SB2470 95TH GENERAL ASSEMBLY

LRB095 19709 JAM 46072 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2470

Introduced 2/15/2008, by Sen. Matt Murphy

SYNOPSIS AS INTRODUCED:

15 ILCS 20/50-25 new

Amends the State Budget Law of the Civil Administrative Code of Illinois. Requires the use of zero-based budgeting in the formation of the State budget for fiscal year 2011. Establishes a legislative task force to implement use of the zero-based budgeting method for crafting State budgets. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

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

Section 5. The State Budget Law of the Civil Administrative Code of Illinois is amended by adding Section 50-25 as follows:

(15 ILCS 20/50-25 new)

Sec. 50-25. Zero-based budgeting.

(a) Legislative findings.

(1) Zero-based budgeting is a method of budgeting that is designed with the purpose of justifying every expenditure within the State budget, regardless of whether the expenditure was included in previous budgets.

(2) Zero-based budgeting stands in distinct contrast to the traditional form of budgeting, which projects a spending level based on the previous year's expenditures plus anticipated growth in resources.

(3) Zero-based budgeting is a method of budgeting that has been embraced and pursued in a bipartisan manner as a means of controlling government spending.

(4) President Jimmy Carter proposed to use zero-based budgeting at the federal level in the late 1970s.

(5) Many state legislatures (California, Texas, and Georgia) have investigated the use of zero-based budgeting as a means for crafting a state's budget.

(b) Zero-based Budget Implementation Task Force.

(1) There is created a Zero-based Budget Implementation Task Force that is assigned the task of transforming the State's budget process from its current form to a zero-based budget system.

(2) For the purposes of this Section, zero-based budgeting is defined as a means by which a budget is created that requires any State agency that spends State resources to justify all requested expenditures rather than simply justifying amounts requested in excess of the previous fiscal year.

(3) The Zero-based Budget Implementation Task Force shall be composed of 12 legislators, with 3 from each legislative caucus. The Senate President shall appoint 3 members, the Speaker of the House of Representatives shall appoint 3 members, the Senate Minority Leader shall appoint 3 members, and the House Minority Leader shall appoint 3 members.

(4) A chairperson for the Zero-based Budget Implementation Task Force shall be elected by a simple majority vote of the appointed members.

(5) The Zero-based Budget Implementation Task Force shall meet at least once every 3 months until December 31, 2010.

(6) The Task Force shall have the following duties and obligations:

(i) Investigate and identify the necessary steps to implement a zero-based budget approach before the introduction of the budget for State fiscal year 2011.

(ii) In cooperation with the Governor's Office of Management and Budget, create a timeline for the transformation of the State budgeting method from traditional budgeting to zero-based budgeting to be completed before the introduction of the State fiscal year 2011 budget.

(iii) Take all actions necessary and submit any legislation necessary to implement zero-based budgeting before the introduction of the State fiscal year 2011 budget.

(iv) Conduct an exercise in the last 3 months of calendar year 2009 that will simulate zero-based budgeting for the State fiscal year 2010 budget.

(c) Notwithstanding any other provision in this Act, the State shall use zero-based budgeting for crafting the State fiscal year 2011 budget.

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