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1 | SENATE JOINT RESOLUTION
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2 | CONSTITUTIONAL AMENDMENT
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3 | RESOLVED, BY THE SENATE OF THE NINETY-SEVENTH GENERAL | |||||||||||||||
4 | ASSEMBLY OF THE STATE OF ILLINOIS, THE HOUSE OF REPRESENTATIVES | |||||||||||||||
5 | CONCURRING HEREIN, that there shall be submitted to the | |||||||||||||||
6 | electors of the State for adoption or rejection at the general | |||||||||||||||
7 | election next occurring at least 6 months after the adoption of | |||||||||||||||
8 | this resolution a proposition to add Article XIII 1/2 of the | |||||||||||||||
9 | Illinois Constitution as follows: | |||||||||||||||
10 | (ILCON Art. XIII 1/2 heading new) | |||||||||||||||
11 | ARTICLE XIII 1/2 | |||||||||||||||
12 | PENSION FUNDING AND FAIRNESS | |||||||||||||||
13 | (ILCON Art. XIII 1/2, Sec. 1 new) | |||||||||||||||
14 | SECTION 1. DEFINITIONS | |||||||||||||||
15 | As used in this Article: | |||||||||||||||
16 | "Emergency" means extraordinary circumstances outside the | |||||||||||||||
17 | control of the General Assembly, including catastrophic | |||||||||||||||
18 | events, such as a natural disaster, terrorism, fire, war, and | |||||||||||||||
19 | riot, as well as court orders or decrees. | |||||||||||||||
20 | "General Fund" means the General Revenue Fund, Common | |||||||||||||||
21 | School Fund, and Education Assistance Fund. | |||||||||||||||
22 | "Increase in State revenue" means any net gain in State | |||||||||||||||
23 | revenue of at least 0.01% of General Fund revenue in at least |
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1 | one fiscal year that results from (1)
enacting a new tax or | ||||||
2 | fee;
(2) increasing the rate or expanding the base of an | ||||||
3 | existing tax or fee;
(3) repealing or reducing a tax exemption, | ||||||
4 | credit, or refund; or
(4) extending an expiring tax increase or | ||||||
5 | fee. | ||||||
6 | "Inflation adjustment factor" means the annual percentage | ||||||
7 | increase in the Chicago Metropolitan Statistical Area Consumer | ||||||
8 | Price Index for the most recently available calendar year as | ||||||
9 | calculated by the United States Department of Labor, Bureau of | ||||||
10 | Labor Statistics. The inflation adjustment factor may not be | ||||||
11 | less than zero or more than 10%. | ||||||
12 | "Monthly pro rata pension payment" means the average | ||||||
13 | monthly pension payment calculated by dividing the total fiscal | ||||||
14 | year annual pension payment by 12 months. | ||||||
15 | "Pension payment" means the total annual required pension | ||||||
16 | payment for each fiscal year as defined by the Commission on | ||||||
17 | Government Forecasting and Accountability following generally | ||||||
18 | accepted accounting principles. | ||||||
19 | "Population adjustment factor" means the average annual | ||||||
20 | percentage increase in population for the 3 most recent years | ||||||
21 | for which data is available, as determined annually by the | ||||||
22 | United States Department of Commerce, Census Bureau. The | ||||||
23 | population adjustment factor may not be less than zero. | ||||||
24 | "Revenue" means taxes and fees collected by the State. | ||||||
25 | "State spending" means any authorized State appropriations | ||||||
26 | and allocations. |
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1 | "Tax" means any amount raised for the general support of | ||||||
2 | government functions. | ||||||
3 | (ILCON Art. XIII 1/2, Sec. 2 new) | ||||||
4 | SECTION 2. SPENDING GROWTH INDEX | ||||||
5 | (a) Beginning with the fiscal year that starts after | ||||||
6 | Article XII 1/2 takes effect, the maximum annual percentage | ||||||
7 | change in State fiscal year spending in the categories | ||||||
8 | specified may not exceed the inflation adjustment factor plus | ||||||
9 | the population adjustment factor. This limitation, the | ||||||
10 | Spending Growth Index, must be calculated separately for the | ||||||
11 | following categories:
General Fund;
Road Fund; and
all other | ||||||
12 | funds. | ||||||
