Bill Text: IL HB3231 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Creates the Long-Term Accounting Act of 2011. Provides that the purpose of the Act is to improve transparency and accountability during the State budget process. Contains provisions concerning the passage of appropriation bills and the electronic publication of appropriation bills. Amends the State Comptroller Act. Requires that the Comptroller publish a comprehensive annual financial report. Amends the Commission on Governmental Forecasting and Accountability Act. Provides that the Commission on Governmental Forecasting and Accountability must publish fiscal budget statements. Sets forth the requirements for the fiscal budget statements. Contains other provisions. Effective immediately.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB3231 Detail]

Download: Illinois-2011-HB3231-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB3231 Introduced , by Rep. Michael W. Tryon SYNOPSIS AS INTRODUCED:
New Act
15 ILCS 405/6.01 from Ch. 15, par. 206.01
15 ILCS 405/19.5 new
15 ILCS 405/30 new
25 ILCS 155/4 from Ch. 63, par. 344
Creates the Long-Term Accounting Act of 2011. Provides that the purpose of the Act is to improve transparency and accountability during the State budget process. Contains provisions concerning the passage of appropriation bills and the electronic publication of appropriation bills. Amends the State Comptroller Act. Requires that the Comptroller publish a comprehensive annual financial report. Amends the Commission on Governmental Forecasting and Accountability Act. Provides that the Commission on Governmental Forecasting and Accountability must publish fiscal budget statements. Sets forth the requirements for the fiscal budget statements. Contains other provisions. Effective immediately.
LRB097 10921 RLJ 51479 b
FISCAL NOTE ACT MAY APPLY
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 1. Short title. This Act may be cited as the
Long-Term Accounting Act of 2011.
Section 5. Legislative intent. It is the intent of this Act
to improve transparency and accountability during the State
budget process that:
(1) Confirms and strengthens the State's special
responsibility to disclose its actions and results of those
actions in a timely and useful way.
(2) Establishes the concept that State budgeting
disclosures and financial reporting are created primarily for
the purpose of informing the public of government activity and
creating widespread understanding of these actions.
(3) Adopts the use of a consolidating budget documents to
facilitate the public's ability to understand the State's
annual and accumulated shortfalls despite the relative scale of
the State's financial operations and the volume and complexity
of budget and financial data.
(4) Establishes the State's duty to report the best
estimate of its own financial condition.
(5) Requires a comprehensive indication of the total

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activity of government and the long-term effects of current
policy.
(6) Calls for the calculation of the long-term financial
implications to the State and others of the budgetary
decisions.
(7) Provides the full costing information to necessary to
accurately calculate performance measurements.
(8) Establishes definitions of existing statutory language
to strengthen the Governor's and the General Assembly's ability
to determine compliance with the intent of the Section 2 of
Article XIII of the Illinois Constitution requirement, which is
to preserve intergenerational equity.
(9) Requires explicit disclosure and accurate reporting by
the Governor and the General Assembly of:
(A) debt incurred to fund current operating expenses;
(B) current and past costs shifted to future budgets
and imposed upon future taxpayers;
(C) State obligations, including, but not limited to,
current and future personnel benefit costs and
lapse-period expenditures; and
(D) a fiscal deficit in terms of the excess of full
accrual expenses over full accrual revenues and a budget
surplus in terms of the excess of full accrual revenues
over full accrual expenses at the time the final budget is
sent to the Governor.
(10) Calls for the Governor and the General Assembly to

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determine if future budgetary resources will likely be
sufficient to sustain public services and to meet obligations
as they come due.
(11) Acknowledges costs when incurred during the budget
year regardless of when they are paid.
(12) Injects the expertise and knowledge of the State
Comptroller's Office into the preparation of budget
calculations.
(13) Unveils the State's unusual reliance upon the use of
more than 600 special funds.
(14) Requires the Annual Budget and the State's
Comprehensive Annual Financial Report to be prepared to
facilitate a simple comparison of budgeted amounts to the
actual amounts spent and received.
(15) Requires State agencies to report to the Comptroller
all fiscal information necessary to prepare a comprehensive
annual financial report in a timely manner.
(16) Mandates the production of the State's Comprehensive
Annual Financial Report within 6 months after the State's
fiscal year end.
Section 10. Definitions.
"Amounts due to pension funds" means the unfunded actuarial
accrued liability for the State pension plans, including the
portion of multiple-employer plans attributed to the State.
"Benefit enhancements" means the actuarial present value

