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For Immediate
Release
4/03/07
CONTACT:
Tom Hower
(717) 787-6063
Bills to Limit State Spending Introduced
Taxpayer Protection Act would return revenue surpluses to citizens
Following up on his
pledge to take legislative action to set fiscally responsible limits on state
government spending, Senator Bob Regola has introduced a bill that would enact
the Taxpayer Protection Act through a constitutional amendment.
Senator Regola's bill, Senate Bill 7, is a joint
resolution providing for a constitutional amendment that would limit state
spending to the average inflation rate plus the average percentage change in
state population over the three preceding years.
SB 7 is mirrored by Senate Bill 707, a measure
introduced by Senator Mike Folmer, that would provide the same limitation, but
not as a Constitutional Amendment.
Both bills were referred to the Senate Finance
Committee for consideration.
"Governor Rendell's proposed budget is a dramatic
example of why Pennsylvania needs to rein in state spending," Senator Regola
said. "If the Taxpayer Protection Act were in place, there would be no need to
raise $2.5 billion in new revenue through seven tax increases like the Governor
has proposed."
In addition to the spending limits in the Taxpayer
Protection Act, the proposal also sets realistic restrictions on the use of any
unanticipated revenues received by the Commonwealth.
Specifically, 75 percent of any revenues
exceeding the spending limits imposed by the bill would be returned to
the taxpayers. The remaining 25 percent would go directly into the Rainy
Day Fund to help the Commonwealth cope with unanticipated revenue
shortfalls.
"In my experiences working with my family's
small business, I have found that it is essential to control spending
and stay within financial constraints. Government must operate under
those types of constraints as well," Senator Regola said. "We have a
responsibility to the people of Pennsylvania to ensure that state
spending is prudent."
While the legislation sets clear limits on
spending, it also provides some exceptions for certain extraordinary
circumstances.
"It is crafted to recognize that not even
the best financial planners can predict the future with certainty,"
Senator Regola said. "We need to be firm in our resolve to limit
spending; but at the same time, we must be pragmatic and provide a
safety net that would allow some flexibility during times of
emergencies."
SB 707 could be enacted this year, while the
constitutional amendment proposed in SB 7 must be approved by the
Legislature in two successive sessions and be approved by the voters as
well.
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