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| PRIOR PRINTER'S NO. 1043 | PRINTER'S NO. 1303 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY BROWNE, PILEGGI, ORIE, BAKER, FOLMER, EARLL, ERICKSON, BRUBAKER, TOMLINSON, VANCE, PIPPY, SMUCKER, WOZNIAK, ROBBINS, CORMAN, WAUGH, GORDNER, M. WHITE AND EICHELBERGER, MAY 27, 2009 |
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| SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, JULY 14, 2009 |
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| AN ACT |
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1 | Establishing the Legislative Fiscal Office and providing for its |
2 | powers and duties; and making a related repeal. |
3 | The General Assembly of the Commonwealth of Pennsylvania |
4 | hereby enacts as follows: |
5 | Section 1. Short title. |
6 | This act shall be known and may be cited as the Legislative |
7 | Fiscal Office Act. |
8 | Section 2. Definitions. |
9 | The following words and phrases when used in this act shall |
10 | have the meanings given to them in this section unless the |
11 | context clearly indicates otherwise: |
12 | "Baseline budget." A draft budget using current dollar |
13 | values that projects current year levels of budget authority, |
14 | outlays and revenues and the deficit or surplus into the new |
15 | budget year and out years on the basis of current laws and |
16 | policies. |
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1 | "Committee." The Legislative Fiscal Office Selection |
2 | Committee. |
3 | "Commonwealth agency." Any office, department, authority, |
4 | board, multistate agency or commission of the executive branch. |
5 | The term includes: |
6 | (1) The Office of the Governor. |
7 | (2) The Office of Attorney General, the Department of |
8 | the Auditor General and the Treasury Department. |
9 | (3) An independent agency as defined in the act of |
10 | February 14, 2008 (P.L.6, No.3), known as the Right-to-Know |
11 | Law. |
12 | (4) A State-affiliated entity as defined in the act of |
13 | February 14, 2008 (P.L.6, No.3), known as the Right-to-Know |
14 | Law. |
15 | (5) The General Assembly. |
16 | (6) The Judiciary. |
17 | "Director." The director of the Legislative Fiscal Office. |
18 | "Office." The Legislative Fiscal Office established in |
19 | section 3. |
20 | Section 3. Office established. |
21 | There is hereby established a nonpartisan Legislative Fiscal |
22 | Office as an independent agency. |
23 | Section 4. Duties of office. |
24 | The office shall: |
25 | (1) Prepare revenue estimates to include Federal funds, |
26 | State revenues and funds from other resources, including any |
27 | projected revenue surplus or deficit for a given fiscal year, |
28 | as provided under section 5. |
29 | (2) By January 1, provide a baseline budget that |
30 | includes levels of spending necessary to retain all current |
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1 | programs and statutory requirements. |
2 | (3) Provide an analysis of the executive budget, |
3 | including budgetary projections, economic outlook and |
4 | economic impact and an analysis of all related tax and |
5 | revenue proposals. The budget analysis may include |
6 | performance recommendations to secure greater efficiency and |
7 | economy. |
8 | (4) Develop and use econometric models to annually |
9 | forecast State revenues and update the models. The office |
10 | shall make the equations of a model and any historic |
11 | databases related thereto available to the Appropriations |
12 | Committee of the Senate, the Appropriations Committee of the |
13 | House of Representatives, the Majority Leader and Minority |
14 | Leader of the Senate and the Majority Leader and Minority |
15 | Leader of the House of Representatives. |
16 | (5) By November 15 of each year, provide an assessment |
17 | of the State's current fiscal condition and a projection of |
18 | what the fiscal condition will be during the next five years. |
19 | The assessment shall take into account the state of the |
20 | economy, demographics, revenues and expenditures. |
21 | (6) Monitor State taxes and other receipts. |
22 | (7) Develop performance measures for executive level |
23 | programs and departments and evaluate performance measures |
24 | and results as promulgated and reported by executive level |
25 | departments. Performance measurements shall be outcomes-based |
26 | and include, but not be limited to, activity cost analysis, |
27 | measures of status improvement of recipient populations, |
28 | economic outcomes and performance benchmarks against similar |
29 | State programs. |
30 | (8) Establish an Internet website. |
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1 | Section 5. Revenue estimates. |
2 | (a) Initial revenue estimate.--By the second week of |
