Legislative Update for June 24, 2015

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Governor Signs Education Budget
This afternoon Governor Rauner signed HB 3763, (Public Act 99-0005), the appropriation bill that funds elementary and secondary education. This guarantees schools will open on time this fall and receive their state aid payment regardless of the nonaction on other state budgetary items. Public Act (PA) 99-0005 contains funding for grant line items in the State Board of Education (ISBE) budget as well as the pension contribution for the Teachers’ Retirement System (TRS) and funding for the Teachers’ Retirement Insurance Program (TRIP).

PA 99-0005 provides an overall increase in Pre-K through 12 education funding. A significant portion of this increase will go toward General State Aid (GSA), which will change the proration of the foundation level from 89 percent to 92 percent. This act also contains an additional $85 million that will be distributed to school districts most adversely impacted by a per pupil loss as a result of proration. More information on the districts that will receive additional funding under this line item and the amounts will be determined by ISBE. PA 99-0005 also funds mandated categoricals (such as transportation and special education) at the FY16 State Board recommended level or flat at the FY15 level. Early childhood education will also see a $25 million increase.

PA 99-0005 also contains the full pension contribution ($3.7 billion) for TRS as certified by the TRS Board of Trustees and $108 million to TRIP, which is the amount required by law.

State Budget Overview
The state budget is funded through appropriation and budget implementation (BIMP) bills. The majority of state spending is on education, Medicaid and human services, and pensions. This year there were 21 budget appropriation bills and five BIMP bills that make up the entire state budget with total spending of $36.3 billion. HB 3763 is just one of the 21 bills with total spending of $10.8 billion of state and federal funds. The estimated revenue for FY16 is $32.139 billion. Therefore, if all the appropriation bills were to be signed by the governor the budget would be approximately $3-4 billion out of balance. The General Assembly continues to meet in continuous session and we are unable to predict what the governor will do with the remaining budget bills.

As a reminder, next Tuesday, June 30, is the end of the current fiscal year. The General Assembly is scheduled to be in session next Tuesday and Wednesday

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