The Underground Storage Tank Indemnification Board this week sent a letter to Gov. Rendell expressing their concern about repayment the $100 million loan taken from the fund in 2002 to help balance the budget.

The Governor proposed a payment of only $2.5 million instead of the $10 million promised in a Governor’s Budget Office memorandum of understanding. The Board said a new actuarial study predicts the reduction in the repayment schedule means the Fund will run out of cash to pay claims some time in 2007-08.

“The Board will have to consider a fee increase at the September Board meeting to help offset this $7.5 million revenue reduction, which could result in a substantial fee increase as early as January 1, 2005.

“The Board may be forced to reduce or forego future special funding allocations to the Department of Environmental Protection (DEP) that are used to address water and ground contamination issues throughout the Commonwealth.”

6/18/2004