PA Environment Digest Blog: General Assembly Diverted $3.602 Billion From Environmental Infrastructure Projects And Programs Into State Budget Black Hole

The collapse of the bridge near Frick Park in Pittsburgh is only the latest and most vivid example of the ‘Rob Peter To Pay Paul To Fund Mary’ infrastructure funding policies implemented by the people who now run the General Assembly.

Diverting infrastructure funding meant for one purpose and running it through one or more other funds to finance other programs has been their Standing Operating Procedure to balance the state budget for more than a decade.

For example, the General Assembly diverted $4.2 billion from fuel tax money to pay State Police salaries and costs instead of repairing roads and bridges. Read more here.

With respect to environmental programs, over the last 17 years the General Assembly diverted over $3.6 billion from funds to support local and state environmental infrastructure projects and enforcement programs to balance the state budget (see itemized list below).

This, in spite of the fact the PA Supreme Court has specifically declared $1.3 billion diverted from DCNR’s Oil and Gas Fund unconstitutional-- twice, they… keep… on… doing… it. Read more here.

Year after year environmental groups, conservation districts, farmers, local governments oppose the cuts and outline the critical environmental infrastructure needs communities have.

DEP’s 2022 Water Quality Report now shows fully one-third of Pennsylvania’s streams and rivers-- 27,886 miles-- do not meet water quality standards-- up over 2,000 miles from just two years ago.

There is a need for over $324 million a year to support local water quality infrastructure projects in Pennsylvania’s portion of the Chesapeake Bay Watershed alone.

Yet, the General Assembly has not moved bipartisan legislation introduced as recently as last year to allocate $500 million from the federal American Rescue Plan funding to address this vital need for water cleanup infrastructure. Read more here.

Pennsylvania’s state parks and forest-- overwhelmed with visitors due to the pandemic-- have a backlog now of $1.4 billion in safety and infrastructure improvements alone-- it was $1 billion just two years ago. Read more here.

It’s time for ‘Budgeting By Diversion’ on infrastructure funding to end and for Senate and House members to work the problem and come up with real solutions.

What else has to collapse or how many people have to get sick from polluted water and air, before the General Assembly acts?

Feb. 8 Budget Address

Gov. Wolf will give his final state budget address on February 8 kicking off the FY 2022-23 budget season. Read more here.

Revised estimates released by the Independent Fiscal Office January 31 show a $3.3 billion increase in state revenues over earlier projections. Read more here.

Itemized List Of $3.602 Billion In Cuts/Diversions

Here's an itemized list of $3.602 billion (or so) in cuts and diversions of environmental funding over the last 17 years;--

-- $997 million in Act 339 grants intended to support wastewater plant operations over the last 17 years were eliminated to balance the budget ($52 million or so each year);

-- $143 million diverted from the DCNR Oil and Gas Fund to balance the FY 2008-09 budget;

-- $79 million cut from the DEP and DCNR General Fund budget during FY 2009-10;

-- $60 million diverted from the DCNR Oil and Gas Fund to balance the FY 2009-10 budget;

-- $100 million in 2002 from the Underground Storage Tank cleanup insurance fund to balance the budget (although this was supposed to be repaid over 10 years);

-- $52.7 million “one-time” diversion from the Keystone Recreation, Parks and Conservation Fund in 2006 to balance the budget;

-- $50 million in 2007 and 2008 from the Environmental Stewardship Fund, which supports mine reclamation and watershed restoration, to fund the Hazardous Sites Cleanup Program because there was no agreement on how to fund that program;

-- $185.7 million in FY 2007-08, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16, 2016-17, 2017-18, 2018-19 (thru 2035) from the Environmental Stewardship Fund to pay debt service on the Growing Greener II bond issue and taking funding away from restoration projects each year for the next 25 years – reflecting a pattern of only environmental programs being required to address their own bond debt service;

-- $15 million “one-time” transfer from the Recycling Fund to the General Fund to balance the FY 2008-09 budget;

-- $18.4 million put into budgetary reserve in 2008-09 from the Department of Environmental Protection and Department of Conservation and Natural Resources;

-- $5 million reduction in Resource Enhancement and Protection (REAP) farm conservation tax credit program in FY 2009-10;

-- $102.8 million cut from the DEP and DCNR General Fund budget in FY 2010-11 budget;

-- $180 million diverted from the DCNR Oil and Gas Fund to General Fund in proposed FY 2010-11 budget;

-- $5.5 million reduction in Resource Enhancement and Protection (REAP) farm conservation tax credits in FY 2010-11;

