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Governor’s Environmental Budget Highlights Dam Repairs, Floodplain Mitigation
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Gov. Rendell is again pushing several tax increases and more borrowing to get the new programs he wants enacted as part of the $28.3 billion state spending plan he announced this week. New taxes are proposed for his health care plan, his Energy Independence Strategy and for a new economic stimulus plan that includes a new program for dam repairs and flood mitigation project funded by a tax on residential and commercial insurance premiums.

At the same time he called for an economic stimulus plan, the Governor said Pennsylvania’s economy remains strong. “Our revenues remain stable so far this fiscal year and we have a record-high job count at 5.8 million. But there are storm clouds in the national economic forecast and we need to continue working together now to ensure residents and businesses can weather any storm.”

Overall, the Governor’s proposed budget increases spending by 4.2 percent, or $1.1 billion more than last year, to pay for proposed increases in education spending ($291 million), a new short-term economic stimulus package and paying for the increasing costs of the Department of Corrections and medical assistance.

The Governor is projecting a $427 million surplus by the end of the fiscal year that he would use to pay for parts of his proposal.

In renewing his call for action on his $850 million Energy Independence Initiative, the Governor is again supporting a new tax on electricity for residential and commercial to pay for the new borrowing, but said he would consider alternatives.

Neither the Democratically-controlled House nor the Republican-controlled Senate has voted to support the tax increases needed to adopt this proposal over the last year. In fact, Senate Republicans and House Democrats have agreed not to support the new fee proposed by the Governor, instead relying on increasing revenue in the Utilities Gross Receipts Tax which was amended into Special Session House Bill 1 (DePasquale-D-York) this week in the House.

The Governor asked again for the General Assembly to approve his PennFuels proposal that would require the use of one billion gallons of bio-fuels by 2017.

The Governor said he supported a change in the proposal to require a significant percent of ethanol made from sources of cellulose, like switchgrass, forest and agricultural waste, instead of corn.

“It doesn't take much imagination to see Pennsylvania's energy economy booming when we become to cellulosic ethanol what Iowa has been to corn-based ethanol,” said the Governor.

He did acknowledge that in December the federal government adopted a six-fold increase in the use of bio-fuels as part of a national mandate for increasing the use of renewable fuels. (See separate article- Biofuels Could Nearly Double Greenhouse Gas Emissions)

Gov. Rendell’s proposed economic stimulus plan includes quick passage of an additional $750 million in Redevelopment Assistance Capital Program, or RACP, funding to jump start $1.5 billion in community and economic development projects.

The plan also includes a proposed Rebuilding Pennsylvania proposal that would fund the repair of 1,000 bridges and all state-owned high-hazard dams and help for local governments to repair their dams

Funding for dam repairs and flood mitigation projects would be paid for by a new tax on homeowner and business property insurance policies. In defending this new tax, the Governor called one KDKA reporter “nuts” for calling it a tax and told the Post-Gazette it was not a tax it was an “avoidance of debt.”

NewsClips: Editorial: Sewers Ought to be Part of Rendell’s Plan

In Budget Proposal, Rendell Revisits Familiar Themes

Millions for Bridges, Dams in Rendell Budget Plan

Insurance Fee Tax Would Fight Flooding

Governor Touts Flood Prevention Program

Gov. Rendell Calls for Plan to Rebuild Pennsylvania

Op-Ed: Much of State’s Infrastructure Crisis is Hidden

Rendell Unveils $28.3 Billion Budget

Rendell Announces “Tight” State Budget

Rendell Plan Gives $400 to Low-Income Families

Rendell Presents Proposal to Boost State Economy

Budget Would Attack Education Spending Shortfall

State Budget Recycles Energy Program That Failed Last Year

Budget Battle Tests Rendell’s Clout

Rendell to Ask for More Funding for Police

House Republicans Preparing for a Battle Over Budget

Rendell Urged to Ease Business Tax Burdens

Rendell to Push on Health Insurance

John Baer: State Budget Tug of War Starts with Big Ideas

Links: Governor’s Budget Documents and Summaries

Governor Previews Budget InitiativesPresentation Slides

House Democratic Budget Summary

House Republican Budget Summary

Budget Spreadsheet 08-09

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On the Hill

· Session Schedule

· On the Senate/House Agenda/Bills Introduced

· Senate/House Bills Moving

· Energy Bills Moving, Not Moving from House Committees

· House Environmental Committee Approves Coal Bed Methane, Rule Review Bills

· Chesapeake Bay Cleanup, Appalachian Trail Bills OK’d by Senate Committee

· House Environmental Committee Takes Comments on Extending Electric Rate Caps

Other News

· Eastern Sports & Outdoor Show Salutes 10 “Heroes of Green,” 6 From PA

· PEC Accepting Nominations for 2008 Western Pennsylvania Environmental Awards

· Game Commission Launches Second Round of Deer Management Open Houses

· Wildlife For Everyone Foundation Buys Excavator to Assist with Habitat Restoration

· DEP Invites Comments on TMDL Plans in 5 Watersheds, in 5 Counties

· Schuylkill River Heritage Area Offers Mini-Grants, Regular Grants

· Watershed Group to Sponsor "Cabin Fever" Stream Cleanup February 16

· Students Invited to Apply for PA CleanWays’ Sue Wiseman Scholarship

· Rohm and Haas Implements Strategic Sustainable Development Practices

· EPA Calculator Puts Greenhouse Gas Savings in Everyday Terms

· Biofuels Could Nearly Double Greenhouse Gas Emissions

· Wind Turbines, Important Bird Areas and Wildlife Program February 21

· Great Backyard Bird Count Begins February 15

· Student Write On! Wetlands Challenge, the Illustrator’s Challenge

· Audubon PA Sponsors 1st Annual Educators Birding Seminar May 17 & 18

Spotlight

· National Geographic Channel Program Re-Lives Quecreek Mine Rescue

· Trout Are Thriving at the Cathedral School in Harrisburg, By Cyndi Camp, Doc Fritchey Chapter – Trout Unlimited

Feature

· People Don't See “Seagulls,” By Joe Kosack, Game Commission

Grants & Awards

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2/8/2008

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