Several eye lawmakers’ surplus to ease budgets

From the BCCT.

Several eye lawmakers’ surplus to ease budgets
Gov. Rendell and some legislators claim much of $200 million should be moved to the general fund.
By GARY WECKSELBLATT

As Pennsylvania’s budget deficit worsens, the $200 million surplus sitting in legislative accounts is looking more and more like an easy way to cut into the red ink.

Gov. Ed Rendell pegged the state shortage at $2.3 billion last week, nearly 44 percent higher than his $1.6 billion forecast a month earlier.

And while he said he would not propose any increases in the state’s sales or personal income taxes, according to The Associated Press, he is planning painful spending cuts and likely government layoffs.

“It’s a sign of the times,” Rendell said. “… I think everyone has to tighten their belts.”

That includes the four legislative caucuses, who typically hang onto their reserves to keep operating in case of a budget showdown with the governor.

“The governor understands that the Legislature needs a cushion, but he believes that the bulk of that money should go back into the general fund,” said Chuck Ardo, Rendell’s spokesman.

Lawmakers of both parties in Bucks and Montgomery counties agreed.

State Rep. Josh Shapiro, a Montgomery County Democrat and chairman of the Legislative Audit Advisory Commission, which audits the General Assembly’s financial records, said “I have called now for the return of that surplus and establishment of policy to limit future surpluses. That money belongs to the taxpayers and should be invested for their needs.”

Shapiro said he is working on legislation to “immediately return the bulk of the money to the general fund.”

His bill, which he plans to introduce early next month, would also cap the surplus “at no more than 15 percent of each line item.”

That would basically shrink the allowable surplus to about $45 million, he said.

Told of Shapiro’s plan, Ardo said, “That sounds eminently reasonable. Considering that it makes sense, it’s likely to face stiff opposition in the Legislature.”

State Rep. Gene DiGirolamo, a Bensalem Republican, said, “I believe we should have some money in reserve but $200 million is too much for four caucuses. While we don’t want the governor to hold us hostage over budget negotiations, we need to limit this, especially now when we’re looking at cutting so many important programs.”

According to the audit commission, the surplus was $161 millions in 2004-05 and $211 million 2006-07.

The Legislature has appropriated more than $330 million for its annual operations, according to Shapiro, making it the second-costliest in the nation.

Steve Miskin, spokesman for House Minority Leader Sam Smith of Jefferson County, said his caucus would want to hang onto enough money to keep operating for at least four to six months. That’s two to three times what Shapiro is calling for.

“We’re not going to give on that,” Miskin told The Associated Press.

Barry Kauffman, executive director of government watchdog Common Cause/Pennsylvania, said it’s “very difficult to justify” a $200 million surplus “especially during these stressful, very tough economic times.

“Their argument is that the money guards against the governor holding them hostage in budget negotiations. But by the same token, the executive has only very limited funds, which can give the Legislature the upper hand.

“I’d say it’s time for everybody to chip in and make a difference.”