3 | February, the office shall submit to the General Assembly an |
4 | initial revenue estimate for the next fiscal year. |
5 | (b) Official revenue estimate.-- |
6 | (1) By June 15 of each year, the office shall submit to |
7 | the General Assembly an official final revenue estimate for |
8 | the next fiscal year. |
9 | (2) The revenue estimate submitted under this section |
10 | shall establish the maximum amount of tax revenue which may |
11 | be considered for the General Appropriation Act for the |
12 | ensuing fiscal year. No changes in the revenue estimates |
13 | shall be made by the office thereafter unless changes in |
14 | statutes affecting revenues and receipts are enacted. |
15 | (3) The office shall publish the methodology used to |
16 | develop revenue estimates. |
17 | (c) Information.--The office shall provide the |
18 | Appropriations Committee of the Senate, the Appropriations |
19 | Committee of the House of Representatives and the Secretary of |
20 | the Budget all data, assumptions and econometric models used to |
21 | develop projections and revenue estimates. |
22 | (d) Required information.-- |
23 | (1) A revenue estimate submitted by the office under |
24 | this subsection shall include all of the following: |
25 | (i) An assessment of the Pennsylvania economy and |
26 | the national economy and the impact of the existing or |
27 | emerging State or national economic trends on revenue |
28 | performance for the current year and the forecasted or |
29 | projected revenue collections for the budget year and the |
30 | succeeding year. |
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1 | (ii) A summary of current year-to-date revenue |
2 | collections by specific tax or revenue source, including |
3 | Federal funds, the General Fund, the Lottery Fund and the |
4 | Motor License Fund and a detailed explanation of any |
5 | negative or positive variation from the prior year's |
6 | official revenue estimate, including the reasons or |
7 | events contributing to the variation. |
8 | (iii) Any projected revenue surplus or deficit for |
9 | the current budget year. |
10 | (2) A revenue estimate shall be based on existing |
11 | statutes and tax policy and existing or emerging State or |
12 | national economic trends. |
13 | (3) The office shall prepare a revenue estimate of any |
14 | change in State tax law proposed as part of the annual State |
15 | budget. If the proposed change in State tax law will have a |
16 | fiscal impact in excess of $10,000,000 in any fiscal year, |
17 | the estimate shall be prepared on the basis of assumptions |
18 | that estimate the probable behavioral responses of taxpayers, |
19 | businesses and other persons to the proposed changes and |
20 | shall include a statement identifying those assumptions. |
21 | (e) Department of Revenue.--The Department of Revenue in |
22 | conjunction with the Secretary of the Budget shall make revenue |
23 | estimates for the use of the Governor in preparing the budget. |
24 | (f) Governor.--The Governor shall item veto any part of any |
25 | appropriation bill that causes total appropriations to exceed |
26 | the official revenue estimate under subsection (b) plus any |
27 | unappropriated surplus. |
28 | Section 6. Budget information. |
29 | The office shall be notified and shall attend any briefings |
30 | provided by the Governor or the Secretary of the Budget under |
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1 | section 619 of the act of April 9, 1929 (P.L.177, No.175), known |
2 | as The Administrative Code of 1929. |
3 | Section 7. Expenditures. |
4 | (a) Expenditure reports.--Commonwealth agencies shall make |
5 | monthly expenditure data available to the office. The data shall |
6 | be provided within seven days after the end of each month. The |
7 | monthly data shall include a summary of the last monthly |
8 | submission. The data shall be provided in finished reports or |
9 | electronically, as determined by the office. The data shall be |
10 | provided by fund, by appropriation, by department and by |
11 | organization within each department and shall include: |
12 | (1) Number of filled personnel positions and their cost. |
13 | (2) Itemized personnel vacancies and their cost. |
14 | (3) New positions created and their cost. |
15 | (4) Wage and overtime costs. |
16 | (5) Allotments and expenditures for itemized personnel |
17 | expenses. |
18 | (6) Allotments and expenditures for itemized operating |
19 | expenses. |
20 | (7) Allotment and expenditures for itemized fixed |
21 | assets. |
22 | (8) The rate of expenditures in appropriations for major |
23 | subsidy and grant programs during the month. |
24 | (b) Budget requests.--Commonwealth agencies shall submit |
25 | their agency budget requests to the office and the Office of the |
26 | Budget. The Commonwealth agency budget requests shall be |
