereafter as possible. 23 Section 95. The State Finance Act is amended by adding 24 Sections 5.490 and 5.495 as follows: 25 (30 ILCS 105/5.490 new) 26 Sec. 5.490. The Budget Stabilization Fund. 27 (30 ILCS 105/5.495 new) 28 Sec. 5.495. The Children First Reserve Fund. 29 Section 99. Effective Date. This Act takes effect upon HB0417 Engrossed -4- LRB9101557JMmbD 1 becoming law.