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GUEST COLUMN |
FOR IMMEDIATE RELEASE |
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State
Rep. Josh Shapiro |
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Returning COLA is just first step to solving budget crisis
By state Rep. Josh Shapiro, D-Montgomery
In 1995, 10 years before I was elected to the House, a law was enacted to provide state lawmakers with an automatic cost-of-living adjustment, or COLA. While state lawmakers are entitled to an annual COLA, many retirees, including some public school employees, do not receive a similar automatic raise.
In tough economic times defined by lost jobs and frozen wages, it is inappropriate and fiscally unsound to accept a COLA. Instead, I will return my COLA to the state treasury and co-sponsor legislation that would end the automatic COLA, thereby investing in the needs of struggling Pennsylvanians.
While the most recent COLA has received significant attention, several other reforms that could save taxpayers hundreds of millions of dollars and help balance our budget have largely been ignored. Ending the automatic COLA is only a start, saving just over half a million dollars this year. While our current crisis means every penny counts, the COLA represents a relatively small amount as compared to the savings that we could realize if we enact other important reforms.
In addition to giving up our automatic COLA, the legislature can do more to save taxpayers money.
First, legislative leaders have amassed a surplus totaling more than $200 million. Meanwhile, our projected budget deficit is nearly $2 billion. Spending down the legislative surplus and using some of the $750 million Rainy Day Fund while instituting prudent cuts will help us to plug the hole in our budget. If we fail to use the surplus to help Pennsylvanians, we may be forced to increase taxes or cut valuable programs. I have been calling for a return of that surplus for two years. Now is the time to get it done.
Second, as co-chairman of the Speaker’s Commission on Legislative Reform, I helped to craft a 12-point plan to eliminate waste in the legislature and save taxpayers money. Many of the commission’s recommendations were just plain common sense. For example, there are four television studios and four printing presses in and around the Capitol – one for each legislative caucus. We can consolidate the studios and printing presses into one operation, shared by Democrats and Republicans, representatives and senators, thereby saving taxpayers tens of millions of dollars. Unfortunately, this is only one example of wasteful spending. Fortunately, all of our recommendations can be easily enacted, ending the cycle of waste and instituting a policy of common sense and fiscal responsibility.
Third, the legislature has appropriated more than $330 million for its annual operations, making ours the second-costliest state legislature in the nation. I have pushed for an at-least-10 percent cut in the legislative budget and some of my colleagues have gone even further in calling for a 20 percent cut. While we can negotiate the size of the cut, we have passed the point of debating whether it is necessary. We need to follow the example of countless Pennsylvanians affected by the current crisis and tighten our belt, too.
I am heartened to hear leaders in Harrisburg like Gov. Rendell and House Appropriations Chairman Dwight Evans declare nothing off limits when it comes to addressing the mounting budget deficit. Tough times necessitate tough decisions, and I believe that the legislature must trim our own budget before asking Pennsylvanians to pay more taxes or forfeit programs they depend on. Acting now on these ideas will help remedy our budget crisis and, at the same time, is another step toward reforming our legislature so that we can better serve our constituents.
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