DEP Secretary Kathleen McGinty told the Senate and House Appropriations Committees this week her agency faces environmental funding “challenges” to keep programs like the Hazardous Sites Cleanup Program running and from federal funding cuts.

Federal funding cuts for programs Pennsylvania administers for the U.S. Environmental Protection Agency like air and water quality, reductions in funding for clean water infrastructure projects and cuts in support for flood control projects were all areas Secretary McGinty pointed to that could have further impacts on DEP’s budget.

Secretary McGinty noted successes in the past year in eliminating backlogs in processing water quality permits, processing an unusually high number of oil and gas well drilling permits and in promoting brownfields redevelopment throughout the state.

Like other agency’s, DEP is projected to lose staff in the coming year, a projected 57 positions will be eliminated. That brings to 136 the number of positions eliminated since January 2003 for a total complement of 3,075 for the coming year.

In remarks before the House Committee, Secretary McGinty said DEP faces challenges in continuing to fund the Hazardous Sites Cleanup, Recycling and Storage Tank Programs this coming fiscal year.

Hazardous Sites Funding Ends 2007

As part of the legislation passed last July to implement the Growing Greener bond issue, the Governor and General Assembly were authorized to take up to a total of $50 million from the Environmental Stewardship Fund (the original Growing Greener fund) to finance the Hazardous Sites Program in fiscal 2005-06 ($20 million) and 2006-07 ($30 million).

Gov. Rendell’s proposed budget took the full amounts from the Environmental Stewardship Fund both years, but this temporary funding mechanism expires on June 30, 2007 and something will have to replace it.

Growing Greener Without Diversions

The proposal to take monies from the Environmental Stewardship Fund in 2006-07 results in reducing dollars available for the original Growing Greener Programs by 46 percent. Restoring monies to the Fund would result in—

· $11.2 million more for DEP for watershed restoration, abandoned mine reclamation, oil and gas well plugging and sewage/water projects;

· $ 7.2 million for DCNR State Parks/Forest maintenance, open space preservation and recreation grants;

· $ 4.5 million to Agriculture for farmland preservation; and

· $ 7.1 million to PennVest for water and sewer project grants.

Restoring Environmental Stewardship Fund (original Growing Greener Programs)

*In thousands of dollars

**Authorization to take monies from Stewardship Fund ends June 30, 2007

The Environmental Stewardship Fund can also be used to pay debt service for the Growing Greener bond issue, which in 2006-07 is estimated to be $9.6 million. The Governor’s budget proposal now calls for debt service to come out of the General Fund appropriation.

The Stewardship Fund is support by the special $4.25/ton Growing Greener fee enacted in 2002 to fund the original Growing Greener watershed/habitat restoration programs.

Other Funding Challenges

The budgets for DEP, DCNR and Agriculture contain other funding challenges that were brought out in bipartisan questioning by the Senate and House Appropriations Committee this week. Among them were—

Parks/Forests Funding Diversion: The Keystone Recreation, Parks and Conservation Fund will not receive $63 million in Realty Transfer Tax proceeds (one year's contribution) specifically earmarked by law for that purpose. While DCNR is making accounting and administrative changes in the program to continue to award grants at the same or higher levels, these funds were earmarked for conservation purposes.

Several members of the General Assembly noted DCNR’s regular budget line items, for example for State Park operations, have not yet been restored to 2002-03 levels.

Recycling Fee Sunset: Funding for Recycling Programs was cut by $8.5 million in anticipation of the sunset of the recycling fee in 2009 (25 percent cut). House Bill 1902 (R-Rubley) is pending in the Senate to reauthorize the fee.

Storage Tank Cleanup Fund Not Repaid: Only $1 million of the promised $10 million to pay back the Underground Storage Tank Indemnification Fund, which provides cleanup insurance to thousands of tank owners, was included in the budget proposal. Without the payment it is likely the Board that oversees the Fund will have to raise the per gallon fee financing the insurance which gets passed on to consumers in higher gasoline and diesel fuel prices. In 2002, $100 million was borrowed from the Tank Fund to help balance the budget with the promise it would be paid back over ten years.

