Bill Text: IL HB3174 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the State Budget Law of the Civil Administrative Code. Provides that, beginning with the budget prepared for Fiscal Year 2025, the rate of growth of appropriations from the State general funds over the preceding fiscal year appropriations from the State general funds shall not exceed the rate of growth of the Illinois economy. Provides that the rate of growth of the Illinois economy is the compound annual growth rate of the gross domestic product in the State over the preceding 10 calendar years, calculated using data reported by the United States Bureau of Economic Analysis or its successor agency before December 31 immediately preceding the beginning of the applicable fiscal year.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2023-02-17 - Referred to Rules Committee [HB3174 Detail]

Download: Illinois-2023-HB3174-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3174 Introduced , by Rep. John Egofske SYNOPSIS AS INTRODUCED:
15 ILCS 20/50-5
Amends the State Budget Law of the Civil Administrative Code. Provides that, beginning with the budget prepared for Fiscal Year 2025, the rate of growth of appropriations from the State general funds over the preceding fiscal year appropriations from the State general funds shall not exceed the rate of growth of the Illinois economy. Provides that the rate of growth of the Illinois economy is the compound annual growth rate of the gross domestic product in the State over the preceding 10 calendar years, calculated using data reported by the United States Bureau of Economic Analysis or its successor agency before December 31 immediately preceding the beginning of the applicable fiscal year.
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A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Budget Law of the Civil
Administrative Code of Illinois is amended by changing Section
50-5 as follows:
(15 ILCS 20/50-5)
Sec. 50-5. Governor to submit State budget.
(a) The Governor shall, as soon as possible and not later
than the second Wednesday in March in 2010 (March 10, 2010),
the third Wednesday in February in 2011, the fourth Wednesday
in February in 2012 (February 22, 2012), the first Wednesday
in March in 2013 (March 6, 2013), the fourth Wednesday in March
in 2014 (March 26, 2014), the first Wednesday in February in
2022 (February 2, 2022), and the third Wednesday in February
of each year thereafter, except as otherwise provided in this
Section, submit a State budget, embracing therein the amounts
recommended by the Governor to be appropriated to the
respective departments, offices, and institutions, and for all
other public purposes, the estimated revenues from taxation,
and the estimated revenues from sources other than taxation.
Except with respect to the capital development provisions of
the State budget, beginning with the revenue estimates

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prepared for fiscal year 2012, revenue estimates shall be
based solely on: (i) revenue sources (including non-income
resources), rates, and levels that exist as of the date of the
submission of the State budget for the fiscal year and (ii)
revenue sources (including non-income resources), rates, and
levels that have been passed by the General Assembly as of the
date of the submission of the State budget for the fiscal year
and that are authorized to take effect in that fiscal year.
Except with respect to the capital development provisions of
the State budget, the Governor shall determine available
revenue, deduct the cost of essential government services,
including, but not limited to, pension payments and debt
service, and assign a percentage of the remaining revenue to
each statewide prioritized goal, as established in Section
50-25 of this Law, taking into consideration the proposed
goals set forth in the report of the Commission established
under that Section. The Governor shall also demonstrate how
spending priorities for the fiscal year fulfill those
statewide goals. The amounts recommended by the Governor for
appropriation to the respective departments, offices and
institutions shall be formulated according to each
department's, office's, and institution's ability to
effectively deliver services that meet the established
statewide goals. The amounts relating to particular functions
and activities shall be further formulated in accordance with
the object classification specified in Section 13 of the State

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

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

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collected during the first 2 months of the budgeted year that
became due to the State in the year before the budgeted year.
Revenues shall also include estimated federal reimbursements
associated with the recognition of Section 25 of the State
Finance Act liabilities. For any budgeted fund for which
current year revenues are anticipated to exceed expenditures,
the surplus shall be considered to be a resource available for
expenditure in the budgeted fiscal year.
Expenditure estimates for the budgeted funds included in
the State budget shall include the costs to be incurred by the
State for the budgeted year, to be paid in the next fiscal
year, excluding costs paid in the budgeted year which were
carried over from the prior year, where the payment is
authorized by Section 25 of the State Finance Act. For any
budgeted fund for which expenditures are expected to exceed
revenues in the current fiscal year, the deficit shall be
considered as a use of funds in the budgeted fiscal year.
Revenues and expenditures shall also include transfers
between funds that are based on revenues received or costs
incurred during the budget year.
Appropriations for expenditures shall also include all
anticipated statutory continuing appropriation obligations
that are expected to be incurred during the budgeted fiscal
year.
By March 15 of each year, the Commission on Government
Forecasting and Accountability shall prepare revenue and fund

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transfer estimates in accordance with the requirements of this
Section and report those estimates to the General Assembly and
the Governor.
For all funds other than the budgeted funds, the proposed
expenditures shall not exceed funds estimated to be available
for the fiscal year as shown in the budget. Appropriation for a
fiscal year shall not exceed funds estimated by the General
Assembly to be available during that year.
Beginning with the budget prepared for Fiscal Year 2025,
the rate of growth of appropriations from the State general
funds over the preceding fiscal year appropriations from the
State general funds shall not exceed the rate of growth of the
Illinois economy. For the purposes of this Section, the rate
of growth of the Illinois economy is the compound annual
growth rate of the gross domestic product in the State over the
preceding 10 calendar years, calculated using data reported by
the United States Bureau of Economic Analysis or its successor
agency before December 31 immediately preceding the beginning
of the applicable fiscal year.
(b) By February 24, 2010, the Governor must file a written
report with the Secretary of the Senate and the Clerk of the
House of Representatives containing the following:
(1) for fiscal year 2010, the revenues for all
budgeted funds, both actual to date and estimated for the
full fiscal year;
(2) for fiscal year 2010, the expenditures for all

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budgeted funds, both actual to date and estimated for the
full fiscal year;
(3) for fiscal year 2011, the estimated revenues for
all budgeted funds, including without limitation the
affordable General Revenue Fund appropriations, for the
full fiscal year; and
(4) for fiscal year 2011, an estimate of the
anticipated liabilities for all budgeted funds, including
without limitation the affordable General Revenue Fund
appropriations, debt service on bonds issued, and the
State's contributions to the pension systems, for the full
fiscal year.
Between July 1 and August 31 of each fiscal year, the
members of the General Assembly and members of the public may
make written budget recommendations to the Governor.
Beginning with budgets prepared for fiscal year 2013, the
budgets submitted by the Governor and appropriations made by
the General Assembly for all executive branch State agencies
must adhere to a method of budgeting where each priority must
be justified each year according to merit rather than
according to the amount appropriated for the preceding year.
(Source: P.A. 102-671, eff. 11-30-21.)