PENN TWP — Pension liability and property tax reform remain top priorities for state lawmakers representing Butler County.

Eight legislators attended the annual State of Our Commonwealth breakfast Friday morning at the Butler County Country Club.

The breakfast was hosted by the Butler County Chamber of Commerce, the Community Development Corporation of Butler County and the Butler County Tourism and Convention Bureau.

The lawmakers discussed pension reform, particularly a bill the state Senate passed Wednesday that would reduce state government’s share of future retirement benefits for new state employees, potentially saving taxpayers $18.2 billion over the next 30 years.

“We should have addressed this issue years ago,” state Sen. Scott Hutchinson, R-21st, said of pension reform, adding the state has more $50 billion in unpaid pension liabilities.

“That number is increasing by $17 million every day,” he said. “Year after year we add another billion dollars in liabilities.”

Each of the Republicans in attendance supported the need for a defined contribution program for new state and public school employees entering their respective retirement systems.

Current employees would chose between paying more into the program to keep their existing benefits or a roll back to a previous benefit package, Hutchinson said.

“I think it’s a fair bill that does not torch those already retired,” he said. “It’ll put future employees in a more sustainable program.”

State Rep. Daryl Metcalfe, R-12th, said the increasing pension liability will pose a major problem for the county.

“A defined benefits package is not sustainable for a government entity,” Metcalfe said. “If we don’t address this issue, we’ll have a huge economic problem for Western Pennsylvania.”

The Republicans were in agreement about pension reform, but said there are differences on some issues, including property tax reform.

The House earlier this week passed legislation that would reduce property taxes while raising about $4.2 billion by increasing the sales tax rate in most of the state from 6 percent to 7 percent and the personal income tax rate from 3.07 percent to 3.7 percent.

That money would be used to reduce property taxes that go to fund public schools.

But opponents argued school districts eventually will return property taxes to current levels.

State Rep. Tedd Nesbit, R-8th, said, “I voted against it because there is no mechanism to make sure school districts don’t turn around and hike taxes back up. We’ll end up raising all three.”

Nesbit also said he would be against adding a sales tax on food or clothing.

“The mall in Grove City would be devastated,” he said referring to the Prime Outlets.

Metcalfe said the bill the House passed doesn’t offer a permanent fix to the problem.

“People want real property tax relief,” he said. “Real reform.”

Rep. Brian Ellis, R-11th, said he favors eliminating property taxes, but said he voted for the bill because it keeps the conversation advancing.

“It’ll get us somewhere different from where we are now,” he said.

“This is a step in the process. If it would’ve been voted down the other day, it would have ended the conversation.”

The legislators also spoke about natural gas drilling, reducing the size of the legislature and government spending.

Ellis said the state has had a lot of “foolish spending” in the past, but said state grants are more closely regulated now.

“It’s getting better,” he said.

Nesbit said he is a fiscal conservative, but said there is still a need for state grants to help promote economic development.

“I am requesting (a grant) to build a sewer and water system at the Grove City Outlet mall,” Nesbit said. “It will help create jobs.”

He said finding a balance in supporting state grants for development projects while controlling spending is a challenge.