Illinois General Assembly - Full Text of Public Act 093-0660


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<Head><Title> Public Act 93-0660 of the 93rd General Assembly</Title></Head>
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<strong>
Public Act 93-0660
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SB867 Enrolled                       LRB093 02854 RCE 02870 b

    AN ACT in relation to the State Comptroller.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  1.  Short  title.  This  Act may be cited as the
Budget Stabilization Act.

    Section  5.  Budget  Stabilization   Fund.   The   Budget
Stabilization  Fund  is  a special fund in the State treasury
established for the purpose of reducing the need  for  future
tax  increases, maintaining the highest possible bond rating,
reducing  the  need  for  short  term  borrowing,   providing
available resources to meet State obligations whenever casual
deficits  or  failures  in  revenue  occur, and providing the
means of  addressing  budgetary  shortfalls.  In  authorizing
transfers   from  the  Budget  Stabilization  Fund,  whenever
possible, priority consideration should be given  to  meeting
obligations  for  secondary  and  elementary education, child
care, and other programs that may provide a direct benefit to
children.

    Section 10. Budget limitations.
    (a) In addition to Section 50-5 of the State  Budget  Law
of  the  Civil  Administrative  Code of Illinois, the General
Assembly's appropriations  and  transfers  or  diversions  as
required  by law from general funds shall not exceed 99.5% of
the estimated general funds revenues for the fiscal year when
revenue estimates  of  the  State's  general  funds  revenues
exceed  the  prior  fiscal  year's  estimated  general  funds
revenues by more than 4%.
    (b)  The  General Assembly's appropriations and transfers
or diversions as required by law from general funds shall not
exceed 99% of the estimated general funds  revenues  for  the
fiscal  year  when  revenue  estimates of the State's general
funds revenues  exceed  the  prior  fiscal  year's  estimated
general  funds  revenues  by  more  than  4%  for  2  or more
consecutive fiscal years.
    (c) For the purpose of this Act, "estimated general funds
revenues" include, for each budget year, all taxes, fees, and
other revenues expected to  be  deposited  into  the  State's
general funds, including recurring transfers from other State
funds into the general funds.
    Year-over-year   comparisons   used   to   determine  the
percentage growth factor of estimated general funds  revenues
shall exclude the sum of the following: (i) expected revenues
resulting from new taxes or fees or from tax or fee increases
during  the  first year of the change, (ii) expected revenues
resulting from one-time receipts or  non-recurring  transfers
in,  (iii)  expected  proceeds  resulting from borrowing, and
(iv) increases in federal  grants  that  must  be  completely
appropriated based on the terms of the grants.

    Section  15.  Transfers  to Budget Stabilization Fund. In
furtherance  of  the  State's  objective   for   the   Budget
Stabilization  Fund  to have resources representing 5% of the
State's annual general funds revenues:
    (a) For each fiscal  year  when  the  General  Assembly's
appropriations and transfers or diversions as required by law
from  general  funds  do  not  exceed  99.5% of the estimated
general funds revenues pursuant to subsection (a) of  Section
10,  the  Comptroller shall transfer from the General Revenue
Fund as provided by this Section a total amount equal to  .5%
of  the  estimated  general  funds  revenues  to  the  Budget
Stabilization Fund.
    (b)  For  each  fiscal  year  when the General Assembly's
appropriations and transfers or diversions as required by law
from general funds do not exceed 99% of the estimated general
funds revenues pursuant to subsection (b) of Section 10,  the
Comptroller  shall  transfer from the General Revenue Fund as
provided by this Section a total amount equal to  1%  of  the
estimated  general funds revenues to the Budget Stabilization
Fund.
    (c) The Comptroller shall  transfer  1/12  of  the  total
amount  to be transferred each fiscal year under this Section
into the Budget Stabilization Fund on the first day  of  each
month  of that fiscal year or as soon thereafter as possible.
The balance of the Budget Stabilization Fund shall not exceed
5% of the total of general funds revenues estimated for  that
fiscal  year  except  as  provided  by subsection (d) of this
Section.
    (d) If the  balance  of  the  Budget  Stabilization  Fund
exceeds  5% of the total general funds revenues estimated for
that fiscal year, the additional transfers are  not  required
unless  there are outstanding liabilities under Section 25 of
the State Finance Act from prior fiscal years. If  there  are
such outstanding Section 25 liabilities, then the Comptroller
shall   continue   to  transfer  1/12  of  the  total  amount
identified for transfer to the Budget Stabilization  Fund  on
the  first  day  of each month of that fiscal year or as soon
thereafter as possible to be reserved for  those  Section  25
liabilities.  Nothing  in  this  Act  prohibits  the  General
Assembly from appropriating additional moneys into the Budget
Stabilization Fund.
    (e)  On  or  before  August  31  of each fiscal year, the
amount  determined  to   be   transferred   to   the   Budget
Stabilization  Fund  shall  be  reconciled  to actual general
funds revenues for that fiscal year. The final  transfer  for
each  fiscal  year  shall  be  adjusted  so  that  the amount
transferred  is  equal  to  the   percentage   specified   in
subsection  (a)  or  (b)  of  Section  10  of  this  Act,  as
applicable, based on actual general funds revenues calculated
consistently  with  subsection  (c) of Section 10 of this Act
for each fiscal year.
    (f)  For the fiscal year beginning July 1, 2006  and  for
each  fiscal  year  thereafter,  the  budget  proposal to the
General Assembly shall identify  liabilities  incurred  in  a
prior  fiscal  year under Section 25 of the State Finance Act
and the budget proposal shall provide  funding  as  allowable
pursuant to subsection (d) of this Section, if applicable.

    Section 90.  The State Finance Act is amended by changing
Section 6z-51 as follows:

    (30 ILCS 105/6z-51)
    Sec. 6z-51. Budget Stabilization Fund.
    (a)  The Budget Stabilization Fund, a special fund in the
State  Treasury,  shall  consist  of  moneys  appropriated or
transferred to that Fund, as provided in Section 6z-43 and as
otherwise  provided  by   law.   <u>All   earnings   on   Budget</u>
<u>Stabilization  Fund  investments shall be deposited into that</u>
<u>Fund.</u>
    (b)  The State Comptroller may direct the State Treasurer
to transfer moneys from the Budget Stabilization Fund to  the
General  Revenue  Fund  in  order  to meet <u>cash flow</u> deficits
resulting from timing variations  between  disbursements  and
the  receipt  of  funds  within a fiscal year.  Any moneys so
borrowed shall be repaid by June 30 of  the  fiscal  year  in
which they were borrowed.
(Source: P.A. 92-11, eff. 6-11-01; 92-651, eff. 7-11-02.)

    Section  99.  Effective date.  This Act takes effect July
1, 2004.
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<br><div class="content"><b>Effective Date:  </b>7/1/2004</div><p>
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