Illinois General Assembly - Full Text of HB3625
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Full Text of HB3625  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/22/2021, by Rep. Dan Ugaste


15 ILCS 20/50-5

    Amends the State Budget Law of the Civil Administrative Code of Illinois. Provides that beginning with the budget prepared for fiscal year 2023, the rate of growth of general funds appropriations shall not exceed the rate of growth of the Illinois median household income. Defines "rate of growth of the Illinois median household income".

LRB102 12533 RJF 17871 b





HB3625LRB102 12533 RJF 17871 b

1    AN ACT concerning State government.
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
650-5 as follows:
7    (15 ILCS 20/50-5)
8    Sec. 50-5. Governor to submit State budget.
9    (a) The Governor shall, as soon as possible and not later
10than the second Wednesday in March in 2010 (March 10, 2010),
11the third Wednesday in February in 2011, the fourth Wednesday
12in February in 2012 (February 22, 2012), the first Wednesday
13in March in 2013 (March 6, 2013), the fourth Wednesday in March
14in 2014 (March 26, 2014), and the third Wednesday in February
15of each year thereafter, except as otherwise provided in this
16Section, submit a State budget, embracing therein the amounts
17recommended by the Governor to be appropriated to the
18respective departments, offices, and institutions, and for all
19other public purposes, the estimated revenues from taxation,
20and the estimated revenues from sources other than taxation.
21Except with respect to the capital development provisions of
22the State budget, beginning with the revenue estimates
23prepared for fiscal year 2012, revenue estimates shall be



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1based solely on: (i) revenue sources (including non-income
2resources), rates, and levels that exist as of the date of the
3submission of the State budget for the fiscal year and (ii)
4revenue sources (including non-income resources), rates, and
5levels that have been passed by the General Assembly as of the
6date of the submission of the State budget for the fiscal year
7and that are authorized to take effect in that fiscal year.
8Except with respect to the capital development provisions of
9the State budget, the Governor shall determine available
10revenue, deduct the cost of essential government services,
11including, but not limited to, pension payments and debt
12service, and assign a percentage of the remaining revenue to
13each statewide prioritized goal, as established in Section
1450-25 of this Law, taking into consideration the proposed
15goals set forth in the report of the Commission established
16under that Section. The Governor shall also demonstrate how
17spending priorities for the fiscal year fulfill those
18statewide goals. The amounts recommended by the Governor for
19appropriation to the respective departments, offices and
20institutions shall be formulated according to each
21department's, office's, and institution's ability to
22effectively deliver services that meet the established
23statewide goals. The amounts relating to particular functions
24and activities shall be further formulated in accordance with
25the object classification specified in Section 13 of the State
26Finance Act. In addition, the amounts recommended by the



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1Governor for appropriation shall take into account each State
2agency's effectiveness in achieving its prioritized goals for
3the previous fiscal year, as set forth in Section 50-25 of this
4Law, giving priority to agencies and programs that have
5demonstrated a focus on the prevention of waste and the
6maximum yield from resources.
7    Beginning in fiscal year 2011, the Governor shall
8distribute written quarterly financial reports on operating
9funds, which may include general, State, or federal funds and
10may include funds related to agencies that have significant
11impacts on State operations, and budget statements on all
12appropriated funds to the General Assembly and the State
13Comptroller. The reports shall be submitted no later than 45
14days after the last day of each quarter of the fiscal year and
15shall be posted on the Governor's Office of Management and
16Budget's website on the same day. The reports shall be
17prepared and presented for each State agency and on a
18statewide level in an executive summary format that may
19include, for the fiscal year to date, individual itemizations
20for each significant revenue type as well as itemizations of
21expenditures and obligations, by agency, with an appropriate
22level of detail. The reports shall include a calculation of
23the actual total budget surplus or deficit for the fiscal year
24to date. The Governor shall also present periodic budget
25addresses throughout the fiscal year at the invitation of the
26General Assembly.



