Neither Side In State Budget Debate Gave Ground This Week, Impasse Continues

Senate Republicans and Gov. Rendell were holding fast to their positions as the end of the budget year came and the new fiscal year began July 1.

Senate President Pro Tempore (and Lt. Governor) Joe Scarnati (R-Jefferson) said he would like to see an end to Gov. Rendell's public scare tactics and the beginning of sincere negotiations on a 2009-10 final state budget.

"In order to sell something that is not in the best interest of Pennsylvanians, which is a massive increase in the personal income tax, the Governor has come to his final option…threatening a doomsday scenario in the Commonwealth," Sen. Scarnati said. "However, if we are to get to the point of significant progress on this budget, the Governor must be forthright with his information to the public."

All 30 Senate Republicans stood with Sen. Scarnati and Senate Majority Leader Dominic Pileggi (R-Delaware) at a press conference this week to make similar points and to oppose an increase in broad-based taxes to balance the budget. (View video of press conference)

Senate Republicans also put out a Facts and Myths summaryresponding to some of the Governor's statements, including the potential closure of State Parks.

They pointed out is has been more than 55 days since the Senate Republicans passed their budget and the Democratically-controlled House has yet to act on any budget bill.

Gov. Rendell stuck to his own position this week saying new revenues are needed to balance the budget and cuts alone will not be enough. He has yet to convince members of his own party in the House that is the case.

And it is official, the FY 2008-09 state deficit was $3.25 billion.

Meanwhile a host of environmental program funding issues hang in the balance as legislators decide which programs to fund at all and which programs to cut. They include:

--Natural Gas Severance Tax earmarking 40 percent of revenues to fund environmental programs -House Bill 1489 (George-D-Clearfield) - in the House Rules Committee;

-- $10 million Resource Enhancement and Protection Program (REAP) farm conservation tax credit program- was in the Governor's budget, but is threaten in the Senate Republican budget bill;

-- Conservation district funding has been cut by over $1 million by both Gov. Rendell and the Senate Republicans;

--$174 million diversion of Marcellus Shale Oil and Gas Lease Funds from the Department of Conservation and Natural Resources to balance the 2008-09 budget--Senate Bill 490 (MJ. White-R-Venango) in the House Environmental Resources and Energy Committee;

-- Potential additional transfer of funds from the Recycling Fund which last year gave up $15 millionto help balance the 2008-09 budget;

--Potential cuts to the Education Improvement Tax Credit Program in the Senate Republican budget which helps fund environmental education programs by the Pennsylvania Resources Council and other environmental groups; and

--Cuts in basic state agency funding to support environmental programs-- For 2008-09 and continuing in 2009-10 the cuts totaled $31 million for the departments of Agriculture,

Conservation and Natural Resources and Environmental Protection. The Senate Republican budget proposed over $60 million in additional cuts to these agency budgets.

And next year Growing Greener II bond funds run out leaving that program without a source of funding.

In the last seven years $784 million of environmental funding has been diverted to help balance the budget or to programs which could not get funding on their own.