1Proposing integrated amendments to the Constitution of the
2Commonwealth of Pennsylvania, changing the Commonwealth's
3fiscal period from one year to two years.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby resolves as follows:

6Section 1. The following integrated amendments to the
7Constitution of Pennsylvania are proposed in accordance with
8Article XI:

9(1) That section 7(a)(2) and (4) of Article VIII be amended
10to read:

11§ 7. Commonwealth indebtedness.

12(a) No debt shall be incurred by or on behalf of the
13Commonwealth except by law and in accordance with the provisions
14of this section.

15* * *

16(2) The Governor, State Treasurer and Auditor General,
17acting jointly, may (i) issue tax anticipation notes having a
18maturity within the fiscal [year] period of issue and payable

1exclusively from revenues received in the same fiscal [year]
2period, and (ii) incur debt for the purpose of refunding other
3debt, if such refunding debt matures within the term of the
4original debt.

5* * *

6(4) Debt may be incurred without the approval of the
7electors for capital projects specifically itemized in a capital
8budget, if such debt will not cause the amount of all net debt
9outstanding to exceed one and three-quarters times the average
10of the annual tax revenues deposited in the previous five fiscal
11[years] periods as certified by the Auditor General. For the
12purposes of this subsection, debt outstanding shall not include
13debt incurred under clauses (1) and (2) (i), or debt incurred
14under clause (2) (ii) if the original debt would not be so
15considered, or debt incurred under subsection (3) unless the
16General Assembly shall so provide in the law authorizing such
17debt.

18* * *

19(2) That section 11(a) of Article VIII be amended to read:

20§ 11. Gasoline taxes and motor license fees restricted.

21(a) All proceeds from gasoline and other motor fuel excise
22taxes, motor vehicle registration fees and license taxes,
23operators' license fees and other excise taxes imposed on
24products used in motor transportation after providing therefrom
25for (a) cost of administration and collection, (b) payment of
26obligations incurred in the construction and reconstruction of
27public highways and bridges shall be appropriated by the General
28Assembly to agencies of the State or political subdivisions
29thereof; and used solely for construction, reconstruction,
30maintenance and repair of and safety on public highways and

1bridges and costs and expenses incident thereto, and for the
2payment of obligations incurred for such purposes, and shall not
3be diverted by transfer or otherwise to any other purpose,
4except that loans may be made by the State from the proceeds of
5such taxes and fees for a single period not exceeding eight
6months, but no such loan shall be made within the period of one
7year from any preceding loan, and every loan made [in any fiscal
8year] before July 1 shall be repayable [within one month after
9the beginning of the next fiscal year] by July 31.

10* * *

11(3) That section 12 of Article VIII be amended to read:

12§ 12. Governor's budgets and financial plan.

13[Annually, at] At the times set by law, the Governor shall
14submit to the General Assembly:

15(a) A balanced operating budget for the ensuing fiscal
16[year] period, consisting of two years, setting forth in detail
17(i) proposed expenditures classified by department or agency and
18by program and (ii) estimated revenues from all sources. If
19estimated revenues and available surplus are less than proposed
20expenditures, the Governor shall recommend specific additional
21sources of revenue sufficient to pay the deficiency and the
22estimated revenue to be derived from each source;

23(b) A capital budget for the ensuing fiscal [year] period, 
24consisting of two years, setting forth in detail proposed
25expenditures to be financed from the proceeds of obligations of
26the Commonwealth or of its agencies or authorities or from
27operating funds; and

28(c) A financial plan for not less than the next succeeding
29five fiscal periods, each consisting of two years, which plan
30shall include for each such fiscal [year] period:

1(i) Projected operating expenditures classified by
2department or agency and by program, in reasonable detail, and
3estimated revenues, by major categories, from existing and
4additional sources, and

5(ii) Projected expenditures for capital projects
6specifically itemized by purpose, and the proposed sources of
7financing each.

8(4) That section 13 of Article VIII be amended to read:

9§ 13. Appropriations.

10(a) Operating budget appropriations made by the General
11Assembly shall not exceed the actual and estimated revenues and
12surplus available in the same fiscal [year] period.

13(b) The General Assembly shall adopt a capital budget for
14the ensuing fiscal [year] period.

15(5) That section 14 of Article VIII be amended to read:

16§ 14. Surplus.

17All surplus of operating funds at the end of the fiscal
18[year] period shall be appropriated during the ensuing fiscal
19[year] period by the General Assembly.

20Section 2. (a) Upon the first passage by the General
21Assembly of these proposed constitutional amendments, the
22Secretary of the Commonwealth shall proceed immediately to
23comply with the advertising requirements of section 1 of Article
24XI of the Constitution of Pennsylvania and shall transmit the
25required advertisements to two newspapers in every county in
26which such newspapers are published in sufficient time after
27passage of these proposed constitutional amendments.

28(b) Upon the second passage by the General Assembly of these
29proposed constitutional amendments, the Secretary of the
30Commonwealth shall proceed immediately to comply with the

1advertising requirements of section 1 of Article XI of the
2Constitution of Pennsylvania and shall transmit the required
3advertisements to two newspapers in every county in which such
4newspapers are published in sufficient time after passage of
5these proposed constitutional amendments. The Secretary of the
6Commonwealth shall submit the proposed constitutional amendments
7under section 1 to the qualified electors of this Commonwealth
8as a single ballot question at the first primary, general or
9municipal election which meets the requirements of and is in
10conformance with section 1 of Article XI of the Constitution of
11Pennsylvania and which occurs at least three months after the
12proposed constitutional amendments are passed by the General
13Assembly.