HB4324 94TH GENERAL ASSEMBLY

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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4324

Introduced 12/29/2005, by Rep. Jim Watson

SYNOPSIS AS INTRODUCED:

30 ILCS 122/10
30 ILCS 122/15

Amends the Budget Stabilization Act. Further limits the General Assembly's appropriations, transfers, and diversions from general funds in fiscal years in which estimated revenues exceed the prior fiscal year's general funds revenues and requires the transfer of the remaining revenue to the State-funded retirement systems. Sets forth requirements for the transfers to the retirement systems. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 10. The Budget Stabilization Act is amended by changing Sections 10 and 15 as follows:

(30 ILCS 122/10)

Sec. 10. Budget limitations.

(a) In addition to Section 50-5 of the State Budget Law of the Civil Administrative Code of Illinois, the General Assembly's appropriations and transfers or diversions as required by law from general funds shall not exceed 99% 99.5% of the estimated general funds revenues for the fiscal year when revenue estimates of the State's general funds revenues exceed the prior fiscal year's estimated general funds revenues by more than 4%.

(b) The General Assembly's appropriations and transfers or diversions as required by law from general funds shall not exceed 98.5 99% of the estimated general funds revenues for the fiscal year when revenue estimates of the State's general funds revenues exceed the prior fiscal year's estimated general funds revenues by more than 4% for 2 or more consecutive fiscal years.

(c) For the purpose of this Act, "estimated general funds revenues" include, for each budget year, all taxes, fees, and other revenues expected to be deposited into the State's general funds, including recurring transfers from other State funds into the general funds.

Year-over-year comparisons used to determine the percentage growth factor of estimated general funds revenues shall exclude the sum of the following: (i) expected revenues resulting from new taxes or fees or from tax or fee increases during the first year of the change, (ii) expected revenues resulting from one-time receipts or non-recurring transfers in, (iii) expected proceeds resulting from borrowing, and (iv) increases in federal grants that must be completely appropriated based on the terms of the grants.

(Source: P.A. 93-660, eff. 7-1-04.)

(30 ILCS 122/15)

Sec. 15. Transfers to the Budget Stabilization Fund and to State-funded retirement systems. In furtherance of the State's objective for the Budget Stabilization Fund to have resources representing 5% of the State's annual general funds revenues:

(a) For each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 99% 99.5% of the estimated general funds revenues pursuant to subsection (a) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to .5% of the estimated general funds revenues to the Budget Stabilization Fund and an amount equal to 0.5% of the estimated general funds revenues to the State-funded retirement systems as set forth under subsection (g).

(b) For each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 98.5% 99% of the estimated general funds revenues pursuant to subsection (b) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 1% of the estimated general funds revenues to the Budget Stabilization Fund and an amount equal to 0.5% of the estimated general funds revenues to the State-funded retirement systems, as set forth under subsection (g).

(c) The Comptroller shall transfer 1/12 of the total amount to be transferred each fiscal year under this Section into the Budget Stabilization Fund and State-funded retirement systems, as set forth under subsection (g) on the first day of each month of that fiscal year or as soon thereafter as possible. The balance of the Budget Stabilization Fund shall not exceed 5% of the total of general funds revenues estimated for that fiscal year except as provided by subsection (d) of this Section.

(d) If the total amount transferred to the State-funded retirement systems in any fiscal year exceeds 5% of the total general funds revenues estimated for that fiscal year, the additional transfers to the retirement systems are not required. If the balance of the Budget Stabilization Fund exceeds 5% of the total general funds revenues estimated for that fiscal year, the additional transfers are not required unless there are outstanding liabilities under Section 25 of the State Finance Act from prior fiscal years. If there are such outstanding Section 25 liabilities, then the Comptroller shall continue to transfer 1/12 of the total amount identified for transfer to the Budget Stabilization Fund on the first day of each month of that fiscal year or as soon thereafter as possible to be reserved for those Section 25 liabilities. Nothing in this Act prohibits the General Assembly from appropriating additional moneys into the Budget Stabilization Fund or the State-funded retirement systems, as set forth under subsection (g).

(e) On or before August 31 of each fiscal year, the amount determined to be transferred to the Budget Stabilization Fund and the State-funded retirement systems, as set forth under subsection (g) shall be reconciled to actual general funds revenues for that fiscal year. The final transfer for each fiscal year shall be adjusted so that the amount transferred is equal to the percentage specified in subsection (a) or (b) of Section 10 of this Act, as applicable, based on actual general funds revenues calculated consistently with subsection (c) of Section 10 of this Act for each fiscal year.

(f) For the fiscal year beginning July 1, 2006 and for each fiscal year thereafter, the budget proposal to the General Assembly shall identify liabilities incurred in a prior fiscal year under Section 25 of the State Finance Act and the budget proposal shall provide funding as allowable pursuant to subsection (d) of this Section, if applicable.

(g) The amounts transferred to the State-funded retirement systems under this Section is in addition to any other transfers or appropriations to the systems that are required by law. The amounts transferred to the State-funded retirement systems must be transferred in the following manner:

(1) to the Teachers' Retirement System of Illinois, 55% of the transferred amount;

(2) to the State Universities Retirement System, 18.1% of the transferred amount;

(3) to the Judges Retirement System of Illinois, 2.8% of the transferred amount;

(4) to the General Assembly Retirement System, 0.4% of the transferred amount; and

(5) to the State Employees' Retirement System of Illinois, 23.7% of the transferred amount.

(Source: P.A. 93-660, eff. 7-1-04.)

Section 99. Effective date. This Act takes effect upon becoming law.