SENATE AMENDED
PRIOR PRINTER'S NOS. 2872, 2886, 3037 PRINTER'S NO. 3152
3117
No. 2082 Session of 2005
INTRODUCED BY ALLEN, DALLY, SAYLOR, PETRARCA, ZUG, TRUE, FEESE,
ARGALL AND KAUFFMAN, OCTOBER 19, 2005
SENATOR THOMPSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, NOVEMBER 21, 2005
AN ACT
1 Amending the act of April 9, 1929 (P.L.343, No.176), entitled, <--
2 as amended, "An act relating to the finances of the State
3 government; providing for the settlement, assessment,
4 collection, and lien of taxes, bonus, and all other accounts
5 due the Commonwealth, the collection and recovery of fees and
6 other money or property due or belonging to the Commonwealth,
7 or any agency thereof, including escheated property and the
8 proceeds of its sale, the custody and disbursement or other
9 disposition of funds and securities belonging to or in the
10 possession of the Commonwealth, and the settlement of claims
11 against the Commonwealth, the resettlement of accounts and
12 appeals to the courts, refunds of moneys erroneously paid to
13 the Commonwealth, auditing the accounts of the Commonwealth
14 and all agencies thereof, of all public officers collecting
15 moneys payable to the Commonwealth, or any agency thereof,
16 and all receipts of appropriations from the Commonwealth,
17 authorizing the Commonwealth to issue tax anticipation notes
18 to defray current expenses, implementing the provisions of
19 section 7(a) of Article VIII of the Constitution of
20 Pennsylvania authorizing and restricting the incurring of
21 certain debt and imposing penalties; affecting every
22 department, board, commission, and officer of the State
23 government, every political subdivision of the State, and
24 certain officers of such subdivisions, every person,
25 association, and corporation required to pay, assess, or
26 collect taxes, or to make returns or reports under the laws
27 imposing taxes for State purposes, or to pay license fees or
28 other moneys to the Commonwealth, or any agency thereof,
29 every State depository and every debtor or creditor of the
1 Commonwealth," establishing appropriations limitations; and
2 providing for the disposition of surplus funds.
3 ESTABLISHING SPENDING LIMITATIONS ON THE COMMONWEALTH; PROVIDING <--
4 FOR THE DISPOSITION OF SURPLUS FUNDS; AND MAKING A REPEAL OF <--
5 PROVISIONS IN THE FISCAL CODE RELATING TO THE FUNDING OF A
6 STABILIZATION RESERVE.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. The act of April 9, 1929 (P.L.343, No.176), known <--
10 as The Fiscal Code, is amended by adding an article to read:
11 ARTICLE XV-A
12 APPROPRIATIONS LIMITATIONS
13 Section 1501-A. Limitations on appropriations.
14 (a) General rule.--Except as set forth in subsection (b), in
15 any fiscal year, the General Assembly shall not increase total
16 General Fund State appropriations above the amount of total
17 General Fund State appropriations authorized for the preceding
18 fiscal year by a percentage which exceeds the average percentage
19 increase over the immediately preceding three calendar years in
20 the Consumer Price Index for All Urban Consumers of the Bureau
21 of Labor Statistics unless a referendum stating the amount and
22 duration of the increase is approved by a majority of the
23 electors voting on the referendum.
24 (b) Exception.--Subsection (a) shall not apply to any of the
25 following:
26 (1) An appropriation which, as a result of a requirement
27 of Federal law, is made for a new program or service or for
28 an increase in the level of service for an existing program
29 beyond the existing level of service.
30 (2) An appropriation which, as a result of a requirement
31 of a Federal or State court order which has become final, is
32 made for a new program or service or for an increase in the
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1 level of service for an existing program beyond the existing
2 level of service.
3 (3) An appropriation which:
4 (i) provides for the Commonwealth's share of
5 payments for pension obligations as provided by law; and
6 (ii) is approved by three-fifths of the members
7 elected to each house of the General Assembly.
8 (4) An appropriation which:
9 (i) is for the repayment of interest and principal
10 for all debt incurred by or on behalf of the
11 Commonwealth; and
12 (ii) is approved by three-fifths of the members
13 elected to each house of the General Assembly.
14 (5) An appropriation which:
15 (i) is in response to a Presidential or
16 gubernatorial declaration of an emergency or major
17 disaster in any part of this Commonwealth; and
18 (ii) which is approved by three-fifths of the
19 members elected to each house of the General Assembly.
