Capitolwire: House panel approves debt reduction bills. By Kevin Zwick Staff Reporter Capitolwire HARRISBURG (Sept. 15) – The House Finance Committee approved legislation to limit spending increases for certain capital projects and to further reduce the borrowing capacity of an economic development program controlled by the governor. The committee voted Monday on near party lines to send House bills 2419 and 2420 to the chamber floor. Both could receive full chamber consideration on Wednesday, but the bills probably wont get a final passage vote until, at the earliest, next Monday. The measures are another push by House GOP leadership to take aim at reducing the states debt obligation, which was about $1.6 billion this year. HB2419 would limit the annual amount spent on capital projects, including flood control, which drew criticism from some Democrats. The bill will cap the increase in funding, starting in 2015-16 fiscal year, for new projects under the following programs: Redevelopment Assistance Capital Projects program, known as RACPs, at $125 million; Flood Control Projects ($25 million); Highway Projects ($25 million); Public Improvement Projects ($350 million); and Transportation Assistance Projects ($175 million). Committee minority chairwoman Phyllis Mundy, D-Luzerne, said she was “troubled” about the $25 million limit on flood control projects. Her flood-prone district straddles the Susquehanna River in northeast Pennsylvania near Wilkes-Barre. “I will not vote again to restrict the states ability to respond to emergencies, to help our local governments, and our local citizens meet the needs of their communities” she said, before voting against a bill she said would “tie the hands” of future legislators and governors to react. Republicans disagreed. “Theres nothing that prohibits us from having the continuation of the flood control line item as was in the budget in prior year. I believe that could be part of the budgeting process. There does not have to be a debt issuance in order to fund them,” said Rep. Eli Evankovich,” R-Westmoreland. “It does not restrict the commonwealths ability to respond towards disaster emergencies or otherwise useful projects in any other way.” “We are talking about additional borrowing, there are other resources available in the General Fund,” said House Finance Chairman Kerry Benninghoff, R-Centre. Most flood control project money is coupled with federal dollars. In the aftermath of Hurricane Irene and Tropical Storm Lee in 2011, the state put up $21 million of the $61 million for flood projects in several counties. Rep. Matt Gabler, R-Elk, who sponsored a revamp of the RACP program last year, said HB 2019 would force lawmakers to better prioritize projects and address the “blank check” ability of any administration to enact whatever level of debt they would like. “It forces a conversation into a question of priorities,” he said. “It says we need to set priorities.” HB 2420, sponsored by Benninghoff, would further reduce the states borrowing capacity for the RACP economic development programs. House Republicans point to the expansion of the RACP debt capacity under Gov. Ed Rendell, who oversaw the borrowing limit increase from $1.45 billion to $4.05 billion during his eight years in office. His management of the program is often criticized, especially approval of projects named for politicians like the Arlen Specter Library in Philadelphia and the John P. Murtha Center in Johnstown. Gablers bill last year reduced the programs debt limit to $3.45 billion. Benninghoffs bill would cut the programs annual borrowing ability by $50 million starting in fiscal year 2018-19 until it reaches $2.95 billion. Democrat Rep. Rick Mirabito, who is facing a tough re-election in his Lycoming County district, joined Republicans in approving the bills.
Posted on: Tue, 16 Sep 2014 19:30:21 +0000
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