27 | submitted to both offices at the same time. |
28 | (c) Revenue reports.--The Governor shall make monthly |
29 | revenue reports to the office. The revenue reports shall show |
30 | the actual collection of revenue itemized by source and a |
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1 | comparison of the actual collections with estimated collections |
2 | for each month. The comparison shall include an analysis of any |
3 | change in collection patterns which will cause a shortfall or |
4 | overrun on annual estimates of more than 1%. |
5 | (d) Other revenue data.--Commonwealth agencies shall cause |
6 | to be prepared any other revenue data as may be requested from |
7 | time to time by the office. |
8 | (e) Electronic access.--Except for information that is |
9 | confidential pursuant to statute, the office shall have access |
10 | to all information available under this section on inquiry-only |
11 | screens through an integrated central computer system. |
12 | Section 8. Revenue conference. |
13 | By January 31 of each year, the office shall convene a |
14 | meeting with the Secretary of the Budget and the chairman and |
15 | minority chairman of the Appropriations Committee of the Senate |
16 | and the chairman and minority chairman of the Appropriations |
17 | Committee of the House of Representatives to discuss the |
18 | following: |
19 | (1) An assessment of the Pennsylvania economy and the |
20 | national economy and the impact of the economic trends on |
21 | revenue performance for the budget year and the succeeding |
22 | year. |
23 | (2) Recommended changes to revenue forecasting and |
24 | econometric models being considered by the office. |
25 | (3) Current year-to-date revenue collections by specific |
26 | tax or revenue source, including Federal funds, the General |
27 | Fund, the Lottery Fund and the Motor License Fund and |
28 | variations that may be occurring in the revenue estimate |
29 | submitted under section 5(a). |
30 | (4) Any statutory or tax policy changes that may be |
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1 | recommended by the Governor or the General Assembly for the |
2 | next succeeding fiscal year. |
3 | Section 9. Access to information. |
4 | (a) Agencies.--The director is authorized to secure |
5 | information, data, expense information, estimates and statistics |
6 | directly from a Commonwealth agency or a political subdivision. |
7 | All Commonwealth agencies and political subdivisions shall |
8 | furnish the director with all reports of expenditure for each |
9 | agency and any other available material or data which the |
10 | director determines to be necessary in the performance of the |
11 | duties of the office, other than material the disclosure of |
12 | which would be a violation of law. The director is also |
13 | authorized, upon agreement with the head of any Commonwealth |
14 | agency or political subdivision, to utilize the services, |
15 | facilities and personnel of the agency with or without |
16 | reimbursement. |
17 | (b) Office of the Budget.--In carrying out the duties and |
18 | functions of the office, the director is authorized to obtain |
19 | information, data, estimates and statistics developed by the |
20 | Office of the Budget and all Commonwealth agencies. The Governor |
21 | shall submit to the office copies of final agency budget |
22 | requests. |
23 | (c) Computer database.--In order to carry out its duties |
24 | under this act, the office shall have access to any computerized |
25 | database of a State agency that is required to aid the office in |
26 | the performance of its duties, except that any statutory |
27 | requirements regarding privacy of individuals' records shall be |
28 | observed in providing access. |
29 | (d) Daily revenue data.-- |
30 | (1) The Secretary of Revenue and the Secretary of the |
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1 | Budget shall post revenue collection data for each deposit |
2 | day and make the information available to the office and the |
3 | chairman and minority chairman of the Appropriations |
4 | Committee of the Senate and the chairman and minority |
5 | chairman of the Appropriations Committee of the House of |
6 | Representatives. |
7 | (2) The daily revenue data shall be presented in a |
8 | manner similar to and consistent with the daily revenue data |
9 | provided on June 30, 2007. In no case shall each deposit day |
10 | contain less information than was accessible during the |
11 | 2006-2007 fiscal year as a result of changes in reporting |
12 | procedures, accounting systems or computer systems. |
13 | (3) The Governor, the Attorney General, the Auditor |
14 | General and the State Treasurer shall cause to be prepared |
15 | any other revenue data as may be requested by the office. |