20 Section 1502-A. Refund of surplus operating funds.
21 Surplus operating funds in the General Fund at the end of the
22 fiscal year which are not required by law to be deposited into
23 the Budget Stabilization Reserve Fund shall be refunded pro rata
24 to the citizens of this Commonwealth based on the liability
25 reported on annual returns filed pursuant to section 330 of the
26 act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
27 of 1971, within the fiscal year in which the surplus was
28 created. The pro rata refund shall be in the form of a tax
29 credit applied against the tax liability reported on the annual
30 income tax returns filed pursuant to section 330 of the Tax
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1 Reform Code of 1971 in the immediately succeeding fiscal year.
2 If the tax credit provided under this section exceeds the
3 taxpayer's liability, the taxpayer shall receive a refund of the
4 amount in excess of the liability.
5 Section 2. This act shall take effect immediately.
6 SECTION 1. SHORT TITLE. <--
7 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE TAXPAYER
8 FAIRNESS ACT.
9 SECTION 2. DEFINITIONS.
10 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
11 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
12 CONTEXT CLEARLY INDICATES OTHERWISE:
13 "APPROPRIATION LIMIT." THE TOTAL SPENDING BY THE <--
14 COMMONWEALTH DURING THE FISCAL YEAR PRIOR TO THE BUDGET YEAR
15 UNDER CONSIDERATION, ADJUSTED BY THE LESSER OF:
16 (1) THE AVERAGE PERCENTAGE CHANGE IN PERSONAL INCOME IN
17 PENNSYLVANIA FOR THE THREE PRECEDING CALENDAR YEARS AS
18 REPORTED BY THE FEDERAL GOVERNMENT OR AS DETERMINED PURSUANT
19 TO AN ACT OF THE GENERAL ASSEMBLY; OR
20 (2) THE AVERAGE PERCENTAGE CHANGE IN INFLATION FOR THE
21 THREE PRECEDING CALENDAR YEARS PLUS THE AVERAGE PERCENTAGE
22 CHANGE IN STATE POPULATION FOR THE THREE PRECEDING YEARS AS
23 REPORTED BY THE ANNUAL FEDERAL CENSUS ESTIMATES, SUCH NUMBER
24 BEING ADJUSTED EVERY DECADE TO MATCH THE OFFICIAL FEDERAL
25 CENSUS.
26 FOR THE PURPOSES OF PARAGRAPHS (1) AND (2), ALL ADJUSTMENT
27 CALCULATIONS SHALL UTILIZE ACTUAL DATA.
28 "INFLATION." THE PERCENTAGE CHANGE IN THE UNITED STATES
29 DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS, CONSUMER PRICE
30 INDEX FOR ALL URBAN CONSUMERS, NOT SEASONALLY ADJUSTED: ALL
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1 ITEMS INDEX, OR ITS SUCCESSOR INDEX.