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of total projected benefits attributed to the estimated
increase in the benefits of retirees or beneficiaries granted
by the proposed budget or proposed or enacted changes to the
Illinois Pension Code. The benefit enhancements that result
from plan members' expected future service amount may be
reduced by the amount of specified revenue sources enacted into
law.
"Capital assets" shall be defined using Governmental
Accounting Standards Board concepts outlined in GASB Statement
34.
"Comptroller's budget statements" means the estimated
balance sheet, the estimated statement of activities, and the
estimated statement of cash flow.
"Estimated balance sheet" means the estimated statement of
net assets prepared using the GASB concepts outlined in GASB
34.
"Estimated retirement plans' assets gain or loss" means the
change in the actuarial value of assets at the beginning of the
budget period and the actuarial value of assets at the end of
the budget period.
"Fiscal budget statements" means the estimated statement
of fiscal balance, the estimated statement of fiscal deficit,
and the estimated financial state of the State.
"Fiduciary funds" shall be defined using GASB concepts
outlined in Governmental Accounting Standards Board Statement
34.

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"Government-Wide Generally Accepted Accounting Principles
(Government-Wide GAAP)" means the accounting standards used in
the preparation of the State's government-wide financial
statements, using GASB concepts outlined in the Governmental
Accounting Standards Board Statement 34. While the
Governmental Accounting Standards Board does not prescribe
standards for preparing governmental budgets, the accounting
standards' concepts shall be applied to the fiscal budget
statements prepared under this Act.
"Increase (Decrease) in Other Post Employment Benefits
(OPEB) Due" means the change in the State's OPEB plans'
estimated actuarial accrued liability at the beginning of the
budget period and the State's OPEB plans' estimated actuarial
accrued liability at the end of the budget period.
"Increase (Decrease) in Pension Benefits Due" means the
change in the State's pension plans' estimated actuarial
accrued liability at the beginning of the budget period and the
sum of each pension plan's estimated actuarial accrued
liability at the end of the budget period.
"Net Pension Obligation (Asset)", "Net Other Post
Employment Obligation (Asset)", "Actuarial Value of Assets",
"Actuarial Accrued Liability" and "Unfunded Actuarial Accrued
Liability (UAAL)" "Actuarial Present Value of Total Projected
Benefits" shall be defined using GASB concepts outlined in GASB
Statement 45, GASB Statement 25 and GASB Statement 27, as
amended by GASB 50.

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"Off Balance Sheet Other Post Employment (OPEB)
Liabilities" means the difference between the State OPEB plans'
Estimated UAAL and the estimated Net OPEB Obligation (Asset)
included in the estimated balance sheet.
"Off Balance Sheet Pension Liabilities" means the
difference between the State pension plans' estimated unfunded
actuarial accrued liability (UAAL) and the estimated net
pension obligation (Asset) included in the estimated balance
sheet.
"Retirees' health care benefits" means the unfunded
actuarial accrued liability (UAAL) for the State OPEB Plans,
including the portion of multiple-employer plans attributed to
the State.
"State Other Post Employment Benefit (OPEB) Plans" include
the State's Single-Employer Other Post Employment Benefit
(OPEB) plans, and also include the portion of Agent
Multiple-Employer (OPEB) plans attributed to the State.
"State pension plans" means the State's single-employer
pension plans and the portion of agent multiple-employer
pension plans attributed to the State.
Section 15. Electronic publication of appropriation bills;
publication deadlines with respect to second and third
readings. The General Assembly shall publish, on a web page
controlled by the General Assembly, the texts of all
appropriations bills. Each publication shall include an

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embedded time stamp setting forth the time of electronic
publication. No amendment to an appropriation bill shall be
considered on second reading until at least 72 hours after the
amendment has been published electronically and no bill to
appropriate funds shall be passed on third reading until at
least 72 hours after the time of electronic publication in
final form.
Section 20. Passage of appropriation bills prohibited
before adoption of joint resolution. The General Assembly shall
not enact any bill to appropriate funds within any fiscal year
prior to their adoption of the joint resolution reflecting the
estimate of funds available for that fiscal year as required
under Section 4 of the Commission on Government Forecasting and
Accountability Act.
Section 25. State funds as fiduciary funds. All State funds
shall be fiduciary funds unless explicitly provided otherwise
by law.
Section 90. The State Comptroller Act is amended by
changing Section 6.01 and by adding Sections 19.5 and 30 as
follows:
(15 ILCS 405/6.01) (from Ch. 15, par. 206.01)
Sec. 6.01. Specification and establishment of accounting

