96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3938


 
Introduced 5/26/2010, by Sen. Dan Kotowski
 
SYNOPSIS AS INTRODUCED:














15 ILCS 20/50-5






15 ILCS 20/50-7 new






15 ILCS 20/50-10
 was 15 ILCS 20/38.1




15 ILCS 20/50-25 new






20 ILCS 3005/2.1
 from Ch. 127, par. 412.1




25 ILCS 155/3
 from Ch. 63, par. 343




25 ILCS 155/4
 from Ch. 63, par. 344









 Amends the State Budget Law of the Civil Administrative Code of Illinois. Requires the Governor to prepare quarterly budget statements and to present periodic budget addresses to the General Assembly. Provides that 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 certain goals. Provides that, prior to the submission of the State budget, the Governor and each constitutional officer, in consultation with the appropriation committees of the General Assembly, shall set certain statewide priorities and goals for the next fiscal year. Provides that the Governor shall recommend that appropriations be made to State agencies based on those agreed upon priorities and goals. Provides that appropriations committees must review individual line item expenditures and the total budget for each Department. Amends the Governor's Office of Management and Budget Act and the Commission on Government Forecasting and Accountability Act to provide that the Commission's revenue estimates must be prepared with any requested consultation from the Governor's Office of Management and Budget. Effective immediately.
















LRB096 22457 HLH 41710 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB3938

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1
 AN ACT concerning State government.


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

3
represented in the General Assembly:



4
 Section 5. The State Budget Law of the Civil Administrative 
5
Code of Illinois is amended by changing Sections 50-5 and 50-10 
6
and by adding Sections 50-7 and 50-25 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 
10
than the second
Wednesday in March in 2010 (March 10, 2010) and 
11
the third
Wednesday in February of each year beginning in 2011, 
12
except as otherwise provided in this Section, submit a
State 
13
budget, embracing therein the amounts recommended by the 
14
Governor to be
appropriated to the respective departments, 
15
offices, and institutions, and
for all other public purposes, 
16
the estimated revenues from taxation, the
estimated revenues 
17
from sources other than taxation, and an estimate of the
amount 
18
required to be raised by taxation. The amounts recommended by 
19
the
Governor for appropriation to the respective departments, 
20
offices and
institutions shall be formulated according to the 
21
various functions and
activities for which the respective 
22
department, office or institution of
the State government 
23
(including the elective officers in the executive
department 
 


 






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1
and including the University of Illinois and the judicial

2
department) is responsible. The amounts relating to particular 
3
functions
and activities shall be further formulated in 
4
accordance with the object
classification specified in Section 
5
13 of the State Finance Act. In addition, the amounts 
6
recommended by the Governor for appropriation shall take into 
7
account each State agency's effectiveness in achieving its 
8
prioritized goals for the previous fiscal year, as set forth in 
9
Section 50-25 of this Law, giving priority to agencies and 
10
programs that have demonstrated a focus on the prevention of 
11
waste and the maximum yield from resources.
12
 Beginning in fiscal year 2011, the Governor shall 
13
distribute written quarterly budget statements to the General 
14
Assembly and the State Comptroller. The statements shall be 
15
submitted on Wednesday of the last week of the last month of 
16
each quarter of the fiscal year and, as is currently the 
17
practice on the effective date of this amendatory Act of the 
18
96th General Assembly, shall be posted on the Comptroller's 
19
website on the same day. The statements shall be prepared and 
20
presented in an executive summary format that includes, for the 
21
fiscal year to date, individual itemizations for each revenue 
22
source as well as individual itemizations of expenditures and 
23
obligations, by the classified line items set forth in Section 
24
13 of the State Finance Act and for other purposes, with an 
25
appropriate level of detail. The statement shall include a 
26
calculation of the actual total budget surplus or deficit. The 
 


 






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1
Governor shall also present periodic budget addresses 
2
throughout the fiscal year at the invitation of the General 
3
Assembly. 
4
 The Governor shall not propose expenditures and the General 
5
Assembly shall
not enact appropriations that exceed the 
6
resources estimated to be available,
as provided in this 
7
Section. Appropriations may be adjusted during the fiscal year 
8
by means of one or more supplemental appropriation bills if any 
9
State agency either fails to meet or exceeds the goals set 
10
forth in Section 50-25 of this Law. 
11
 For the purposes of Article VIII, Section 2 of the 1970

