Burns supports bill to limit state debt spending
Rep. Frank Burns September 24, 2014
HARRISBURG, Sept. 24 – State Rep. Frank Burns, D-Cambria/Somerset, today voted for a bill that would limit state government spending by placing limits on debt.
"This bill is a bold step to reign in massive government spending and would serve as a blueprint for the state's future," Burns said. "Debt spending is a significant part of the state's budget and has only continued to increase year after year. Currently, the annual payment on the state's debt obligation is about $10.7 billion. By reducing the debt ceiling, we can begin to rein in these costs instead of passing on the debt to our children and it will allow us to focus on the core function of government.”
The bill, H.B. 2420, would reduce the commonwealth’s debt ceiling on the Redevelopment Assistance Capital Project program by an additional $500 million over 10 years, until it reaches $2.95 billion. The current RACP debt ceiling is $3.45 billion.
Burns said this bill and second one that he also supports (H.B. 2419), which would reduce overall general obligation debt by nearly $4 billion in 20 years and establish limitations on how much the state can spend in new projects in a given year, are necessary because Pennsylvania’s credit rating has been downgraded, making it more expensive for the state to borrow money.
On Tuesday, Fitch Ratings downgraded Pennsylvania's debt rating for the second time in 14 months. It was the fourth time in two years that the commonwealth's rating has been downgraded by a major agency.