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House Bill 2515 would set up automatic deposits into the budget
stabilization fund, also called the state's rainy day fund, from
future budgets if the state keeps up with bill payments. The
transfers would be triggered when the accounts payable from the
general fund is estimated to be less than $3 billion, and the
governor has estimated growth in general revenues of over 4%.
Comptroller Susanna Mendoza is pushing to implement automatic
deposits into the state's rainy day fund. She explained the measure
before the House State Government Administration Committee on
Wednesday.
"The stated purpose in law says that the rainy day fund or, more
specifically, the budget stabilization fund would be used to reduce
the need for future tax increases," Mendoza said.
State Rep. Mark Walker, D-Arlington Heights, said outside factors
could change how this measure would operate if passed into law.
"There are some times where we have extremely high inflation for
multiple years, where the cost inflations start catching up to our
revenue inflations, and I need that to be addressed," Walker said.
Mendoza said that because of the language in the bill, they should
still be able to make deposits even in a time of high inflation.
"Adding the marker that the accounts payable has to be under $3
billion on top of the 4% growth, that's where I'm looking at can we
afford to do this," Mendoza said. "If both of those markers are met,
even during times of high inflation, I would argue that we could do
it."
The bill also would implement a 6-month review by the Commission on
Government Forecasting and Accountability, which could trigger
savings if growth exceeds 4% in the middle of the fiscal year. The
bill also calls for automatic deposits into the Pension
Stabilization Fund.
The measure advanced out of committee unanimously.
Andrew Hensel reports on issues in Chicago and
Statewide. He has been with The Center Square News since April of
2021 and was previously with The Joliet Slammers.
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