Pennsylvania is set to receive billions of dollars in stimulus funds from the federal government as a result of the American Recovery and Reinvestment Act. This will be the largest influx of federal stimulus money in Pennsylvania history, and as lawmakers, we have an obligation to see that these funds are used responsibly and with the greatest possible economic benefit to the people of Pennsylvania.

 

Earlier this month, the House Republican Policy Committee held a public hearing on the federal stimulus funds and the need for legislative oversight as they are distributed. The committee heard testimony from Congressmen Joe Pitts (R-Berks/Chester/Lancaster) and Jim Gerlach (R-Berks/Chester/Lehigh/Montgomery) who emphasized the need for legislative oversight to ensure that these funds are spent sensibly. The congressmen pointed to several examples of waste and abuse of the stimulus funds which make it clear that legislative oversight is essential when determining how and why the stimulus funds are spent.

 

Pennsylvania’s constitution and statutory law establish that the Legislature is responsible for the appropriation and distribution of any federal funds received by the Commonwealth. The Pennsylvania Supreme Court affirmed that authority in its decision in Shapp v. Sloane in 1978. Our state constitution, our state law, and our state courts make it clear that the people of Pennsylvania, through their elected representatives, must have a say in how the Commonwealth spends the stimulus funds it receives.   

 

The acceptance and use of federal stimulus funds is both a gift and a curse. While these funds will go a long way in helping Pennsylvania navigate through the current recession, we cannot forget that the funds are temporary and there are many strings attached to them. This dynamic creates an environment where irresponsible use and distribution of the stimulus funds will have dramatic long-term consequences for Pennsylvania. For instance, Pennsylvania is required to expand unemployment benefits in order to accept federal unemployment assistance. However, this federal assistance will be gone in two years and Pennsylvania will be left with yet another spending obligation and no way to pay for it.

 

In other states, governors and lawmakers are working together to ensure that the stimulus funds are used wisely. Here in Pennsylvania, however, the governor has not yet engaged the General Assembly in a substantive manner on this topic. Despite the introduction of a legislative package by the House Republicans to provide for legislative input and oversight of stimulus funds, the majority party in the House of Representatives has yet to advance any legislation to prepare Pennsylvania for the influx and distribution of federal stimulus dollars. Pennsylvania cannot afford to wait any longer.

 

The governor simply cannot be trusted to spend taxpayer funds without legislative oversight. He is using $120,000 of stimulus funds to compensate a former corporate CEO for running his stimulus commission that has no true oversight authority. In addition, he is paying a Philadelphia political operative $100,000 of the taxpayers’ money for a part-time job providing spin on how he intends to spend the stimulus funds. Neither of these positions will help stimulate Pennsylvania’s economy and they make it clear that legislative oversight is needed to keep the governor’s spending in check.

 

As the stimulus funds are distributed throughout the Commonwealth, our guiding principle must be to put them to use in ways that will result in the greatest amount of job growth and economic benefit while mitigating any negative long-term budget consequences. We must keep in mind that any spending obligations we create now will remain long after these funds are gone. Pennsylvania will be expected to find a way to meet these obligations. Exercising fiscal responsibility today is the only way to avoid a major tax increase after the expiration of stimulus funds.