102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB0589

Introduced 2/24/2021, by Sen. Suzy Glowiak Hilton

SYNOPSIS AS INTRODUCED: 15 ILCS 20/50-5

Amends the State Budget Law of the Civil Administrative Code of Illinois. Provides that beginning with the budget prepared for fiscal year 2022, the rate of growth of general funds appropriations shall not exceed the rate of growth of the Illinois median household income. Defines "rate of growth of the Illinois median household income". Effective immediately. LRB102 11567 RJF 16901 b

A BILL FOR

SB0589LRB102 11567 RJF 16901 b 1 AN ACT concerning State government. 2 Be it enacted by the People of the State of Illinois, 3represented in the General Assembly: 4 Section 5. The State Budget Law of the Civil 5Administrative Code of Illinois is amended by changing Section 650-5 as follows: 7 (15 ILCS 20/50-5)8 Sec. 50-5. Governor to submit State budget. 9 (a) The Governor shall, as soon as possible and not later 10than the second Wednesday in March in 2010 (March 10, 2010), 11the third Wednesday in February in 2011, the fourth Wednesday 12in February in 2012 (February 22, 2012), the first Wednesday 13in March in 2013 (March 6, 2013), the fourth Wednesday in March 14in 2014 (March 26, 2014), and the third Wednesday in February 15of each year thereafter, except as otherwise provided in this 16Section, submit a State budget, embracing therein the amounts 17recommended by the Governor to be appropriated to the 18respective departments, offices, and institutions, and for all 19other public purposes, the estimated revenues from taxation, 20and the estimated revenues from sources other than taxation. 21Except with respect to the capital development provisions of 22the State budget, beginning with the revenue estimates 23prepared for fiscal year 2012, revenue estimates shall be

SB0589- 2 -LRB102 11567 RJF 16901 b 1based solely on: (i) revenue sources (including non-income 2resources), rates, and levels that exist as of the date of the 3submission of the State budget for the fiscal year and (ii) 4revenue sources (including non-income resources), rates, and 5levels that have been passed by the General Assembly as of the 6date of the submission of the State budget for the fiscal year 7and that are authorized to take effect in that fiscal year. 8Except with respect to the capital development provisions of 9the State budget, the Governor shall determine available 10revenue, deduct the cost of essential government services, 11including, but not limited to, pension payments and debt 12service, and assign a percentage of the remaining revenue to 13each statewide prioritized goal, as established in Section 1450-25 of this Law, taking into consideration the proposed 15goals set forth in the report of the Commission established 16under that Section. The Governor shall also demonstrate how 17spending priorities for the fiscal year fulfill those 18statewide goals. The amounts recommended by the Governor for 19appropriation to the respective departments, offices and 20institutions shall be formulated according to each 21department's, office's, and institution's ability to 22effectively deliver services that meet the established 23statewide goals. The amounts relating to particular functions 24and activities shall be further formulated in accordance with 25the object classification specified in Section 13 of the State 26Finance Act. In addition, the amounts recommended by the

SB0589- 3 -LRB102 11567 RJF 16901 b 1Governor for appropriation shall take into account each State 2agency's effectiveness in achieving its prioritized goals for 3the previous fiscal year, as set forth in Section 50-25 of this 4Law, giving priority to agencies and programs that have 5demonstrated a focus on the prevention of waste and the 6maximum yield from resources. 7 Beginning in fiscal year 2011, the Governor shall 8distribute written quarterly financial reports on operating 9funds, which may include general, State, or federal funds and 10may include funds related to agencies that have significant 11impacts on State operations, and budget statements on all 12appropriated funds to the General Assembly and the State 13Comptroller. The reports shall be submitted no later than 45 14days after the last day of each quarter of the fiscal year and 15shall be posted on the Governor's Office of Management and 16Budget's website on the same day. The reports shall be 17prepared and presented for each State agency and on a 18statewide level in an executive summary format that may 19include, for the fiscal year to date, individual itemizations 20for each significant revenue type as well as itemizations of 21expenditures and obligations, by agency, with an appropriate 22level of detail. The reports shall include a calculation of 23the actual total budget surplus or deficit for the fiscal year 24to date. The Governor shall also present periodic budget 25addresses throughout the fiscal year at the invitation of the 26General Assembly.

