102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB4230

 

Introduced 11/14/2022, by Sen. Doris Turner - Suzy Glowiak Hilton

 

SYNOPSIS AS INTRODUCED:
 
15 ILCS 20/50-40
30 ILCS 105/6z-51
30 ILCS 122/15
30 ILCS 122/20

    Amends the State Budget Law of the Civil Administrative Code of Illinois. Provides that "general funds" or "State general funds" as used under the Act includes the Pension Stabilization Fund. Amends the State Finance Act. Provides that for Fiscal Year 2024 and subsequent fiscal years, any transfers into the Budget Stabilization Fund may be transferred to the General Revenue Fund in order for the Comptroller to address outstanding vouchers, and shall not be subject to repayment into the Budget Stabilization Fund if the bill backlog as determined by the Comptroller on June 30 of that fiscal year exceeds $4,000,000,000. Amends the Budget Stabilization Act. Modifies provisions concerning requirements for and transfers into the Budget Stabilization Fund and the Pension Stabilization Fund regarding the State's backlog of bills. Effective immediately.


LRB102 29025 DTM 40927 b

 

 

A BILL FOR

 

SB4230LRB102 29025 DTM 40927 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Budget Law of the Civil
5Administrative Code of Illinois is amended by changing Section
650-40 as follows:
 
7    (15 ILCS 20/50-40)
8    Sec. 50-40. General funds defined. "General funds" or
9"State general funds" means the General Revenue Fund, the
10Common School Fund, the General Revenue Common School Special
11Account Fund, the Education Assistance Fund, the Fund for the
12Advancement of Education, the Commitment to Human Services
13Fund, and the Budget Stabilization Fund, and the Pension
14Stabilization Fund.
15(Source: P.A. 100-23, eff. 7-6-17.)
 
16    Section 10. The State Finance Act is amended by changing
17Section 6z-51 as follows:
 
18    (30 ILCS 105/6z-51)
19    Sec. 6z-51. Budget Stabilization Fund.
20    (a) The Budget Stabilization Fund, a special fund in the
21State Treasury, shall consist of moneys appropriated or

 

 

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1transferred to that Fund, as provided in Section 6z-43 and as
2otherwise provided by law. All earnings on Budget
3Stabilization Fund investments shall be deposited into that
4Fund.
5    (b) The State Comptroller may direct the State Treasurer
6to transfer moneys from the Budget Stabilization Fund to the
7General Revenue Fund in order to meet cash flow deficits
8resulting from timing variations between disbursements and the
9receipt of funds within a fiscal year. Any moneys so borrowed
10in any fiscal year other than Fiscal Year 2011 and other than
11as provided in subsection (b-5) shall be repaid by June 30 of
12the fiscal year in which they were borrowed. Any moneys so
13borrowed in Fiscal Year 2011 shall be repaid no later than July
1415, 2011.
15    (b-5) For Fiscal Year 2024 and subsequent fiscal years,
16any transfers into the Budget Stabilization Fund pursuant to
17Section 15 of the Budget Stabilization Act may be transferred
18to the General Revenue Fund in order for the Comptroller to
19address outstanding vouchers, and shall not be subject to
20repayment into the Budget Stabilization Fund if the bill
21backlog as determined by the Comptroller on June 30 of that
22fiscal year exceeds $4,000,000,000.
23    (c) During Fiscal Year 2017 only, amounts may be expended
24from the Budget Stabilization Fund only pursuant to specific
25authorization by appropriation. Any moneys expended pursuant
26to appropriation shall not be subject to repayment.

 

 

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1    (d) For Fiscal Years 2020 through 2022, any transfers into
2the Fund pursuant to the Cannabis Regulation and Tax Act may be
3transferred to the General Revenue Fund in order for the
4Comptroller to address outstanding vouchers and shall not be
5subject to repayment back into the Budget Stabilization Fund.
6    (e) Beginning July 1, 2023, on the first day of each month,
7or as soon thereafter as practical, the State Comptroller
8shall direct and the State Treasurer shall transfer $3,750,000
9from the General Revenue Fund to the Budget Stabilization
10Fund.
11(Source: P.A. 101-10, eff. 6-5-19; 102-699, eff. 4-19-22.)
 
