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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2015 - 2016 Regular Session


Posted: December 16, 2015 09:18 AM
From: Representative Seth M. Grove and Rep. Will Tallman
To: All House members
Subject: No Tax Code
In the near future, I plan to introduce the No Tax Code which would create new code legislation to move proposals that balance our budget through nontax revenue. The “No Tax Code” is comprised of a combination of proposals from the Wolf Administration, the Senate and the House on reducing the cost of government and generating new nontax revenue. If enacted these proposals would bring $505 million in revenue this fiscal year and at least $550 million in future years.

This revenue is enough to balance the framework budget and leave a $49 million surplus and is enough to balance the House budget and leave a $340 million surplus. The revenue from these proposals is generated from a combination of cost savings and new revenue proposals which include
  • Codifying the Governor’s Office of Transformation, Innovation, Management and Efficiency (GO-TIME) which was estimated by the Wolf Administration to save taxpayers $150 million through lean government.

    • During the Corbett Administration the application of lean government saved taxpayers $700 million. During this time the state averaged $175 million every year in cost savings. Under the “No Tax Code” GO-TIME would be forced to find these savings to use for balancing the budget.

  • Lapsed Funding

    • On average the commonwealth will spend $2.3 billion in funds left over from the previous fiscal year.
    • During this fiscal year, the Wolf Administration spent $2.7 billion which means the administration found at least $400 million in funds left over from previous years.
      • $200 million is still available in lapsed funds for this fiscal year.
Regardless of this difference, whether at $2.3 billion or $2.7 billion, the commonwealth is over funding line items with taxpayer funds. This proposal requires the budget secretary, in future years, to designate at least $400 million of the $2.3 billion, in lapsed funds, to be used to balance the budget.
  • Improved Collection of Delinquent Taxes

    • Using the language from Senator Browne’s proposal, Senate Bill 995, the “No Tax Code” would establish an entity to recoup owed state taxes from federal, state tax returns.
    • This proposal includes the addition of delinquent vendor or contractors who receive payments from the government while owing taxes.
    • Similar proposal last year was estimated to recoup $55-$90 million in owed taxes for the commonwealth. For the purpose of this legislation we only assumed $55 million.
  • Horizontal Drilling
    • This proposal would reinstate Governor Corbett’s Executive Order EO 03-2014 which allowed for non-surface impact drilling under state lands.
    • During last fiscal year this generated $95 million in revenue for the commonwealth.
    • We estimate a small increase based off the increase in revenue the Game Commission saw this year from permits for non-surface impact drilling.
    • Under this proposal by allowing horizontal drilling to resume the commonwealth generate $100 million
These proposals are only a few of the many ways the commonwealth can raise additional revenue from nontax sources. By establishing a “No Tax Code” the General Assembly can effectively compile proposals to utilize the many options to bring significant revenue for the budget through nontax revenue.

Please join me and co-sponsor this code legislation which will help compile revenue to increase our investment into the priorities of Pennsylvanians without increasing their taxes. If you have any questions please contact Jordan Grant at Jgrant@pahousegop.com or 717-767-3947.

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Introduced as HB1859