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90_HB0086
New Act
30 ILCS 105/25 from Ch. 127, par. 161
Creates the Illinois Balanced Budget Act. Creates a
Balanced Budget Commission to provide a Balanced Budget
Revenue Estimate for each fiscal year. The Estimate shall
serve as a limit on appropriations from State general funds.
If appropriations exceed the limit, the Comptroller shall
prepare a proposed Balanced Budget Reserve Act for that
fiscal year. Sets forth the contents of the proposed Act,
including certain measures to reduce State agency
expenditures. Amends the State Finance Act. Reduces the
lapse period from 2 months to one month starting in FY2003.
Effective immediately.
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1 AN ACT in relation to balancing budgets, amending a named
2 Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Illinois Balanced Budget Act.
7 Section 5. Illinois Balanced Budget Commission. There
8 is established the Illinois Balanced Budget Commission,
9 composed of 8 members. The President of the Senate, Senate
10 Minority Leader, Speaker of the House, and House Minority
11 Leader shall each appoint one member. The Governor shall
12 appoint 4 members. No more than 2 of the members appointed
13 by the Governor shall be from the same political party. All
14 members shall be private citizens with substantial
15 professional experience in financial management or expertise
16 in economic forecasting. Members are appointed for 2-year
17 terms, corresponding with sessions of the General Assembly.
18 Members shall elect 2 co-chairpersons, and organize
19 themselves as they deem necessary, at their first meeting.
20 The Commission shall meet as often as the members may deem
21 necessary, but shall meet at least twice each calendar year.
22 Meetings shall be held at a time and place designated by the
23 two co-chairpersons. Members shall serve without
24 compensation, but shall be reimbursed for expenses.
25 Section 10. Balanced Budget Revenue Estimate. The sole
26 function of the Illinois Balanced Budget Commission shall be
27 to provide a Balanced Budget Revenue Estimate for each fiscal
28 year of the State. The Estimate shall include all funds that
29 make up the general funds of the State. The Estimate shall
30 be based on the most probable and reasonable economic
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1 forecast for Illinois for the fiscal year. The Bureau of the
2 Budget and the Illinois Economic and Fiscal Commission shall
3 provide staff support and information pertaining to their
4 individual revenue estimates as may be requested by the
5 Commission. The Commission may also request staff support
6 and information from the Office of the Comptroller, any of
7 the State's universities, and any department or agency of the
8 State.
9 By January 15 of each year, the Commission shall approve
10 a preliminary Estimate for the fiscal year that begins on the
11 following July 1.
12 By April 31 of each year, the Commission shall approve a
13 final Estimate for the fiscal year that begins on the
14 following July 1.
15 The Commission may revise its final Estimate for a fiscal
16 year at any time between September 1 and January 15 of the
17 fiscal year to reflect changes in the economic forecast or in
18 actual revenue performance for the fiscal year. The
19 Commission may revise its estimate at any time to reflect the
20 passage of legislation that creates new revenue.
21 Section 15. Balanced Budget Limit. The Balanced Budget
22 Revenue Estimate shall serve as a limit on appropriations
23 from the general funds of the State. At no time in any
24 fiscal year shall total general funds appropriations exceed
25 the final Balanced Budget Revenue Estimate, as approved and
26 revised by the Commission and net of any deposits that may be
27 required into the Illinois Fiscal and Economic Stability
28 Fund.
29 By January 31 of each fiscal year, the Comptroller shall
30 certify to the Governor and the 4 leaders of the General
31 Assembly that current general funds appropriations either
32 exceed or do not exceed the Balanced Budget Limit.
33 If current general funds appropriations exceed the Limit,
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1 the Comptroller shall prepare a proposed Balanced Budget
2 Reserve Act for the fiscal year. The proposed Act shall set
3 forth the total Balanced Budget Reserve that would be
4 required to reduce expenditures from general funds
5 appropriations to the Balanced Budget Limit, and the share of
6 the total Reserve to be held by each branch of government and
7 each State department and agency, calculated on a
8 proportional basis. The Comptroller shall submit the
9 proposed Balanced Budget Reserve Act to the Governor and the
10 4 leaders of the General Assembly by January 31. The reserves
11 for each branch of government and each State department and
12 agency may be reallocated so that the total Balanced Budget
13 Reserve is equal to the total Balanced Budget Reserve
14 contained in the proposed Act.
