We Just Lowered the Debt Ceiling
Yesterday, House and Senate leaders came together to negotiate a deal—that passed with bipartisan support in both chambers—to reduce our debt ceiling.
If that sounds unbelievable, I should mention those were state legislative leaders in Harrisburg, not those in Washington, and the unanimous vote was to reduce borrowing under the Redevelopment Assistance Capital Program (RACP, or R-Cap).
The legislation (HB 493, sponsored by Rep. Matt Gabler) reduces the total amount of debt that can be owed under RACP by $600 million. The bill also provides greater accountability, oversight and transparency regarding how RACP grants are awarded. HB 493 goes to Gov. Corbett for his signature.
As a refresher, RACP effectively uses borrowed money—paid back with interest by taxpayers—for local “economic development” projects or corporate welfare projects. Some of the more controversial projects include the Arlen Specter Library, the corporate headquarters Tastykake, numerous sports stadiums, and a $3 million grant to the Second Mile, the charity founded by convicted child molester Jerry Sandusky.
While politicians in our nation’s capital are once again expanding the federal debt limit on the backs of our children after weeks of partisan rancor, it is refreshing to see lawmakers here in the commonwealth come together and actually reduce the debt burden for current and future generations of taxpayers.