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For Immediate
Release
5/27/09
Senate Bill 1 Would Bring Transparency to
Budget Process
Browne's bill would establish
non-partisan approach to projecting revenues
A landmark bill drafted by Senator Pat Browne (R-16) would
fundamentally reform Pennsylvania's budgeting process to expedite the procedure
while increasing transparency and accountability in state government.
Senator Browne's bill establishes a Legislative Fiscal
Office (LFO), a non-partisan bi-cameral agency with expertise in financial
matters. The LFO would have access to the same agency and department financial
information as the Governor's Budget Office.
"One of the most important benefits of creating the LFO is
that developing fiscal projections and revenue estimates in Pennsylvania will
become much more transparent and free of political considerations. That has
been the experience in states where such an office exists," Senator Browne said.
"In addition, our constituents are demanding more accountability in the spending
of public resources. The LFO would help ensure that Pennsylvania's finances are
spent responsibly."
Senator Browne's measure will be introduced as Senate Bill
1, a designation reserved for legislation addressing the Senate's highest
priorities.
"The Legislative Fiscal Office is vital because it will
provide neutral, fact-based information to the Governor, the Legislature, and
the public," said Senate Majority Leader Dominic Pileggi (R-9). "Pennsylvania's
budget should be guided by sound economic data without partisan influence."
While the Governor and Legislature must agree on spending
during budget negotiations, the Administration currently has sole discretion
over setting the revenue projection for the upcoming fiscal year.
Under Senate Bill 1, the LFO would submit a preliminary
revenue estimate during the second week of February, a week after the Governor
traditionally presents his budget request for the upcoming fiscal year. The LFO
would then submit a binding revenue estimate for the upcoming fiscal year by
June 15.
"The revenue estimate is the basis upon which the state
budget is developed. That is the total number that can be disbursed. Currently,
the final projection is developed by the Governor's Budget Office alone and
provided in conjunction with the final passage of the budget," Senator Browne
said. "Pennsylvania's budget process would be more transparent and accountable
to the Legislature and the public if we have a revenue projection developed by a
non-partisan entity set prior to final passage of the budget. This would
provide notice of the exact amount that can be spent and ensure a balanced
budget."
Senate Bill 1 also requires state agencies and departments
to submit their budget requests to the LFO at the same time they submit them to
the Office of the Budget.
"Pennsylvania is currently one of only eight states where
the Legislature does not receive the agency budget requests," Senator Browne
said. "The overall budget process would be improved by having the LFO
receive the data and supporting documentation provided by those agencies to
justify their proposed expenditures. This information would improve the
Legislature's efforts to prioritize state spending by enabling us to see the
priorities set by the various agencies."
The LFO would also develop performance measures for state
programs and departments and evaluate the performance reviews of those programs
and departments as reported by the Administration. "This will enable the General
Assembly to more thoroughly and objectively evaluate the effectiveness of our
many public programs," Senator Browne said.
The LFO would also be tasked with:
- Evaluating the fiscal soundness and effectiveness
of proposed revisions to formula-based funding streams including education and
transportation subsidies.
- Preparing a baseline budget with spending levels
necessary to retain all current programs.
- Providing an analysis of the Governor's budget
proposal.
- Developing models to forecast State revenues.
"The LFO established under Senate Bill 1 would develop the
framework for serious discussions about the state budget, outside the realm of
partisan politics. It would provide parity among the co-equal branches of
government and accountability on the part of programs and departments," Senator
Browne said. "The end result will be that we will conclude each budget session
more expeditiously with a pragmatic and realistic spending plan that most
closely meets the expectations of all of the citizens of the Commonwealth."
Contact:
Stacey Connors
(Senator Browne)
(717) 787-1349
Erik Arneson (Senator
Pileggi)
(717) 787-4712
Additional Information:
Reforming
Government
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