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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:
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The average annual rate
of change of personal income in Pennsylvania for the three preceding years;
or
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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:
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In the event of an
emergency or major disaster declared by the President, the spending limit
may be exceeded by a simple majority vote.
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In the event of other
declared emergencies, the governor may request an increase in the spending
limit. This would require a three-fifths vote.
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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.
  Jubelirer
Brightbill
Piccola
Earll
Charts & Summaries:
Taxpayer Fairness Act
Charts
SB 4 Summary --
Taxpayer Fairness Act
SB 884 Summary -- Joint
Resolution Proposing Constitutional Amendment
Taxpayer Fairness Act
Talking Points
What Supporters Say About the Taxpayer Fairness Act
What the Governor
Says About Controlling Spending
Sen. Jane
Earll, chair of the Senate Finance Committee, speaks at an Oct. 18 hearing
at which the panel unanimously
approved the Taxpayer Fairness Act. The measure would hold the line on
state spending to ensure that PA lives within its means and has adequate
savings for fiscal downturns.
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