12    Section 15. The Budget Stabilization Act is amended by
13changing Sections 15 and 20 as follows:
 
14    (30 ILCS 122/15)
15    Sec. 15. Transfers to Budget Stabilization Fund. In
16furtherance of the State's objective for the Budget
17Stabilization Fund to have resources representing 5% of the
18State's annual general funds revenues:
19    (a) On January 10, 2023, and for each January 10
20thereafter, the Department on Aging, the Department of
21Healthcare and Family Services, and the Department of Human
22Services shall certify to the Comptroller the amount of
23invoices that may be paid from appropriations in future fiscal
24years resulting from insufficient appropriations in the

 

 

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1current fiscal year. The Department of Central Management
2Services shall also certify the amount of invoices that may be
3paid from appropriations in future fiscal years due to
4insufficient resources in the Health Insurance Reserve Fund,
5and the Department of Revenue shall certify an estimate of the
6amount of individual and corporate income tax overpayments
7that will not be refunded before the close of the current
8fiscal year resulting from insufficient deposits into the
9Income Tax Refund Fund. The Comptroller's Debt Transparency
10Report shall detail the total value of the amounts certified
11by the Department on Aging and the Departments of Central
12Management Services, Healthcare and Family Services, Human
13Services, and Revenue. The report shall also include the
14liabilities payable with the Comptroller at the close of
15business on December 31, 2022 and for each December 31
16thereafter. For each fiscal year when the General Assembly's
17appropriations and transfers or diversions as required by law
18from general funds do not exceed 99% of the estimated general
19funds revenues pursuant to subsection (a) of Section 10, the
20Comptroller shall transfer from the General Revenue Fund as
21provided by this Section a total amount equal to 0.5% of the
22estimated general funds revenues to the Budget Stabilization
23Fund.
24    (b) Beginning May 15, 2023, and for each May 15
25thereafter, the Comptroller shall report to the Governor and
26the General Assembly the estimated backlog of bills for the

 

 

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1end of the current fiscal year. If the amount of the backlog of
2bills reported by the Comptroller on June 30, 2023 and each
3June 30 thereafter is an amount less than $3,000,000,000, on
4the last day of each month of the next fiscal year, or as soon
5thereafter as possible, the Comptroller shall order
6transferred and the Treasurer shall transfer from the General
7Revenue Fund to the Budget Stabilization Fund the lesser of
8(i) $200,000,000 or (ii) the amount necessary to maintain
9resources in the Budget Stabilization Fund that is equal to 5%
10of the total general funds revenues of the prior fiscal year,
11in equal monthly installments. Nothing in this Section
12prohibits the General Assembly from appropriating additional
13moneys into the Budget Stabilization Fund; however, transfers
14or appropriations shall only be made from the Budget
15Stabilization Fund under subsection (d) of this Section. For
16each fiscal year when the General Assembly's appropriations
17and transfers or diversions as required by law from general
18funds do not exceed 98% of the estimated general funds
19revenues pursuant to subsection (b) of Section 10, the
20Comptroller shall transfer from the General Revenue Fund as
21provided by this Section a total amount equal to 1% of the
22estimated general funds revenues to the Budget Stabilization
23Fund.
24    (c) The Comptroller shall transfer 1/12 of the total
25amount to be transferred each fiscal year under this Section
26into the Budget Stabilization Fund on the first day of each

 

 

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1month of that fiscal year or as soon thereafter as possible.
2The balance of the Budget Stabilization Fund shall not exceed
35% of the total of general funds revenues estimated for that
4fiscal year. If the balance of the Budget Stabilization Fund
5is equal to 5% of the total general funds revenues of the prior
6fiscal year, no further transfers shall be made to the Budget
7Stabilization Fund. If the amounts certified to the
8Comptroller that may be paid from future fiscal year resources
9by the Department on Aging and the Departments of Central
10Management Services, Healthcare and Family Services, Human
11Services, and Revenue exceed zero, the Comptroller shall order
12transferred and the Treasurer shall transfer from the General
13Revenue Fund to the Health Insurance Reserve Fund, the
14Healthcare Provider Relief Fund, or the Income Tax Refund Fund
15an amount necessary to reduce those amounts to zero, but not to
16exceed a monthly aggregate combined total for all funds of
17$16,666,666 except as provided by subsection (d) of this
18Section.
19    (d) Upon written notice from the Governor to the Clerk of
20the House of Representatives, the Secretary of the Senate, and
21the Secretary of State pursuant to Section 1.1 of the Short
22Term Borrowing Act, the Comptroller may cease the order of any
23further transfers to the Budget Stabilization Fund and may
24order the transfer and the Treasurer shall transfer from the
25Budget Stabilization Fund to the General Revenue Fund an
26amount deemed necessary to maintain the State's backlog of

