PRIOR PASSAGE - NONE PRINTER'S NO. 1661
No. 1485 Session of 1993
INTRODUCED BY FAIRCHILD, PITTS, GAMBLE, MURPHY, BUNT, LEH, ALLEN, SEMMEL, FARMER, RAYMOND, BUSH, COLAIZZO, CAWLEY, SCRIMENTI, SAURMAN, PHILLIPS, GRUPPO, SCHEETZ, M. N. WRIGHT, FAJT, BARLEY, MICOZZIE, GERLACH, GEIST, DEMPSEY, D. W. SNYDER, JADLOWIEC, HERSHEY, MERRY, FARGO, CLARK, BIRMELIN, TOMLINSON, ARMSTRONG, HASAY, DeLUCA, TULLI, S. H. SMITH, PERZEL, TANGRETTI, ADOLPH, E. Z. TAYLOR, GODSHALL, CAPPABIANCA, KENNEY, HESS, SERAFINI, VANCE, GLADECK, BROWN, NYCE, NAILOR, MAYERNIK, LAWLESS, FLICK, TRUE, FICHTER, PETTIT, MELIO, MARSICO, BAKER, HENNESSEY, LYNCH, ZUG, MILLER, PLATTS, SATHER, KING, SAYLOR, STERN AND EGOLF, MAY 3, 1993
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 3, 1993
A JOINT RESOLUTION 1 Proposing an amendment to the Constitution of the Commonwealth 2 of Pennsylvania, providing for spending limitations on the 3 Commonwealth 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 19930H1485B1661 - 2 -
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, Motor 17 License Fund and funds created after the effective date of this 18 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 19930H1485B1661 - 3 -
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. D26L83JRW/19930H1485B1661 - 4 -