HB 601 — A Joint Resolution proposing integrated amendments to the Constitution of the Commonwealth of Pennsylvania, changing the Commonwealth's fiscal period from one year to two years.

PRIOR PASSAGE - NONE
                                                        PRINTER'S NO.   609

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 601
                                                Session of
                                                  2025

     INTRODUCED BY GLEIM, HAMM, GREINER, KAUFFMAN, GROVE, STAMBAUGH,
        SMITH, ZIMMERMAN, GILLEN AND KUTZ, FEBRUARY 12, 2025

     REFERRED TO COMMITTEE ON APPROPRIATIONS, FEBRUARY 12, 2025


                               A JOINT RESOLUTION
 1   Proposing integrated amendments to the Constitution of the
 2      Commonwealth of Pennsylvania, changing the Commonwealth's
 3      fiscal period from one year to two years.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby resolves as follows:
 6      Section 1.     The following integrated amendments to the
 7   Constitution of Pennsylvania are proposed in accordance with
 8   Article XI:
 9      (1)     That section 7(a)(2) and (4) of Article VIII be amended
10   to read:
11   § 7.   Commonwealth indebtedness.
12      (a)     No debt shall be incurred by or on behalf of the
13   Commonwealth except by law and in accordance with the provisions
14   of this section.
15      * * *
16      (2)     The Governor, State Treasurer and Auditor General,
17   acting jointly, may (i) issue tax anticipation notes having a
18   maturity within the fiscal [year] period of issue and payable
 1   exclusively from revenues received in the same fiscal [year]
 2   period, and (ii) incur debt for the purpose of refunding other
 3   debt, if such refunding debt matures within the term of the
 4   original debt.
 5      * * *
 6      (4)    Debt may be incurred without the approval of the
 7   electors for capital projects specifically itemized in a capital
 8   budget, if such debt will not cause the amount of all net debt
 9   outstanding to exceed one and three-quarters times the average
10   of the annual tax revenues deposited in the previous five fiscal
11   [years] periods as certified by the Auditor General. For the
12   purposes of this subsection, debt outstanding shall not include
13   debt incurred under clauses (1) and (2) (i), or debt incurred
14   under clause (2) (ii) if the original debt would not be so
15   considered, or debt incurred under subsection (3) unless the
16   General Assembly shall so provide in the law authorizing such
17   debt.
18      * * *
19      (2)    That section 11(a) of Article VIII be amended to read:
20   § 11.    Gasoline taxes and motor license fees restricted.
21      (a)    All proceeds from gasoline and other motor fuel excise
22   taxes, motor vehicle registration fees and license taxes,
23   operators' license fees and other excise taxes imposed on
24   products used in motor transportation after providing therefrom
25   for (a) cost of administration and collection, (b) payment of
26   obligations incurred in the construction and reconstruction of
27   public highways and bridges shall be appropriated by the General
28   Assembly to agencies of the State or political subdivisions
29   thereof; and used solely for construction, reconstruction,
30   maintenance and repair of and safety on public highways and

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 1   bridges and costs and expenses incident thereto, and for the
 2   payment of obligations incurred for such purposes, and shall not
 3   be diverted by transfer or otherwise to any other purpose,
 4   except that loans may be made by the State from the proceeds of
 5   such taxes and fees for a single period not exceeding eight
 6   months, but no such loan shall be made within the period of one
 7   year from any preceding loan, and every loan made [in any fiscal
 8   year] before July 1 shall be repayable [within one month after
 9   the beginning] by July 31 of the next fiscal year.
10      * * *
11      (3)    That section 12 of Article VIII be amended to read:
12   § 12.    Governor's budgets and financial plan.
13      [Annually, at] At the times set by law, the Governor shall
14   submit to the General Assembly:
15      (a)    A balanced operating budget for the ensuing fiscal
16   [year] period, consisting of two years, setting forth in detail
17   (i) proposed expenditures classified by department or agency and
18   by program and (ii) estimated revenues from all sources. If
19   estimated revenues and available surplus are less than proposed
20   expenditures, the Governor shall recommend specific additional
21   sources of revenue sufficient to pay the deficiency and the
22   estimated revenue to be derived from each source;
23      (b)    A capital budget for the ensuing fiscal [year] period,
24   consisting of two years, setting forth in detail proposed
25   expenditures to be financed from the proceeds of obligations of
26   the Commonwealth or of its agencies or authorities or from
27   operating funds; and
28      (c)    A financial plan for not less than the next succeeding
29   five fiscal periods, each consisting of two years, which plan
30   shall include for each such fiscal year:

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 1      (i)    Projected operating expenditures classified by
 2   department or agency and by program, in reasonable detail, and
 3   estimated revenues, by major categories, from existing and
 4   additional sources, and
 5      (ii)    Projected expenditures for capital projects
 6   specifically itemized by purpose, and the proposed sources of
 7   financing each.
 8      (4)    That section 13 of Article VIII be amended to read:
 9   § 13.    Appropriations.
10      (a)    Operating budget appropriations made by the General
11   Assembly shall not exceed the actual and estimated revenues and
12   surplus available in the same fiscal [year] period.
13      (b)    The General Assembly shall adopt a capital budget for
14   the ensuing fiscal [year] period.
15      (5)    That section 14 of Article VIII be amended to read:
16   § 14.    Surplus.
17      All surplus of operating funds at the end of the fiscal
18   [year] period shall be appropriated during the ensuing fiscal
19   [year] period by the General Assembly.
20      Section 2.       The following procedure applies to the proposed
21   constitutional amendments in this joint resolution:
22             (1)   Upon the first passage by the General Assembly of
23      the amendments, the Secretary of the Commonwealth shall
24      proceed immediately to comply with the advertising
25      requirements of section 1 of Article XI of the Constitution
26      of Pennsylvania.
27             (2)   Upon the second passage by the General Assembly of
28      the amendments, the Secretary of the Commonwealth shall
29      proceed immediately to comply with the advertising
30      requirements of section 1 of Article XI of the Constitution

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1     of Pennsylvania. The Secretary of the Commonwealth shall
2     submit the amendments to the qualified electors of this
3     Commonwealth as a single ballot question at the first general
4     or municipal election which meets the requirements of section
5     1 of Article XI of the Constitution of Pennsylvania.




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