THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY KRIEGER, METCALFE, EVANKOVICH, BOYD, DUNBAR, DALEY, ROAE, GROVE, HUTCHINSON, AUMENT, VULAKOVICH, LAWRENCE, MALONEY, EVERETT, BLOOM, MAHER, REESE, ROCK, TALLMAN AND CUTLER, FEBRUARY 7, 2012

REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 7, 2012  

A JOINT RESOLUTION

Proposing an amendment to the Constitution of the Commonwealth

of Pennsylvania, providing for spending limitations on the

Commonwealth.

The General Assembly of the Commonwealth of Pennsylvania

hereby resolves as follows:

Section 1.  The following amendment to the Constitution of

Pennsylvania is proposed in accordance with Article XI:

That Article VIII be amended by adding a section to read:

§ 18.  Spending limitations.

(a)  Total spending by the Commonwealth shall not exceed the

spending limit in any fiscal year. The spending limit for any

fiscal year shall be equal to the spending during the

immediately prior fiscal year, adjusted by the lower percentage

of the following:

(i)  The change in the Consumer Price Index for All Urban

Consumers from the immediately prior fiscal year, if expressed

as a positive number; or

(ii)  The change in the rate of population growth in this

Commonwealth from the immediately prior fiscal year, if

expressed as a positive number.

The percentage of the rate of change used in any fiscal year to

adjust the limit may be increased for that year, but not to a

percentage in excess of 120% of this clause or clause (i),

whichever is lower, by the affirmative vote of three-fourths of

the members elected to each House of the General Assembly. The

Commonwealth's spending limit as provided in this subsection may

be changed by the procedure outlined in section 1(a) of Article

XI.

(b)  The spending limit may be exceeded for a declared

emergency if the Governor so requests and the General Assembly

approves by the affirmative vote of three-fourths of the members

elected to each House of the General Assembly. The excess

spending authorized by exceeding the limit in this manner shall

not be included in the computation base of the spending limit

for any subsequent fiscal year.

(c)  The spending limit may be exceeded for the purpose of

funding pension obligations if the Governor so requests and the

General Assembly approves by the affirmative vote of three-

fourths of the members elected to each House of the General

Assembly. The excess spending authorized by exceeding the limit

in this manner shall not be included in the computation base of

the spending limit for any subsequent fiscal year.

(d)  Total spending by the Commonwealth means all

appropriations and authorizations from the General Fund, the

Public Transportation Assistance Fund and the Motor License Fund

and funds created after the effective date of this subsection,

and shall exclude refunds and the spending of Federal funds,

gifts or receipts restricted by laws in effect as of January 1,

2013. This section shall not be circumvented by creating

additional spending programs in the General Fund or Motor

License Fund or transferring spending from the General Fund or

Motor License Fund to existing special funds or restricted

receipt accounts.

Section 2.  (a)  Upon the first passage by the General

Assembly of this proposed constitutional amendment, the

Secretary of the Commonwealth shall proceed immediately to

comply with the advertising requirements of section 1 of Article

XI of the Constitution of Pennsylvania and shall transmit the

required advertisements to two newspapers in every county in

which such newspapers are published in sufficient time after

passage of this proposed constitutional amendment.

(b)  Upon the second passage by the General Assembly of this

proposed constitutional amendment, the Secretary of the

Commonwealth shall proceed immediately to comply with the

advertising requirements of section 1 of Article XI of the

Constitution of Pennsylvania and shall transmit the required

advertisements to two newspapers in every county in which such

newspapers are published in sufficient time after passage of

this proposed constitutional amendment. The Secretary of the

Commonwealth shall submit this proposed constitutional amendment

to the qualified electors of this Commonwealth at the first

primary, general or municipal election which meets the

requirements of and is in conformance with section 1 of Article

XI of the Constitution of Pennsylvania and which occurs at least

three months after the proposed constitutional amendment is

passed by the General Assembly.

Section 3.  The addition of section 18(a) of Article VIII of

the Constitution of Pennsylvania shall become effective

beginning with the first fiscal year commencing more than six

months following approval of section 18 by the electorate.