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Last Updated: Feb 1st, 2007 - 20:37:06
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Senators Advocate Spending Cap
By Chris Forshey
Jan 30, 2007, 08:50
The proposal from Senators Bob Regola of Cumberland County and Mike Folmer of Lebanon County echoes last year's gubernatorial campaign, in which Republican nominee Lynn Swann advocated a similar measure. Democratic Governor Ed Rendell opposed the idea.
Under the Senate bill, the cap would be calculated annually, taking into account the rates of personal income growth, inflation and population change in the state. If it were in effect for the fiscal year that starts in July, spending could increase by barely 3 percent, compared to an average increase of more than 4 percent a year during the past decade.
The bill, which has the backing of GOP leadership, would earmark 75 percent of any budget surplus for a reduction in the state income tax. The rest would be funneled into the state's Rainy Day Fund.
© Copyright 2004-2005 by WRTA.com
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