 

 

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1bills to an amount below $3,000,000,000. If the written notice
2has been provided, the General Assembly may make transfers or
3appropriations from the Budget Stabilization Fund for the
4upcoming fiscal year as necessary to provide for the health,
5safety, and welfare of the people of the State of Illinois. If
6the balance of the Budget Stabilization Fund exceeds 5% of the
7total general funds revenues estimated for that fiscal year,
8the additional transfers are not required unless there are
9outstanding liabilities under Section 25 of the State Finance
10Act from prior fiscal years. If there are such outstanding
11Section 25 liabilities, then the Comptroller shall continue to
12transfer 1/12 of the total amount identified for transfer to
13the Budget Stabilization Fund on the first day of each month of
14that fiscal year or as soon thereafter as possible to be
15reserved for those Section 25 liabilities. Nothing in this Act
16prohibits the General Assembly from appropriating additional
17moneys into the Budget Stabilization Fund.
18    (e) (Blank). On or before August 31 of each fiscal year,
19the amount determined to be transferred to the Budget
20Stabilization Fund shall be reconciled to actual general funds
21revenues for that fiscal year. The final transfer for each
22fiscal year shall be adjusted so that the total amount
23transferred under this Section is equal to the percentage
24specified in subsection (a) or (b) of this Section, as
25applicable, based on actual general funds revenues calculated
26consistently with subsection (c) of Section 10 of this Act for

 

 

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1each fiscal year.
2    (f) For the fiscal year beginning July 1, 2006 and for each
3fiscal year thereafter, the budget proposal to the General
4Assembly shall identify liabilities incurred in a prior fiscal
5year under Section 25 of the State Finance Act and the budget
6proposal shall provide funding as allowable pursuant to
7subsection (d) of this Section, if applicable.
8(Source: P.A. 93-660, eff. 7-1-04; 94-839, eff. 6-6-06.)
 
9    (30 ILCS 122/20)
10    (Text of Section WITH the changes made by P.A. 98-599,
11which has been held unconstitutional)
12    Sec. 20. Pension Stabilization Fund.
13    (a) The Pension Stabilization Fund is hereby created as a
14special fund in the State treasury. Moneys in the fund shall be
15used for the sole purpose of making payments to the designated
16retirement systems as provided in Section 25.
17    (b) For each fiscal year through State fiscal year 2014,
18when the General Assembly's appropriations and transfers or
19diversions as required by law from general funds do not exceed
2099% of the estimated general funds revenues pursuant to
21subsection (a) of Section 10, the Comptroller shall transfer
22from the General Revenue Fund as provided by this Section a
23total amount equal to 0.5% of the estimated general funds
24revenues to the Pension Stabilization Fund.
25    (c) For each fiscal year through State fiscal year 2014,

 

 

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1when the General Assembly's appropriations and transfers or
2diversions as required by law from general funds do not exceed
398% of the estimated general funds revenues pursuant to
4subsection (b) of Section 10, the Comptroller shall transfer
5from the General Revenue Fund as provided by this Section a
6total amount equal to 1.0% of the estimated general funds
7revenues to the Pension Stabilization Fund.
8    (c-5) In addition to any other amounts required to be
9transferred under this Section, in State fiscal year 2016 and
10each fiscal year thereafter through State fiscal year 2045, or
11when each of the designated retirement systems, as defined in
12Section 25, has achieved 100% funding, whichever occurs first,
13the State Comptroller shall order transferred and the State
14Treasurer shall transfer from the General Revenue Fund to the
15Pension Stabilization Fund an amount equal to 10% of (1) the
16sum of the amounts certified by the designated retirement
17systems under subsection (a-5) of Section 2-134, subsection
18(a-10) of Section 14-135.08, subsection (a-10) of Section
1915-165, and subsection (a-10) of Section 16-158 of this Code
20for that fiscal year minus (2) the sum of (i) the transfer
21required under subsection (c-10) of this Section for that
22fiscal year and (ii) the sum of the required State
23contributions certified by the retirement systems under
24subsection (a) of Section 2-134, subsection (a-5) of Section
2514-135.08, subsection (a-5) of Section 15-165, and subsection
26(a-5) of Section 16-158 of this Code for that fiscal year. The

 

 