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standards and principles. The Comptroller shall specify and
establish the financial accounting and reporting standards and
principles to be used by all State government and State
agencies. The standards and principles shall be effective upon
filing by the Comptroller with the Auditor General. The
Comptroller shall maintain and publish the standards and
principles as a public document. These standards and principles
shall be known as the Generally Accepted Accounting Standards
and Principles for Illinois State Government, and shall be
compatible with generally accepted accounting standards and
principles for government as prescribed by the Governmental
Accounting Standards Board (GASB). , whenever possible, be
compatible with any similar nationally existing generally
accepted accounting standards and principles for government.
In establishing the Generally Accepted Accounting
Standards and Principles for Illinois State Government, the
Comptroller shall consult with the Governor and the other
members of the Executive Branch, the Chief Justice of the
Supreme Court, and the leadership of the General Assembly and
shall provide to these officials, and publish on the
Comptroller's website, draft copies of any proposed standards
at least 90 days prior to their adoption and shall consider any
responses or suggestions that these officials or the public may
present.
(Source: P.A. 86-1415.)

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(15 ILCS 405/19.5 new)
Sec. 19.5. Timely reporting. On or before October 31 of
each year, the director or secretary of each State agency shall
report to the Comptroller all of the agency's fiscal
information necessary to prepare a comprehensive annual
financial report (CAFR) for the fiscal year ending June 30 of
that year. The Comptroller may require certain State agencies
to report the information prior to October 31 under a schedule
established by the Comptroller. Whenever the Comptroller
determines that a State agency director or secretary is
delinquent in reporting the information, the Comptroller shall
notify in writing the Office of the Auditor General, the Office
of the Governor, the Speaker and Minority Leader of the House
of Representatives, and the President and Minority Leader of
the Senate of the delinquency.
(15 ILCS 405/30 new)
Sec. 30. Comprehensive annual financial reports. The
Comptroller shall publish each comprehensive annual financial
report (CAFR) within 6 months after the end of the fiscal year
to which the report relates. At a minimum the Comptroller shall
publish the CAFR by on a web page controlled by the
Comptroller. If the report is not published within that period,
the Comptroller must promptly give notice of the delay to the
Governor, the Speaker and Minority Leader of the House of
Representatives, and the President and Minority Leader of the

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Senate and post notice of the delay on a web page controlled by
the Comptroller.
Section 95. The Commission on Government Forecasting and
Accountability Act is amended by changing Section 4 as follows:
(25 ILCS 155/4) (from Ch. 63, par. 344)
Sec. 4. (a) The Commission shall publish, at the convening
of each regular session of the General Assembly, a report on
the estimated income of the State from all applicable revenue
sources for the next ensuing fiscal year and of any other funds
estimated to be available for such fiscal year. The Commission,
in its discretion, may consult with the Governor's Office of
Management and Budget in preparing the report. On the third
Wednesday in March after the session convenes, the Commission
shall issue a revised and updated set of revenue figures
reflecting the latest available information. The House and
Senate by joint resolution shall adopt or modify such estimates
as may be appropriate. The joint resolution must include all
applicable revenues and other funds available. The joint
resolution shall constitute the General Assembly's estimate,
under paragraph (b) of Section 2 of Article VIII of the
Constitution, of the funds estimated to be available during the
next fiscal year. The report must estimate all applicable
revenues and must estimate other funds available. The report
shall clearly separate and distinguish all applicable revenues

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and other funds available when estimating the funds estimated
to be available for purposes of calculating funds estimated to
be available as required under subsection (b) of Section 2 of
Article VIII of the Illinois Constitution.
(a-5) The annual March estimates issued by the Commission
shall include an estimated balance sheet, an estimated
statement of activities, and an estimated statement of cash
flow. The March estimates shall include a variance report of
the ongoing fiscal year's budget and appropriations.
(a-10) The Commission shall also prepare:
(1) The estimated statement of fiscal balance, which
shall include:
(A) The columns used in the estimated balance
sheet.
(B) The total net assets, as determined in the
estimated balance sheet.
(C) The off-balance sheet pension liability.
(D) The off-balance sheet OPEB liability
(E) The resulting fiscal balance.
(2) The estimated statement of fiscal deficit, which
shall include:
(A) The columns used in the estimated statement of
activities.
(B) The change in net assets, as determined in the
estimated statement of activities.
(C) Benefit enhancements.