2 "TOTAL SPENDING BY THE COMMONWEALTH." ALL GENERAL FUND
3 APPROPRIATIONS MADE BY THE GENERAL ASSEMBLY.
4 "APPROPRIATION LIMIT." THE TOTAL OF THE AMOUNTS APPROVED AS <--
5 EXECUTIVE AUTHORIZATIONS BY THE GOVERNOR PLUS THE TOTAL AMOUNTS
6 OF PREFERRED AND NONPREFERRED APPROPRIATIONS MADE BY THE GENERAL
7 ASSEMBLY FROM THE GENERAL FUND DURING THE FISCAL YEAR
8 IMMEDIATELY PRIOR TO THE BUDGET YEAR UNDER CONSIDERATION,
9 ADJUSTED BY THE LESSER OF:
10 (1) THE AVERAGE PERCENTAGE CHANGE IN PERSONAL INCOME IN
11 PENNSYLVANIA; OR
12 (2) THE AVERAGE PERCENTAGE CHANGE IN INFLATION PLUS THE
13 AVERAGE PERCENTAGE CHANGE IN STATE POPULATION.
14 "AVERAGE PERCENTAGE CHANGE IN INFLATION." THE AVERAGE OF THE
15 PERCENTAGE CHANGE FOR EACH OF THE THREE CALENDAR YEARS, FROM
16 OCTOBER TO OCTOBER, IMMEDIATELY PRECEDING THE CALENDAR YEAR IN
17 WHICH A GIVEN EXECUTIVE BUDGET IS SUBMITTED BY THE GOVERNOR, IN
18 THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
19 STATISTICS, CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS, NOT
20 SEASONALLY ADJUSTED, ALL ITEMS INDEX OR ITS SUCCESSOR INDEX.
21 "AVERAGE PERCENTAGE CHANGE IN PERSONAL INCOME." THE AVERAGE
22 OF THE PERCENTAGE CHANGE IN PERSONAL INCOME ESTIMATES FOR
23 PENNSYLVANIA, FROM SECOND CALENDAR QUARTER TO SECOND CALENDAR
24 QUARTER, FOR EACH OF THE THREE CALENDAR YEARS IMMEDIATELY
25 PRECEDING THE CALENDAR YEAR IN WHICH A GIVEN EXECUTIVE BUDGET IS
26 SUBMITTED BY THE GOVERNOR, AS REPORTED BY THE UNITED STATES
27 DEPARTMENT OF COMMERCE, BUREAU OF ECONOMIC ANALYSIS, SQ4
28 QUARTERLY INCOME SUMMARY FOR PENNSYLVANIA OR ITS SUCCESSOR INDEX
29 OR AS DETERMINED PURSUANT TO AN ACT OF THE GENERAL ASSEMBLY.
30 "AVERAGE PERCENTAGE CHANGE IN STATE POPULATION." THE AVERAGE
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1 OF THE PERCENTAGE CHANGE IN STATE POPULATION FOR EACH OF THE
2 THREE MOST RECENT YEARS IMMEDIATELY PRECEDING THE CALENDAR YEAR
3 IN WHICH A GIVEN EXECUTIVE BUDGET IS SUBMITTED BY THE GOVERNOR,
4 AS REPORTED BY THE UNITED STATES CENSUS BUREAU FOR JULY 1 OF
5 EACH YEAR.
6 SECTION 3. SPENDING LIMITATIONS.
7 (A) GENERAL RULE.--TOTAL SPENDING BY THE COMMONWEALTH IN ANY
8 FISCAL YEAR SHALL NOT EXCEED THE APPROPRIATION LIMIT AS SET
9 FORTH IN THIS ACT.
10 (B) EXCEPTIONS.--THE APPROPRIATION LIMIT OF THE COMMONWEALTH <--
11 (B) EXCEPTIONS.-- <--
12 (1) THE APPROPRIATIONS LIMIT OF THE COMMONWEALTH MAY BE
13 EXCEEDED IN ANY FISCAL YEAR FOR THE FOLLOWING:
14 (1) TO RESPOND TO A PRESIDENTIALLY DECLARED EMERGENCY IF <--
15 (I) TO RESPOND TO A PRESIDENTIALLY DECLARED <--
16 EMERGENCY IF THE GENERAL ASSEMBLY APPROVES BY AN
17 AFFIRMATIVE VOTE OF A MAJORITY OF THE MEMBERS ELECTED TO
18 EACH HOUSE OF THE GENERAL ASSEMBLY.
19 (2) TO RESPOND TO A GUBERNATORIALLY DECLARED EMERGENCY <--
20 (II) TO RESPOND TO A GUBERNATORIALLY DECLARED <--
21 EMERGENCY IF THE GOVERNOR SO REQUESTS AND THE GENERAL
22 ASSEMBLY APPROVES BY AN AFFIRMATIVE VOTE OF THREE-FIFTHS
23 OF THE MEMBERS ELECTED TO EACH HOUSE OF THE GENERAL
24 ASSEMBLY.
25 (3) IN OTHER SITUATIONS IF THE GOVERNOR SO REQUESTS AND <--
26 (III) IN OTHER SITUATIONS IF THE GENERAL ASSEMBLY <--
27 APPROVES BY AN AFFIRMATIVE VOTE OF TWO-THIRDS OF THE
28 MEMBERS ELECTED TO EACH HOUSE OF THE GENERAL ASSEMBLY.
29 IN NO CASE SHALL THE EXCESS SPENDING AUTHORIZED BY EXCEEDING THE <--
30 (2) FOR EXCEPTIONS SET FORTH UNDER PARAGRAPH (1)(I) AND <--
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1 (II), THE EXCESS SPENDING AUTHORIZED BY EXCEEDING THE
2 APPROPRIATION LIMIT IN THIS MANNER SHALL NOT BE INCLUDED IN <--
3 THE COMPUTATION BASE OF THE APPROPRIATION LIMIT FOR ANY
4 SUBSEQUENT FISCAL YEAR.
5 (3) FOR EXCEPTIONS SET FORTH UNDER PARAGRAPH (1)(III), <--