12
Illinois Constitution, the State budget for the following funds 
13
shall be
prepared on the basis of revenue and expenditure 
14
measurement concepts that are
in concert with generally 
15
accepted accounting principles for governments:
16
  (1) General Revenue Fund.
17
  (2) Common School Fund.
18
  (3) Educational Assistance Fund.
19
  (4) Road Fund.
20
  (5) Motor Fuel Tax Fund.
21
  (6) Agricultural Premium Fund.
22
 These funds shall be known as the "budgeted funds". The 
23
revenue
estimates used in the State budget for the budgeted 
24
funds shall include the
estimated beginning fund balance, plus

25
revenues estimated to be received during the budgeted year, 
26
plus the estimated
receipts due the State as of June 30 of the 
 


 






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1
budgeted year that are expected to
be collected during the 
2
lapse period following the budgeted year, minus the
receipts 
3
collected during the first 2 months of the budgeted year that 
4
became
due to the State in the year before the budgeted year. 
5
Revenues shall also
include estimated federal reimbursements 
6
associated with the recognition of
Section 25 of the State 
7
Finance Act liabilities. For any budgeted fund
for which 
8
current year revenues are anticipated to exceed expenditures, 
9
the
surplus shall be considered to be a resource available for 
10
expenditure in the
budgeted fiscal year.
11
 Expenditure estimates for the budgeted funds included in 
12
the State budget
shall include the costs to be incurred by the 
13
State for the budgeted year,
to be paid in the next fiscal 
14
year, excluding costs paid in the budgeted year
which were 
15
carried over from the prior year, where the payment is 
16
authorized by
Section
25 of the State Finance Act. For any 
17
budgeted fund
for which expenditures are expected to exceed 
18
revenues in the current fiscal
year, the deficit shall be 
19
considered as a use of funds in the budgeted fiscal
year.
20
 Revenues and expenditures shall also include transfers 
21
between funds that are
based on revenues received or costs 
22
incurred during the budget year.
23
 Appropriations for expenditures shall also include all 
24
anticipated statutory continuing appropriation obligations 
25
that are expected to be incurred during the budgeted fiscal 
26
year.
 


 






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1
 By
March 15 of each year, the
Commission on Government 
2
Forecasting and Accountability shall prepare
revenue and fund 
3
transfer estimates in accordance with the requirements of this

4
Section and report those estimates to the General Assembly and 
5
the Governor.
6
 For all funds other than the budgeted funds, the proposed 
7
expenditures shall
not exceed funds estimated to be available 
8
for the fiscal year as shown in the
budget. Appropriation for a 
9
fiscal year shall not exceed funds estimated by
the General 
10
Assembly to be available during that year.
11
 (b) This subsection applies only to the process for the 
12
proposed fiscal year 2011 budget.
13
 By February 24, 2010, the Governor must file a written 
14
report with the Secretary of the Senate and the Clerk of the 
15
House of Representatives containing the following:
16
  (1) for fiscal year 2010, the revenues for all budgeted 
17
 funds, both actual to date and estimated for the full 
18
 fiscal year;
19
  (2) for fiscal year 2010, the expenditures for all 
20
 budgeted funds, both actual to date and estimated for the 
21
 full fiscal year;
22
  (3) for fiscal year 2011, the estimated revenues for 
23
 all budgeted funds, including without limitation the 
24
 affordable General Revenue Fund appropriations, for the 
25
 full fiscal year; and
26
  (4) for fiscal year 2011, an estimate of the 
 


 






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1
 anticipated liabilities for all budgeted funds, including 
2
 without limitation the affordable General Revenue Fund 
3
 appropriations, debt service on bonds issued, and the 
4
 State's contributions to the pension systems, for the full 
5
 fiscal year. 
6
 Between February 24, 2010 and March 10, 2010, the members 
7
of the General Assembly and members of the public may make 
8
written budget recommendations to the Governor, and the 
9
Governor shall promptly make those recommendations available 
10
to the public through the Governor's Internet website. 
11
(Source: P.A. 96-1, eff. 2-17-09; 96-320, eff. 1-1-10; 96-881, 
12
eff. 2-11-10.)

