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90_HB0499
New Act
20 ILCS 3005/2.8 new
Creates the Zero-Based Budget Act. Provides that,
beginning with the FY99 budget, the Governor's executive
budget shall include a financial plan containing specified
elements. Provides that 10% of the "budget units" in the
budget shall be prepared on a "zero base". Provides that the
Bureau of the Budget shall develop forms for presentation of
zero-based budgets. Provides for legislative oversight of
zero-based budgeting. Amends the Bureau of the Budget Act to
require the Bureau of the Budget to carry out its duties
under the Zero-Based Budget Act. Effective immediately.
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1 AN ACT to create the Zero-Based Budget Act.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Zero-Based Budget Act.
6 Section 5. Executive budget; financial plan.
7 (a) Beginning with the executive budget to be presented
8 for the 1998-99 fiscal year, as more specifically provided in
9 subsection (c) of this Section, the executive budget shall
10 present a complete financial plan for the ensuing year. It
11 shall include:
12 (1) A budget message signed by the Governor,
13 providing a summary of his or her estimate of revenue,
14 the names of the budget units for which a complete
15 zero-based review was accomplished, the savings,
16 reductions in personnel, and consolidation of functions
17 to be accomplished as a result of that review, and a
18 statement of the new programs and functions the Governor
19 proposes for the ensuing year.
20 (2) For each budget unit, detailed statements
21 identifying all substantial aspects of agency operations,
22 priorities, and activities, to specifically include:
23 (A) a description of the objectives of each
24 program;
25 (B) a description of the activities that are
26 intended to accomplish each objective;
27 (C) indicators of quantity and quality of
28 performance of these activities;
29 (D) a ranking of these activities by
30 priority;
31 (E) the level of effort required to accomplish
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1 each activity in terms of funds and personnel; and
2 (F) a statement of the effect of funding each
3 activity at 70% of its current level.
4 (3) A summary statement incorporating the
5 information in paragraph (2) for the current and 3 prior
6 fiscal years for each budget unit and detailed statements
7 of the sources of funding for all fiscal years presented.
8 (4) A presentation of the actual measurements used
9 to determine standards of performance and effectiveness
10 of functions for each activity of each program of each
11 budget unit for which an appropriation is made in the
12 current year. An accompanying statement shall be
13 provided demonstrating the validity of the measurements
14 in assessing the performance and effectiveness of those
15 activities.
16 (5) A statement for each activity that separately
17 states the cost of administering that activity and the
18 cost of providing the services or benefits by engaging in
19 that activity. This shall be done for the request year
20 only. For the current and prior years a comparison of
21 the actual and estimated administrative costs shall be
22 provided.
23 (6) A statement of the cash and accrued liabilities
24 of the General Revenue Fund and each special fund from
25 which appropriations have been or are proposed to be
26 made.
27 (7) A statement of the total authorized bonded debt
28 of the State, the outstanding bonded indebtedness of the
29 State, and the annual cost of the debt service on the
30 bonds.
31 (b) Each budget unit shall receive a separate
32 appropriation. The format of the general appropriations bill
33 shall reflect the change to a zero-based budget format. The
34 bill shall reflect separate expenditure categories for each
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1 budget unit.
2 (c) To provide for the orderly implementation of
3 zero-based budgeting in this State during the 1998-99 fiscal
4 year, 10% of the budget units included in the executive
5 budget shall be prepared and submitted on a zero base as
6 provided in this Section. The Bureau of the Budget shall
7 determine which agencies shall so prepare and submit their
8 budget requests, and the executive budget shall present the
9 budgets of those agencies on a zero base. In selecting the
10 agencies, the Bureau of the Budget shall include at least one
11 agency in each of the following categories: (i)
12 constitutional agencies; (ii) agencies with multiple means of
13 financing; and (iii) agencies with a complex program
14 structure. The executive budget for the 1998-99 fiscal year
15 shall be modified to reflect the changes to a zero-based
16 budget to the extent provided in this subsection. For the
17 1999-2000 fiscal year the executive budget shall be prepared
18 and submitted for at least 50% of the budget units in
19 accordance with this Section and format, and for all fiscal
20 years thereafter the executive budget shall be prepared and
21 submitted in accordance with the format outlined in this Act.