15 Section 20. Proposed Balanced Budget Reserve Act. The
16 substantive provisions of the proposed Balanced Budget
17 Reserve Act for any fiscal year shall be in substantially the
18 following form:
19 "The Balanced Budget Reserve Act of Fiscal Year .....
20 Section 1005. Findings. The General Assembly finds
21 that appropriations from general funds for fiscal year
22 ..... exceed the statutory limit established by the
23 Balanced Budget Act. The General Assembly further finds
24 that unless general funds appropriations are reduced
25 immediately, the State shall incur obligations that it
26 cannot pay in a timely manner. Therefore, the General
27 Assembly finds that it is necessary and expedient to
28 implement a procedure for reducing appropriations, and
29 that a procedure creating Balanced Budget Reserves for
30 the State's fiscal year ..... is consistent with the
31 requirements of the Illinois Constitution, the
32 requirements of the Balanced Budget Act, and the policies
33 and priorities adopted by the General Assembly in forming
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1 the fiscal year ..... budget.
2 Section 1010. Definitions.
3 (a) For the purposes of this Act, the term "State
4 agency" is defined as in Section 1-7 of the Illinois
5 State Auditing Act. The term also includes circuit
6 courts and other judicial agencies that receive
7 appropriations of State funds.
8 (b) For the purposes of this Act, the term
9 "certifying officer" means:
10 (1) The Lieutenant Governor as to
11 appropriations made to that officer and as to
12 appropriations from which that officer is authorized
13 to approve expenditures under Section 10 of the
14 State Finance Act.
15 (2) The Attorney General as to appropriations
16 made to that officer and as to appropriations from
17 which that officer is authorized to approve
18 expenditures under Section 10 of the State Finance
19 Act.
20 (3) The Secretary of State as to
21 appropriations made to that officer and as to
22 appropriations from which that officer is authorized
23 to approve expenditures under Section 10 of the
24 State Finance Act.
25 (4) The Treasurer as to appropriations made to
26 that officer and as to appropriations from which
27 that officer is authorized to approve expenditures
28 under the State Finance Act.
29 (5) The Comptroller as to appropriations made
30 to that officer and as to appropriations from which
31 that officer is authorized to approve expenditures
32 under Section 10 of the State Finance Act.
33 (6) The Joint Committee on Legislative Support
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1 Services as to appropriations to the General
2 Assembly, the Auditor General, and the officers,
3 boards, commissions, bureaus, or agencies that are
4 part of the Legislative Branch of government.
5 (7) The Chief Justice of the Illinois Supreme
6 Court as to appropriations to State agencies that
7 are part of the Judicial Branch of government.
8 (8) The Governor as to appropriations made to
9 that officer and as to appropriations from which
10 that officer is authorized to approve expenditures
11 under Section 10 of the State Finance Act.
12 (9) The Governor in all other cases.
13 Section 1015. Designation of Balanced Budget
14 Reserves.
15 (a) Each certifying officer shall designate, by
16 appropriation and line item, amounts to be held in a
17 Balanced Budget Reserve from the amounts appropriated
18 from the General Revenue Fund, the Common School Fund,
19 and the Education Assistance Fund for State fiscal year
20 ..... to the State agencies for which he or she is the
21 certifying officer. The total amount to be designated
22 from each State agency by its certifying officer shall be
23 as follows:
24 State Agency Reserve
25 Legislative Agencies
26 General Assembly and legislative agencies $....
27 Judicial Agencies
28 Supreme Court $....
29 Judicial Inquiry Board $....
30 State Appellate Defender $....
31 State's
32 Attorneys Appellate Prosecutor $....
33 Constitutional Elected Officers
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1 Governor $....
