Gov. Rauner signs bipartisan legislation to protect against misuse of grant funds

SPRINGFIELD — Gov. Bruce Rauner signed today bipartisan legislation to protect taxpayers against inappropriate use of funds earmarked for nonprofit organization grants — as well as from attempts to use the grant process for political advantage in the run-up to an election.

“These are good-government, common-sense measures that protect taxpayers against the misuse of funds,” Rauner said. “I commend the Legislative Audit Commission for its work. This should go a long way toward restoring taxpayers’ faith in the grant process.

“Numerous nonprofits in Illinois are doing excellent, important work to improve our environment or improve people’s lives,” he continued. “This will help ensure that our limited grant resources are put to the best use.”

The legislation came as a result of the uncovered misuse of grant funds in the Pat Quinn Administration’s Neighborhood Recovery Initiative.

Approved unanimously by the Illinois House and Senate in the spring, Senate Bill 2540 makes several changes to the state grant process. Significantly, it places greater restrictions on fund transfers, and prohibits transferring grant funds from appropriated to non-appropriated funds. It also requires a black-out period extending from Sept. 1 of general election years through the election, barring members of the General Assembly or state constitutional officers from announcing grants within that time frame — preventing them from creating grant programs solely or primarily to boost exposure.

The bill also permits the state comptroller to stop payment on grants when serious concerns arise about a program or recipient.

“State grants help fund non-profit organizations and others that undertake important work in communities around our state,” said Sen. Barickman (R-Bloomington) who was chief sponsor of the legislation and co-chairs the Legislative Audit Commission. “The controversial NRI program diminished the credibility of those good programs by misusing millions in taxpayers’ dollars and diverting the funds to questionable activities. The Legislative Audit Commission worked together with Governor Rauner’s Office of Management and Budget and the Comptroller’s office to prevent this misuse from happening again in the future.”

SB 2540 is effective immediately.