House Co-Sponsorship Memoranda

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House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted:	June 15, 2016 12:30 PM
From:	Representative Rick Saccone
To:	All House members
Subject:	Taxpayer Friendly Budget Reform

In the near future, I plan to introduce legislation which reforms Pennsylvania’s budget process to provide taxpayers with greater accountability for how their money is spent. Unlike families or companies across the state, the commonwealth when facing tough economic times fails to use cost savings to balance their respective budget. Rather than using these savings to address growing expenditures, governors from both parties have used savings within the General Fund to pay for new expenditures. As a result, cost-savings which could be directed towards a budget deficit are used for spending which adds to the “cost-to-carry” next fiscal year. In order to address the reckless spending embodied by the status-quo in Harrisburg, this legislation would amend the Administrative Code and outline how cost-savings are handled within the state’s budget procedures. Under this legislation, any savings which are realized must be reported to the Budget Secretary. The Budget Secretary is required, within 14 days, to inform the treasury along with General Assembly about the presence of cost-savings. After the treasury is notified about the savings by the Budget Secretary, the department is required to transfer those savings into a restricted account. If a state agency wishes to utilize these savings, the Budget Secretary must request approval of a waiver by a majority vote in both the Senate and House Appropriation Committees. By requiring legislative approval to use savings for new spending, the General Assembly increases fiscal oversight over state agencies. Additionally, the legislature will limit the ability of governors from both parties to use savings to increase the cost-to-carry next fiscal year. As a result, the General Assembly would not only reduce the structural deficit over the long-term, the legislature would provide taxpayers with better management of their money. Please join me and co-sponsor these important reforms to Pennsylvania’s budget process.

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