2 Lieutenant Governor $....
3 Attorney General $....
4 Secretary of State $....
5 Comptroller $....
6 Treasurer $....
7 Departments
8 [List all code departments] $....
9 Other Agencies
10 [List all other State agencies] $....
11 Higher Education
12 [List all higher education agencies] $....
13 (b) No certifying officer shall designate amounts
14 to be held in a Balanced Budget Reserve from
15 appropriations for payment of salaries fixed by law for
16 State officers.
17 (c) The amounts held in a Balanced Budget Reserve
18 shall not be transferred, used, obligated, or otherwise
19 encumbered during fiscal year ....., including any time
20 allowed for payment of obligations after the end of the
21 fiscal year under Section 25 of the State Finance Act.
22 (d) Any periodic transfers or expenditures that are
23 based on amounts appropriated shall be reduced to
24 accommodate the Balanced Budget Reserves established
25 under this Act. Any necessary prorating of periodic
26 payments from the Common School Fund or the Education
27 Assistance Fund shall be distributed equally among the
28 remaining payments for fiscal year ......
29 (e) By March 1, ....., each certifying officer
30 shall notify the Comptroller of all amounts that he or
31 she has designated to be held in a Balanced Budget
32 Reserve. The notification shall include the total amount
33 and a complete list by line item.
34 (f) By March 15, ....., the Comptroller shall
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1 certify to the Governor, to the President and Minority
2 Leader of the Senate, and to the Speaker and Minority
3 Leader of the House of Representatives whether the
4 amounts designated by each certifying officer to be held
5 in a Balanced Budget Reserve equal the amounts required
6 under this Act.
7 (g) The designated Balanced Budget Reserves shall
8 take effect on April 1, ......
9 Section 1020. Authority to make reductions.
10 Notwithstanding any other Act to the contrary, each State
11 agency is authorized to limit, reduce or adjust services,
12 payment rates, expenditures, transfers and eligibility
13 criteria as necessary to implement Balanced Budget
14 Reserves under this Act, to the extent permitted by
15 federal law. Any such adjustment, reduction or
16 limitation shall expire on July 1, .....
17 Section 1025. Severability. Each of the provisions
18 of this Act, including the amendatory provisions, are
19 severable under Section 1.31 of the Statute on Statutes.
20 Section 1090. Repeal. This Act is repealed on
21 October 1, ......
22 Section 1099. Effective date. This Act takes
23 effect upon becoming law."
24 Section 90. The State Finance Act is amended by changing
25 Section 25 as follows:
26 (30 ILCS 105/25) (from Ch. 127, par. 161)
27 (Text of Section before amendment by P.A. 89-507)
28 Sec. 25. Fiscal year limitations.
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1 (a) All appropriations shall be available for
2 expenditure for the fiscal year or for a lesser period if the
3 Act making that appropriation so specifies. A deficiency or
4 emergency appropriation shall be available for expenditure
5 only through June 30 of the year when the Act making that
6 appropriation is enacted unless that Act otherwise provides.
7 (b) For fiscal years ending on or before June 30, 2002,
8 outstanding liabilities as of June 30, payable from
9 appropriations which have otherwise expired, may be paid out
10 of the expiring appropriations during the 2-month period
11 ending at the close of business on August 31. For fiscal
12 years ending on June 30, 2003 and all subsequent years,
13 outstanding liabilities as of June 30, payable from
14 appropriations that have otherwise expired, may be paid out
15 of the expiring appropriations during the one-month period
16 ending at the close of business on July 31. Any service
17 involving professional or artistic skills or any personal
18 services by an employee whose compensation is subject to
19 income tax withholding must be performed as of June 30 of the
20 fiscal year in order to be considered an "outstanding
21 liability as of June 30" that is thereby eligible for payment
22 out of the expiring appropriation.
23 However, payment of tuition reimbursement claims under
24 Section 14-7.03 or 18-3 of the School Code may be made by the
25 State Board of Education from its appropriations for those
26 respective purposes for any fiscal year, even though the
27 claims reimbursed by the payment may be claims attributable
28 to a prior fiscal year, and payments may be made at the
29 direction of the State Superintendent of Education from the
30 fund from which the appropriation is made without regard to
31 any fiscal year limitations.
