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FEBRUARY 6, 2012 | Policy Points by COMMONWEALTH FOUNDATION
Pennsylvania State Budget Toolkit
2012 Budget Resources
The FY 2011-12 total operating budget of $63.4 billion, which included $27.1 billion in General Fund spending, represented the first year-to-year reduction in state spending in at least 40 years. However, as the economy continues to struggle out of a recession and with increasing costs in public welfare, corrections, pensions, and debt, the FY 2
JANUARY 17, 2011 | Policy Report by COMMONWEALTH FOUNDATION
80 Ideas for a Prosperous Pennsylvania
A Blueprint for Transforming the Commonwealth
Pennsylvania must undergo a rapid transformation to reverse the poor policy decisions that have eroded economic freedoms and brought the state to its present condition. To provide a roadmap for success in this critical endeavor, the Commonwealth Foundation has compiled a list of 80 policy recommendations for Gov. Corbett and state legi
APRIL 20, 2010 | News Release by COMMONWEALTH FOUNDATION
Poll Shows Voters Support Pension Reform, I&R, and Spending Limits
Today, the Commonwealth Foundation released results of a recently commissioned statewide measuring Pennsylvanians' opinion of three landmark reforms. The poll of 700 registered voters was conducted by Susquehanna Polling and Research Company between April 7 and 12, 2010.
Recent Blog Posts
JANUARY 10, 2011
How to Limit State Spending
A recent study by Matthew Mitchell of the Mercatus Center suggests that not all spending and taxation limits are created equal. The study examines the effect of certain limitations and their effectiveness on curbing the spending growth of state governments. Currently 27 states have tax-and-expenditure limitations (TELs). Of these limitations, Mitchell found many did little to curb spending.
Here's a list of the bad, better and best limitations as identified by the study:
Ineffective Spending Limitations:
Pegging budget growth to income growth of residents—Florida has used this method for nearly 20 years and yet the state's per capita spending grew 30% faster than per capita income. This limitation works better with low-income states, but gives middle- to upper-income states free rein to spend more than they would without the limits.
Better Limitations:
Pegging budget growth to population growth and inflation—Seven states currently use this method, and Mitchell's research has found that it reduces state budgets on average by 3 percent annually during the length of the TEL
Balanced Budget Requirements—These requirements, which all states but Vermont have, depend greatly on the strength of their enforcement. By not allowing a deficit to be "carried over" from one year to the next, by requiring proposed and enacted budgets to be balanced, and by limiting the amount of debt issued, states can strengthen their balanced budget requirement to limit spending growth.
Best Limitations
Supermajority requirements for tax increases—Twelve states currently require a 2/3 supermajority on all votes raising taxes. This substantially lowers the number of tax increases passed. Coupled with other limitations, supermajority requirements can be a great tool to limit state spending.
"Item-reduction" veto power abilities for the Governor—Allowing the governor to single out and lower a particular line in the budget, rather than simply rejecting an appropriation or the whole bill, plays a major role in state spending. His study find that granting the governor this ability can limit state spending by 14 percent.
posted by NICHOLAS FETT | 00:15 PM | 0 comment
OCTOBER 21, 2010
Get Ready to Be Amazed
In Lancaster County, PA, local government officials have done the inconceivable—they've given up their raises. Strasburg Borough's ten employees including police, public works, and administrative assistants, agreed to forgo their 2011 pay and benefit raises.
Of course, the borough will still have to face a 2011 shortfall of about $34,675. The total budget is up 3.4% from last year.
Strasburg employees have made an admirable sacrifice, but efforts to rein in state and local spending cannot stop there. What governments really need are spending limits to ensure that politicians are not spending beyond taxpayer means.
posted by ELIZABETH STELLE | 08:19 AM | 0 comment
MARCH 11, 2010
Reckless Driving With Taxpayer Dollars
Pennsylvania's move towards big government is many ways mirrored by the fleet of cars it has amassed over the last three decades. The number of cars increased from 5,700 in 1980 to 16,186. The Senate "cost cutting commission" recently discussed primarily the increase in the number of vehicles for the state.
The misuse of taxpayer money does not stop there. Numerous state employees have been in car wrecks due to drunk driving. Former Pennsylvania Turnpike Commissioner Timothy Carson wrecked his turnpike-issued car not once but twice while drunk. But he never told the commission about either incident for at least four years, until his resignation on Feb. 8.
The General Services Department relies on self-reporting and is "dependent on the honesty of the vehicle operator." Auditor General Jack Wagner, who released an audit last year calling for stricter oversight of state vehicles says, "If an individual alone is the only one that is aware of what happened with the use of the state vehicle, there's something wrong that needs to be fixed." The General Services Department received 149 phone calls from the public about misuse of state vehicles, and to this date, not one vehicle has been taken away as a result of the calls. Sen. Mike Folmer has legislation to do away with this practice.
posted by ABHILASH SAMUEL | 08:40 AM | 0 comment
