Amend the bill, as and if amended, Part IB, Section 101, BUDGET AND CONTROL BOARD, page 489, after line 28, by adding an appropriately numbered new proviso to read:
/101.__. (BCB: Deficit Recognition) For Fiscal Year 2013-14, the provisions of Section 1-11-495 and Section 11-9-890 of the 1976 Code are suspended. /
Amend the bill further, as and if amended, Part IB, Section 101, BUDGET AND CONTROL BOARD, page 489, after line 28, by adding an appropriately numbered new proviso to read:
/101.__. (BCB: Forecast) (1) If at the end of the first, second, or third quarter of any fiscal year the Board of Economic Advisors reduces the revenue forecast for the fiscal year by three percent or less below the amount projected for the fiscal year in the forecast in effect at the time the general appropriations bill for the fiscal year is ratified, within three days of that determination, the Director of the State Budget Office must reduce general fund appropriations by the requisite amount to avoid a year-end deficit as provided in this proviso. Upon making the reduction, the Director of the State Budget Office immediately must notify the State Treasurer and the Comptroller General of the reduction and, upon notification, the appropriations are considered reduced. No agencies, departments, institutions, activity, program, item, special appropriation, or allocation for which the General Assembly has provided funding in any part of this section may be discontinued, deleted, or deferred by the Director of the State Budget Office . A reduction of rate of expenditure by the Director of the State Budget Office, under authority of this section, must be applied as uniformly as shall be practicable, except that no reduction must be applied to funds encumbered by a written contract with the agency, department, or institution not connected with state government.
(2) If at the end of the first, second, or third quarter of any fiscal year the Board of Economic Advisors reduces the revenue forecast for the fiscal year by more than three percent below the amount projected for the fiscal year in the forecast in effect at the time the general appropriations bill for the fiscal year is ratified, the President Pro Tempore of the Senate and the Speaker of the House of Representatives may call each respective house into session to take action to avoid a year-end deficit. If the General Assembly has not taken action within twenty days of the determination of the Board of Economic Advisors, the Director of the State Budget Office must reduce general fund appropriations by the requisite amount in the manner prescribed by item (1) above. /
Amend the bill further, as and if amended, Part IB, Section 101, BUDGET AND CONTROL BOARD, page 489, after line 28, by adding an appropriately numbered new proviso to read:
/101.__. (BCB: Deficit Prevention and Recognition) (A) It is the responsibility of each state agency, department, and institution to operate within the limits of appropriations set forth in the annual general appropriations act, appropriation acts, or joint resolution supplemental thereto, and any other approved expenditures of monies. A state agency, department, or institution shall not operate in a manner that results in a year-end deficit except as provided in this proviso.
(B)(1) If at the end of each quarterly deficit monitoring review by the State Budget Office, it is determined by either the State Budget Office or a state agency, department, or institution that the likelihood of a deficit for the current fiscal year exists, the state agency shall notify the General Assembly within fifteen days of this determination and shall further request the State Budget Office to work with it to develop a plan to avoid the deficit. Within fifteen days of the deficit avoidance plan being completed, the State Budget Office shall:
(a) recognize the deficit, in the manner provided in subsection (C) if it determines that the deficit avoidance plan will not be sufficient to avoid a deficit, the projected deficit is less than one million dollars, and the General Assembly is adjourned Sine Die;
(b) request the General Assembly to recognize the deficit in the manner provided in subsection (C)(2) if it determines the deficit avoidance plan will not be sufficient to avoid a deficit and the projected deficit is equal to or greater than one million dollars, regardless of whether the General Assembly is adjourned Sine Die; or
(c) notify the General Assembly of how the deficit will be avoided based on the deficit avoidance plan if the State Budget Office determines the plan will be sufficient to avoid a deficit.
(2) The State Budget Office must notify the General Assembly as soon as practicable when it determines that it will proceed with a deficit recognition pursuant to subsection (B)(1)(a).
(3) If the State Budget Office requests that the General Assembly recognize the deficit in the manner provided in subsection (C)(2) and the General Assembly is adjourned Sine Die, the Speaker of the House and Pro Tempore of the Senate may call each respective house into session to address the deficit.
(C)(1)(a) When a deficit avoidance plan will not be sufficient to avoid a deficit, the projected deficit is less than one million dollars, and the General Assembly is adjourned Sine Die, the State Budget Office may recognize the deficit if the deficit is unavoidable due to factors which are outside the control of the state agency, department, or institution. Subject to the provisions contained in item (b) below, a deficit recognized by the State Budget Office must, at the close of the fiscal year, reduce the actual deficit, as necessary, from surplus revenues or surplus funds available at the close of the fiscal year in which the deficit occurs and then, to the extent no surplus revenues or surplus funds are available, first from funds available in the Capital Reserve Fund and then from funds available in the General Reserve Fund as required by the Constitution of this State.
(b) During its next ensuing regular session following a deficit recognition by the State Budget Office, the General Assembly may make a finding that the cause of, or likelihood of, a deficit is unavoidable due to factors which are outside the control of the state agency, department, or institution that was the subject of deficit recognition and recognize the deficit in the manner provided in subsection (C)(2). If the General Assembly does not recognize the deficit prior to Sine Die adjournment of its next ensuing regular session, the deficit recognized by the State Budget Office shall remain effective and its provisions shall be implemented.
(2)(a) Upon notification from the State Budget Office as provided in subsection (B)(1)(b) that an agency will run a deficit and requesting that it be recognized, the General Assembly, by joint resolution, may make a finding that the cause of, or likelihood of, a deficit is unavoidable due to factors which are outside the control of the state agency, department, or institution, and recognize the deficit. Any legislation to recognize a deficit must be in a separate joint resolution enacted for the sole purpose of recognizing the deficit of a particular state agency, department, or institution. A deficit only may be recognized by an affirmative vote of each branch of the General Assembly.
(b) If the General Assembly recognizes the deficit, then the actual deficit at the close of the fiscal year must be reduced as necessary from surplus revenues or surplus funds available at the close of the fiscal year in which the deficit occurs and then, to the extent no surplus revenues or surplus funds are available, first from funds available in the Capital Reserve Fund and then from funds available in the General Reserve Fund as required by the Constitution of this State.
(D) Once a deficit has been recognized pursuant to this proviso, the state agency, department, or institution shall limit travel and conference attendance to that which is deemed essential by the director of the agency, department, or institution. In addition, when recognizing a deficit, the General Assembly or the State Budget Office, as the case may be, may condition recognition on a requirement that any pay increases and purchases of equipment and vehicles must be approved by the State Budget Office./
Renumber sections to conform.
Amend sections, totals and title to conform.