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(D) Retirement plans' assets gain or loss.
(E) Increase (decrease) in pension benefits due.
(F) Increase (decrease) in OPEB benefits due.
(G) The resulting fiscal deficit.
(3) The estimated financial state of the State, which
shall include:
(A) Amounts reported on the State's Comprehensive
Annual Financial Report (CAFR) for the State's fiscal
year 2 years prior to the current budget year.
(B) The estimated values from last period's
budget.
(C) The estimated values from the current budget
period.
(D) What the State owns:
(i) Capital assets.
(ii) Other assets that are derived from the
total assets reported on the statement of net
assets/balance sheet minus capital assets.
(iii) State assets shall equal the total
assets.
(E) What the State owes:
(i) The amount of State bonds, including, but
not limited to, General Obligation Bonds and
Special Revenue Bonds.
(ii) Amounts due pension funds.
(iii) Retirees' health care benefits (OPEB).

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(iv) Other liabilities that are derived by
subtracting the State bonds, the net pension
obligation, and the net OPEB obligation from the
total liabilities reported on the statement of net
assets/balance sheet.
(v) State bills.
(F) Where the State stands:
(i) Illinois' financial position.
(ii) Each Illinois family's share, which is
derived by dividing Illinois' financial position
divided by the Illinois population estimate as
determined by the U.S. Census Bureau divided by the
national average size of a family as determined by
the U.S. Census Bureau.
(a-20) In conjunction with the State Comptroller, the
Commission shall publish the fiscal budget statements outlined
in subsection (a-5) in concert with Government Wide-GAAP. The
fiscal budget statements shall include information about the
State as a whole. The fiscal budget statements should include
the primary government and its component units, expect for the
fiduciary funds of the primary government and component units
that are fiduciary in nature. The fiscal budget statements
should be prepared using the economic resources measurement
focus and the accrual basis of accounting. The fiscal budget
statements should not be presented using the current financial
resources measurement focus and the modified accrual basis of

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accounting, which are used to prepare the State's governmental
funds financial statements. The Commission shall obtain from
each of the State's pension and OPEB plans' actuaries to
determine the pension and OPEB amounts needed to prepare the
fiscal budget statements.
(b) On the third Wednesday in March, the Commission shall
issue estimated:
(1) pension funding requirements under P.A. 86-273;
and
(2) liabilities of the State employee group health
insurance program.
These estimated costs shall be for the fiscal year
beginning the following July 1.
(c) The requirement for reporting to the General Assembly
shall be satisfied by filing copies of the report with the
Speaker, the Minority Leader and the Clerk of the House of
Representatives and the President, the Minority Leader and the
Secretary of the Senate and the Legislative Research unit, as
required by Section 3.1 of the General Assembly Organization
Act, and filing such additional copies with the State
Government Report Distribution Center for the General Assembly
as is required under paragraph (t) of Section 7 of the State
Library Act.
(d) For each fiscal year, the General Assembly shall adopt
a joint resolution accepting the amounts reported on the fiscal
budget statements.

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(e) For the purposes of this Section, "all applicable
revenues" means "own source revenues", including:
(1) personal income tax;
(2) corporate income tax;
(3) corporate personal property replacement tax;
(4) sales tax retained by the State;
(5) excise taxes, such as excise taxes on alcohol,
gasoline, or energy;
(6) user fees;
(7) fines and penalties;
(8) gaming taxes;
(9) investment income;
(10) unencumbered funds provided by other governmental
units; or
(11) any other revenue source for which the State has
no ongoing or unfulfilled obligation to any other party.
For the purposes of this Section, "other funds available"
means:
(1) funds that result from the actions of another
entity or government;
(2) funds received that are held in trust or have a
fiduciary element;
(3) pass-through funds or funds received by the State
when acting as an agent or collector for another entity;
(4) pension contributions made by State employees not
used to pay pensions or used to purchase assets for the

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State's pension funds;
(5) that portion of sales tax collections that
retailers pay to the State but that will be remitted to
home rule and local governments;
(6) court-ordered collections of child support;
(7) inter-period borrowings;
(8) prepaid tuition plans; or
(9) any other source of funds for which the State has
an unfulfilled or ongoing obligation.
The definitions set forth in Section 10 of the Truth in
Accounting Act of 2010 are incorporated.
(Source: P.A. 96-958, eff. 7-1-10.)
Section 99. Effective date. This Act takes effect upon
becoming law.