Senate Panel Endorses State Spending Control Measures

Harrisburg -- The Senate Finance Committee today unanimously approved the Taxpayer Fairness Act, which would hold the line on state spending to ensure that the Commonwealth lives within its means and has adequate savings for fiscal downturns, according to Senate Majority Leader David Brightbill (R-48) and Senate Majority Whip Jeffrey Piccola (R-15), sponsors of Senate Bill 4. 

The committee also approved a companion measure, Senate Bill 884, which would amend the state constitution to hold state spending increases to inflation. In addition to restricting state spending growth, the bills would set aside surplus revenues into the state’s Rainy Day Fund for use in times of economic necessity. 

"These measures would implement sensible and realistic controls designed to protect state residents from tax hikes and excessive spending," Brightbill said. "Nearly 70 percent of Pennsylvania taxpayers say they want to limit state government spending increases. Our legislation heeds that call." 

According to the National Conference of State Legislatures, 30 states have implemented spending controls, revenue controls or both. Pennsylvania is in the minority of states which have no such controls. 

"Working people across Pennsylvania have to live within a budget and so should state government. The best way to control government growth is to control spending," said Piccola. "If the spending limits contained in the Taxpayer Fairness Act had been put in place before Governor Rendell’s tenure, every Pennsylvanian would be paying $544 less today to fund the government." 

The measures approved today would restrict state spending growth to the lesser of:

• The average annual rate of change of personal income in Pennsylvania for the three preceding years; or
• The average rate of inflation plus the average percentage change in state population for the three preceding years.

Both the statute (SB 4) and the constitutional amendment (SB 884) include three common-sense exceptions:

1. In the event of an emergency or major disaster declared by the President, the spending limit may be exceeded by a simple majority vote.
2. In the event of other declared emergencies, the governor may request an increase in the spending limit. This would require a three-fifths vote.
3. For any other circumstances, the governor may request an increase in the spending limit. This would require a two-thirds vote.

The Taxpayer Fairness Act – part of the Republican agenda known as the Playbook for Progress unveiled earlier this year by Senate and House Republicans – has been endorsed by Citizens Against Higher Taxes, the Pennsylvania Chamber of Business and Industry, the National Federation of Independent Businesses, and the National Taxpayers Union.

The measure now moves to the Senate Appropriations Committee, which is expected to consider the bill next week. 

CONTACT:

Erik Arneson (Senator Brightbill), 717-787-5708
Colleen Greer (Senator Piccola), 717-787-6801

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