Pennsylvania Senate Republican Caucus

Senator Regola speaks at January 29th press conference

SB 7 (Constitutional Amendment Version)

SB 707 (Statute Version)

Senator Folmer speaks at January 29th press conference

June 6, 2007

Committee Approves Regola Bill to Limit State Spending

Finance Committee endorses Taxpayer Protection Act

The Senate Finance Committee today reported out Senator Bob Regola's Taxpayer Protection Act, a Constitutional Amendment that would limit state spending to the average rate of inflation plus population growth over the three preceding years.

"I am very pleased that the Finance Committee approved Senate Bill 7," said Sen. Regola.  "It is extremely appropriate that we consider this legislation as we get into the annual budget debate.  Governor Rendell's proposed budget is a dramatic example of why Pennsylvania needs to rein in state spending.  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."

Speaking at the Finance Committee meeting, Senate President Pro Tempore Joseph Scarnati (R-25) said Pennsylvania state government needs the spending restraints provided by the Taxpayer Protection Act.

"It is all about spending.  This budget is about spending.  The next budget is about spending.  We can't sustain the spending increases and that's what killing us and it's a sad commentary, very sad commentary, when we have to pass legislation to slap ourselves," said Sen. Scarnati.  "It's a sickness and this building and this city is sick on spending and so is every government.  I am not real happy about having to support a bill that makes us look like a bunch of alcoholics that can't take another drink, but I am going to tell you something, it is well needed and it has to be done.

"We have to set the legislation in stone that we're not going to exceed these spending limits, otherwise what ever else we do doesn't matter," Sen. Scarnati continued.  "This is the cornerstone that we need to lay today.  I support it and I believe we are on the way to a better government in Pennsylvania if we get it done."

SB 7 is mirrored by Senate Bill 707, a measure introduced by Sen. Mike Folmer (R-48), that would provide the same limitation in statute, but not as a Constitutional Amendment.  The Finance Committee also approved SB 707 today.  Both bills are expected to be referred to the Senate Appropriations Committee for further consideration.

Prior to the Committee's passage of the bills, both measures were amended with a provision offered by Sen. John Eichelberger (R-30) ensuring that local governments would not be adversely affected by any potential cuts in spending.

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.

News, charts and video about setting fiscally responsible limits on state government spending are available at http://senaterepublicannews.com/tpa/tpa.htm.

Contact:  Tom Hower (717) 787-6063

April 26th hearing at Seton Hill University.

April 26th hearing at Seton Hill University.