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FOR IMMEDIATE RELEASE
May 27, 2009

Senate Bill 1 Would Bring Transparency to Budget Process

Browne's bill would establish non-partisan approach to projecting revenues

A landmark bill drafted by Senator Pat Browne (R-16) would fundamentally reform Pennsylvania's budgeting process to expedite the procedure while increasing transparency and accountability in state government.

Senator Browne's bill establishes a Legislative Fiscal Office (LFO), a non-partisan bi-cameral agency with expertise in financial matters.  The LFO would have access to the same agency and department financial information as the Governor's Budget Office.

"One of the most important benefits of creating the LFO is that developing fiscal projections and revenue estimates in Pennsylvania will become much more transparent and free of political considerations. That has been the experience in states where such an office exists," Senator Browne said. "In addition, our constituents are demanding more accountability in the spending of public resources. The LFO would help ensure that Pennsylvania's finances are spent responsibly."

Senator Browne's measure will be introduced as Senate Bill 1, a designation reserved for legislation addressing the Senate's highest priorities.

"The Legislative Fiscal Office is vital because it will provide neutral, fact-based information to the Governor, the Legislature, and the public," said Senate Majority Leader Dominic Pileggi (R-9).  "Pennsylvania's budget should be guided by sound economic data without partisan influence."

While the Governor and Legislature must agree on spending during budget negotiations, the Administration currently has sole discretion over setting the revenue projection for the upcoming fiscal year.

Under Senate Bill 1, the LFO would submit a preliminary revenue estimate during the second week of February, a week after the Governor traditionally presents his budget request for the upcoming fiscal year. The LFO would then submit a binding revenue estimate for the upcoming fiscal year by June 15.

"The revenue estimate is the basis upon which the state budget is developed. That is the total number that can be disbursed. Currently, the final projection is developed by the Governor's Budget Office alone and provided in conjunction with the final passage of the budget," Senator Browne said. "Pennsylvania's budget process would be more transparent and accountable to the Legislature and the public if we have a revenue projection developed by a non-partisan entity set prior to final passage of the budget.  This would provide notice of the exact amount that can be spent and ensure a balanced budget."

Senate Bill 1 also requires state agencies and departments to submit their budget requests to the LFO at the same time they submit them to the Office of the Budget.

"Pennsylvania is currently one of only eight states where the Legislature does not receive the agency budget requests," Senator Browne said. "The overall budget process would be improved by having the LFO receive the data and supporting documentation provided by those agencies to justify their proposed expenditures. This information would improve the Legislature's efforts to prioritize state spending by enabling us to see the priorities set by the various agencies."

The LFO would also develop performance measures for state programs and departments and evaluate the performance reviews of those programs and departments as reported by the Administration. "This will enable the General Assembly to more thoroughly and objectively evaluate the effectiveness of our many public programs," Senator Browne said

The LFO would also be tasked with:

• Evaluating the fiscal soundness and effectiveness of proposed revisions to formula-based funding streams including education and transportation subsidies.

• Preparing a baseline budget with spending levels necessary to retain all current programs.

• Providing an analysis of the Governor's budget proposal.

• Developing models to forecast State revenues.

"The LFO established under Senate Bill 1 would develop the framework for serious discussions about the state budget, outside the realm of partisan politics. It would provide parity among the co-equal branches of government and accountability on the part of programs and departments," Senator Browne said. "The end result will be that we will conclude each budget session more expeditiously with a pragmatic and realistic spending plan that most closely meets the expectations of all of the citizens of the Commonwealth."

Contact:

Stacey Connors  (Senator Browne)
sconnors@pasen.gov
(717) 787-1349

Erik Arneson (Senator Pileggi)
earneson@pasen.gov
(717) 787-4712