PA Environment Digest

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Yes, We’re All Still Here in Harrisburg Dealing With the Budget

Yep, everyone is still here talking about the budget and on the verge of a state government shutdown on July 9. Here's a quick budget update.

Some of the first real talks between Senate Republicans and the Governor's Office started on Thursday, but they don’t seem to have made much progress at press time. The issues are about the same as they were-- Senate Republicans say they want the state budget passed; the Governor still wants his transportation and energy package done first or he'll furlough 25,000 “non-essential” state workers July 9.

House Democrats have not had the votes to pass the system benefit fee on residential and commercial electric bills to support the Governor's energy plan nor the votes for the $2.25/ton fee to fund the Hazardous Sites Cleanup Program at this point.

Without that support, passage of the energy plan is doubtful on its own and alternatives for funding HSCA are being discussed-- as in which other existing environmental fund do they pull the money from on a temporary basis like was done the last two years or do they restore the earmark from the Capital Stock and Franchise tax?

Over 65 farm, business, environmental and sportsmens’ organizations are still pushing hard for the adoption of the Resource Enhancement and Protection Program (REAP) that would give farmers tax credits for installing conservation practices to meet federal Clean Water Act and Chesapeake Bay cleanup commitments.

The Rendell Administration and some legislators have opposed the proposal saying it was a great program, but there was no room in the budget for it.

However, a new proposal in Senate Bill 97 (D.White-R-Indiana) and House Bill 1528 (Sturla-D-Lancaster) surfaced this week in the House that would give tax credits to Hollywood companies that film movies in Pennsylvania. A minimum of $50 million in credits was proposed, although the Rendell Administration said they favored a plan putting no caps on the amount of credits that could be issued.

"Officials from the Rendell Administration have repeatedly indicated that REAP is a great idea, but that there is no room in the budget for it, " said Matthew Ehrhart, Executive Director of the Pennsylvania Office, Chesapeake Bay Foundation. “This week, however, we learned the Administration is supporting an unlimited tax credit program that would promote film production in Pennsylvania.”

“Pennsylvania’s family farmers are caught between low prices for their products and increasing environmental mandates,” said Matthew Ehrhart, Executive Director of CBF’s Pennsylvania office. “REAP will assist farmers in helping to improve water quality in our rivers and streams while meeting Pennsylvania’s commitment to cleaning up waterways all across Pennsylvania, and the Chesapeake Bay. It’s about setting priorities for the future.”

“We think Pennsylvania’s number one homegrown industry—agriculture— deserves the support of the Rendell Administration,” said Joel Rotz, State Governmental Relations Director for the Pennsylvania Farm Bureau. “We call on Gov. Rendell to support REAP and help our family farms become better environmental stewards.”

“We are gratified that the bipartisan REAP proposal has enjoyed the support of more than 65 farm, business, environmental and sportmens’ groups all across the state,” said Rotz. “It is rare that any legislative proposal enjoys this kind of broad support and we hope Gov. Rendell will join our efforts.”

Rep. Stern (R-Blair) and other legislators supporting REAP proposed amendments to the bills that would provide at least $25 million for REAP tax credits in the coming year, but at week’s end the bills have not yet been considered.

Also of concern in environmental funding is the deletion of language in the state budget that would earmark $250,000 to fund the Pennsylvania Senior Environment Corps for the next year. PaSEC just celebrated its 10th anniversary. NewsClip: Seniors Form Vast Pool of Waterway Monitors

Interestingly, the Department of Revenue reported the state’s budget surplus for the just closed 2006-07 fiscal year is now an estimated $649 million.

Keeping the casinos open has become more of a concern for some legislators than the potential general furlough of non-essential state employees.

The Senate Community, Economic and Recreational Development Committee Thursday voted along party lines to issue subpoenas to the Secretary of Revenue and Administration to explain the impact of a potential shutdown of state government on the gaming industry at a hearing Saturday after they declined to attend a hearing Thursday. It was the first subpoena issued by the Senate since 1994 in the impeachment trial of then Supreme Court Justice Rolf Larson.

Late Friday, Senate Republicans asked a state court to enforce the subpoenas and five of Pennsylvania slot casino operators also went to court to prevent the state from closing them down.

The bottom line is the Senate and House will probably stay the weekend to see what gets done, but mechanically it is unlikely the budget will be done, even with an agreement today, for at least three or four days or so because of the way they have to move bills.

NewsClips: Legislature Still Mired in Budget Disputes

State Worker’s Union Vows Lawsuit to Halt Planned Furloughs

PA Casinos Go To Court to Stop Possible Shutdown

Updates on the PA Budget Stalemate

Governor’s Aides Refuse to Testify on Layoffs

Budget Talks Switch Into Higher Gear

State on Brink of Shutdown

Stopgap Budget Could Keep Government Running

Agencies Scramble to Alert Public About Furlough Effects

Rendell Aides Subpoenaed Over Casino Closing Plan

PA Casinos Get Caught in Middle of Budget Stalemate

John Baer: In Budget Fight, Isn’t There a Way to Keep Casinos Open?