Opinion ID: 2103506
Heading Depth: 1
Heading Rank: 3

Heading: Second Emergency Budget Act, Public Act 87-838

Text: Before this court rendered a decision in appeal No. 72451, the legislature abandoned Public Act 87-14 and enacted in its stead Public Act 87-838, which was titled the Emergency Budget Act of Fiscal Year 1992 (Pub. Act 87-838, eff. January 24, 1992). This Act directed the transfer of moneys from 39 special funds to the general revenue fund. To implement these transfers, Public Act 87-838 amended provisions of the various statutes that governed the use of the special funds. The source of the moneys in the State Pensions Fund is unclaimed property that escheats to the State by law. Pursuant to a provision of the State Finance Act: The moneys in the State Pensions Fund shall be used exclusively for the administration of the `Uniform Disposition of Unclaimed Property Act',    and for the reduction of the accrued actuarial reserve deficiency in each of the annuity and benefit funds established under the [five retirement systems in issue in the instant case].       [T]he moneys so appropriated from the State Pensions Fund shall be applied exclusively for the reduction of the accrued actuarial reserve deficiencies occasioned by the inadequacies of the appropriations heretofore made to such funds. Ill. Rev.Stat.1991, ch. 127, par. 144.12. To permit the transfer of the $21 million from the State Pensions Fund, Public Act 87-838 amended the above statute by adding the following paragraph: In addition to any other permitted use of moneys in the [State Pensions] Fund, and notwithstanding any restriction on the use of the Fund, moneys in the State Pensions Fund may be transferred to the General Revenue Fund as authorized by this amendatory Act of 1992. The General Assembly finds that an excess of moneys exists in the Fund. On February 1, 1992, the Comptroller shall order transferred and the Treasurer shall transfer $21,000,000    from the Fund to the General Revenue Fund. Pub. Act 87-838, § 270, eff. January 24, 1992. Following the legislature's enactment of Public Act 87-838, defendants filed a motion in this court to dismiss the interlocutory appeal in No. 72451 on the ground that plaintiffs' challenge to the transfer authorized by Public Act 87-14 had been mooted by the legislature's abandonment of that act. In April 1992, this court granted defendants' motion to dismiss and vacated its previous order that had stayed the circuit court's dissolution of the TRO pending appeal. At that time, the new act was not in issue before this court. Subsequently, plaintiffs returned to the circuit court to seek a TRO against the transfer of the Pension Fund moneys pursuant to the newly enacted Public Act 87-838. Plaintiffs' motion for TRO against the transfer authorized by the new Act rested on two points: (1) [T]he transfer to nonpension purposes of existing money in the State Pensions Fund is an impairment of pension benefits and contract rights prohibited by [the State and Federal Constitutions], and the new Act does not address and continues to violate the Plaintiffs' constitutionally-protected pension and contract rights; and (2) the legislative finding upon which the transfer is basedthat the monies in the State Pension Fund are excess moniesis totally contradicted by fact and therefore unreasonable, arbitrary and capricious. The circuit court denied plaintiffs' motion for a TRO, but certified an issue for interlocutory appeal by permission, pursuant to Supreme Court Rule 308 (134 Ill.2d R. 308). The certified question was whether the transfer of $21 million pursuant to Public Act 87-838 violated certain provisions of the Illinois or Federal Constitutions. In certifying the question the court made the requisite finding under Rule 308 that its order involved a question of law as to which there was a substantial ground for difference of opinion and that an immediate appeal might materially advance the ultimate termination of the litigation. Plaintiffs did not perfect their interlocutory appeal pursuant to Rule 308; instead, they filed in the appellate court a notice of interlocutory appeal as of right, pursuant to Rule 307(a), from denial of their motion for a TRO. Simultaneously, plaintiffs filed in this court a motion for direct appeal and a motion to enjoin defendants from transferring the $21 million under the auspices of Public Act 87-838. In May 1992, this court granted direct appeal but denied plaintiffs' motion to restrain the transfer of moneys from the State Pensions Fund to the general revenue fund. Subsequently, the transfer took place. Defendants thereafter moved to dismiss the instant appeal as being moot. Defendant's motion to dismiss was denied.