November 16, 2009
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Ben Franklin:  "When the well's dry, we know the worth of water"
By Senator Mike Folmer

All levels of government are struggling. Nationally, we are running a trillion dollar deficit. It took the Pennsylvania legislature 101 days to erase a $3.3 billion deficit. Lebanon has a $3 million shortfall and may be forced to cut positions.  Reading and other cities are on the verge of declaring financially distressed status (Act 47), and the City of Harrisburg must address its more than $200 million debt caused by incinerator operations.

Whether municipal, state, or federal, all levels of government get their money from the same source - taxpayers.

We are at a crossroads.  Taxpayers are fed up; their well of tolerance and understanding is all but dry.  Solutions to fix financial problems are difficult and often unpopular, but one thing is for certain – we cannot continue to go to the taxpayer well (and wallet).   Pennsylvania needs to establish a plan and a direction for its financial future.  Simply adding a percentage to budget items – depending upon votes and revenue projections – is not effective government.  The result of this annual ritual – known in Harrisburg as "the budget battle" – is a constant need for more revenue.  It is remarkable how many individuals, businesses, and organizations are totally dependent upon government dollars for their survival.

Consider some of the needs/demands for additional state spending: education "costing out study" ($3 - $6 billion); looming pension crisis/Sword of Damocles ($4 billion); and implementation of the Chesapeake Bay Strategy ($1 billion).  These funding items don't include the state's many transportation and underground infrastructure needs our and costs of possible federal and state health care changes.

To get Pennsylvania on track with spending, there are three questions I ask when an expenditure bill comes before Senate: how much will it cost, who's going to pay for it, and is it an unfunded mandate.  Some don't appreciate my inquiries when faced with the fact their favorite program or project doesn't demonstrate a positive cost/benefit analysis.  Nonetheless, I believe this is the best way to get state spending under control.

Article VIII, Section 12 of Pennsylvania's Constitution requires the Governor to submit a balanced budget and Article VIII, Section 13 requires its approval by the General Assembly.  Since all elected officials swear to uphold both the United States and Pennsylvania Constitutions, we need to be constantly working to ensure that we are good – or at least better – stewards of the people's money.