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Bill > HB429


PA HB429

PA HB429
In special funds, further providing for disposition of Budget Stabilization Reserve Fund; and making interfund transfers.


summary

Introduced
01/31/2025
In Committee
01/31/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Amending the act of April 9, 1929 (P.L.343, No.176), entitled "An act relating to the finances of the State government; providing for cancer control, prevention and research, for ambulatory surgical center data collection, for the Joint Underwriting Association, for entertainment business financial management firms, for private dam financial assurance and for reinstatement of item vetoes; providing for the settlement, assessment, collection, and lien of taxes, bonus, and all other accounts due the Commonwealth, the collection and recovery of fees and other money or property due or belonging to the Commonwealth, or any agency thereof, including escheated property and the proceeds of its sale, the custody and disbursement or other disposition of funds and securities belonging to or in the possession of the Commonwealth, and the settlement of claims against the Commonwealth, the resettlement of accounts and appeals to the courts, refunds of moneys erroneously paid to the Commonwealth, auditing the accounts of the Commonwealth and all agencies thereof, of all public officers collecting moneys payable to the Commonwealth, or any agency thereof, and all receipts of appropriations from the Commonwealth, authorizing the Commonwealth to issue tax anticipation notes to defray current expenses, implementing the provisions of section 7(a) of Article VIII of the Constitution of Pennsylvania authorizing and restricting the incurring of certain debt and imposing penalties; affecting every department, board, commission, and officer of the State government, every political subdivision of the State, and certain officers of such subdivisions, every person, association, and corporation required to pay, assess, or collect taxes, or to make returns or reports under the laws imposing taxes for State purposes, or to pay license fees or other moneys to the Commonwealth, or any agency thereof, every State depository and every debtor or creditor of the Commonwealth," in special funds, further providing for disposition of Budget Stabilization Reserve Fund; and making interfund transfers.

AI Summary

This bill amends The Fiscal Code to modify the rules governing the Budget Stabilization Reserve Fund (also known as the "rainy day fund"), primarily focusing on transferring substantial funds to address pension system liabilities. Specifically, the bill mandates that by January 1, 2026, $670 million will be transferred to the Public School Employees' Retirement Fund and $330 million to the State Employees' Retirement Fund, both intended to reduce their unfunded actuarial accrued liabilities. The bill maintains the original fund's purpose of being used only for emergencies involving public health, safety, welfare, or significant economic downturns, requiring a two-thirds vote in both legislative chambers to appropriate funds. Additionally, it preserves previous language allowing for a $100 million transfer to the General Fund (which was to occur by November 30, 2020). The changes aim to strengthen the state's pension systems by using reserve funds to reduce long-term financial obligations, while maintaining strict guidelines for the fund's use during economic challenges.

Committee Categories

Government Affairs

Sponsors (12)

Last Action

Referred to State Government (on 01/31/2025)

bill text


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