New State Budget Continues Severe Rendell Cuts To Environmental Protection
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The Senate and House gave final approval and Gov. Corbett signed the FY 2011-12 General Fund budget bill-- House Bill 1485 (Adolph-R-Delaware)-- this week spending $27.1 billion, a 4.1 percent reduction in spending from the FY 2010-11 funding levels and without any tax increases. On the Marcellus Shale drilling impact fee issue, bipartisan efforts in the House and Senate fell apart after Gov. Corbett specifically threatened to veto any impact fee bill sent to his desk before the Governor's Marcellus Shale Commission submits its report July 22. (see separate story) There are no provisions for re-funding the Growing Greener Program which became all but bankrupt this year. Just $6 million in Growing Greener funds will be available for the next round of grants, down from its peak of $50.1 million in 2001. (see separate story) The only bright spots in the budget were the Resource Enhancement and Protection (REAP) Farm Conservation Tax Credit Program which was restored to its full $10 million in funding and a transfer of $15 million from the PA Infrastructure Investment Authority to the H2O Water Infrastructure Program administered by the Commonwealth Financing Authority included in the Fiscal Code bill. The transfer does not represent a net gain in funding. For those keeping track, a total of $1.5 billion has been diverted or cut from environmental programs to help balance the state budget or to fund programs that could not get funding on their own over the last nine years. (see separate story) Just hours after Gov. Corbett signed the FY 2011-12 state budget, the Department of Revenue announced the state collected $785.5 million more in revenue than they estimate. This year the entire budget was negotiated by Senate and House Republicans and the Corbett Administration without input from the Democratic minorities in either chamber, a point Democratic members made over and over, and over, again. Interestingly, neither Senate President Pro Tempe Joe Scarnati (R-Jefferson) nor Senate Majority Leader Dominic Pileggi (R-Delaware), both with Marcellus Shale impact fee proposals pending, attended the 11:45 p.m. budget signing ceremony with Gov. Corbett on June 30. House Speaker Sam Smith (R-Jefferson) and House Majority Leader Mike Turzai (R-Allegheny) did attend. Funding for both the departments of Environmental Protection and Conservation and Natural Resources were slight below the proposal made in March by Gov. Corbett: DEP- $4.5 million less for a total cut of $10 million and DCNR- $3.1 million less. Gov. Corbett had proposed increasing DCNR's budget by $2 million, but made up for cuts elsewhere in State Park and State Forest operations budgets by transferring monies from the Oil and Gas Fund fed by Marcellus Shale gas development leases on State Forest land. There were no raids on other environmental funds, like the Oil and Gas Fund, Keystone Recreation, Park and Conservation Fund, the Recycling Fund or the Storage Tank Fund to help balance the state budget like there were during the Rendell Administration. Complement levels at DEP were reduced from 3,211 in FY 2002-03 to 2,776 now, even less if you take out the 105 positions DEP added for the Marcellus Shale drilling inspection and permit program In addition, over 100 DEP Air, Waste and Water Quality field staff use all or part of their time to act as managers for federal stimulus projects, projects funded by the Energy Harvest and PA Energy Development Authority programs taking time away from permit reviews, inspections and compliance activities. The FY 2009-10 budget cuts alone required DEP and DCNR to furlough or eliminate 333 full time positions. DCNR had to eliminate or reduce hours for 1,131 seasonal workers, putting appropriations for DEP at 1994 levels and for DCNR at 1995-96 levels. The new budget will further reduce DEP complement levels by 69 positions. One result of all these cuts is the permit review backlog DEP said was already building in 2009 and in truth the last 7 years, delaying hundreds of millions of dollars in economic development projects across the state. Complement levels at DCNR were 1,391 in FY 2002-03 to 1,389 positions of which 1,289 positions are filled. Fiscal Code Accompanying the General Fund budget was Senate Bill 907 (Browne-R-Lehigh) amending the Fiscal Code which includes an omnibus amendment designed to implement the budget agreement. The bill includes a transfer of $15 million from the PA Infrastructure Investment Authority to the H2O Water Infrastructure Program administered by the Commonwealth Financing Authority. House Republicans put out a summary of the General Fund budget as well as a line item summary of appropriations. House Democrats put together their own view of the Republican General Fund budget. Budget Highlights Resource Enhancement and Protection Farm Conservation Tax Credit: $10 million, increase of $5.5 million. H2O Water Infrastructure Program: Transfer of $15 million from the PA Infrastructure Investment Authority to the Commonwealth Financing Authority, no net gain. Environmental Protection Conservation & Natural Resources Agriculture State System Of Higher Education Community & Economic Development NewsClips: PA Ends Fiscal Year With Higher-Than-Expected Tax Revenues Related Stories |
7/4/2011 |
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