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Full Text of SB2554  101st General Assembly

SB2554 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2554

 

Introduced 1/29/2020, by Sen. Heather A. Steans

 

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 2022 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.


LRB101 17511 RJF 66922 b

 

 

A BILL FOR

 

SB2554LRB101 17511 RJF 66922 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 Administrative
5Code of Illinois is amended by changing Section 50-40 as
6follows:
 
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 Stabilization
3Fund investments shall be deposited into that Fund.
4    (b) The State Comptroller may direct the State Treasurer to
5transfer moneys from the Budget Stabilization Fund to the
6General Revenue Fund in order to meet cash flow deficits
7resulting from timing variations between disbursements and the
8receipt of funds within a fiscal year. Any moneys so borrowed
9in any fiscal year other than Fiscal Year 2011 and other than
10as provided in subsection b-5 shall be repaid by June 30 of the
11fiscal year in which they were borrowed. Any moneys so borrowed
12in Fiscal Year 2011 shall be repaid no later than July 15,
132011.
14    (b-5) For fiscal year 2022 and subsequent fiscal years, any
15transfers into the Budget Stabilization Fund pursuant to
16Section 15 of the Budget Stabilization Act may be transferred
17to the General Revenue Fund in order for the Comptroller to
18address outstanding vouchers, and shall not be subject to
19repayment into the Budget Stabilization Fund if the bill
20backlog as determined by the Comptroller on June 30 of that
21fiscal year exceeds $4,000,000,000.
22    (c) During Fiscal Year 2017 only, amounts may be expended
23from the Budget Stabilization Fund only pursuant to specific
24authorization by appropriation. Any moneys expended pursuant
25to appropriation shall not be subject to repayment.
26    (d) For Fiscal Year 2020, and beyond, any transfers into

 

 

SB2554- 3 -LRB101 17511 RJF 66922 b

1the Fund pursuant to the Cannabis Regulation and Tax Act may be
2transferred to the General Revenue Fund in order for the
3Comptroller to address outstanding vouchers and shall not be
4subject to repayment back into the Budget Stabilization Fund.
5(Source: P.A. 101-10, eff. 6-5-19.)
 
6    Section 15. The Budget Stabilization Act is amended by
7changing Sections 15 and 20 as follows:
 
8    (30 ILCS 122/15)
9    Sec. 15. Transfers to Budget Stabilization Fund. In
10furtherance of the State's objective for the Budget
11Stabilization Fund to have resources representing 5% of the
12State's annual general funds revenues:
13    (a) On January 10, 2021, and for each January 10
14thereafter, the Department on Aging, the Department of
15Healthcare and Family Services, and the Department of Human
16Services shall certify to the Comptroller the amount of
17invoices that may be paid from appropriations in future fiscal
18years resulting from insufficient appropriations in the
19current fiscal year. The Department of Central Management
20Services shall also certify the amount of invoices that may be
21paid from appropriations in future fiscal years due to
22insufficient resources in the Health Insurance Reserve Fund,
23and the Department of Revenue shall certify an estimate of the
24amount of individual and corporate income tax overpayments that

 

 

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1will not be refunded before the close of the current fiscal
2year resulting from insufficient deposits into the Income Tax
3Refund Fund. The Comptroller's Debt Transparency Report shall
4detail the total value of the amounts certified by the
5Department on Aging and the Departments of Central Management
6Services, Healthcare and Family Services, Human Services, and
7Revenue. The report shall also include the liabilities payable
8with the Comptroller at the close of business on December 31,
92020 and for each December 31 thereafter. For each fiscal year
10when the General Assembly's appropriations and transfers or
11diversions as required by law from general funds do not exceed
1299% of the estimated general funds revenues pursuant to
13subsection (a) of Section 10, the Comptroller shall transfer
14from the General Revenue Fund as provided by this Section a
15total amount equal to 0.5% of the estimated general funds
16revenues to the Budget Stabilization Fund.
17    (b) Beginning May 15, 2021, and for each May 15 thereafter,
18the Comptroller shall report to the Governor and the General
19Assembly the estimated backlog of bills for the end of the
20current fiscal year. If the amount of the backlog of bills
21reported by the Comptroller on June 30, 2021 and each June 30
22thereafter is an amount less than $3,000,000,000, on the last
23day of each month of the next fiscal year, or as soon
24thereafter as possible, the Comptroller shall order
25transferred and the Treasurer shall transfer from the General
26Revenue Fund to the Budget Stabilization Fund the lesser of (i)

 

 

