Illinois-2023-HB4949-Introduced

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4949

Introduced , by Rep. Tim Ozinga

SYNOPSIS AS INTRODUCED:

15 ILCS 20/50-5

Amends the Budget Law of the Civil Administrative Code of Illinois. Provides that, beginning with budgets prepared for fiscal year 2026, revenue estimates shall be based solely on receipts from taxes, fees, and federal transfers and shall not include debt incurred, existing debt refinanced, or additional funds appropriated, assigned, or transferred from another fund. Provides that appropriations for a fiscal year shall not exceed revenue estimated by the General Assembly to be available during that year. Provides that, except for deficiency or emergency appropriations, all appropriations are expendable only during the fiscal year for which they were appropriated, except that the General Assembly may provide for appropriations from the Budget Stabilization Fund in excess of revenue estimated by the General Assembly to be available during that year by adoption of a resolution approved by a record vote of three-fifths of the members of each chamber. Provides that the excess appropriations may not exceed the total amount available in the Budget Stabilization Fund. Provides that no public money shall be expended except pursuant to appropriations made by law. Provides that expenditures for any fiscal year shall not exceed the State's revenues and reserves in the general funds, including proceeds of any debt obligation, for that year. Provides that no debt obligation, except as shall be repaid within the fiscal year of issuance, shall be authorized for the current operation of any service or program, nor shall the proceeds of any debt obligation be expended for a purpose other than that for which it was authorized. Provides that any law requiring the expenditure of funds shall be null and void unless, during the session in which the Act receives final passage, an appropriation is made for the estimated first year's funding. Effective immediately.

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A BILL FOR

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1 AN ACT concerning government.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Budget Law of the Civil Administrative Code

5 of Illinois is amended by changing Section 50-5 as follows:

6 (15 ILCS 20/50-5)

7 Sec. 50-5. Governor to submit State budget.

8 (a) The Governor shall, as soon as possible and not later

9 than the second Wednesday in March in 2010 (March 10, 2010),

10 the third Wednesday in February in 2011, the fourth Wednesday

11 in February in 2012 (February 22, 2012), the first Wednesday

12 in March in 2013 (March 6, 2013), the fourth Wednesday in March

13 in 2014 (March 26, 2014), the first Wednesday in February in

14 2022 (February 2, 2022), and the third Wednesday in February

15 of each year thereafter, except as otherwise provided in this

16 Section, submit a State budget, embracing therein the amounts

17 recommended by the Governor to be appropriated to the

18 respective departments, offices, and institutions, and for all

19 other public purposes, the estimated revenues from taxation,

20 and the estimated revenues from sources other than taxation.

21 Except with respect to the capital development provisions of

22 the State budget, beginning with the revenue estimates

23 prepared for fiscal year 2012, revenue estimates shall be

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1 based solely on: (i) revenue sources (including non-income

2 resources), rates, and levels that exist as of the date of the

3 submission of the State budget for the fiscal year and (ii)

4 revenue sources (including non-income resources), rates, and

5 levels that have been passed by the General Assembly as of the

6 date of the submission of the State budget for the fiscal year

7 and that are authorized to take effect in that fiscal year.

8 Except with respect to the capital development provisions of

9 the State budget, the Governor shall determine available

10 revenue, deduct the cost of essential government services,

11 including, but not limited to, pension payments and debt

12 service, and assign a percentage of the remaining revenue to

13 each statewide prioritized goal, as established in Section

14 50-25 of this Law, taking into consideration the proposed

15 goals set forth in the report of the Commission established

16 under that Section. The Governor shall also demonstrate how

17 spending priorities for the fiscal year fulfill those

18 statewide goals. The amounts recommended by the Governor for

19 appropriation to the respective departments, offices and

20 institutions shall be formulated according to each

21 department's, office's, and institution's ability to

22 effectively deliver services that meet the established

23 statewide goals. The amounts relating to particular functions

24 and activities shall be further formulated in accordance with

25 the object classification specified in Section 13 of the State

26 Finance Act. In addition, the amounts recommended by the

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1 Governor for appropriation shall take into account each State

2 agency's effectiveness in achieving its prioritized goals for

3 the previous fiscal year, as set forth in Section 50-25 of this

4 Law, giving priority to agencies and programs that have

5 demonstrated a focus on the prevention of waste and the

6 maximum yield from resources.

7 Beginning in fiscal year 2011, the Governor shall

8 distribute written quarterly financial reports on operating

9 funds, which may include general, State, or federal funds and

10 may include funds related to agencies that have significant

11 impacts on State operations, and budget statements on all

12 appropriated funds to the General Assembly and the State

13 Comptroller. The reports shall be submitted no later than 45

14 days after the last day of each quarter of the fiscal year and

15 shall be posted on the Governor's Office of Management and

16 Budget's website on the same day. The reports shall be

17 prepared and presented for each State agency and on a

18 statewide level in an executive summary format that may

19 include, for the fiscal year to date, individual itemizations

20 for each significant revenue type as well as itemizations of

21 expenditures and obligations, by agency, with an appropriate

22 level of detail. The reports shall include a calculation of

23 the actual total budget surplus or deficit for the fiscal year

24 to date. The Governor shall also present periodic budget

25 addresses throughout the fiscal year at the invitation of the

26 General Assembly.

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1 The Governor shall not propose expenditures and the

2 General Assembly shall not enact appropriations that exceed

3 the resources estimated to be available, as provided in this

4 Section. Appropriations may be adjusted during the fiscal year

5 by means of one or more supplemental appropriation bills if

6 any State agency either fails to meet or exceeds the goals set

7 forth in Section 50-25 of this Law.

