SENATE AMENDED
PRIOR PRINTER'S NO. 118 PRINTER'S NO. 3601
No. 106 Session of 1979
INTRODUCED BY MESSRS. J. L. WRIGHT, JR., ZWIKL, WEIDNER, SWEET
AND BURNS, FEBRUARY 6, 1979
SENATOR ORLANDO, FINANCE, IN SENATE, AS AMENDED, JUNE 17, 1980
AN ACT
1 Amending the act of April 9, 1929 (P.L.177, No.175), entitled
2 "An act providing for and reorganizing the conduct of the
3 executive and administrative work of the Commonwealth by the
4 Executive Department thereof and the administrative
5 departments, boards, commissions, and officers thereof,
6 including the boards of trustees of State Normal Schools, or
7 Teachers Colleges; abolishing, creating, reorganizing or
8 authorizing the reorganization of certain administrative
9 departments, boards, and commissions; defining the powers and
10 duties of the Governor and other executive and administrative
11 officers, and of the several administrative departments,
12 boards, commissions, and officers; fixing the salaries of the
13 Governor, Lieutenant Governor, and certain other executive
14 and administrative officers; providing for the appointment of
15 certain administrative officers, and of all deputies and
16 other assistants and employes in certain departments, boards,
17 and commissions; and prescribing the manner in which the
18 number and compensation of the deputies and all other
19 assistants and employes of certain departments, boards and
20 commissions shall be determined," PROVIDING FOR LIMITATIONS <--
21 ON COMMONWEALTH SPENDING, CREATING THE SPENDING LIMITATION
22 COMMITTEE, AND adding to the powers and duties of the
23 Pennsylvania Historical and Museum Commission.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Section 2801-A act of April 9, 1929 (P.L.177, <--
27 No.175), known as "The Administrative Code of 1929," is amended
28 by adding a clause to read:
