PRIOR PASSAGE - NONE
PRINTER'S NO. 2635
No. 2106 Session of 1991
INTRODUCED BY FAIRCHILD, PITTS, GAMBLE, MURPHY, BUNT, LEH,
ALLEN, SEMMEL, NOYE, CARLSON, FARMER, JOHNSON, RAYMOND, BUSH,
COLAIZZO, CAWLEY, SCRIMENTI, SAURMAN, NAHILL, PHILLIPS,
GRUPPO, SCHEETZ, M. N. WRIGHT, FAJT, BARLEY, MICOZZIE,
GERLACH, GEIST, DEMPSEY, D. W. SNYDER, JADLOWIEC, HERSHEY,
MERRY, FARGO, CLARK, G. SNYDER, BIRMELIN, TOMLINSON,
ARMSTRONG, HASAY, DeLUCA, TULLI, S. H. SMITH, PERZEL,
TANGRETTI, ADOLPH, GALLEN, LANGTRY, E. Z. TAYLOR, GODSHALL,
CAPPABIANCA, KENNEY, HESS, SERAFINI, VANCE, GLADECK, HAGARTY,
BROWN, FOX, ANGSTADT, NYCE, NAILOR, MAYERNIK AND LAWLESS,
NOVEMBER 12, 1991
REFERRED TO COMMITTEE ON STATE GOVERNMENT, NOVEMBER 12, 1991
A JOINT RESOLUTION
1 Proposing an amendment to the Constitution of the Commonwealth
2 of Pennsylvania, providing for spending limitations on the
3 State and its political subdivisions.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby resolves as follows:
6 Section 1. The following amendment to the Constitution of
7 Pennsylvania is proposed in accordance with Article XI:
8 That Article VIII be amended by adding a section to read:
9 § 18. Spending limitations.
10 (a) Total spending by the Commonwealth shall not exceed the
11 spending limit in any fiscal year. The spending limit for any
12 fiscal year shall be equal to the spending during the
13 immediately prior fiscal year, adjusted by 80% of the compound
1 annual rate of change for the two preceding years of the
2 Personal Income by Place of Residence for Pennsylvania as
3 defined and officially reported by the United States Department
4 of Commerce. The percentage of the rate of change used in any
5 fiscal year to adjust the limit may be increased for that year,
6 but not to a percentage in excess of 100%, by the affirmative
7 vote of two-thirds of the members elected to each House of the
8 General Assembly.
9 (b) The General Assembly shall enact legislation requiring
10 each municipality and school district to restrict the annual
11 growth in spending by binding ordinance or resolution. This
12 limit may not exceed the compound annual rate of change for the
13 two preceding years of the Personal Income by Place of Residence
14 for Pennsylvania as defined and officially reported by the
15 United States Department of Commerce. Spending in excess of this
16 limit may be changed by a majority vote of the electorate of the
17 municipality or school district.
18 (c) If the duty of paying any cost or any portion thereof is
19 transferred from one level or unit of government to another, the
20 cost so transferred shall be deducted from the spending limit of
21 the transferor and shall be added to the spending limit of the
22 transferee.
23 (d) The Commonwealth shall not impose upon any unit of local
24 government new programs or increase levels of service under
25 existing programs unless the necessary cost thereof shall be
26 fully funded by the Commonwealth.
27 (e) The Commonwealth's spending limit as provided in
28 subsection (a) may be changed by the procedure outlined in
29 section 1(a) of Article XI.
30 (f) The spending limit of the Commonwealth may be exceeded
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1 in any fiscal year for a presidentially declared emergency or
2 major disaster. The spending limit may also be exceeded for
3 other declared emergencies if the Governor so requests and the
4 General Assembly approves by the affirmative vote of two-thirds
5 of the members elected to each House of the General Assembly.
6 The excess spending authorized by exceeding the limit in this
7 manner shall not be included in the computation base of the
8 spending limit for any subsequent fiscal year.
9 (g) Future liabilities resulting from the adoption of or
10 contracting for new or improved deferred compensation or
11 benefits or pensions on or after the effective date of this
12 amendment shall be fully funded each year in accordance with an
13 accepted advance funding actuarial method using actuarial
14 assumptions and asset valuation methods.
15 (h) Total spending by the Commonwealth means all
16 appropriations and authorizations from the General Fund, and
17 Motor License Fund and funds created after the effective date of
18 this amendment, and shall exclude refunds, servicing of bonded
19 indebtedness incurred prior to the effective date of this
20 amendment and of voter-approved bonded indebtedness,
21 expenditures for funding the unfunded pension liabilities
22 existing on the effective date of this amendment, and the
23 spending of Federal funds, gifts or receipts restricted by laws
24 in effect as of January 1, 1991. This section shall not be
25 circumvented by creating additional spending programs in, or
26 transferring spending from the General Fund or Motor License
27 Fund to, existing special funds or restricted receipt accounts.
28 (i) The Commonwealth shall not impose taxes or spend
29 revenues in excess of those imposed or spent during the fiscal
30 year next following the date on which this amendment is adopted
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1 until the legislation required by subsection (b) has been
2 enacted.
3 Section 2. The addition of section 18(a) of Article VIII of
4 the Constitution of Pennsylvania shall become effective
5 beginning with the first fiscal year commencing more than six
6 months following approval of section 18 by the electorate.
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