Ryan: Finance Authority Consolidation Bill Introduced
FOR IMMEDIATE RELEASE
February 22, 2001
SPRINGFIELD -- Governor George H. Ryan announced today that legislation reforming and consolidating the state's 16 existing bonding authorities into a new Illinois State Finance Authority has been introduced in the Illinois Senate.
"As I said during the State of the State message, this proposal will help streamline government, save money and make these important financial functions more accountable to taxpayers and the General Assembly," Ryan said.
The legislation, introduced as Senate Bill 1010, will be sponsored by Senate Majority Leader Stanley B. Weaver, R-Champaign.
Under the proposal, the new ISFA would assume administration of $22.4 billion in outstanding debt now overseen by the existing 16 bond authorities, as well as any new debt created to finance private and government projects and programs. The merger would occur on Jan. 1, 2002.
It is estimated that a consolidation of the 16 bonding authorities will save $10 million annually in streamlined operations. Currently, each of the bonding authorities has separate governing boards, staff, offices and operating expenses.
The new ISFA would have one master governing board comprised of 15 gubernatorial appointees, as well as an executive director appointed by the governor. All of these appointments would require Senate confirmation.
In addition, the new board would appoint at least three public advisory councils to guide the ISFA in future decisions. The three advisory councils would oversee projects and programs relating to economic development, education and housing.
The new authority will have all of the financing powers now held by the current boards to help finance economic development, manufacturing, environmental projects, health facilities, affordable housing, student loans, local government projects, agricultural development and education programs.
The legislation caps the total bond authorization of the ISFA at $28 billion and limits moral obligation bond issues by the ISFA to $50 million per year.
Lastly, the bill also merges the Prairie State 2000 Authority with the Department of Commerce and Community Affairs in order to provide better coordination between the separate job training efforts now overseen by Prairie State 2000 and DCCA.
The existing financing authorities being consolidated into the ISFA are:
- Illinois Development Finance Authority
- Illinois Housing Development Authority
- Illinois Health Facilities Authority
- Illinois Educational Facilities Authority
- Illinois Student Assistance Commission
- Illinois Farm Development Authority
- Illinois Rural Bond Bank
- Illinois Research Park Authority
- State Parks Revenue Bond Commission
- Illinois Community Development Finance Commission
- Southwestern Illinois Development Authority
- Quad Cities Regional Economic Development Authority
- Upper Illinois River Valley Development Authority
- Will-Kankakee Regional Development Authority
- Tri-County River Valley Development Authority
- Joliet Arsenal Development Authority
"The consolidation of the authorities was first proposed in 1999 by my Infrastructure Transition Team," Ryan added. "Improved coordination of how the state finances affordable housing, industrial development, education projects and agriculture will help local governments and state government make better decisions about the future direction of Illinois and its communities."