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For Immediate
Release
1/29/07
CONTACT:
PA
Senate Republican Communications
(717) 787-6725
Senators Want to Set Limits on State
Spending
Taxpayer Protection Act would return revenue surpluses
to citizens
Citing the need to set fiscally responsible limits on
state government spending, a group of Republican
Senators today announced their support for the
Taxpayer Protection Act bill and constitutional
amendment.
Senator Bob Regola, R-Westmoreland and prime sponsor
of the Taxpayer Protection Act bill and constitutional
amendment, said his proposal would limit state
spending to the average inflation rate plus the
average percentage change in state population over the
three preceding years.
"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."
Senator Mike Folmer, R-Lebanon and a co-sponsor of the
measure, said the Taxpayer Protection Act is a common
sense reform measure that sets realistic standards for
state spending.
"If we're going to change
how government operates, we need to get spending under
control. The government has to live within a budget
just like a family has to live within a budget,"
Senator Folmer said.
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.
Senate President Pro Tempore Joe Scarnati,
R-Jefferson, said the cost of excessive state spending
is ultimately borne by working Pennsylvanians.
"The Taxpayer Protection Act will help rein in
excessive government spending and enable working
Pennsylvanians to keep more of their hard-earned
money," Senator Scarnati said. "It is imperative that
we cut spending and act in a more fiscally
conservative manner."
The legislators stressed that reasonable limits on
spending are needed to improve Pennsylvania's economic
and job growth.
While state spending has increased by nearly 28
percent over the past four years, Pennsylvania is
consistently near the bottom of the rankings for job
growth, personal income growth, and population growth
during the same period.
"State residents have made it clear that they are
tired of runaway spending and they want fiscal
restraint," said Senator Jake Corman, R-Centre. "As
chairman of the Senate Policy Committee, I look
forward to holding public hearings on this issue and
gaining input on how we can make state government more
efficient and accountable."
The Taxpayer Protection Act bill could be enacted this
year, while the constitutional amendment must be
approved by the Legislature in two successive sessions
and be approved by the voters as well.
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