Legislative Update - Fund Sweep LegislationJanuary 29, 2016 | Legislative briefs
We have begun to receive inquiries from members concerned about recently-filed legislation that would invest the Governor with broad powers to manage the budget crisis using fund sweeps.
HB 4521 was filed by House Minority Leader Durkin (R-Western Springs) and is supported by Governor Rauner. Titled the “Unbalanced Budget Response Act,” the bill would authorize the Governor to establish contingency reserves of previously appropriated funds and transfer these funds to cover various spending obligations.
In short, the bill would empower the Governor to sweep funds, including municipal funding sources such as LGDF, sales tax revenue, Corporate Personal Property Replacement Tax, video and casino gaming revenue, etc.
The bill would protect the following revenues from being swept: (1) federal trust fund revenue; (2) debt service funds; (3) state pension funding revenue; (4) funds dedicated for use by the legislative or judicial branches, the State Board of Elections and the State Board of Education; funds dedicated for use by the Attorney General, Secretary of State, Comptroller, and Treasurer; and (5) road fund revenues.
We are aware that you may receive communications about this issue that might invoke a sense of alarm and consternation. We agree that these concerns would be merited if HB 4521 appeared poised to garner enough support to pass both chambers. At this point, however, it appears unlikely that House and Senate Democrats would agree to grant the Governor such broad authority to sweep funds. As always, we will monitor the issue and provide you with an update if the status of the bill changes.
By: Joe McCoy
Illinois Municipal League
_The IGFOA thanks the IML for its ongoing commitment to providing the IGFOA with timely and relevant information on legislative issues important to the IGFOA membership._