1 SECTION 1. THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN <--
2 AS "THE ADMINISTRATIVE CODE OF 1929," IS AMENDED BY ADDING AN
3 ARTICLE TO READ:
4 ARTICLE VI-A
5 LIMITATION ON COMMONWEALTH SPENDING
6 SECTION 601-A. LIMITATIONS ON COMMONWEALTH SPENDING.--TOTAL
7 SPENDING BY THE COMMONWEALTH SHALL NOT EXCEED THE SPENDING LIMIT
8 IN ANY FISCAL YEAR. THE SPENDING LIMIT FOR ANY FISCAL YEAR SHALL
9 BE EQUAL TO THE SPENDING DURING THE IMMEDIATELY PRIOR FISCAL
10 YEAR, ADJUSTED BY ONE HUNDRED PER CENTUM (100%) OF THE COMPOUND
11 ANNUAL RATE OF CHANGE FOR THE TWO PRECEDING YEARS OF THE
12 PERSONAL INCOME BY PLACE OF RESIDENCE FOR PENNSYLVANIA AS
13 DEFINED AND OFFICIALLY REPORTED BY THE UNITED STATES DEPARTMENT
14 OF COMMERCE.
15 SECTION 602-A. CALCULATIONS AND DEFINITIONS.--(A) COMPOUND
16 ANNUAL RATE OF CHANGE SHALL BE COMPUTED IN THE SAME MANNER AS A
17 COMPOUND ANNUAL INTEREST RATE.
18 (B) FOR PURPOSES OF THIS ARTICLE "ONE HUNDRED PER CENTUM
19 (100%) OF THE COMPOUND ANNUAL RATE OF CHANGE FOR THE TWO
20 PRECEDING YEARS OF PERSONAL INCOME" IS DEFINED AS 1.0 TIMES THE
21 PER CENTUM COMPUTED ON THE SUM OF THE BASE YEAR'S PERSONAL
22 INCOME PLUS ANNUALLY ACCRUED CHANGES IN PERSONAL INCOME FOR THE
23 NEXT TWO YEARS.
24 (C) THE BASE YEAR FOR ANY GIVEN FISCAL YEAR IS COMPUTED BY
25 SUBTRACTING THREE YEARS FROM THE CALENDAR YEAR IN WHICH THAT
26 FISCAL YEAR BEGINS.
27 (D) MATHEMATICALLY DEFINED, "ONE HUNDRED PER CENTUM (100%)