32 Medical and child care payments may be made by the
33 Department of Public Aid from its appropriations for those
34 purposes for any fiscal year, without regard to the fact that
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1 the medical or child care services being compensated for by
2 such payment may have been rendered in a prior fiscal year;
3 and payments may be made at the direction of the Department
4 of Central Management Services from the Health Insurance
5 Reserve Fund and the Local Government Health Insurance
6 Reserve Fund without regard to any fiscal year limitations.
7 Additionally, payments may be made by the Department of
8 Public Aid from its appropriations, or any other State agency
9 from its appropriations with the approval of the Department
10 of Public Aid, from the Immigration Reform and Control Fund
11 for purposes authorized pursuant to the Immigration Reform
12 and Control Act of 1986, without regard to any fiscal year
13 limitations.
14 (c) Further, payments may be made by the Department of
15 Public Health from its appropriations for grants for medical
16 care to or on behalf of persons suffering from chronic renal
17 disease, persons suffering from hemophilia, rape victims, and
18 premature and high-mortality risk infants and their mothers
19 and for grants for supplemental food supplies provided under
20 the United States Department of Agriculture Women, Infants
21 and Children Nutrition Program, for any fiscal year without
22 regard to the fact that the services being compensated for by
23 such payment may have been rendered in a prior fiscal year.
24 (d) The Department of Public Health shall annually
25 submit to the State Comptroller, Senate President, Senate
26 Minority Leader, Speaker of the House, House Minority Leader,
27 and the respective Chairmen and Minority Spokesmen of the
28 Appropriations Committees of the Senate and the House, on or
29 before December 31, a report of fiscal year funds used to pay
30 for services provided in any prior fiscal year. This report
31 shall document by program or service category those
32 expenditures from the most recently completed fiscal year
33 used to pay for services provided in prior fiscal years.
34 (e) The Department of Public Aid shall annually submit
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1 to the State Comptroller, Senate President, Senate Minority
2 Leader, Speaker of the House, House Minority Leader, the
3 respective Chairmen and Minority Spokesmen of the
4 Appropriations Committees of the Senate and the House, on or
5 before November 30, a report that shall document by program
6 or service category those expenditures from the most recently
7 completed fiscal year used to pay for (i) services provided
8 in prior fiscal years and (ii) services for which claims were
9 received in prior fiscal years.
10 (f) The Department of Public Aid shall annually submit
11 to the State Comptroller, Senate President, Senate Minority
12 Leader, Speaker of the House, House Minority Leader, and the
13 respective Chairmen and Minority Spokesmen of the
14 Appropriations Committees of the Senate and the House, on or
15 before December 31, a report of fiscal year funds used to pay
16 for services (other than medical care) provided in any prior
17 fiscal year. This report shall document by program or
18 service category those expenditures from the most recently
19 completed fiscal year used to pay for services provided in
20 prior fiscal years.
21 (g) In addition, each annual report required to be
22 submitted by the Department of Public Aid under subsection
23 (e) shall include the following information with respect to
24 the State's Medicaid program:
25 (1) Explanations of the exact causes of the
26 variance between the previous year's estimated and actual
27 liabilities.
28 (2) Factors affecting the Department of Public
29 Aid's liabilities, including but not limited to numbers
30 of aid recipients, levels of medical service utilization
31 by aid recipients, and inflation in the cost of medical
32 services.
33 (3) The results of the Department's efforts to
34 combat fraud and abuse.
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1 (h) As provided in Section 4 of the General Assembly
2 Compensation Act, any utility bill for service provided to a
3 General Assembly member's district office for a period
4 including portions of 2 consecutive fiscal years may be paid
5 from funds appropriated for such expenditure in either fiscal
6 year.
