The House State Government Committee advanced Wednesday the Taxpayer Protection Act, HB 71, which would put guardrails on the growth of state spending, thus protecting Pennsylvania residents from increased taxes.
The legislation, sponsored by Rep. Ryan Warner (R-Fayette/Westmoreland), would amend the state constitution to cap state spending growth at an average rate of inflation and population growth over three years.
Sen. Camera Bartolotta (R-46) announced in December that she will be reintroducing similar legislation in the state Senate. It would include the average change in personal income over three years as a second standard of measurement for the spending cap and would allow the legislature to exceed the limit in any year with a two-thirds supermajority vote of both houses.
Bartolotta said in a Facebook post on Wednesday that she is pleased with the House Committee’s decision to advance the bill.
“Such a proposal is essential in order to put an end to state government’s common practice of spending far beyond what Pennsylvanians can afford,” Bartolotta wrote.
According to the Commonwealth Foundation, state spending has increased 84 percent since 2000, significantly outpacing the state’s economic growth. Over the past 20 years, Pennsylvania job growth totaled 3 percent, population grew 4 percent, and inflation 50 up by percent.
“We are glad to see the House State Government Committee act so swiftly to prioritize the fiscal health of the commonwealth at a time when responsible financial habits are needed more than ever,” said Nathan Benefield, vice president & COO for the Commonwealth Foundation.
A fiscal year 2018 PEW study analyzing budget surpluses, showed that Pennsylvania was one of three states that had less than a week’s worth of operating costs in reserve. A 2019 Commonwealth Foundation poll found that voters showed universal support for commonsense limits of state spending growth.
“The Taxpayer Protection Act promises an end to the state government’s common practice of spending far beyond what Pennsylvanians can afford,” Benefield continued. “Enacting this bill will protect families and businesses from dangerous tax hikes as they try to recover from the economic pain caused by the COVID-19 economic downturn.”
Because the proposal is a constitutional amendment, the legislation would require passage by the General Assembly in two consecutive legislative sessions before being placed on the ballot for voter approval. Signature by the governor will not be necessary.