13 | (b) The following may not be counted in calculating | ||||||
14 | expenditure limitations or, if applicable, revenue | ||||||
15 | limitations: | ||||||
16 | (1) Amounts returned to taxpayers as refunds of amounts | ||||||
17 | exceeding the expenditure limitation in a prior year. | ||||||
18 | (2) Amounts received from the federal government. | ||||||
19 | (3) Amounts collected on behalf of another level of | ||||||
20 | government. | ||||||
21 | (4) Pension contributions by employees and pension | ||||||
22 | fund earnings. | ||||||
23 | (5) Pension and disability payments made to former | ||||||
24 | government employees. | ||||||
25 | (6) Amounts received as grants, gifts, or donations |
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1 | that must be spent for purposes specified by the donor. | ||||||
2 | (7) Amounts paid pursuant to a court award. | ||||||
3 | (8) Reserve transfers. | ||||||
4 | (ILCON Art. XIII 1/2, Sec. 3 new) | ||||||
5 | SECTION 3. APPROVAL OF EXPENDITURE INCREASES | ||||||
6 | (a) In order to adopt an increase in State spending beyond | ||||||
7 | the limitation set forth in Section 2 of this Article, the | ||||||
8 | measure must be approved by a three-fifths supermajority vote | ||||||
9 | of all members of each house of the General Assembly and must | ||||||
10 | be approved by a majority of voters.
Voter approval is not | ||||||
11 | required if the spending is as a result of an increase in State | ||||||
12 | revenue under Section 4 of this Article. | ||||||
13 | (b) The question of whether to adopt legislation to allow | ||||||
14 | an increase in State spending beyond the limitation set forth | ||||||
15 | in Section 2 of this Article must be submitted to the voters | ||||||
16 | for approval at the next general election. If the General | ||||||
17 | Assembly determines by a three-fifths supermajority vote that | ||||||
18 | legislation to increase spending beyond the limitation should | ||||||
19 | take effect sooner than the next general election, the General | ||||||
20 | Assembly may provide for submission of the question to the | ||||||
21 | voters at any regular or special election. | ||||||
22 | A measure submitted to the voters must include an estimate | ||||||
23 | as set forth in the legislation of the spending increase | ||||||
24 | resulting from the measure for the first 3 fiscal years of its | ||||||
25 | implementation. |
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1 | (c) At least 30 days before an election at which voter | ||||||
2 | approval of an increase in State spending is sought, the | ||||||
3 | Secretary of State shall mail, at least once, a titled notice | ||||||
4 | or set of notices addressed to all registered voters in the | ||||||
5 | State at each address of every registered voter. Notices must | ||||||
6 | include all of the following information and may not include | ||||||
7 | any additional information: | ||||||
8 | (1) The election date, hours, ballot title, and text. | ||||||
9 | (2) For each proposed spending increase, the estimated | ||||||
10 | or actual total of fiscal year spending for the current | ||||||
11 | year and each of the past 4 years, and the overall | ||||||
12 | percentage and dollar change. | ||||||
13 | (3)
For the first full fiscal year of each proposed | ||||||
14 | spending increase, estimates of the maximum dollar amount | ||||||
15 | of each increase and of fiscal year spending without the | ||||||
16 | increase. | ||||||
17 | (d) Ballot questions for spending increases must begin: | ||||||
18 | "Shall State spending increase by (amount of first or, if | ||||||
19 | phased in, full fiscal year dollar increase) annually for the | ||||||
20 | purpose of . . .?". | ||||||
21 | (e) The State shall reimburse municipalities and counties | ||||||
22 | for the costs of a special election. | ||||||
23 | (ILCON Art. XIII 1/2, Sec. 4 new) | ||||||
24 | SECTION 4. APPROVAL OF REVENUE INCREASES | ||||||
25 | (a) In order to adopt an increase in State revenue, the |
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1 | measure must be approved by a three-fifths supermajority vote | ||||||
2 | of all members of each house of the General Assembly and
must | ||||||
3 | be approved by a majority of voters.