13
 (15 ILCS 20/50-7 new)
14
 Sec. 50-7. Online budget survey. Beginning in February of 
15
2011, and during February of each year thereafter, the 
16
Governor's Office of Management and Budget shall post on its 
17
website a survey that will allow residents of the State to 
18
prioritize proposed spending measures for the next fiscal year. 
19
The Office shall post the results of each survey on its 
20
website.

21
 (15 ILCS 20/50-10) (was 15 ILCS 20/38.1)
22
 Sec. 50-10. Budget contents. The budget shall be submitted 
23
by
the
Governor with line item and program
data. The budget 
24
shall also contain performance data presenting
an estimate for 
 


 






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1
the current fiscal year, projections for the
budget year, and 
2
information for the 3 prior fiscal years
comparing department 
3
objectives with actual accomplishments,
formulated according 
4
to the various functions and activities,
and, wherever the 
5
nature of the work admits, according to the
work units, for 
6
which the respective departments, offices, and
institutions of 
7
the State government (including the elective
officers in the 
8
executive department and including the University
of Illinois 
9
and the judicial department) are responsible.
10
 For the fiscal
year beginning July 1, 1992 and for each 
11
fiscal year thereafter, the budget
shall include the 
12
performance measures of each department's accountability

13
report.
14
 For the fiscal year beginning July 1, 1997 and for each

15
fiscal year thereafter, the budget shall include one or more 
16
line items
appropriating moneys to the Department of Human 
17
Services to
fund participation in the Home-Based Support 
18
Services Program for Mentally
Disabled Adults under the 
19
Developmental Disability and Mental Disability
Services Act by 
20
persons described in Section 2-17 of that Act.
21
 The budget
shall contain a capital development
section in 
22
which the Governor will present (1) information on the capital

23
projects and capital programs for which appropriations are 
24
requested,
(2) the capital spending plans, which shall document 
25
the first
and subsequent years cash requirements by fund for 
26
the proposed
bonded program, and (3) a statement that shall 
 


 






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1
identify by
year
the principal and interest costs until 
2
retirement of the State's
general obligation debt. In addition, 
3
the principal and interest
costs of the budget year program 
4
shall be presented separately,
to indicate the marginal cost of 
5
principal and interest payments
necessary to retire the 
6
additional bonds needed to finance the
budget year's capital 
7
program. In 2004 only, the capital development section of the 
8
State budget shall be submitted by the Governor not later than 
9
the fourth Tuesday of March (March 23, 2004).

10
 For the budget year, the current
year, and 3 prior fiscal 
11
years, the Governor shall also include
in the budget estimates 
12
of or actual values for the assets and
liabilities for General 
13
Assembly Retirement System, State Employees'
Retirement System 
14
of Illinois, State Universities Retirement System,
Teachers' 
15
Retirement System of the State of Illinois, and Judges

16
Retirement System of Illinois.
17
 The budget submitted by the Governor
shall contain, in 
18
addition, in a separate book, a tabulation of all
position and 
19
employment titles in each such department, office, and

20
institution, the number of each, and the salaries for each,

21
formulated according to divisions, bureaus, sections, offices,

22
departments, boards, and similar subdivisions, which shall

23
correspond as nearly as practicable to the functions and 
24
activities
for which the department, office, or institution is 
25
responsible.
26
 Together with the budget, the Governor shall transmit the

 


 






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1
estimates of
receipts and expenditures, as received by the 
2
Director
of the
Governor's Office of Management and Budget, of 
3
the elective officers
in the executive and judicial departments 
4
and
of the University of Illinois.
5
 An applicable appropriations committee of each chamber of 
6
the General Assembly, for fiscal year 2012 and thereafter, must 
7
review individual line item appropriations and the total budget 
8
for each State agency, as defined in the Illinois State 
9
Auditing Act. 
10
(Source: P.A. 93-662, eff. 2-11-04.)