8 For the purposes of Article VIII, Section 2 of the 1970

9 Illinois Constitution, the State budget for the following

10 funds shall be prepared on the basis of revenue and

11 expenditure measurement concepts that are in concert with

12 generally 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

20 revenue estimates used in the State budget for the budgeted

21 funds shall include the estimated beginning fund balance, plus

22 revenues estimated to be received during the budgeted year,

23 plus the estimated receipts due the State as of June 30 of the

24 budgeted year that are expected to be collected during the

25 lapse period following the budgeted year, minus the receipts

26 collected during the first 2 months of the budgeted year that

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1 became due to the State in the year before the budgeted year.

2 Revenues shall also include estimated federal reimbursements

3 associated with the recognition of Section 25 of the State

4 Finance Act liabilities. For any budgeted fund for which

5 current year revenues are anticipated to exceed expenditures,

6 the surplus shall be considered to be a resource available for

7 expenditure in the budgeted fiscal year.

8 Expenditure estimates for the budgeted funds included in

9 the State budget shall include the costs to be incurred by the

10 State for the budgeted year, to be paid in the next fiscal

11 year, excluding costs paid in the budgeted year which were

12 carried over from the prior year, where the payment is

13 authorized by Section 25 of the State Finance Act. For any

14 budgeted fund for which expenditures are expected to exceed

15 revenues in the current fiscal year, the deficit shall be

16 considered as a use of funds in the budgeted fiscal year.

17 Revenues and expenditures shall also include transfers

18 between funds that are based on revenues received or costs

19 incurred during the budget year.

20 Appropriations for expenditures shall also include all

21 anticipated statutory continuing appropriation obligations

22 that are expected to be incurred during the budgeted fiscal

23 year.

24 By March 15 of each year, the Commission on Government

25 Forecasting and Accountability shall prepare revenue and fund

26 transfer estimates in accordance with the requirements of this

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1 Section and report those estimates to the General Assembly and

2 the Governor.

3 For all funds other than the budgeted funds, the proposed

4 expenditures shall not exceed funds estimated to be available

5 for the fiscal year as shown in the budget. Appropriation for a

6 fiscal year shall not exceed funds estimated by the General

7 Assembly to be available during that year.

8 (b) By February 24, 2010, the Governor must file a written

9 report with the Secretary of the Senate and the Clerk of the

10 House of Representatives containing the following:

11 (1) for fiscal year 2010, the revenues for all

12 budgeted funds, both actual to date and estimated for the

13 full fiscal year;

14 (2) for fiscal year 2010, the expenditures for all

15 budgeted funds, both actual to date and estimated for the

16 full fiscal year;

17 (3) for fiscal year 2011, the estimated revenues for

18 all budgeted funds, including without limitation the

19 affordable General Revenue Fund appropriations, for the

20 full fiscal year; and

21 (4) for fiscal year 2011, an estimate of the

22 anticipated liabilities for all budgeted funds, including

23 without limitation the affordable General Revenue Fund

24 appropriations, debt service on bonds issued, and the

25 State's contributions to the pension systems, for the full

26 fiscal year.

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1 Between July 1 and August 31 of each fiscal year, the

2 members of the General Assembly and members of the public may

3 make written budget recommendations to the Governor.

4 Beginning with budgets prepared for fiscal year 2013, the

5 budgets submitted by the Governor and appropriations made by

6 the General Assembly for all executive branch State agencies

7 must adhere to a method of budgeting where each priority must

8 be justified each year according to merit rather than

9 according to the amount appropriated for the preceding year.

10 (c) Beginning with budgets prepared for fiscal year 2026:

11 (1) Revenue estimates shall be based solely on

12 receipts from taxes, fees, and federal transfers and shall

13 not include debt incurred, existing debt refinanced, or

14 additional funds appropriated, assigned, or transferred

15 from another fund.

16 (2) The General Assembly by law shall make

17 appropriations for all expenditures of public funds by the

18 State. Appropriations for a fiscal year shall not exceed

19 revenue estimated by the General Assembly to be available

20 during that year. Except for deficiency or emergency

21 appropriations, all appropriations are expendable only

22 during the fiscal year for which they were appropriated,

23 except that the General Assembly may provide for

24 appropriations from the Budget Stabilization Fund in

25 excess of revenue estimated by the General Assembly to be

26 available during that year by adoption of a resolution

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1 approved by a record vote of three-fifths of the members

2 of each chamber. The excess appropriations may not exceed

3 the total amount available in the Budget Stabilization

4 Fund.

5 (3) No public money shall be expended except pursuant

6 to appropriations made by law. Expenditures for any fiscal

7 year shall not exceed the State's revenues and reserves in

8 the general funds, including proceeds of any debt

9 obligation, for that year. No debt obligation, except as

10 shall be repaid within the fiscal year of issuance, shall

11 be authorized for the current operation of any service or

12 program, nor shall the proceeds of any debt obligation be

13 expended for a purpose other than that for which it was

14 authorized.

15 (4) Any law requiring the expenditure of funds shall

16 be null and void unless, during the session in which the

17 Act receives final passage, an appropriation is made for

18 the estimated first year's funding.

19 (Source: P.A. 102-671, eff. 11-30-21.)