Voter approval is not | ||||||
4 | required if annual State revenue is less than annual payments | ||||||
5 | on general obligation bonds, required payments relating to | ||||||
6 | pensions, and final court judgments or if the measure is an | ||||||
7 | emergency tax. | ||||||
8 | (b) The question of whether to adopt legislation to impose | ||||||
9 | an increase in revenue of the State must be submitted to the | ||||||
10 | voters for approval at the next general election. If the | ||||||
11 | General Assembly determines by a three-fifths supermajority | ||||||
12 | vote that legislation to increase revenue via an emergency tax | ||||||
13 | should take effect sooner than the next general election, the | ||||||
14 | General Assembly may provide for submission of the question to | ||||||
15 | the voters at any regular or special election. | ||||||
16 | A measure submitted to the voters must include an estimate | ||||||
17 | of the amount to be raised by the measure for the first 3 | ||||||
18 | fiscal years of its implementation. | ||||||
19 | (c) At least 30 days before an election at which voter | ||||||
20 | approval of a revenue increase is sought, the Secretary of | ||||||
21 | State shall mail, at least once, a titled notice or set of | ||||||
22 | notices addressed to all registered voters at each address of | ||||||
23 | every registered voter. Notices must include all of the | ||||||
24 | following information and may not include any additional | ||||||
25 | information: | ||||||
26 | (1) The election date, hours, ballot title, and text. |
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1 | (2) For each proposed revenue increase, the estimated | ||||||
2 | or actual total of fiscal year spending for the current | ||||||
3 | year and each of the past 4 years, and the overall | ||||||
4 | percentage and dollar change. | ||||||
5 | (3) For the first full fiscal year of each proposed | ||||||
6 | revenue increase, estimates of the maximum dollar amount of | ||||||
7 | each increase and of fiscal year spending without the | ||||||
8 | increase. | ||||||
9 | (d) Ballot questions for revenue increases must begin: | ||||||
10 | "Shall (description of the tax increase) to increase State | ||||||
11 | revenues by (amount of first or, if phased in, full fiscal year | ||||||
12 | dollar increase) annually for the purpose of . . .?". | ||||||
13 | (e) The State shall reimburse municipalities and counties | ||||||
14 | for the costs of a special election. | ||||||
15 | (ILCON Art. XIII 1/2, Sec. 5 new) | ||||||
16 | SECTION 5. EMERGENCY TAXES | ||||||
17 | (a) The State may impose emergency taxes only in accordance | ||||||
18 | with this Section. | ||||||
19 | (b) The tax must be approved for a specified time period by | ||||||
20 | a three-fifths majority of the members of each house of the | ||||||
21 | General Assembly. | ||||||
22 | (c) Emergency tax revenue may be spent only after other | ||||||
23 | available reserves are depleted and must be refunded 180 days | ||||||
24 | after the emergency ends if not spent on the emergency. | ||||||
25 | (d) The tax must be submitted for approval by the voters at |
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1 | the next regular election. | ||||||
2 | (e) If not approved by the voters as provided in subsection | ||||||
3 | (d), the emergency tax expires 30 days following the election. | ||||||
4 | (f) The provisions of this Section apply notwithstanding | ||||||
5 | Article IX. | ||||||
6 | (ILCON Art. XIII 1/2, Sec. 6 new) | ||||||
7 | SECTION 6. PAST DUE PAYDOWN FUND | ||||||
8 | (a) The Past Due Paydown Fund is established and must be | ||||||
9 | administered for the purposes identified in this Section.
At | ||||||
10 | the close of the lapse period of each fiscal year, the State | ||||||
11 | Comptroller shall identify the amount of General Fund | ||||||
12 | unappropriated surplus above the Spending Growth Index | ||||||
13 | limitation and transfer to the fund any amount necessary up to | ||||||
14 | the total past due operating debt owed by the State as of the | ||||||
15 | close of that fiscal year. | ||||||
16 | (b) The General Assembly may authorize transfers, | ||||||
17 | appropriations, and allocations from the fund only to fund the | ||||||
18 | costs of paying down the remaining past due debt until such | ||||||
19 | debt is zero. Any remaining funds shall be transferred to the | ||||||
20 | State Budget Stabilization Fund. | ||||||
21 | (ILCON Art. XIII 1/2, Sec. 7 new) | ||||||
22 | SECTION 7. STATE BUDGET STABILIZATION FUND | ||||||
23 | (a) The State Budget Stabilization Fund is established and | ||||||
24 | must be administered for the purposes identified in this |
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1 | Section.
