SB 1981 — GOMB-FUND BALANCES

*LRB10108057HLH56238b* SB1981 101STEngrossed GENERALLRB101 ASSEMBLY08057 StateHLH of56238 Illinoisb andAN 2020ACT SB1981concerning IntroducedState 2/15/2019,government. by Sen.

Dan McConchie SYNOPSIS AS INTRODUCED:

ILCS 3005/7.3 Amends the Governor's Office of Management and Budget Act.

Provides that the annual economic and fiscal policy report must include a projection of fund balances for each fund held in the State treasury, outlining for each fund revenues, expenditures, and the estimated end of year fund previous years.

Effective immediately.he upcoming fiscal year, and the 4 LRB101 08057 HLH 56238 b FISCAL NOTE ACT MAY APPLY A BILL FOR SB1981 LRB101 08057 HLH 56238 b AN ACT concerning State government.

The Governor'sState OfficeBudget Law of Managementthe andCivil BudgetAdministrative ActCode of Illinois is amended by changing Section 7.350-5 as follows:

(20(15 ILCS 3005/7.3)20/50-5) Sec.

7.3.50-5.

AnnualGovernor economicto andsubmit fiscalState policybudget. report.

No(a) The Governor shall, as soon as possible and not later than Novemberthe 15second ofWednesday eachin year,March in 2010 (March 10, 2010), the Governor'sthird OfficeWednesday ofin ManagementFebruary 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), and Budgetthe shallthird Wednesday in February of each year thereafter, except as otherwise provided in this Section, submit ana economicState andbudget, fiscalembracing policytherein reportthe amounts recommended by the Governor to be appropriated to the Generalrespective Assembly.departments, offices, and institutions, and for all other public purposes, the estimated revenues from taxation, and the estimated revenues from sources other than taxation.

TheExcept reportwith mustrespect outlineto the long-termcapital economicdevelopment andprovisions fiscalof policythe objectivesState ofbudget, thebeginning State,with the economicrevenue andestimates fiscalprepared policyfor intentionsfiscal foryear the2012, upcomingrevenue fiscalestimates year,shall andbe thebased economicsolely andSB1981 fiscalEngrossed policy- intentions2 for- theLRB101 following08057 4HLH fiscal56238 years.b on:

The(i) reportrevenue mustsources highlight(including non-income resources), rates, and levels that exist as of the totaldate levelof the submission of revenue,the expenditure,State deficitbudget orfor surplus,the fiscal year and debt(ii) withrevenue respectsources to(including eachnon-income resources), rates, and levels that have been passed by the General Assembly as of the reportingdate categories.of the submission of the State budget for the fiscal year and that are authorized to take effect in that fiscal year.

TheExcept reportwith mustrespect includeto anythe assumptionscapital concerningdevelopment taxprovisions ratesof andthe feesState usedbudget, tothe Governor shall determine revenueavailable revenue, deduct the cost of essential government services, including, but not limited to, pension payments and expendituresdebt forservice, futureand fiscalassign years.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 reportGovernor mustshall includealso ademonstrate comparisonhow ofspending thepriorities enactedfor current fiscal year budget to the current fiscal year outlook,fulfill and, if applicable, must outline any budgetary shortfalls and fiscal and policy options that the Office will pursue to remedy those budgetarystatewide shortfalls.goals.

IfThe theamounts projectedrecommended SB1981by -the 2Governor - LRB101 08057 HLH 56238 b expenditures for anyappropriation ofto the followingrespective 4departments, fiscaloffices yearsand exceedsinstitutions theshall correspondingbe fiscalformulated yearaccording projectedto revenues,each thendepartment's, theoffice's, reportand mustinstitution's outlineability fiscalto andeffectively policydeliver optionsservices that themeet Office will pursue to remedy the budgetaryestablished shortfall.statewide goals.

The reportamounts mustrelating include:to particular functions and activities shall be further formulated in accordance with the object classification specified in Section 13 of the State Finance Act.

(1)In anaddition, estimatethe ofamounts Laterecommended Interestby Penaltiesthe underGovernor thefor appropriation shall SB1981 Engrossed - 3 - LRB101 08057 HLH 56238 b take into account each State Promptagency's Paymenteffectiveness Actin achieving its prioritized goals for the upcomingprevious fiscal yearyear, andas projectionsset forth in Section 50-25 of thethis sameLaw, forgiving eachpriority to agencies and programs that have demonstrated a focus on the prevention of waste and the followingmaximum 4yield fiscalfrom years;resources.

andBeginning (2)in anfiscal estimateyear of2011, interestthe penaltiesGovernor undershall Sectionsdistribute 368awritten quarterly financial reports on operating funds, which may include general, State, or federal funds and 370amay ofinclude thefunds Illinoisrelated Insuranceto Codeagencies forthat thehave upcomingsignificant fiscalimpacts yearon State operations, and projectionsbudget ofstatements theon sameall forappropriated eachfunds ofto the followingGeneral 4Assembly fiscaland years.the State Comptroller.

The reportreports mustshall includebe asubmitted projectionno oflater fundthan balances45 fordays eachafter fund held in the Statelast treasury,day outliningof for each fundquarter revenues,of expenditures, and the estimatedfiscal endyear ofand yearshall fundbe balanceposted foron the currentGovernor's fiscalOffice year,of theManagement upcomingand fiscalBudget's year,website andon the 4same previousday. fiscal years.

The reportreports mustshall includebe anprepared and presented for each State agency categorizationand keyon a statewide level in an executive summary format that may include, for the reportingfiscal categories.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 reportreports mustshall beinclude posteda oncalculation of the Office'sactual Internettotal websitebudget andsurplus allowor membersdeficit offor the publicfiscal year to postdate. comments concerning the report.

The Governor shall also present periodic budget addresses throughout the fiscal year at the invitation of the General Assembly.

The Governor shall not propose expenditures and the General SB1981 Engrossed - 4 - LRB101 08057 HLH 56238 b 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 collected during the first 2 months of the budgeted year that became due to the State in the year before the budgeted year.

SB1981 Engrossed - 5 - LRB101 08057 HLH 56238 b 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 transfer estimates in accordance with the requirements of this Section and report those estimates to the General Assembly and SB1981 Engrossed - 6 - LRB101 08057 HLH 56238 b the Governor.