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1    The Governor shall not propose expenditures and the
2General Assembly shall not enact appropriations that exceed
3the resources estimated to be available, as provided in this
4Section. Appropriations may be adjusted during the fiscal year
5by means of one or more supplemental appropriation bills if
6any State agency either fails to meet or exceeds the goals set
7forth in Section 50-25 of this Law.
8    For the purposes of Article VIII, Section 2 of the 1970
9Illinois Constitution, the State budget for the following
10funds shall be prepared on the basis of revenue and
11expenditure measurement concepts that are in concert with
12generally accepted accounting principles for governments:
13        (1) General Revenue Fund.
14        (2) Common School Fund.
15        (3) Educational Assistance Fund.
16        (4) Road Fund.
17        (5) Motor Fuel Tax Fund.
18        (6) Agricultural Premium Fund.
19    These funds shall be known as the "budgeted funds". The
20revenue estimates used in the State budget for the budgeted
21funds shall include the estimated beginning fund balance, plus
22revenues estimated to be received during the budgeted year,
23plus the estimated receipts due the State as of June 30 of the
24budgeted year that are expected to be collected during the
25lapse period following the budgeted year, minus the receipts
26collected during the first 2 months of the budgeted year that



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1became due to the State in the year before the budgeted year.
2Revenues shall also include estimated federal reimbursements
3associated with the recognition of Section 25 of the State
4Finance Act liabilities. For any budgeted fund for which
5current year revenues are anticipated to exceed expenditures,
6the surplus shall be considered to be a resource available for
7expenditure in the budgeted fiscal year.
8    Expenditure estimates for the budgeted funds included in
9the State budget shall include the costs to be incurred by the
10State for the budgeted year, to be paid in the next fiscal
11year, excluding costs paid in the budgeted year which were
12carried over from the prior year, where the payment is
13authorized by Section 25 of the State Finance Act. For any
14budgeted fund for which expenditures are expected to exceed
15revenues in the current fiscal year, the deficit shall be
16considered as a use of funds in the budgeted fiscal year.
17    Revenues and expenditures shall also include transfers
18between funds that are based on revenues received or costs
19incurred during the budget year.
20    Appropriations for expenditures shall also include all
21anticipated statutory continuing appropriation obligations
22that are expected to be incurred during the budgeted fiscal
24    By March 15 of each year, the Commission on Government
25Forecasting and Accountability shall prepare revenue and fund
26transfer estimates in accordance with the requirements of this



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1Section and report those estimates to the General Assembly and
2the Governor.
3    For all funds other than the budgeted funds, the proposed
4expenditures shall not exceed funds estimated to be available
5for the fiscal year as shown in the budget. Appropriation for a
6fiscal year shall not exceed funds estimated by the General
7Assembly to be available during that year.
8    Beginning with the budget prepared for fiscal year 2023,
9the rate of growth of general funds appropriations shall not
10exceed the rate of growth of the Illinois median household
11income. For the purposes of this paragraph, "rate of growth of
12the Illinois median household income" means the average annual
13growth rate of median household income in this State over the
14preceding 10 calendar years, using data reported by the United
15States Census Bureau or its successor agency as reported in
16the American Community Survey 1-Year Estimates or, if
17unavailable or discontinued, its equivalent survey before
18December 31 immediately preceding the beginning of the fiscal
20    (b) By February 24, 2010, the Governor must file a written
21report with the Secretary of the Senate and the Clerk of the
22House of Representatives containing the following:
23        (1) for fiscal year 2010, the revenues for all
24    budgeted funds, both actual to date and estimated for the
25    full fiscal year;
26        (2) for fiscal year 2010, the expenditures for all



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1    budgeted funds, both actual to date and estimated for the
2    full fiscal year;
3        (3) for fiscal year 2011, the estimated revenues for
4    all budgeted funds, including without limitation the
5    affordable General Revenue Fund appropriations, for the
6    full fiscal year; and
7        (4) for fiscal year 2011, an estimate of the
8    anticipated liabilities for all budgeted funds, including
9    without limitation the affordable General Revenue Fund
10    appropriations, debt service on bonds issued, and the
11    State's contributions to the pension systems, for the full
12    fiscal year.
13    Between July 1 and August 31 of each fiscal year, the
14members of the General Assembly and members of the public may
15make written budget recommendations to the Governor.
16    Beginning with budgets prepared for fiscal year 2013, the
17budgets submitted by the Governor and appropriations made by
18the General Assembly for all executive branch State agencies
19must adhere to a method of budgeting where each priority must
20be justified each year according to merit rather than
21according to the amount appropriated for the preceding year.
22(Source: P.A. 97-669, eff. 1-13-12; 97-813, eff. 7-13-12;
2398-2, eff. 2-19-13; 98-626, eff. 2-5-14.)