At the close of the lapse period of each fiscal year, | ||||||
2 | the State Comptroller shall identify the amount of General Fund | ||||||
3 | unappropriated surplus above the State Spending Growth Index | ||||||
4 | expenditure limitation and above the amount necessary to fully | ||||||
5 | fund and pay down the past due operating debt to zero. The fund | ||||||
6 | may not exceed 8% of the total General Fund revenues received | ||||||
7 | in the immediately preceding fiscal year. | ||||||
8 | (b) The General Assembly may authorize transfers, | ||||||
9 | appropriations, and allocations from the fund to fund only the | ||||||
10 | costs of State government up to the expenditure limit | ||||||
11 | calculated under Section 2 in years when State revenues are | ||||||
12 | less than the amount necessary to finance the level of | ||||||
13 | expenditures permitted under Section 2. Transfers require a | ||||||
14 | three-fifths supermajority vote of the General Assembly. | ||||||
15 | (c) The money in the fund may be invested as provided by | ||||||
16 | law, with the earnings credited to the fund. At the close of | ||||||
17 | every month during which the fund is at the 8% limitation, the | ||||||
18 | State Comptroller shall transfer the excess to the Taxpayer | ||||||
19 | Relief Fund. | ||||||
20 | (ILCON Art. XIII 1/2, Sec. 8 new) | ||||||
21 | SECTION 8. TAXPAYER RELIEF FUND | ||||||
22 | (a) The Taxpayer Relief Fund is established and must be | ||||||
23 | administered for the purposes identified in this Section. At | ||||||
24 | the close of the lapse period of each fiscal year, the State | ||||||
25 | Comptroller shall identify the amount of the General Fund |
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1 | unappropriated surplus above the State expenditure limitation | ||||||
2 | and above the amount necessary to fully fund the Past Due | ||||||
3 | Paydown Fund and the Budget Stabilization Fund. | ||||||
4 | (b) By August 1st annually, the State Comptroller shall | ||||||
5 | notify the Commission on Government Forecasting and | ||||||
6 | Accountability and the Department of Revenue of the amount in | ||||||
7 | the fund as a result of the transfers. | ||||||
8 | (c) If the amount in the fund exceeds 1% of General Fund | ||||||
9 | expenditures, then the General Assembly shall, by November | ||||||
10 | 15th, enact legislation to provide for the refund to taxpayers | ||||||
11 | of amounts in the fund. Refunds may take the form only of | ||||||
12 | temporary or permanent broad-based tax rate reductions. | ||||||
13 | (d) If the General Assembly does not enact legislation by | ||||||
14 | November 15th to provide refunds, then the State Comptroller | ||||||
15 | shall, by November 30th, notify the Department of Revenue of | ||||||
16 | the amount in the fund. The Department of Revenue shall | ||||||
17 | calculate a one-time bonus personal exemption refund. The | ||||||
18 | amount of the personal exemption refund must be calculated by | ||||||
19 | dividing the amount in the fund identified by the State | ||||||
20 | Comptroller by the number of personal exemptions claimed on | ||||||
21 | income tax returns filed for the tax year beginning in the | ||||||
22 | previous calendar year. The Department of Revenue shall issue a | ||||||
23 | refund by December 30th to a taxpayer who filed an income tax | ||||||
24 | return by April 15th of the same calendar year based on the | ||||||
25 | number of exemptions claimed (times refund per exemption) on | ||||||
26 | the taxpayer's return without regard to the taxpayer's tax |
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1 | liability for the year. | ||||||
2 | (ILCON Art. XIII 1/2, Sec. 9 new) | ||||||
3 | SECTION 9. PENSION PAYMENTS | ||||||
4 | (a) Notwithstanding any other law, beginning with fiscal | ||||||
5 | year following the adoption of this Article and for each budget | ||||||
6 | year thereafter, the General Assembly's first appropriation | ||||||
7 | each year must be directed to make the full annual pension | ||||||
8 | payment defined by the Commission on Government Forecasting and | ||||||
9 | Accountability, acting in compliance with generally accepted | ||||||
10 | accounting principles. This appropriation must be made first, | ||||||
11 | and executing it (making the actual payments required by it) | ||||||