7 (i) An agency which administers a fund classified by the
8 Comptroller as an internal service fund may issue rules for:
9 (1) billing user agencies in advance based on
10 estimated charges for goods or services;
11 (2) issuing credits during the subsequent fiscal
12 year for all user agency payments received during the
13 prior fiscal year which were in excess of the final
14 amounts owed by the user agency for that period; and
15 (3) issuing catch-up billings to user agencies
16 during the subsequent fiscal year for amounts remaining
17 due when payments received from the user agency during
18 the prior fiscal year were less than the total amount
19 owed for that period.
20 User agencies are authorized to reimburse internal service
21 funds for catch-up billings by vouchers drawn against their
22 respective appropriations for the fiscal year in which the
23 catch-up billing was issued.
24 (Source: P.A. 88-554, eff. 7-26-94; 88-575, eff. 8-12-94;
25 89-235, eff. 8-4-95; 89-511, eff. 1-1-97.)
26 (Text of Section after amendment by P.A. 89-507)
27 Sec. 25. Fiscal year limitations.
28 (a) All appropriations shall be available for
29 expenditure for the fiscal year or for a lesser period if the
30 Act making that appropriation so specifies. A deficiency or
31 emergency appropriation shall be available for expenditure
32 only through June 30 of the year when the Act making that
33 appropriation is enacted unless that Act otherwise provides.
34 (b) For fiscal years ending on or before June 30, 2002,
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1 outstanding liabilities as of June 30, payable from
2 appropriations which have otherwise expired, may be paid out
3 of the expiring appropriations during the 2-month period
4 ending at the close of business on August 31. For fiscal
5 years ending on June 30, 2003 and all subsequent years,
6 outstanding liabilities as of June 30, payable from
7 appropriations that have otherwise expired, may be paid out
8 of the expiring appropriations during the one-month period
9 ending at the close of business on July 31. Any service
10 involving professional or artistic skills or any personal
11 services by an employee whose compensation is subject to
12 income tax withholding must be performed as of June 30 of the
13 fiscal year in order to be considered an "outstanding
14 liability as of June 30" that is thereby eligible for payment
15 out of the expiring appropriation.
16 However, payment of tuition reimbursement claims under
17 Section 14-7.03 or 18-3 of the School Code may be made by the
18 State Board of Education from its appropriations for those
19 respective purposes for any fiscal year, even though the
20 claims reimbursed by the payment may be claims attributable
21 to a prior fiscal year, and payments may be made at the
22 direction of the State Superintendent of Education from the
23 fund from which the appropriation is made without regard to
24 any fiscal year limitations.
25 Medical payments may be made by the Department of Public
26 Aid and child care payments may be made by the Department of
27 Human Services (as successor to the Department of Public Aid)
28 from appropriations for those purposes for any fiscal year,
29 without regard to the fact that the medical or child care
30 services being compensated for by such payment may have been
31 rendered in a prior fiscal year; and payments may be made at
32 the direction of the Department of Central Management
33 Services from the Health Insurance Reserve Fund and the Local
34 Government Health Insurance Reserve Fund without regard to
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1 any fiscal year limitations.
2 Additionally, payments may be made by the Department of
3 Human Services from its appropriations, or any other State
4 agency from its appropriations with the approval of the
5 Department of Human Services, from the Immigration Reform and
6 Control Fund for purposes authorized pursuant to the
7 Immigration Reform and Control Act of 1986, without regard to
8 any fiscal year limitations.
9 (c) Further, payments may be made by the Department of
10 Public Health and the Department of Human Services (acting as
11 successor to the Department of Public Health under the
12 Department of Human Services Act) from their respective
13 appropriations for grants for medical care to or on behalf of
14 persons suffering from chronic renal disease, persons
15 suffering from hemophilia, rape victims, and premature and
16 high-mortality risk infants and their mothers and for grants
17 for supplemental food supplies provided under the United
18 States Department of Agriculture Women, Infants and Children
19 Nutrition Program, for any fiscal year without regard to the
20 fact that the services being compensated for by such payment
21 may have been rendered in a prior fiscal year.
