SB2789 - Unbalanced Budget Response Act

• Authorizes Governor to designate contingency reserves from previously appropriated funds for fiscal years 2016-2017 to address budget shortfalls, with exceptions for debt service, school aid, and early childhood education funding.

• Permits Governor to direct transfers between state funds and the General Revenue Fund, excluding federal trust funds, debt service amounts, retirement system investments, and Road Fund balances.

• Allows Governor to modify payment rates to service providers and delay payments under continuing appropriations (except debt service), with cumulative actions limited to the annual budget deficit amount.

• Designated agencies (Department on Aging, Department of Children and Family Services, Department of Healthcare and Family Services, Department of Human Services, and Department of Public Health) may adopt emergency rules to implement budget measures without standard rulemaking procedures.

• Act expires July 1, 2017; requires Governor to notify Legislature and post all actions on public website within 10 business days; State Mandates Act does not require reimbursement for implementation.