Finance Committee Approves Senate Bill 1

Browne's bill would increase transparency and accountability to budget process

The Senate Finance Committee today approved Senate Bill 1, legislation intended to fundamentally reform Pennsylvania's budgeting process while increasing transparency and accountability in state government, according to Committee Chairman Senator Pat Browne (R-16).

The legislation, introduced by Senator Browne, would establish 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.

"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."

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.

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.

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.

Other bills approved by the Finance Committee include:

Senate Bill 122, sponsored by Senator Michael O'Pake (D-11) would increase the employer Job Creation Tax Credit from $1,000 to $3,000 for each new job created between the effective date of this bill and June 30, 2010.

Senate Bill 639, sponsored by Senator Andrew Dinniman (D-19) would provide for permanent tax exempt status for volunteer firefighter relief associations. Under current law, relief associations must renew their tax exemption every five years.

Senate Bill 778, sponsored by Senator Wayne Fontana (D-42), would change the deadline by which homeowners must apply for a property tax exemption to between the time the building permit is issued and six months following the date of the initial occupancy of the property.

Senate Bill 892, sponsored by Senator Browne, is a companion bill to Senate Bill 1. This legislation amends the Administrative Code, providing that the General Assembly is authorized to stipulate that the performance measurements recommended and developed by the Legislative Fiscal Office must be undertaken and reported on by each executive agency as a condition to receiving its prospective appropriation.

House Bill 1182, introduced by Representative James Casorio (D-56), would add convictions for two additional offenses, "Institutional Sexual Assault" and "Contraband" to the list of offenses which triggers the forfeiture of pension benefits for public employees.

Contact:

Stacey Connors
(717) 787-1349