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5/3/2006 Taxpayer Bill of Rights (TABOR) Legislative Position Paper

SB 884


Pennsylvania State Legislators

Dear Legislator,

The Pennsylvania Public Interest Research Group (PennPIRG) urges you to oppose Senate Bill 884 when it is considered on the House floor. Senate Bill 884 represents a dramatic change to the way government funds important social service programs, but has not been the subject of a single public hearing.

Also known as the Taxpayer Bill of Rights (TABOR), SB 884 caps state spending to a formula that would not allow the state to meet its obligations to fund critical public services, such as transportation, health care and education. The public overwhelmingly supports investments in these services, but TABOR would tie the legislature’s own hands and lead to cuts even if sufficient revenue was available.

As you know, investments in transportation, education and health care have a positive impact on Pennsylvania’s economy and under-funding of these programs will negatively affect our ability to attract new residents and businesses.

TABOR has been viewed as a failure by both Republicans and Democrats in Colorado. In fact, Colorado voters chose in November 2005 to suspend TABOR for five years at the urging of Governor Bill Owens. And the President of the Greater Colorado Springs Economic Development Corporation, Robert Scott, also noted in 2004 “Elected leaders in both major political parties as well as community leaders from throughout Colorado have acknowledged that something needs to be done about Colorado’s tax revenue and spending limitation constraints, known as TABOR. Colorado’s balance sheet, i.e. the value of its physical and service infrastructure per capita, is in precipitous decline. The long-term impact on Colorado’s economy could be very damaging.”

The Legislature can and should spend taxpayer dollars more wisely, and improve accountability with the public. Closing tax loopholes, eliminating special interest handouts in the form of subsides or tax expenditures, mandatory audits of certain economic development projects, “clawback” provisions that would allow the public to seek compensation of monies spent inappropriately, and full disclosure of all government spending are some ways to achieve greater efficiency and accountability. TABOR will do none of these things, and will simply pit important public programs against one another while damaging Pennsylvania’s economic competitiveness.

Please reject SB 884 if it is considered on the House floor today, and urge supporters of the bill to first hold public hearings before another vote is considered.

Thank you,

Beth McConnell
PennPIRG