|Posted:||December 1, 2020 08:45 AM|
|From:||Representative Francis X. Ryan|
|To:||All House members|
|Subject:||LEGISLATION: Dynamic Scoring for the Fiscal Impact of Proposed Legislation|
|In the near future, I will be reintroducing former HB110 ~ legislation that amends Article VI-B of the Administrative Code pertaining to the Independent Fiscal Office (IFO). The legislation calls for dynamic scoring of the fiscal impact of any proposed legislation that could have an impact in excess of $10,000,000 upon request by a member of the General Assembly.
Currently, revenue estimates prepared by IFO on proposed legislation are prepared based on the loss of revenue. The exception to that is legislation which is proposed as part of the annual State budget. For this type of legislation, IFO is required to do a dynamic scoring on all changes in the law which would have a fiscal impact in excess of $10,000,000.
The proposed amendment would extend the dynamic scoring requirement to all proposed legislation which could have a fiscal impact in excess of $10,000,000. This would require IFO to include in revenue estimates the probable behavioral responses of taxpayers, businesses, and other persons in response to proposed changes, and then also include a statement which outlines those assumptions. This use of dynamic scoring will allow us to get a more accurate depiction of how legislation will impact the economy of the Commonwealth.
I hope you will join me in cosponsoring this important legislation.
Introduced as HB230