Let’s escape budgetary Groundhog Day by restricting wasteful spending
The beginning of February brings Groundhog Day to Pennsylvania, an annual tradition that marks the appearance of Punxsutawney Phil, as well as delivery of the budget address by Gov. Tom Wolf and the déjà vu it will give most commonwealth taxpayers.
In each consecutive year of his two terms, he has asked the General Assembly for higher taxes and more spending. In each case, lawmakers and their constituents have rejected those calls. But that will not stop Mr. Wolf from asking one last time. And like Bill Murray’s character in Groundhog Day, we are exhausted from the rude awakening that comes when we open our eyes hoping for a bright new day only to find that nothing has changed.
We cannot wait until the credits roll on the Wolf administration to start operating government differently.
State spending more than tripled between 1970 and 2020, while Pennsylvania’s population grew by just 10.2%. We should not ask hardworking Pennsylvanians to send more of their money to Harrisburg to cover irresponsible levels of government spending.
We can do better, which is why I am sponsoring Senate Bill 286, known as the Taxpayer Protection Act. It is designed to ensure government does not grow faster than families’ ability to pay for it. These measures are needed now more than ever as many families struggle to meet the financial hardship caused by the pandemic. This is about treating your wages with respect.
The proposal is a constitutional amendment that would tie the growth of state spending to a combined rate of inflation and population growth.
The legislation does not mandate any cuts to government spending, but it provides guiderails.
The Taxpayer Protection Act allows for sustainable increases in government spending but makes it more difficult for politicians to overspend. Specifically, in the current year, the TPA would allow for a state budget increase of more than $1 billion.
This reasonable proposal also allows for the Legislature to exceed the spending limits in cases of emergency, or other situations when appropriate, with a twothirds supermajority vote of both chambers of the General Assembly. This ensures elected officials have the ability to respond to the needs of the commonwealth but provides a threshold to protect against overspending.
With the Taxpayer Protection Act in place, politicians would be held to a higher standard of fiscal responsibility. The result would be building up our state’s rainy day fund to ensure we are prepared for the next recession or crisis, while keeping more money in the hands of working families.
This commonsense reform would provide fiscal guidelines for lawmakers and the governor. It would force government to change an unfortunate pattern of overspending in good economic times, raising of taxes following a recession and using unsustainable budget maneuvers to fill the gap.
Pennsylvania is among a minority of states with no spending controls currently in place: 31 states have varied limitations on state taxes or spending. Joining these states would be a significant step forward to protecting taxpayers and promoting economic growth by leaving more money in the hands of residents to spend as they choose.
As a proposed constitutional amendment, the bill must be approved by lawmakers in two consecutive legislative sessions before going to the voters for a final decision as a ballot referendum. While it may take time to enact, the time to act is now.
Hardworking Pennsylvanians across the commonwealth are waiting to see reforms like this put into place. I have heard from numerous people time and time again who share their frustration with high taxes and increasing state debt.
The only way to bring our budgetary Groundhog Day to a close and get our fiscal calendar to turn to that figurative Feb. 3 is to flip the script immediately — by taking the first steps toward enacting a strong Taxpayer Protection Act.