PRINTER'S NO. 842
No. 4 Session of 2005
INTRODUCED BY BRIGHTBILL, PICCOLA, BOSCOLA, RHOADES, REGOLA,
JUBELIRER, PUNT, EARLL, ROBBINS, M. WHITE, ERICKSON,
RAFFERTY, VANCE, ORIE, GORDNER, PILEGGI, D. WHITE, CORMAN,
WENGER, SCARNATI, THOMPSON, LEMMOND, PIPPY, MADIGAN,
ARMSTRONG, WONDERLING, WAUGH AND BROWNE, MAY 26, 2005
REFERRED TO FINANCE, MAY 26, 2005
AN ACT
1 Establishing spending limitations on the Commonwealth; providing
2 for the disposition of surplus funds; and making a repeal.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Taxpayer
7 Fairness Act.
8 Section 2. Definitions.
9 The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Inflation." The percentage change in the United States
13 Department of Labor, Bureau of Labor Statistics, Consumer Price
14 Index for All Urban Consumers, not seasonally adjusted: all
15 items index, or its successor index.
16 "Spending limit." The spending during the immediately prior
1 fiscal year, adjusted by the lesser of:
2 (1) the average annual rate of change for the three
3 preceding calendar years of personal income in Pennsylvania
4 as reported by the Federal Government or as determined
5 pursuant to an act of the General Assembly; or
6 (2) the average percentage change in inflation plus the
7 average percentage change in State population for the three
8 preceding calendar years as reported by the annual Federal
9 census estimates, such number being adjusted every decade to
10 match the official Federal census.
11 "Total spending by the Commonwealth." All appropriations and
12 authorizations made by the General Assembly, excluding the
13 spending of Federal funds, gifts or receipts.
14 Section 3. Spending limit.
15 (a) General rule.--Total spending by the Commonwealth in any
16 fiscal year shall not exceed the spending limit as set forth in
17 this act.
18 (b) Exceptions.--The spending limit of the Commonwealth may
19 be exceeded in any fiscal year for the following:
20 (1) To respond to a presidentially declared emergency if
21 the General Assembly approves by an affirmative vote of a
22 majority of the members elected to each house of the General
23 Assembly.
24 (2) To respond to a gubernatorially declared emergency
25 if the Governor so requests and the General Assembly approves
26 by an affirmative vote of three-fifths of the members elected
27 to each house of the General Assembly.
28 (3) In other situations if the Governor so requests and
29 the General Assembly approves by an affirmative vote of two-
30 thirds of the members elected to each house of the General
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1 Assembly.
2 In no case shall the excess spending authorized by exceeding the
3 limit in this manner be included in the computation base of the
4 spending limit for any subsequent fiscal year.
5 Section 4. Refund of surplus revenues.
6 (a) Intent.--It is hereby declared as the intent and goal of
7 the General Assembly to create a stabilization reserve.
8 (b) Transfer of portion of surplus.--For the fiscal year
9 beginning July 1, 2005, and in any fiscal year thereafter in
10 which the Secretary of the Budget certifies that there is a
11 surplus in the General Fund, 100% of the surplus shall be
12 deposited by the end of the next succeeding quarter into the
13 Budget Stabilization Reserve Fund established in section 1701-A
14 of the act of April 9, 1929 (P.L.343, No.176), known as The
15 Fiscal Code.
16 (c) Appropriated funds.--The General Assembly may at any
17 time provide additional amounts from any funds available to the
18 Commonwealth as an appropriation to the Budget Stabilization
19 Reserve Fund.
20 Section 5. Repeal.
21 Section 1702-A of the act of April 9, 1929 (P.L.343, No.176),
22 known as The Fiscal Code, is repealed.
23 Section 6. Effective date.
24 This act shall take effect July 1, 2005, or immediately,
25 whichever is later.
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