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FOR IMMEDIATE RELEASE
June 29, 2009

A Capitol Perspective
A column by State Senator Pat Browne
16th Senatorial District

Senate Bill 1 Will Bring Balance to Budget Process

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