On the heels of Pennsylvania’s bond rating downgrade, House Majority Leader Mike Turzai has declared his intention to ease Pennsylvanians’ debt burden. This represents a necessary step towards restoring Pennsylvania’s fiscal health and credit rating.
According to the Standard Speaker, Rep. Turzai proposes capping annual spending on public improvement and flood control projects with the goal of reducing annual interest payments made on the state’s debt obligations. This proposal should be applauded, as the state and local debt burden exceeds $10,000 per resident and debt payments have been one of the fast growing areas of state spending. Debt payments from the General Fund Budget exceed $1 billion per year, nearly triple what it was 12 years ago.
The move is both pro-taxpayer and pro-economic growth. By easing the debt burden, lawmakers can avoid increasing taxes to pay for mounting debt obligations. Equally important, investors and businesses will be more willing to invest and grow in the state, leading to more jobs.
Last October, the General Assembly lowered the state’s debt ceiling for the RACP program by $600 million during a time when politicians in Washington were voting to raise the national debt ceiling. At that time, we noted how refreshing it was to see lawmakers move to protect taxpayers; the same can be said again with Rep. Turzai’s current proposal.