22 (d) The Department of Public Health and the Department
23 of Human Services (acting as successor to the Department of
24 Public Health under the Department of Human Services Act)
25 shall each annually submit to the State Comptroller, Senate
26 President, Senate Minority Leader, Speaker of the House,
27 House Minority Leader, and the respective Chairmen and
28 Minority Spokesmen of the Appropriations Committees of the
29 Senate and the House, on or before December 31, a report of
30 fiscal year funds used to pay for services provided in any
31 prior fiscal year. This report shall document by program or
32 service category those expenditures from the most recently
33 completed fiscal year used to pay for services provided in
34 prior fiscal years.
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1 (e) The Department of Public Aid and the Department of
2 Human Services (acting as successor to the Department of
3 Public Aid) shall each annually submit to the State
4 Comptroller, Senate President, Senate Minority Leader,
5 Speaker of the House, House Minority Leader, the respective
6 Chairmen and Minority Spokesmen of the Appropriations
7 Committees of the Senate and the House, on or before November
8 30, a report that shall document by program or service
9 category those expenditures from the most recently completed
10 fiscal year used to pay for (i) services provided in prior
11 fiscal years and (ii) services for which claims were received
12 in prior fiscal years.
13 (f) The Department of Human Services (as successor to
14 the Department of Public Aid) shall annually submit to the
15 State Comptroller, Senate President, Senate Minority Leader,
16 Speaker of the House, House Minority Leader, and the
17 respective Chairmen and Minority Spokesmen of the
18 Appropriations Committees of the Senate and the House, on or
19 before December 31, a report of fiscal year funds used to pay
20 for services (other than medical care) provided in any prior
21 fiscal year. This report shall document by program or
22 service category those expenditures from the most recently
23 completed fiscal year used to pay for services provided in
24 prior fiscal years.
25 (g) In addition, each annual report required to be
26 submitted by the Department of Public Aid under subsection
27 (e) shall include the following information with respect to
28 the State's Medicaid program:
29 (1) Explanations of the exact causes of the
30 variance between the previous year's estimated and actual
31 liabilities.
32 (2) Factors affecting the Department of Public
33 Aid's liabilities, including but not limited to numbers
34 of aid recipients, levels of medical service utilization
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1 by aid recipients, and inflation in the cost of medical
2 services.
3 (3) The results of the Department's efforts to
4 combat fraud and abuse.
5 (h) As provided in Section 4 of the General Assembly
6 Compensation Act, any utility bill for service provided to a
7 General Assembly member's district office for a period
8 including portions of 2 consecutive fiscal years may be paid
9 from funds appropriated for such expenditure in either fiscal
10 year.
11 (i) An agency which administers a fund classified by the
12 Comptroller as an internal service fund may issue rules for:
13 (1) billing user agencies in advance based on
14 estimated charges for goods or services;
15 (2) issuing credits during the subsequent fiscal
16 year for all user agency payments received during the
17 prior fiscal year which were in excess of the final
18 amounts owed by the user agency for that period; and
19 (3) issuing catch-up billings to user agencies
20 during the subsequent fiscal year for amounts remaining
21 due when payments received from the user agency during
22 the prior fiscal year were less than the total amount
23 owed for that period.
24 User agencies are authorized to reimburse internal service
25 funds for catch-up billings by vouchers drawn against their
26 respective appropriations for the fiscal year in which the
27 catch-up billing was issued.
28 (Source: P.A. 88-554, eff. 7-26-94; 88-575, eff. 8-12-94;
29 89-235, eff. 8-4-95; 89-507, eff. 7-1-97; 89-511, eff.
30 1-1-97; revised 9-10-96.)
31 Section 95. No acceleration or delay. Where this Act
32 makes changes in a statute that is represented in this Act by
33 text that is not yet or no longer in effect (for example, a
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1 Section represented by multiple versions), the use of that
2 text does not accelerate or delay the taking effect of (i)
3 the changes made by this Act or (ii) provisions derived from
4 any other Public Act.
5 Section 999. Effective date. This Act takes effect upon
6 becoming law.