(Harrisburg) – Today, the PA Senate Finance Committee passed Senator Mike Folmer’s (R-48) Senate Bill 7, the “Taxpayer Protection Act”, which would limit the growth in state government spending.
“Every second, the Commonwealth spends $999 of your hard-earned tax moneys. $59,995 every minute, over $3 Million an hour, and over $86 Million every day,” said Folmer. “Since 1970, Pennsylvania’s population has grown 7.7%, while the Commonwealth’s General Fund Budget has grown 1,010%. This legislation attempts to address these burdens by limiting the growth of state spending.”
SB 7 would limit – not reduce – the growth in state government spending through the lower of the following thresholds:
- Limit state government spending to the average change in personal income for the three preceding calendar years, OR;
- Limit state government spending to the average inflation rate plus the average percentage change in state population over the three preceding years (with exceptions for certain extraordinary circumstances).
The “Taxpayer Protection Act” would also require:
- 25% of any moneys in excess of these limits be returned to the taxpayers.
- 25% be allocated to the Rainy Day Fund to help balance state budgets during trying economic times.
- 50% to help pay down the unfunded liabilities of the Public School Employees’ Retirement System (PSERS) and the State Employees’ Retirement System (SERS).
“I thank Senator Hutchinson for bringing this bill up for a vote in his Committee, and look forward to further advancement of these much needed and long overdue reforms on behalf of taxpayers across the Commonwealth,”
Senate Bill 7 will now advance to the full Senate for consideration.
Contact: Fred Sembach