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1$200,000,000 or (ii) the amount necessary to maintain resources
2in the Budget Stabilization Fund that is equal to 5% of the
3total general funds revenues of the prior fiscal year, in equal
4monthly installments. Nothing in this Section prohibits the
5General Assembly from appropriating additional moneys into the
6Budget Stabilization Fund; however, transfers or
7appropriations shall only be made from the Budget Stabilization
8Fund under subsection (d) of this Section. For each fiscal year
9when the General Assembly's appropriations and transfers or
10diversions as required by law from general funds do not exceed
1198% of the estimated general funds revenues pursuant to
12subsection (b) of Section 10, the Comptroller shall transfer
13from the General Revenue Fund as provided by this Section a
14total amount equal to 1% of the estimated general funds
15revenues to the Budget Stabilization Fund.
16    (c) The Comptroller shall transfer 1/12 of the total amount
17to be transferred each fiscal year under this Section into the
18Budget Stabilization Fund on the first day of each month of
19that fiscal year or as soon thereafter as possible. The balance
20of the Budget Stabilization Fund shall not exceed 5% of the
21total of general funds revenues estimated for that fiscal year.
22If the balance of the Budget Stabilization Fund is equal to 5%
23of the total general funds revenues of the prior fiscal year,
24no further transfers shall be made to the Budget Stabilization
25Fund. If the amounts certified to the Comptroller that may be
26paid from future fiscal year resources by the Department on

 

 

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1Aging and the Departments of Central Management Services,
2Healthcare and Family Services, Human Services, and Revenue
3exceed zero, the Comptroller shall order transferred and the
4Treasurer shall transfer from the General Revenue Fund to the
5Health Insurance Reserve Fund, the Healthcare Provider Relief
6Fund, or the Income Tax Refund Fund an amount necessary to
7reduce those amounts to zero, but not to exceed a monthly
8aggregate of $16,666,666 except as provided by subsection (d)
9of this Section.
10    (d) Upon written notice from the Governor to the Clerk of
11the House of Representatives, the Secretary of the Senate, and
12the Secretary of State pursuant to Section 1.1 of the Short
13Term Borrowing Act, the Comptroller may cease the order of any
14further transfers to the Budget Stabilization Fund and may
15order the transfer and the Treasurer shall transfer from the
16Budget Stabilization Fund to the General Revenue Fund an amount
17deemed necessary to maintain the State's backlog of bills to an
18amount below $3,000,000,000. If the written notice has been
19provided, the General Assembly may make transfers or
20appropriations from the Budget Stabilization Fund for the
21upcoming fiscal year as necessary to provide for the health,
22safety, and welfare of the people of the State of Illinois. If
23the balance of the Budget Stabilization Fund exceeds 5% of the
24total general funds revenues estimated for that fiscal year,
25the additional transfers are not required unless there are
26outstanding liabilities under Section 25 of the State Finance

 

 

SB2554- 7 -LRB101 17511 RJF 66922 b

1Act from prior fiscal years. If there are such outstanding
2Section 25 liabilities, then the Comptroller shall continue to
3transfer 1/12 of the total amount identified for transfer to
4the Budget Stabilization Fund on the first day of each month of
5that fiscal year or as soon thereafter as possible to be
6reserved for those Section 25 liabilities. Nothing in this Act
7prohibits the General Assembly from appropriating additional
8moneys into the Budget Stabilization Fund.
9    (e) (Blank). On or before August 31 of each fiscal year,
10the amount determined to be transferred to the Budget
11Stabilization Fund shall be reconciled to actual general funds
12revenues for that fiscal year. The final transfer for each
13fiscal year shall be adjusted so that the total amount
14transferred under this Section is equal to the percentage
15specified in subsection (a) or (b) of this Section, as
16applicable, based on actual general funds revenues calculated
17consistently with subsection (c) of Section 10 of this Act for
18each fiscal year.
19    (f) For the fiscal year beginning July 1, 2006 and for each
20fiscal year thereafter, the budget proposal to the General
21Assembly shall identify liabilities incurred in a prior fiscal
22year under Section 25 of the State Finance Act and the budget
23proposal shall provide funding as allowable pursuant to
24subsection (d) of this Section, if applicable.
25(Source: P.A. 93-660, eff. 7-1-04; 94-839, eff. 6-6-06.)
 

 

 

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1    (30 ILCS 122/20)
2    (Text of Section WITH the changes made by P.A. 98-599,
3which has been held unconstitutional)
4    Sec. 20. Pension Stabilization Fund.
5    (a) The Pension Stabilization Fund is hereby created as a
6special fund in the State treasury. Moneys in the fund shall be
7used for the sole purpose of making payments to the designated
8retirement systems as provided in Section 25.
9    (b) For each fiscal year through State fiscal year 2014,
10when the General Assembly's appropriations and transfers or
11diversions as required by law from general funds do not exceed
1299% of the estimated general funds revenues pursuant to
13subsection (a) of Section 10, the Comptroller shall transfer
14from the General Revenue Fund as provided by this Section a
15total amount equal to 0.5% of the estimated general funds
16revenues to the Pension Stabilization Fund.
17    (c) 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
2098% of the estimated general funds revenues pursuant to
21subsection (b) of Section 10, the Comptroller shall transfer
22from the General Revenue Fund as provided by this Section a
23total amount equal to 1.0% of the estimated general funds
24revenues to the Pension Stabilization Fund.
25    (c-5) In addition to any other amounts required to be
26transferred under this Section, in State fiscal year 2016 and