12 | shall take precedence over any other appropriation or | ||||||
13 | expenditure. | ||||||
14 | Exceptions may be made to the pension payment requirement | ||||||
15 | in this subsection (a) if authorized by a law approved by a | ||||||
16 | three-fifths vote of each chamber of the General Assembly and | ||||||
17 | approved by the Governor. Any exceptions made by the General | ||||||
18 | Assembly shall specify the dollar amount and purposes of | ||||||
19 | appropriations that shall be made prior to the pension payment. | ||||||
20 | (b) By March 1 of each year, the State Comptroller shall | ||||||
21 | take the total annually required pension payment for the | ||||||
22 | upcoming fiscal year (beginning on July 1) and divide that | ||||||
23 | number by 12. This amount becomes the monthly pro rata pension | ||||||
24 | payment for each month of the upcoming fiscal year. | ||||||
25 | If, during the fiscal year, the Commission on Government |
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1 | Forecasting and Accountability adjusts the annually required | ||||||
2 | pension payment for the current year upward, the State | ||||||
3 | Comptroller shall recalculate the monthly pro rata pension | ||||||
4 | payment upward accordingly and allocate the increase evenly | ||||||
5 | over the remaining months to ensure that the full annual | ||||||
6 | pension payment is made for the fiscal year. | ||||||
7 | If, during the fiscal year, the Commission on Government | ||||||
8 | Forecasting and Accountability adjusts the annually required | ||||||
9 | pension payment downward, the original payment schedule shall | ||||||
10 | be maintained. Payments in excess of the revised payment | ||||||
11 | schedule shall be allocated to any existing unfunded pension | ||||||
12 | liability. | ||||||
13 | If, during the fiscal year, the Commission on Government | ||||||
14 | Forecasting and Accountability adjusts the annually required | ||||||
15 | pension payment downward, and if there is no remaining unfunded | ||||||
16 | pension liability as calculated by the Commission on Government | ||||||
17 | Forecasting and Accountability in compliance with generally | ||||||
18 | accepted accounting principles, then the State Comptroller | ||||||
19 | shall recalculate the monthly pro rata pension payment downward | ||||||
20 | accordingly and allocate the reduction evenly over the | ||||||
21 | remaining months to ensure that the full annual pension payment | ||||||
22 | is made for the fiscal year. | ||||||
23 | By no later than the 5th of each month, the Comptroller | ||||||
24 | shall disburse funds as authorized by the pension payment | ||||||
25 | appropriation to the various State retirement systems so that | ||||||
26 | the total payment equals the monthly pro rata pension payment. |
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1 | The payments shall be allocated proportionally to each | ||||||
2 | retirement fund as calculated by the Commission on Government | ||||||
3 | Forecasting and Accountability. | ||||||
4 | There shall be no exceptions to this subsection (b) except | ||||||
5 | as authorized by a law approved by a three-fifths vote of each | ||||||
6 | chamber of the General Assembly and approved by the Governor. | ||||||
7 | (c) If for any reason the monthly pro rata pension payment | ||||||
8 | is not made by the 5th of the month, or if for any reason the | ||||||
9 | accumulated payments for the year do not equal the sum of the | ||||||
10 | monthly pro rata pension payments for the months having passed | ||||||
11 | during the fiscal year, then the State Comptroller shall cease | ||||||
12 | all payments from State resources until such time as the | ||||||
13 | pension payment is brought current for the year. | ||||||
14 | There shall be no exceptions to this subsection (c) except | ||||||
15 | as authorized by a law approved by a three-fifths vote of each | ||||||
16 | chamber of the legislature and approved by the Governor.
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17 | SCHEDULE
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18 | This Constitutional Amendment takes effect upon being | ||||||
19 | declared adopted in accordance with Section 7 of the Illinois | ||||||
20 | Constitutional Amendment Act.
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