6 THE EXCESS SPENDING MAY BE INCLUDED IN THE COMPUTATION BASE
7 OF THE APPROPRIATION LIMIT FOR ANY SUBSEQUENT FISCAL YEAR IF
8 THE EXCESS SPENDING REPRESENTS A RECURRING OBLIGATION OF THE
9 COMMONWEALTH AND AN ACT OF THE GENERAL ASSEMBLY AUTHORIZING
10 THE EXCESS OF SPENDING SPECIFICALLY AUTHORIZES THE EXCESS
11 SPENDING TO BE INCORPORATED IN THE BASE.
12 SECTION 4. DISPOSITION OF SURPLUS REVENUES.
13 (A) TRANSFER OF SURPLUS.--
14 (1) EXCEPT AS PROVIDED UNDER PARAGRAPH (2), FOR ANY
15 FISCAL YEAR IN WHICH THE GOVERNOR CERTIFIES THAT A SURPLUS
16 EXISTS IN THE GENERAL FUND, 50% 35% OF THAT SURPLUS SHALL BE <--
17 DEPOSITED BY THE END OF THE NEXT SUCCEEDING QUARTER INTO THE
18 BUDGET STABILIZATION RESERVE FUND ESTABLISHED IN SECTION
19 1701-A OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN
20 AS THE FISCAL CODE, AND 50% 65% OF THAT SURPLUS SHALL BE <--
21 DEPOSITED BY THE END OF THE NEXT SUCCEEDING QUARTER INTO THE
22 TAXPAYER FAIRNESS FUND, WHICH FUND IS HEREBY ESTABLISHED IN
23 THE STATE TREASURY.
24 (2) FOR ANY FISCAL YEAR IN WHICH THE STATE TREASURER
25 CERTIFIES THAT THE BALANCE IN THE BUDGET STABILIZATION
26 RESERVE FUND EQUALS OR EXCEEDS 10% 7.5% OF THE TOTAL OF ALL <--
27 GENERAL FUND APPROPRIATIONS IN THE PRECEDING FISCAL YEAR, <--
28 100% OF THE SURPLUS CERTIFIED BY THE GOVERNOR UNDER PARAGRAPH
29 (1) SHALL BE DEPOSITED INTO THE TAXPAYER FAIRNESS FUND.
30 (B) DISTRIBUTION.--THE MONEYS IN THE TAXPAYER FAIRNESS FUND <--
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1 (B) DISTRIBUTION.-- <--
2 (1) THE MONEYS IN THE TAXPAYER FAIRNESS FUND SHALL BE
3 DISTRIBUTED TO TAXPAYERS WHO HAVE LIABILITY FOR THE TAX
4 IMPOSED UNDER ARTICLE III OF THE ACT OF MARCH 4, 1971 (P.L.6,
5 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, THROUGH A
6 TEMPORARY REDUCTION IN THE RATE OF SUCH TAX, WHICH REDUCTION
7 SHALL BE ESTABLISHED BY AN ACT OF THE GENERAL ASSEMBLY TO BE <--
8 EFFECTIVE EFFECTIVE FOR JANUARY 1 THROUGH DECEMBER 31 OF THE <--
9 UPCOMING CALENDAR YEAR.
10 (2) THE SECRETARY OF THE BUDGET, IN CONJUNCTION WITH THE <--
11 SECRETARY OF REVENUE, SHALL CERTIFY THE TEMPORARY RATE FOR
12 THE UPCOMING CALENDAR YEAR NO LATER THAN SEPTEMBER 30. THE
13 TEMPORARY RATE SHALL BE PUBLISHED IN THE PENNSYLVANIA
14 BULLETIN, POSTED ON THE STATE'S PUBLICLY ACCESSIBLE INTERNET
15 WEBSITE AND REPORTED TO THE CHAIRMAN AND MINORITY CHAIRMAN OF
16 THE APPROPRIATIONS COMMITTEE OF THE SENATE AND THE CHAIRMAN
17 AND MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE
18 HOUSE OF REPRESENTATIVES.
19 (C) ACCUMULATION.--NO MONEYS SHALL BE DISTRIBUTED FROM THE
20 TAXPAYER FAIRNESS FUND PURSUANT TO SUBSECTION (B) UNTIL SUCH
21 TIME AS THE MONEYS DEPOSITED THEREIN ARE SUFFICIENT TO PROVIDE A
22 TEMPORARY REDUCTION OF AT LEAST 0.01% IN THE RATE OF TAXATION
23 FOR THE TAX IMPOSED UNDER ARTICLE III OF THE TAX REFORM CODE OF
24 1971.
25 (C) (D) APPROPRIATED FUNDS.--THE GENERAL ASSEMBLY MAY AT ANY <--
26 TIME PROVIDE ADDITIONAL AMOUNTS FROM ANY FUNDS AVAILABLE TO THE
27 COMMONWEALTH AS AN APPROPRIATION TO THE BUDGET STABILIZATION
28 RESERVE FUND.
29 SECTION 5. REPEAL.
30 SECTION 1702-A OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), <--
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1 REPEALS ARE AS FOLLOWS: <--
2 (1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER
3 PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE PROVISIONS OF
4 THIS ACT.
5 (2) SECTION 1702-A OF THE ACT OF APRIL 9, 1929 (P.L.343,
6 NO.176), KNOWN AS THE FISCAL CODE, IS REPEALED.
7 SECTION 6. EFFECTIVE DATE.
8 THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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