Senator Pileggi: New Fiscal Office Would Bring Transparency to Pennsylvania Budget Process 

Legislation introduced today as Senate Bill 1 and sponsored by Senate Majority Leader Dominic Pileggi (R-9) would fundamentally reform Pennsylvania's budgeting process to expedite the procedure while increasing transparency and accountability in state government. 

Senate Bill 1 would establish the Legislative Fiscal Office (LFO), a non-partisan bi-cameral agency with expertise in financial matters. The LFO would have access to the same agency and department financial information as the Governor's Budget Office. 

"The Legislative Fiscal Office is vital because it will provide neutral, fact-based information to the governor, the legislature, and the public," said Senator Pileggi. "Pennsylvania's budget should be guided by sound economic data without partisan influence." 

Senator Pat Browne, the bill's prime sponsor, said, "One of the most important benefits of creating the LFO is that developing fiscal projections and revenue estimates in Pennsylvania will become much more transparent and free of political considerations. That has been the experience in states where such an office exists." 

While the Governor and Legislature must agree on spending during budget negotiations, the Administration currently has sole discretion over setting the revenue projection for the upcoming fiscal year.  

Under Senate Bill 1, the LFO would submit a preliminary revenue estimate during the second week of February, a week after the Governor traditionally presents his budget request for the upcoming fiscal Year. The LFO would then submit a binding revenue estimate for the upcoming fiscal year by June 15.  

Senate Bill 1 would also require state agencies and departments to submit their budget requests to the LFO at the same time they submit them to the Office of the Budget. Pennsylvania is currently one of only eight states where the Legislature does not receive the agency budget requests.