Illinois § 5

§ 5.

Findings and purpose. The General Assembly finds that: The State of Illinois is in the midst of both a public health emergency and a resultant fiscal crisis. The sudden worldwide outbreak of the Coronavirus Disease 2019 (COVID-19) and the spread of the disease in Illinois is causing dramatic economic upheaval and severe financial stress for individuals, businesses, health and other service providers, as well as the State and local governments across Illinois. It has resulted in declarations of disaster from both the Governor and the President of the United States. The disaster has caused, and will continue to cause for some time to come, reductions in revenues for the State at the same time expenditures must be incurred to respond to the emergency. The State requires greater flexibility to borrow efficiently and respond effectively to urgent financial needs as they arise. The federal government has responded to the COVID-19 pandemic with the passage of legislation that provides emergency funding to state and local governments. One of the new funding programs, found in Section 4003 of the federal Coronavirus Aid, Relief, and Economic Stabilization Act (CARES Act) provides a Municipal Liquidity Facility administered by the Federal Reserve Bank with support from the United States Department of the Treasury, through which funds are being made available so that state and local governments may borrow funds directly from the program. The State of Illinois has the authority to participate in this program, any subsequent State and municipal financing program created by federal legislation to provide relief from the coronavirus pandemic (collectively "federal coronavirus financing legislation"), and any similar program that may be offered by the federal government or the Federal Reserve Bank. The purpose of this Act is to revise the laws authorizing the State to borrow money and incur state debt so that the State will have needed flexibility in times of emergency, can borrow with enhanced efficiency in urgent circumstances, and can effectively utilize new borrowing programs and facilities offered by the United States Department of the Treasury and the Federal Reserve Bank, all while maintaining stringent standards for accountability and transparency. (Source: P.A. 101-630, eff. 5-29-20.)