11
 (15 ILCS 20/50-25 new)
12
 Sec. 50-25. Statewide prioritized goals. For fiscal year 
13
2012 and each fiscal year thereafter, prior to the submission 
14
of the State budget, the Governor, in consultation with the 
15
appropriation committees of the General Assembly, shall: (i) 
16
prioritize outcomes that are most important for each State 
17
agency of the executive branch under the jurisdiction of the 
18
Governor to achieve for the next fiscal year and (ii) set goals 
19
to accomplish those outcomes according to the priority of the 
20
outcome. In addition, each other constitutional officer of the 
21
executive branch, in consultation with the appropriation 
22
committees of the General Assembly, shall: (i) prioritize 
23
outcomes that are most important for his or her office to 
24
achieve for the next fiscal year and (ii) set goals to 
25
accomplish those outcomes according to the priority of the 
 


 






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1
outcome. The Governor and each constitutional officer shall 
2
separately conduct performance analyses to determine which 
3
programs, strategies, and activities will best achieve those 
4
desired outcomes. The Governor shall recommend that 
5
appropriations be made to State agencies and officers for the 
6
next fiscal year based on the agreed upon goals and priorities. 
7
Each agency and officer may develop its own strategies for 
8
meeting those goals and shall review and analyze those 
9
strategies on a regular basis. The Governor shall also 
10
implement procedures to measure annual progress toward the 
11
State's highest priority outcomes and shall develop a statewide 
12
reporting system that compares the actual results with budgeted 
13
results. Those performance measures and results shall be posted 
14
on the State Comptroller's website, and compiled for 
15
distribution in the Comptroller's Public Accountability 
16
Report, as is currently the practice on the effective date of 
17
this amendatory Act of the 96th General Assembly.

18
 Section 10. The Governor's Office of Management and Budget 
19
Act is amended by changing Section 2.1 as follows:

20
 (20 ILCS 3005/2.1) (from Ch. 127, par. 412.1)
21
 Sec. 2.1. 
22
 To assist the Governor in submitting a recommended budget, 
23
including
estimated receipts and revenue, to the General 
24
Assembly, and to consult with the Commission on Government 
 


 






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1
Forecasting and Accountability, at the Commission's request, 
2
in compiling a report on the estimated income of the
State, as 
3
required under Section 4 of the Commission on Government 
4
Forecasting and Accountability Act.
5
(Source: P.A. 76-2411.)

6
 Section 15. The Commission on Government Forecasting and 
7
Accountability Act is amended by changing Sections 3 and 4 as 
8
follows:

9
 (25 ILCS 155/3) (from Ch. 63, par. 343)
10
 Sec. 3. The Commission shall:


11
 (1) Study from time to time and report to the General 
12
Assembly on
economic development and trends in the State.


13
 (2) Make such special economic and fiscal studies as it 
14
deems
appropriate or desirable or as the General Assembly may 
15
request.


16
 (3) Based on its studies, recommend such State fiscal and 
17
economic
policies as it deems appropriate or desirable to 
18
improve the functioning
of State government and the economy of 
19
the various regions within the
State.


20
 (4) Prepare annually a State economic report.


21
 (5) Provide information for all appropriate legislative

22
organizations and personnel on economic trends in relation to 
23
long range
planning and budgeting.


24
 (6) Study and make such recommendations as it deems 
 


 






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1
appropriate to
the General Assembly on local and regional 
2
economic and fiscal policy
and on federal fiscal policy as it 
3
may affect Illinois.


4
 (7) Review capital expenditures, appropriations and 
5
authorizations
for both the State's general obligation and 
6
revenue bonding authorities.
At the direction of the 
7
Commission, specific reviews may include
economic feasibility 
8
reviews of existing or proposed revenue bond
projects to 
9
determine the accuracy of the original estimate of useful
life 
10
of the projects, maintenance requirements and ability to meet 
11
debt
service requirements through their operating expenses.


12
 (8) Receive and review all executive agency and revenue 
13
bonding
authority annual and 3 year plans. The Commission shall 
14
prepare a
consolidated review of these plans, an updated 
15
assessment of current
State agency capital plans, a report on 
16
the outstanding and unissued
bond authorizations, an 
17
evaluation of the State's ability to market
further bond issues 
18
and shall submit them as the "Legislative Capital
Plan 
19
Analysis" to the House and Senate Appropriations Committees at

20
least once a year. The Commission shall annually submit to the 
21
General
Assembly on the first Wednesday of April a report on 
22
the State's long-term
capital needs, with particular emphasis 
23
upon and detail of the 5-year
period in the immediate future.