28 OF THE COMPOUND ANNUAL RATE OF CHANGE FOR THE TWO PRECEDING
29 YEARS OF PERSONAL INCOME" IS DEFINED TO BE 1.0 TIMES THE SUM OF
30 -1 PLUS THE SQUARE ROOT OF THE QUOTIENT OF PERSONAL INCOME IN
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1 THE YEAR IMMEDIATELY PRECEDING THE YEAR IN WHICH THE FISCAL YEAR
2 STARTS DIVIDED BY PERSONAL INCOME IN THE BASE YEAR.
3 SECTION 603-A. NEW PROGRAMS AND INCREASES IN LEVELS OF
4 SERVICE.--THE COMMONWEALTH SHALL NOT IMPOSE UPON ANY UNIT OF
5 LOCAL GOVERNMENT NEW PROGRAMS OR INCREASE LEVELS OF SERVICE
6 UNDER EXISTING PROGRAMS UNLESS THE NECESSARY COST THEREOF SHALL
7 BE FULLY FUNDED BY THE COMMONWEALTH.
8 SECTION 604-A. EXCESS SPENDING.--THE SPENDING LIMIT OF THE
9 COMMONWEALTH MAY BE EXCEEDED IN ANY FISCAL YEAR FOR A
10 PRESIDENTIALLY DECLARED EMERGENCY OR MAJOR DISASTER. THE
11 SPENDING LIMIT MAY ALSO BE EXCEEDED FOR OTHER DECLARED
12 EMERGENCIES IF THE GOVERNOR SO REQUESTS AND THE GENERAL ASSEMBLY
13 APPROVES BY THE AFFIRMATIVE VOTE OF TWO-THIRDS OF THE MEMBERS
14 ELECTED TO EACH HOUSE. THE EXCESS SPENDING AUTHORIZED BY
15 EXCEEDING THE LIMIT IN THIS MANNER SHALL NOT BE INCLUDED IN THE
16 COMPUTATION BASE OF THE SPENDING LIMIT FOR ANY SUBSEQUENT FISCAL
17 YEAR.
18 SECTION 605-A. FUNDING OF FUTURE LIABILITIES.--FUTURE
19 LIABILITIES RESULTING FROM THE ADOPTION OF OR CONTRACTING FOR
20 NEW OR IMPROVED DEFERRED COMPENSATION OR BENEFITS OR PENSIONS ON
21 OR AFTER THE EFFECTIVE DATE OF THIS SECTION, SHALL BE FULLY
22 FUNDED EACH YEAR IN ACCORDANCE WITH AN ACCEPTED ADVANCE FUNDING
23 ACTUARIAL METHOD USING ACTUARIAL ASSUMPTIONS AND ASSET VALUATION
24 METHODS.
25 SECTION 606-A. TOTAL OF SPENDING.--TOTAL SPENDING BY THE
26 COMMONWEALTH MEANS ALL APPROPRIATIONS AND AUTHORIZATIONS FROM
27 THE GENERAL FUND AND MOTOR LICENSE FUND AND FUNDS CREATED AFTER
28 THE EFFECTIVE DATE OF THIS SECTION, AND SHALL EXCLUDE REFUNDS,
29 SERVICING OF BONDED INDEBTEDNESS INCURRED PRIOR TO THE EFFECTIVE
30 DATE OF THIS SECTION AND OF VOTER APPROVED BONDED INDEBTEDNESS,
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1 EXPENDITURES FOR FUNDING THE UNFUNDED PENSION LIABILITIES
2 EXISTING ON THE EFFECTIVE DATE OF THIS SECTION, AND THE SPENDING
3 OF FEDERAL FUNDS, GIFTS OR RECEIPTS RESTRICTED BY LAWS IN EFFECT
4 AS OF JANUARY 1, 1980. THIS SECTION SHALL NOT BE CIRCUMVENTED BY
5 CREATING ADDITIONAL SPENDING PROGRAMS IN, OR TRANSFERRING
6 SPENDING FROM THE GENERAL FUND OR MOTOR LICENSE FUND TO,
7 EXISTING SPECIAL FUNDS OR RESTRICTED RECEIPT ACCOUNTS.
8 SECTION 607-A. (A) SPENDING LIMITATION COMMITTEE.--THERE IS
9 HEREBY CREATED A SEVEN-MEMBER SPENDING LIMITATION COMMITTEE.
10 SUCH COMMITTEE SHALL CONSIST OF ONE PERSON APPOINTED BY THE
11 GOVERNOR, THE SECRETARY OF BUDGET AND ADMINISTRATION, THE
12 SECRETARY OF REVENUE, THE MAJORITY AND MINORITY CHAIRMEN OF THE
13 APPROPRIATIONS COMMITTEE OF THE HOUSE, AND THE MAJORITY AND
14 MINORITY CHAIRMEN OF THE APPROPRIATIONS COMMITTEE OF THE SENATE.
15 (B) IT SHALL BE THE DUTY OF SUCH COMMITTEE TO MEET AT LEAST
16 ANNUALLY, BUT NO LATER THAN MAY 15 TO EXAMINE THE DATA PERTINENT
17 TO THE COMMONWEALTH'S TOTAL SPENDING LIMIT AND THE FEDERALLY
18 REPORTED PERSONAL INCOME DATA AND DETERMINE THEREFROM THE TOTAL
19 SPENDING LIMIT FOR THE COMMONWEALTH FOR THE ENSUING FISCAL YEAR.
20 (C) THE COMMITTEE, UPON DETERMINING THE COMMONWEALTH'S
21 SPENDING LIMIT FOR THE ENSUING FISCAL YEAR, SHALL CAUSE THE SAME
22 TO BE PUBLISHED IN THE PENNSYLVANIA BULLETIN. IN ADDITION, THE
23 COMMITTEE FROM TIME TO TIME SHALL COMPUTE AND CAUSE TO BE
24 PUBLISHED IN A TIMELY MANNER ANY MODIFICATIONS TO THE
25 COMMONWEALTH'S FISCAL YEAR SPENDING LIMIT CAUSED BY REVISIONS TO
26 THE PERTINENT DATA, OR DUE TO DULY APPROVED CONSTITUTIONAL
27 AMENDMENTS, OR CAUSED BY LEGISLATIVE ACTION OR FOR OTHER CAUSES,
28 NOT INCONSISTENT WITH THE PROVISIONS OF THIS AMENDATORY ACT.
29 SECTION 2. SECTION 2801-A OF THE ACT IS AMENDED BY ADDING A
30 CLAUSE TO READ:
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1 Section 2801-A. Pennsylvania Historical and Museum
2 Commission.--Subject to any inconsistent provisions in this act
3 contained, the Pennsylvania Historical and Museum Commission
4 shall have the power and its duties shall be:
5 * * *
6 (y) To assume responsibilities for developing policies and
7 making provisions for the implementation of official programs
8 and activities associated with the commemoration and celebration
9 of dates and events of major historical significance to
10 Pennsylvania and to all of the citizens thereof, including
11 programs and activities relating to the tercentenary observance
12 and all subsequent observances of the founding of the
13 Commonwealth of Pennsylvania. The commission, through its
14 executive director, shall prepare requests to the Legislature
15 for appropriations in support of such programs and shall be
16 responsible for the expenditure of such appropriations. All
17 moneys received from any other sources as contributions to the
18 commission's commemorative programs shall be added to amounts
19 appropriated.
20 Section 2. This act shall take effect immediately. <--
21 SECTION 3. (A) ARTICLE VI-A SHALL TAKE EFFECT IMMEDIATELY <--
22 AND THE SPENDING LIMIT IMPOSED BY SECTION 601-A SHALL FIRST
23 APPLY TO FISCAL YEAR 1981-1982.
24 (B) THE AMENDMENT TO SECTION 2801-A SHALL TAKE EFFECT
25 IMMEDIATELY.
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