093_SB1757eng SB1757 Engrossed LRB093 10006 JAM 10256 b 1 AN ACT concerning 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 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 from general funds shall not exceed 23 99.5% of the estimated general funds revenues for the fiscal 24 year when revenue estimates of the State's general funds 25 revenues exceed the prior fiscal year's estimated general 26 funds revenues by more than 4%. 27 (b) The General Assembly's appropriations from general 28 funds shall not exceed 99% of the estimated general funds 29 revenues for the fiscal year when revenue estimates of the 30 State's general funds revenues exceed the prior fiscal year's SB1757 Engrossed -2- LRB093 10006 JAM 10256 b 1 estimated general funds revenues by more than 4% for 2 or 2 more consecutive fiscal years. 3 Section 15. Transfers to Budget Stabilization Fund and 4 Early Debt Retirement Fund. 5 (a) For each fiscal year when the General Assembly's 6 appropriations from general funds do not exceed 99.5% of the 7 estimated general funds revenues pursuant to subsection (a) 8 of Section 10, the Comptroller shall transfer from the 9 General Revenue Fund as provided by this Section a total 10 amount equal to .5% of the estimated general funds revenues 11 to the Budget Stabilization Fund or the Early Debt Retirement 12 Fund. 13 (b) For each fiscal year when the General Assembly's 14 appropriations from general funds do not exceed 99% of the 15 estimated general funds revenues pursuant to subsection (b) 16 of Section 10, the Comptroller shall transfer from the 17 General Revenue Fund as provided by this Section a total 18 amount equal to 1% of the estimated general funds revenues to 19 the Budget Stabilization Fund or the Early Debt Retirement 20 Fund. 21 (c) The Comptroller shall transfer 1/12 of the total 22 amount to be transferred each fiscal year under this Section 23 into the Budget Stabilization Fund on the first day of each 24 month of that fiscal year or as soon thereafter as possible. 25 The balance of the Budget Stabilization Fund shall not exceed 26 4% of the total of general funds revenues estimated for that 27 fiscal year. 28 (d) If the balance of the Budget Stabilization Fund 29 exceeds 4% of the total general funds revenues estimated for 30 that fiscal year, the Comptroller shall transfer 1/12 of the 31 total amount identified for transfer to the Early Debt 32 Retirement Fund into the Early Debt Retirement Fund on the 33 first day of each month of that fiscal year or as soon SB1757 Engrossed -3- LRB093 10006 JAM 10256 b 1 thereafter as possible. 2 (e) Nothing in this Act prohibits the General Assembly 3 from appropriating additional moneys into the Budget 4 Stabilization Fund or the Early Debt Retirement Fund. 5 Section 90. The State Finance Act is amended by changing 6 Sections 6z-51 and by adding Sections 5.595 and 6z-65 as 7 follows: 8 (30 ILCS 105/5.595 new) 9 Sec. 5.595. The Early Debt Retirement Fund. 10 (30 ILCS 105/6z-51) 11 Sec. 6z-51. Budget Stabilization Fund. 12 (a) The Budget Stabilization Fund, a special fund in the 13 State Treasury, shall consist of moneys appropriated or 14 transferred to that Fund, as provided in Section 6z-43 and as 15 otherwise provided by law. All earnings on Budget 16 Stabilization Fund investments shall be deposited into that 17 Fund. 18 (b) The State Comptroller may direct the State Treasurer 19 to transfer moneys from the Budget Stabilization Fund to the 20 General Revenue Fund in order to meet deficits resulting from 21 timing variations between disbursements and the receipt of 22 funds within a fiscal year. Any moneys so borrowed shall be 23 repaid by June 30 of the fiscal year in which they were 24 borrowed. 25 (Source: P.A. 92-11, eff. 6-11-01; 92-651, eff. 7-11-02.) 26 (30 ILCS 105/6z-65 new) 27 Sec. 6z-65. Early Debt Retirement Fund. The Early Debt 28 Retirement Fund is created as a special fund in the State 29 treasury. Moneys in the Early Debt Retirement Fund may be 30 expended, subject to appropriation, for the payment of SB1757 Engrossed -4- LRB093 10006 JAM 10256 b 1 deferred liabilities under Section 25 of this Act; the early 2 retirement of unfunded pension liabilities; the retirement of 3 bonded indebtedness when practical; and the funding of other 4 long-term fiscal needs of the State. 5 Section 99. Effective date. This Act takes effect upon 6 becoming law.