County Conservation District Cuts: Members noted funding was cut $900,000 for districts at a time when burdens are increasing to provide farmers more help developing nutrient reduction plans and with permit reviews for livestock operations, along with a $300,000 (100 percent) cut in funding for Chesapeake Bay Education Programs

Nutrient Management Fund Depleted: Funding that helps certify nutrient management plan technicians and provides farmers help in reducing nutrient runoff was cut by $986,000, and according to a study by the Joint Legislative Budget and Finance Committee, the Fund will be entirely depleted by June 30, 2007.

Agricultural Research Cut: a $3 million cut in agricultural research that could help address excess manure problems and other issues.

Growing Greener Bond Fund Expenditures

The proposed budget includes these suggested allocations for spending the Growing Greener II bond funds for the coming fiscal year.

Bond Funds                                                                        2005-06*                        2006-07 (Proposed)*

*In thousands of dollars ** General Fund Appropriation

Links: Department of Agriculture Budget Testimony -- Budget Release

Department of Environmental Protection Budget Testimony – Budget Release

Department of Conservation & Natural Resources Budget Testimony - Release

Session Schedule

The House returns to session on March 6 and the Senate March 13. The Senate will be finishing up budget hearings over the next week.

On the Hill

· On the Senate, House Agenda

· Senate/House Bills Moving

· Bill Introduced

Other News

· Over 250 Attend Keystone Coldwater Conference, Focus on Habitat and Access

· State Wildlife, Habitat Restoration Grant Applications Due April 7

· Schuylkill Watershed Congress “Rain, Snow or Shine” March 4 & 5

· Celebrating the Headwaters Program, Coudersport April 20

· Montgomery Senior Environment Corps Highlights Water Education Programs

· Grants Help Expand Dirt and Gravel Road Maintenance Program

· Soil Maps Available Online for 57 PA Counties

· Montgomery County Conservation District Receives Grant for BMPs

· Agriculture Establishes Fertilizer Committee, Including Compost, Manure

· Homeowners Guide to Stormwater Management Now Available

· Alliance for Chesapeake Bay 2006 River Sojourns Youth Art Contest

· NASA Educator Conducts April 19 GLOBE Land Cover Workshop

· TreeVitalize Display at Philadelphia Flower Show Highlights Native Trees

· Pennsylvania State Parks: The Canvas of the Commonwealth March 9-12

· EPA Calls On Industry to Reduce Chemical Use

· EPA Seeks Public Comment on U.S. Greenhouse Gas Inventory

· EPA Scientists Share Innovations with Public and Businesses

· Outdoor Lighting Workshop for Municipal Planners March 28

· Pennsylvania Land Conservation Conference April 28-29

· PA Environmental Professionals Annual Conference May 17-19

· Driving Down the Cost of Green Buildings Workshop April 4

· Stewardship for Home, Farm, Business, and Community Workshop April 8

· Southeast PA Regional Environmental Advisory Council Workshop March 11

· DEP to Hold Flood Protection Workshop March 28-30

· National Conservation Partnership, Environmental Ed. Award Nominations Due

· 2006 Shades of Green Awards for Green Design Now Being Accepted

· First Ever Southeast Regional Stormwater BMP Award Nominations Due April 17

· Call for Nominations – Northeast Environmental Partners Awards

· Reminder - 2006 Western Pennsylvania Environmental Awards

· Youth Hunter Essay Contest Winners Honored by Game Commission

· Online Peregrine Falcon Cam Goes Live March 6

· Barn Owl Conservation Initiative Extends to Southwest PA

Feature

· Watershed Groups in Rural Pennsylvania Have Gone Mainstream, By Lara Lutz, Chesapeake Bay Journal

See & Hear

· Environmental Advisory Councils, Helping Communities Find Solutions

Go To: PA Environment Digest Calendar Page

3/3/2006