24
 (9) Study and make recommendations it deems appropriate to 
25
the
General Assembly on State bond financing, bondability 
26
guidelines, and
debt management. At the direction of the 
 


 






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1
Commission, specific studies
and reviews may take into 
2
consideration short and long-run implications
of State bonding 
3
and debt management policy.


4
 (10) Comply with the provisions of the "State Debt
Impact 
5
Note Act" as now or hereafter amended.


6
 (11) Comply with the provisions of the Pension Impact Note 
7
Act, as now
or hereafter amended.


8
 (12) By August 1st of each year, the Commission must 
9
prepare and cause to
be published a summary report of State 
10
appropriations for the State fiscal year
beginning the previous 
11
July 1st. The summary report must discuss major
categories of 
12
appropriations, the issues the General Assembly faced in

13
allocating appropriations, comparisons with appropriations for 
14
previous
State fiscal years, and other matters helpful in 
15
providing the citizens of
Illinois with an overall 
16
understanding of appropriations for that fiscal year.
The 
17
summary report must be written in plain language and designed 
18
for
readability. Publication must be in newspapers of general 
19
circulation in the
various areas of the State to ensure 
20
distribution statewide. The summary
report must also be 
21
published on the General Assembly's web site.


22
 (13) Comply with the provisions of the State Facilities 
23
Closure Act.

24
 (14) For fiscal year 2012 and thereafter, develop a 3-year 
25
budget forecast for the State, including opportunities and 
26
threats concerning anticipated revenues and expenditures, with 
 


 






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1
an appropriate level of detail. 
2
 The requirement for reporting to the General Assembly shall 
3
be satisfied
by filing copies of the report with the Speaker, 
4
the Minority Leader and
the Clerk of the House of 
5
Representatives and the President, the Minority
Leader and the 
6
Secretary of the Senate and the Legislative
Research
Unit, as 
7
required by Section 3.1 of the General Assembly
Organization 
8
Act, and
filing such additional copies with the State 
9
Government Report Distribution
Center for the General Assembly 
10
as is required under paragraph (t) of
Section 7 of the State 
11
Library Act.


12
(Source: P.A. 92-67, eff. 7-12-01; 93-632, eff. 2-1-04; 93-839, 
13
eff. 7-30-04.)


14
 (25 ILCS 155/4) (from Ch. 63, par. 344)
15
 Sec. 4. (a) The Commission shall publish, at the convening 
16
of each regular
session of the General Assembly, a report on 
17
the estimated income of the
State from all applicable revenue 
18
sources for the next ensuing fiscal
year and of any other funds 
19
estimated to be available for such fiscal
year. The Commission, 
20
in its discretion, may consult with the Governor's Office of 
21
Management and Budget in preparing the report. On the third 
22
Wednesday in March after the session convenes, the
Commission 
23
shall issue a revised and updated set of revenue figures

24
reflecting the latest available information. The House and 
25
Senate by
joint resolution shall adopt or modify such estimates 
 


 






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1
as may be
appropriate. The joint resolution shall constitute 
2
the General
Assembly's estimate, under paragraph (b) of Section 
3
2 of Article VIII of
the Constitution, of the funds estimated 
4
to be available during the next
fiscal year.

5
 (b) On the third Wednesday in March, the Commission shall 
6
issue estimated:

7
  (1) pension funding requirements under P.A. 86-273; 
8
 and

9
  (2) liabilities of the State employee group health 
10
 insurance program.

11
 These estimated costs shall be for the fiscal year 
12
beginning the following
July 1.

13
 (c) The requirement for reporting to the General Assembly 
14
shall be satisfied
by filing copies of the report with the 
15
Speaker, the Minority Leader and
the Clerk of the House of 
16
Representatives and the President, the Minority
Leader and the 
17
Secretary of the Senate and the Legislative
Research
unit, as 
18
required by Section 3.1 of the General Assembly
Organization 
19
Act, and filing
such
additional copies with the State 
20
Government Report Distribution Center for the
General Assembly 
21
as is required under paragraph (t) of Section 7 of the State

22
Library Act.

23
(Source: P.A. 93-632, eff. 2-1-04.)


24
 Section 99. Effective date. This Act takes effect upon 
25