16 | (e) Civil action.--If information is not made available by a |
17 | Commonwealth agency or political subdivision within a reasonable |
18 | time, the director may make a written request to the agency |
19 | head, stating the authority to receive the information. The |
20 | agency head shall have ten days to respond. If the information |
21 | is not provided within ten days of the receipt of the agency |
22 | response, the director may bring a civil action to require the |
23 | agency head to provide the information. |
24 | Section 10. Director Selection and organization committee. | <-- |
25 | (a) Selection and organization committee.--There is hereby | <-- |
26 | established a committee to organize the office and select the | <-- |
27 | director of the office consisting of the following: |
28 | (1) The chairman and minority chairman of the |
29 | Appropriations Committee of the Senate and the chairman and |
30 | minority chairman of the Appropriations Committee of the |
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1 | House of Representatives. |
2 | (2) The Majority Leader and the Minority Leader of the |
3 | Senate and the Majority Leader and the Minority Leader of the |
4 | House of Representatives. |
5 | (3) The President pro tempore of the Senate and the |
6 | Speaker of the House of Representatives. |
7 | (b) Appointment.-- (b) Duties of committee.--The following | <-- |
8 | shall apply: |
9 | (1) By January 15, 2010, the selection and organization |
10 | committee shall deliberate the following: |
11 | (i) The organizational structure of the office. |
12 | (ii) The procedures to be adopted to select the |
13 | director of the office. |
14 | (iii) The operational budget for the office. |
15 | (2) By May 30, 2010, the selection and organization |
16 | committee shall submit a report to the Secretary of the |
17 | Budget, the chairman and minority chairman of the |
18 | Appropriations Committee and the chairman and minority |
19 | chairman of the Finance Committee of the Senate and the |
20 | chairman and minority chairman of the Appropriations |
21 | Committee and the chairman and minority chairman of the |
22 | Finance Committee of the House of Representatives setting |
23 | forth a plan to establish the office, including an |
24 | operational budget, and to select the director of the office. |
25 | Section 11. Appointment. |
26 | (a) Director.--The office shall be headed by a director |
27 | appointed by the selection committee under subsection (a) | <-- |
28 | section 10. The appointment shall be made without regard to | <-- |
29 | political affiliation and solely on the basis of fitness to |
30 | perform the duties of the office based on qualifications |
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1 | published by the selection committee. |
2 | (c) (b) Deputy director.--The director shall appoint a | <-- |
3 | deputy director who shall perform such duties as assigned by the |
4 | director and who shall during the absence or incapacity of the |
5 | director or a vacancy act as the director. |
6 | (d) (c) Term.--The term of office of the director shall be | <-- |
7 | four six years. An individual appointed as director to fill a | <-- |
8 | vacancy prior to the expiration of a term shall serve only for |
9 | the unexpired portion of that term. An individual serving as |
10 | director at the expiration of a term may continue to serve until |
11 | a successor is appointed. |
12 | (e) (d) Removal.--The director may be removed by a | <-- |
13 | concurrent resolution passed by the Senate and the House of |
14 | Representatives. |
15 | Section 11 12. Powers and duties of director. | <-- |
16 | (a) Personnel.--The director shall appoint and fix the |
17 | compensation of personnel as necessary to carry out the duties |
18 | and functions of the office. All personnel of the office shall |
19 | be appointed without regard to political affiliation and solely |
20 | on the basis of their fitness to perform their duties. |
21 | (b) Experts and consultants.--In carrying out the duties and |
22 | functions of the office, the director may procure the temporary |
23 | or intermittent services of experts or consultants or |
24 | organization thereof by contract. |
25 | Section 12 19. Repeal. | <-- |
26 | Section 618 of the act of April 9, 1929 (P.L.177, No.175), |
27 | known as The Administrative Code of 1929, is repealed in order |
28 | to effectuate the provisions of this act. |
29 | Section 20. Effective date. |
30 | This act shall take effect in 60 days. as follows: | <-- |
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1 | (1) This section shall take effect immediately. |
2 | (2) Section 10 shall take effect November 30, 2009. |
3 | (3) The remainder of this act shall take effect June 30, |
4 | 2010. |
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