|I plan to reintroduce my “Taxpayer Protection Act” as reported from the Senate Finance Committee, which was previously Senate Bill 7, cosponsored by: Folmer, Vogel, Argall, Mensch, Scarnati, Boscola, Rafferty Alloway, Vulakovich, Hutchinson, White, Gordner, Waugh, Ward, Brewster, Eichelberger and Browne.
As reported from the Senate Finance Committee, this legislation would limit – not reduce – the growth of state spending through the lower of the following thresholds:
The “Taxpayer Protection Act” would also require:
- Limit state government spending to the average change in personal income for the three preceding calendar years, OR;
- Limit state government spending to the average inflation rate plus the average percentage change in state population over the three preceding years (with exceptions for certain extraordinary circumstances).
According to the National Conference of State Legislatures, 30 states operate under a tax or expenditure limitation. Pennsylvania is in the minority of states having no controls.
- 25% of any moneys in excess of these limits be returned to the taxpayers
- 25% be allocated to the Rainy Day Fund to help balance state budgets during trying economic times
- 50% to help pay down the unfunded liabilities of the Public School Employees’ Retirement System (PSERS) and the State Employees’ Retirement System (SERS)