SB0589- 4 -LRB102 11567 RJF 16901 b 1 The Governor shall not propose expenditures and the 2General Assembly shall not enact appropriations that exceed 3the resources estimated to be available, as provided in this 4Section. Appropriations may be adjusted during the fiscal year 5by means of one or more supplemental appropriation bills if 6any State agency either fails to meet or exceeds the goals set 7forth in Section 50-25 of this Law. 8 For the purposes of Article VIII, Section 2 of the 1970 9Illinois Constitution, the State budget for the following 10funds shall be prepared on the basis of revenue and 11expenditure measurement concepts that are in concert with 12generally 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 20revenue estimates used in the State budget for the budgeted 21funds shall include the estimated beginning fund balance, plus 22revenues estimated to be received during the budgeted year, 23plus the estimated receipts due the State as of June 30 of the 24budgeted year that are expected to be collected during the 25lapse period following the budgeted year, minus the receipts 26collected during the first 2 months of the budgeted year that

SB0589- 5 -LRB102 11567 RJF 16901 b 1became due to the State in the year before the budgeted year. 2Revenues shall also include estimated federal reimbursements 3associated with the recognition of Section 25 of the State 4Finance Act liabilities. For any budgeted fund for which 5current year revenues are anticipated to exceed expenditures, 6the surplus shall be considered to be a resource available for 7expenditure in the budgeted fiscal year.8 Expenditure estimates for the budgeted funds included in 9the State budget shall include the costs to be incurred by the 10State for the budgeted year, to be paid in the next fiscal 11year, excluding costs paid in the budgeted year which were 12carried over from the prior year, where the payment is 13authorized by Section 25 of the State Finance Act. For any 14budgeted fund for which expenditures are expected to exceed 15revenues in the current fiscal year, the deficit shall be 16considered as a use of funds in the budgeted fiscal year.17 Revenues and expenditures shall also include transfers 18between funds that are based on revenues received or costs 19incurred during the budget year.20 Appropriations for expenditures shall also include all 21anticipated statutory continuing appropriation obligations 22that are expected to be incurred during the budgeted fiscal 23year.24 By March 15 of each year, the Commission on Government 25Forecasting and Accountability shall prepare revenue and fund 26transfer estimates in accordance with the requirements of this

SB0589- 6 -LRB102 11567 RJF 16901 b 1Section and report those estimates to the General Assembly and 2the Governor. 3 For all funds other than the budgeted funds, the proposed 4expenditures shall not exceed funds estimated to be available 5for the fiscal year as shown in the budget. Appropriation for a 6fiscal year shall not exceed funds estimated by the General 7Assembly to be available during that year.8 Beginning with the budget prepared for fiscal year 2022, 9the rate of growth of general funds appropriations shall not 10exceed the rate of growth of the Illinois median household 11income. For the purposes of this paragraph, "rate of growth of 12the Illinois median household income" means the average annual 13growth rate of median household income in this State over the 14preceding 10 calendar years, using data reported by the United 15States Census Bureau or its successor agency as reported in 16the American Community Survey 1-Year Estimates or, if 17unavailable or discontinued, its equivalent survey before 18December 31 immediately preceding the beginning of the fiscal 19year. 20 (b) By February 24, 2010, the Governor must file a written 21report with the Secretary of the Senate and the Clerk of the 22House of Representatives containing the following:23 (1) for fiscal year 2010, the revenues for all 24 budgeted funds, both actual to date and estimated for the 25 full fiscal year;26 (2) for fiscal year 2010, the expenditures for all

SB0589- 7 -LRB102 11567 RJF 16901 b 1 budgeted funds, both actual to date and estimated for the 2 full fiscal year;3 (3) for fiscal year 2011, the estimated revenues for 4 all budgeted funds, including without limitation the 5 affordable General Revenue Fund appropriations, for the 6 full fiscal year; and7 (4) for fiscal year 2011, an estimate of the 8 anticipated liabilities for all budgeted funds, including 9 without limitation the affordable General Revenue Fund 10 appropriations, debt service on bonds issued, and the 11 State's contributions to the pension systems, for the full 12 fiscal year. 13 Between July 1 and August 31 of each fiscal year, the 14members of the General Assembly and members of the public may 15make written budget recommendations to the Governor. 16 Beginning with budgets prepared for fiscal year 2013, the 17budgets submitted by the Governor and appropriations made by 18the General Assembly for all executive branch State agencies 19must adhere to a method of budgeting where each priority must 20be justified each year according to merit rather than 21according to the amount appropriated for the preceding year. 22(Source: P.A. 97-669, eff. 1-13-12; 97-813, eff. 7-13-12; 2398-2, eff. 2-19-13; 98-626, eff. 2-5-14.) 24 Section 99. Effective date. This Act takes effect upon 25becoming law.