The state budget will finish the year with a budget surplus of around $500 million, according Sen. Vince Fumo (D-Philadelphia), Democratic Chairman of the Senate Appropriations Committee. He made the assessment as part of his own mid-year budget review.

Fumo said the Governor’s Budget Office assessment of economic conditions “accentuated the negatives,” although he recognized the economy was “sluggish” compared to the 1990’s.

Commenting on the Governor’s Growing Greener II proposal, Fumo recommended the Administration use the authority they have to transfer funds into the Hazardous Sites Clean Up Fund to provide a funding bridge.

“What the administration fails to mention is Section 602.3 of the Tax Reform Code, which states that in presenting his proposed budget for the upcoming year, if the Governor expects the current year’s closing balance for the Hazardous Sites Cleanup Fund to fall below $5 million, then he “shall authorize” the Budget Secretary to transfer an amount equivalent to 0.25 mills of the Capital Stock and Franchise Tax from the General Fund to HSCF in the upcoming fiscal year,” Fumo said. “Although this trigger will not affect HSCF’s current year fund balance, it may help the program limp along until the Capital Stock and Franchise Tax is phased out at the end of 2010.”

12/24/2004