Rep. Turzai criticizes veto of debt reduction bill

Speaker Mike Turzai (R-Allegheny) recently criticized Gov. Tom Wolf’s decision to veto House Bill 83.

“Gov. Wolf’s decision to veto legislation that would simply ensure that state debt is paid down quicker and at lower interest costs is fiscally irresponsible and disrespectful of Pennsylvanians’ hard-earned dollars,” Turzai said. “It is particularly egregious considering its passage in the House and Senate was near unanimous.”

The House voted 188-2 to advance the bill, and the Senate approved it unanimously.

Under the bill, the state would pay off new capital debt using a level principal payment approach. Pennsylvania used this approach until 2001 when it switched to the level debt payment approach.

An analysis by House Appropriations Committee staff estimated that the bill would reduce outstanding general obligation debt by $1 billion over 20 years by reducing the amount of interest accrued.