22 (d) The Governor shall submit the executive budget to
23 the General Assembly at the time required for submission of
24 the State budget under Section 38 of the Civil Administrative
25 Code of Illinois.
26 Section 10. Forms for presentation of a zero-based
27 budget.
28 (a) Beginning with the forms for budget estimates for
29 the budget for the 1998-99 fiscal year, the Bureau of the
30 Budget shall prescribe the forms to be used by each budget
31 unit to present a zero-based budget. Before preparing and
32 modifying the forms, the Bureau of the Budget shall consult
33 with the chairpersons of the Appropriations Committees of the
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1 respective houses of the General Assembly as to the format
2 and contents of the forms and shall consider any suggestions
3 regarding the forms.
4 (b) On or before October 15 of each year the Bureau of
5 the Budget shall transmit to each budget unit a complete set
6 of forms to be used by the budget unit to present a
7 zero-based budget. The Bureau of the Budget shall include
8 instructions on the proper method of completing the forms and
9 shall provide consultation as requested by any budget unit on
10 the establishment of measurements used to determine standards
11 of performance and effectiveness of functions for each agency
12 activity.
13 (c) To provide for the orderly implementation of
14 zero-based budgeting in Illinois, the forms for budget
15 estimates for the 1998-99 and 1999-2000 fiscal years for the
16 agencies selected in accordance with subsection (c) of
17 Section 5 shall be prepared and submitted to those agencies
18 as provided in this Section and those for all other agencies
19 shall be prepared and submitted as in fiscal year 1997-98.
20 Section 15. Submission of budget statements.
21 (a) The head of each budget unit and of each spending
22 agency of the State shall at a date set by the Bureau of the
23 Budget, but not later than December 15 in each year, submit
24 to the Governor estimates of the financial requirements and
25 of the receipts of the budget unit for the year, on the forms
26 and in the manner prescribed and accompanied by such other
27 data as may be required, together with such additional
28 information as the Governor may request.
29 (b) If any budget unit fails to submit its budget
30 statement on or before December 15 in any year, the Director
31 of the Bureau of the Budget shall prepare a budget statement
32 for the delinquent budget unit, and the budget request
33 included in a budget statement prepared by the Director of
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1 the Bureau of the Budget may not exceed the amount of the
2 appropriation for that budget unit for the previous year.
3 (c) Not later than January 1 of each year, the Director
4 of the Bureau of the Budget shall submit to the President of
5 the Senate and the Speaker of the House of Representatives a
6 copy of the budget statement prepared by each budget unit.
7 The presiding officers shall immediately refer the budget
8 statements to the standing committees having jurisdiction
9 over the respective budget units. The standing committees of
10 each house to which the budget statement of a given budget
11 unit are referred shall then meet jointly to review the
12 proposed budget. Not later than February 15, the joint
13 committee shall submit its recommendations to the Bureau of
14 the Budget.
15 (d) This Section applies to all budget units in the
16 State on and after the effective date of this Act.
17 Section 20. Legislative oversight.
18 (a) To provide for legislative oversight of the budget
19 process and to assist the General Assembly in obtaining
20 information necessary to the legislative appropriation
21 process, the General Assembly hereby establishes procedures
22 for legislative oversight of zero-based budgeting.
23 (b) The Appropriations Committees of the General
24 Assembly shall be responsible for ensuring implementation of
25 zero-based budgeting by all budget units of the State. The
26 committees shall review the proposals of the Bureau of the
27 Budget for implementing zero-based budgeting and shall hold
28 hearings with budget units on the development and
29 implementation of zero-based budgeting.
30 (c) The Bureau of the Budget shall cooperate fully with
31 the appropriations committees to assist in carrying out the
32 responsibility imposed by this Section and shall provide the
33 committees with such information as they may request
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1 concerning the development and implementation of zero-based
2 budgeting.
3 Section 95. The Bureau of the Budget Act is amended by
4 adding Section 2.8 as follows:
5 (20 ILCS 3005/2.8 new)
6 Sec. 2.8. Zero-Based Budget Act. To exercise the powers
7 and perform the duties assigned to the Bureau under the
8 Zero-Based Budget Act.
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.