|
|
FOR IMMEDIATE RELEASE |
|
State
Rep. Paul Costa |
|
Costa calls for closer look at the $201 million General Assembly surplus
HARRISBURG, Jan. 5 – State Rep. Paul Costa, D- Allegheny, said today that he believes the General Assembly should reduce the amount of its operational surplus and return the excess surplus to the state's General Fund.
Costa was reacting to a recent audit of the General Assembly completed by independent auditors from Ernst & Young. The audit revealed that the legislature dispersed more than $327 million on operations in fiscal year 2008-09, held more than $37 million in commitments and ended the fiscal year with a $201.4 million legislative surplus.
Costa said the report suggests that the General Assembly is holding twice the amount it needs in its reserve fund.
"I understand the need to have money in reserve to protect the independence of the General Assembly and allow it to remain in operation in the event of a budget impasse," Costa said. "However, I believe we should limit that reserve to the amount of money it takes to keep the General Assembly operating for three to six months at most.
"Legislative reserve accounts at the end of the last fiscal year were about twice that amount," he said.
Costa said transferring excess legislative reserves back to the General Fund would help close budget shortfalls the state experiences and reduce the likelihood of budget impasses such as the one that took place this past summer.
Costa said he is sending a letter to the Legislative Audit Advisory Commission, which is responsible for the annual audit of the legislature, and asking the commission to make his recommendation part of the public record.
###