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For Immediate
Release
6/29/09
Senate Bill 1 Will Bring Balance to Budget
Process
A Column by Senator Pat Browne
16th Senatorial District
Each year, the General Assembly and the Governor have a constitutional
obligation to pass a balanced budget. And, as we have seen recently, this is not
an easy task as political and ideological differences have stalled negotiations.
However, even during the best of economic times it is extremely difficult to
objectively and effectively accomplish that task in Pennsylvania.
Pennsylvania’s archaic system reflects an era when the Legislature served
part time and the Governor assumed a role similar to that of a strong mayor in
that he had to dictate most of the budget process.
The reality is that Pennsylvania state government evolved beyond that point
more than 30 years ago.
It is time to bring Pennsylvania’s budget process into the 21st Century by
establishing a Legislative Fiscal Office (LFO) as I propose in Senate Bill 1.
The LFO would level the playing field between the Executive and Legislative
branches and restore balance to the budget process.
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.
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.
Pennsylvania’s budget is comprised of two components: revenues and expenses.
While the Governor and Legislature must agree on spending, the Governor
currently has sole discretion over setting the revenue projection for the
upcoming fiscal year.
Under
Senate Bill 1, the LFO would establish and certify a revenue estimate
independent of that developed by the Governor’s office through the Department of
Revenue. The experience of states where the Legislature plays an active role in
revenue estimates shows that the budget becomes more of a consensus process.
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 process would be greatly 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.
As of right now, expenditures by executive agencies are internally evaluated.
This is the ‘fox guarding the hen house’ scenario where you have the same people
doing the spending also evaluating the performance of those programs and
services.
By conducting independent performance evaluations, the LFO would increase
accountability on the part of state spending.
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.
The end result will be that we will conclude each budget session more
expeditiously with a pragmatic and realistic spending plan that more closely
meets the needs and expectations of all of the citizens of the Commonwealth.
Senator Pat Browne represents the 16th Senatorial District (parts of
Lehigh, Monroe and Northampton counties) and serves as Chairman of the Senate
Finance Committee, the panel with the primary role of reviewing legislation
affecting Pennsylvania’s tax codes.
Contact:
Stacey Connors
(717) 787-1349
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