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1transferred amount is intended to represent one-tenth of the
2annual savings to the State resulting from the enactment of
3this amendatory Act of the 98th General Assembly.
4    (c-10) In State fiscal year 2019, the State Comptroller
5shall order transferred and the State Treasurer shall transfer
6$364,000,000 from the General Revenue Fund to the Pension
7Stabilization Fund. In State fiscal year 2020 and each fiscal
8year thereafter until terminated under subsection (c-15), the
9State Comptroller shall order transferred and the State
10Treasurer shall transfer $1,000,000,000 from the General
11Revenue Fund to the Pension Stabilization Fund.
12    (c-15) The transfers made beginning in State fiscal year
132020 pursuant to subsection (c-10) of this Section shall
14terminate at the end of State fiscal year 2045 or when each of
15the designated retirement systems, as defined in Section 25,
16has achieved 100% funding, whichever occurs first.
17    (d) The Comptroller shall transfer 1/12 of the total
18amount to be transferred each fiscal year under this Section
19into the Pension Stabilization Fund on the first day of each
20month of that fiscal year or as soon thereafter as possible;
21except that the final transfer of the fiscal year shall be made
22as soon as practical after the August 31 following the end of
23the fiscal year.
24    Until State fiscal year 2015, before the final transfer
25for a fiscal year is made, the Comptroller shall reconcile the
26estimated general funds revenues used in calculating the other

 

 

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1transfers under this Section for that fiscal year with the
2actual general funds revenues for that fiscal year. The final
3transfer for the fiscal year shall be adjusted so that the
4total amount transferred under this Section for that fiscal
5year is equal to the percentage specified in subsection (b) or
6(c) of this Section, whichever is applicable, of the actual
7general funds revenues for that fiscal year. The actual
8general funds revenues for the fiscal year shall be calculated
9in a manner consistent with subsection (c) of Section 10 of
10this Act.
11(Source: P.A. 98-599, eff. 6-1-14.)
 
12    (Text of Section WITHOUT the changes made by P.A. 98-599,
13which has been held unconstitutional)
14    Sec. 20. Pension Stabilization Fund.
15    (a) The Pension Stabilization Fund is hereby created as a
16special fund in the State treasury. Moneys in the fund shall be
17used for the sole purpose of making payments to the designated
18retirement systems as provided in Section 25.
19    (b) If the amount of the backlog of bills reported by the
20Comptroller on June 30, 2023 and for each June 30 thereafter is
21an amount less than $3,000,000,000, on the last day of each
22month of the next fiscal year, or as soon thereafter as
23possible, the Comptroller shall order transferred and the
24Treasurer shall transfer from the General Revenue Fund to the
25Pension Stabilization Fund $200,000,000 in equal monthly

 

 

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1installments. For each fiscal year when the General Assembly's
2appropriations and transfers or diversions as required by law
3from general funds do not exceed 99% of the estimated general
4funds revenues pursuant to subsection (a) of Section 10, the
5Comptroller shall transfer from the General Revenue Fund as
6provided by this Section a total amount equal to 0.5% of the
7estimated general funds revenues to the Pension Stabilization
8Fund.
9    (c) (Blank). For each fiscal year when the General
10Assembly's appropriations and transfers or diversions as
11required by law from general funds do not exceed 98% of the
12estimated general funds revenues pursuant to subsection (b) of
13Section 10, the Comptroller shall transfer from the General
14Revenue Fund as provided by this Section a total amount equal
15to 1.0% of the estimated general funds revenues to the Pension
16Stabilization Fund.
17    (d) (Blank). The Comptroller shall transfer 1/12 of the
18total amount to be transferred each fiscal year under this
19Section into the Pension Stabilization Fund on the first day
20of each month of that fiscal year or as soon thereafter as
21possible; except that the final transfer of the fiscal year
22shall be made as soon as practical after the August 31
23following the end of the fiscal year.
24    Before the final transfer for a fiscal year is made, the
25Comptroller shall reconcile the estimated general funds
26revenues used in calculating the other transfers under this

 

 

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1Section for that fiscal year with the actual general funds
2revenues for that fiscal year. The final transfer for the
3fiscal year shall be adjusted so that the total amount
4transferred under this Section for that fiscal year is equal
5to the percentage specified in subsection (b) or (c) of this
6Section, whichever is applicable, of the actual general funds
7revenues for that fiscal year. The actual general funds
8revenues for the fiscal year shall be calculated in a manner
9consistent with subsection (c) of Section 10 of this Act.
10(Source: P.A. 94-839, eff. 6-6-06.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.