 

 

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1each fiscal year thereafter through State fiscal year 2045, or
2when each of the designated retirement systems, as defined in
3Section 25, has achieved 100% funding, whichever occurs first,
4the State Comptroller shall order transferred and the State
5Treasurer shall transfer from the General Revenue Fund to the
6Pension Stabilization Fund an amount equal to 10% of (1) the
7sum of the amounts certified by the designated retirement
8systems under subsection (a-5) of Section 2-134, subsection
9(a-10) of Section 14-135.08, subsection (a-10) of Section
1015-165, and subsection (a-10) of Section 16-158 of this Code
11for that fiscal year minus (2) the sum of (i) the transfer
12required under subsection (c-10) of this Section for that
13fiscal year and (ii) the sum of the required State
14contributions certified by the retirement systems under
15subsection (a) of Section 2-134, subsection (a-5) of Section
1614-135.08, subsection (a-5) of Section 15-165, and subsection
17(a-5) of Section 16-158 of this Code for that fiscal year. The
18transferred amount is intended to represent one-tenth of the
19annual savings to the State resulting from the enactment of
20this amendatory Act of the 98th General Assembly.
21    (c-10) In State fiscal year 2019, the State Comptroller
22shall order transferred and the State Treasurer shall transfer
23$364,000,000 from the General Revenue Fund to the Pension
24Stabilization Fund. In State fiscal year 2020 and each fiscal
25year thereafter until terminated under subsection (c-15), the
26State Comptroller shall order transferred and the State

 

 

SB2554- 10 -LRB101 17511 RJF 66922 b

1Treasurer shall transfer $1,000,000,000 from the General
2Revenue Fund to the Pension Stabilization Fund.
3    (c-15) The transfers made beginning in State fiscal year
42020 pursuant to subsection (c-10) of this Section shall
5terminate at the end of State fiscal year 2045 or when each of
6the designated retirement systems, as defined in Section 25,
7has achieved 100% funding, whichever occurs first.
8    (d) The Comptroller shall transfer 1/12 of the total amount
9to be transferred each fiscal year under this Section into the
10Pension Stabilization Fund on the first day of each month of
11that fiscal year or as soon thereafter as possible; except that
12the final transfer of the fiscal year shall be made as soon as
13practical after the August 31 following the end of the fiscal
14year.
15    Until State fiscal year 2015, before the final transfer for
16a fiscal year is made, the Comptroller shall reconcile the
17estimated general funds revenues used in calculating the other
18transfers under this Section for that fiscal year with the
19actual general funds revenues for that fiscal year. The final
20transfer for the fiscal year shall be adjusted so that the
21total amount transferred under this Section for that fiscal
22year is equal to the percentage specified in subsection (b) or
23(c) of this Section, whichever is applicable, of the actual
24general funds revenues for that fiscal year. The actual general
25funds revenues for the fiscal year shall be calculated in a
26manner consistent with subsection (c) of Section 10 of this

 

 

SB2554- 11 -LRB101 17511 RJF 66922 b

1Act.
2(Source: P.A. 98-599, eff. 6-1-14.)
 
3    (Text of Section WITHOUT the changes made by P.A. 98-599,
4which has been held unconstitutional)
5    Sec. 20. Pension Stabilization Fund.
6    (a) The Pension Stabilization Fund is hereby created as a
7special fund in the State treasury. Moneys in the fund shall be
8used for the sole purpose of making payments to the designated
9retirement systems as provided in Section 25.
10    (b) If the amount of the backlog of bills reported by the
11Comptroller on June 30, 2021 and for each June 30 thereafter is
12an amount less than $3,000,000,000, on the last day of each
13month of the next fiscal year, or as soon thereafter as
14possible, the Comptroller shall order transferred and the
15Treasurer shall transfer from the General Revenue Fund to the
16Pension Stabilization Fund $200,000,000 in equal monthly
17installments. For each fiscal year when the General Assembly's
18appropriations and transfers or diversions as required by law
19from general funds do not exceed 99% of the estimated general
20funds revenues pursuant to subsection (a) of Section 10, the
21Comptroller shall transfer from the General Revenue Fund as
22provided by this Section a total amount equal to 0.5% of the
23estimated general funds revenues to the Pension Stabilization
24Fund.
25    (c) (Blank). For each fiscal year when the General

 

 

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

 

 

SB2554- 13 -LRB101 17511 RJF 66922 b

1(Source: P.A. 94-839, eff. 6-6-06.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.