THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BRUBAKER, FOLMER, D. WHITE, EICHELBERGER, WAUGH, MENSCH, GREENLEAF, PIPPY, BOSCOLA, ORIE, WARD, TOMLINSON, McILHINNEY AND ALLOWAY, JANUARY 26, 2011

REFERRED TO STATE GOVERNMENT, JANUARY 26, 2011  

A JOINT RESOLUTION

Proposing integrated amendments to the Constitution of the

Commonwealth of Pennsylvania, changing the Commonwealth's

fiscal period from one year to two years.

The General Assembly of the Commonwealth of Pennsylvania

hereby resolves as follows:

Section 1.  The following integrated amendments to the

Constitution of Pennsylvania are proposed in accordance with

Article XI:

(1)  That section 7(a)(2) and (4) of Article VIII be amended

to read:

§ 7.  Commonwealth indebtedness.

(a)  No debt shall be incurred by or on behalf of the

Commonwealth except by law and in accordance with the provisions

of this section.

* * *

(2)  The Governor, State Treasurer and Auditor General,

acting jointly, may (i) issue tax anticipation notes having a

maturity within the fiscal [year] period of issue and payable

exclusively from revenues received in the same fiscal [year]

period, and (ii) incur debt for the purpose of refunding other

debt, if such refunding debt matures within the term of the

original debt.

* * *

(4)  Debt may be incurred without the approval of the

electors for capital projects specifically itemized in a capital

budget, if such debt will not cause the amount of all net debt

outstanding to exceed one and three-quarters times the average

of the annual tax revenues deposited in the previous five fiscal

[years] periods as certified by the Auditor General. For the

purposes of this subsection, debt outstanding shall not include

debt incurred under clauses (1) and (2) (i), or debt incurred

under clause (2) (ii) if the original debt would not be so

considered, or debt incurred under subsection (3) unless the

General Assembly shall so provide in the law authorizing such

debt.

* * *

(2)  That section 11(a) of Article VIII be amended to read:

§ 11.  Gasoline taxes and motor license fees restricted.

(a)  All proceeds from gasoline and other motor fuel excise

taxes, motor vehicle registration fees and license taxes,

operators' license fees and other excise taxes imposed on

products used in motor transportation after providing therefrom

for (a) cost of administration and collection, (b) payment of

obligations incurred in the construction and reconstruction of

public highways and bridges shall be appropriated by the General

Assembly to agencies of the State or political subdivisions

thereof; and used solely for construction, reconstruction,

maintenance and repair of and safety on public highways and

bridges and costs and expenses incident thereto, and for the

payment of obligations incurred for such purposes, and shall not

be diverted by transfer or otherwise to any other purpose,

except that loans may be made by the State from the proceeds of

such taxes and fees for a single period not exceeding eight

months, but no such loan shall be made within the period of one

year from any preceding loan, and every loan made [in any fiscal

year] before July 1 shall be repayable [within one month after

the beginning of the next fiscal year] by July 31.

* * *

(3)  That section 12 of Article VIII be amended to read:

§ 12.  Governor's budgets and financial plan.

[Annually, at] At the times set by law, the Governor shall

submit to the General Assembly:

(a)  A balanced operating budget for the ensuing fiscal

[year] period, consisting of two years, setting forth in detail

(i) proposed expenditures classified by department or agency and

by program and (ii) estimated revenues from all sources. If

estimated revenues and available surplus are less than proposed

expenditures, the Governor shall recommend specific additional

sources of revenue sufficient to pay the deficiency and the

estimated revenue to be derived from each source;

(b)  A capital budget for the ensuing fiscal [year] period,

consisting of two years, setting forth in detail proposed

expenditures to be financed from the proceeds of obligations of

the Commonwealth or of its agencies or authorities or from

operating funds; and

(c)  A financial plan for not less than the next succeeding

five fiscal periods, each consisting of two years, which plan

shall include for each such fiscal [year] period:

(i)  Projected operating expenditures classified by

department or agency and by program, in reasonable detail, and

estimated revenues, by major categories, from existing and

additional sources, and

(ii)  Projected expenditures for capital projects

specifically itemized by purpose, and the proposed sources of

financing each.

(4)  That section 13 of Article VIII be amended to read:

§ 13.  Appropriations.

(a)  Operating budget appropriations made by the General

Assembly shall not exceed the actual and estimated revenues and

surplus available in the same fiscal [year] period.

(b)  The General Assembly shall adopt a capital budget for

the ensuing fiscal [year] period.

(5)  That section 14 of Article VIII be amended to read:

§ 14.  Surplus.

All surplus of operating funds at the end of the fiscal

[year] period shall be appropriated during the ensuing fiscal

[year] period by the General Assembly.

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

Assembly of these proposed constitutional amendments, 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 these proposed constitutional amendments.

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

proposed constitutional amendments, 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

these proposed constitutional amendments. The Secretary of the

Commonwealth shall submit the proposed constitutional amendments

under section 1 to the qualified electors of this Commonwealth

as a single ballot question 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 amendments are passed by the General

Assembly.