-- $5 million in additional cuts to the agencies to balance the FY 2010-11 budget;

-- $3.9 million in across-the-board cuts to help fill gaps caused by reduced federal Medicaid appropriations-- $2.4 million from DEP, $1.5 million from DCNR;

-- $669,000 from the Safe Water line item in DEP's budget;

-- $102.8 million cut continued from the FY 2010-11 DEP and DCNR General Fund budget in FY 2011-12 budget;

-- $8.3 million mid-year budget freeze cuts additional resources for environmental programs: Agriculture: $2.6 million; DCNR: $1.5 million; and DEP: $4.2 million;

-- FY 2012-13 budget eliminates $11.8 million in General Fund monies from DEP, and $2.5 million from DCNR;

-- FY 2012-13 budget continues the $102.8 million cut in FY 2010-11;

-- FY 2012-13 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2013-14 budget continues the $102.8 million cut in FY 2010-11;

-- FY 2013-14 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2013-14 budget diverts $106.5 million from the Oil and Gas Fund to support DCNR operations;

-- FY 2014-15 budget diverts $73 million from the Oil and Gas Fund to support DCNR operations.

-- FY 2014-15 budget diverts another $95 million in royalties and payments from the Oil and Gas Fund to balance the state budget;

-- FY 2014-15 budget diverts $20 million from State Forest Timber operations to balance the state budget;

-- FY 2014-15 budget diverts $6.2 million from the Alternative Fuels Incentive Grant Fund to balance the state budget;

-- FY 2014-15 budget continues the $102.8 million cut beginning in FY 2010-11;

-- FY 2014-15 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2014-15 budget cuts $500,000 for Delaware River Basin Commission;

-- FY 2015-16 transfer of $31.9 million to pay for DCNR operations from Oil and Gas Lease Fund;

-- FY 2015-16 budget cuts $15 million coming from Environmental Stewardship Fund for watershed restoration projects;

-- FY 2015-16 budget cuts $900,000 for Sewage Facilities Grants;

-- FY 2015-16 budget continues the $102.8 million cut in FY 2010-11;

-- FY 2015-16 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2016-17 budget cuts $35 million coming from Environmental Stewardship Fund for watershed restoration projects;

-- FY 2016-17 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2017-18 budget transfers $9 million from Recycling Fund to General Fund

-- FY 2017-18 budget transfers $5 million from Alternative Fuels Incentive Fund to General Fund

-- FY 2017-18 budget cuts transfer from Marcellus Legacy Fund to Hazardous Sites Cleanup Fund by $5 million;

-- FY 2017-18 budget transfers $12 million from CBF High Performance Green Buildings Program to new CFA Natural Gas Infrastructure Program;

-- FY 2017-18 Governor puts $1.125 million from DCNR in budgetary reserve;

-- FY 2017-18 transfers $30.4 million from Attorney General settlement from Volkswagen to General Fund;

-- FY 2017-18 transfers $20 million from DCNR Oil and Gas Lease Fund to Marcellus Shale Legacy Fund for distribution to the Environmental Stewardship Fund;

--FY 2017-18 transfers $15 million from Marcellus Shale Legacy Fund to Hazardous Sites Cleanup fund;

-- FY 2017-18 appropriations for Susquehanna and Delaware River Basin Commissions and Interstate Commission on the Potomac River cut by half - $477,000;

-- FY 2017-18 $10 million transfer from the Keystone Recreation, Parks and Conservation Fund to the General Fund as part of a larger $300 million set of transfers to help balance the state budget;

-- FY 2017-18 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2017-18 transfer of $61.2 million to pay for DCNR operations from Oil and Gas Lease Fund;

-- FY 2018-19 appropriations for Susquehanna and Delaware River Basin Commissions and Interstate Commission on the Potomac River cut by half - $477,000; and

-- FY 2018-19 transfer of $48.7 million to pay for DCNR operations from Oil and Gas Lease Fund.

-- FY 2019-20 $69.774 million transferred from the Oil and Gas Lease Fund to pay operating expenses for DCNR.

-- FY 2019-20 $16.045 million diverted from the Environmental Stewards (Growing Greener) Fund to pay for DEP administrative costs.

-- FY 2019-20 $10 million diverted from the Recycling Fund to pay for DEP administrative costs.

-- FY 2019-20 $20 million payment from Marcellus Shale Legacy Fund not made to Environmental Stewardship (Growing Greener) Fund.

-- FY 2019-20 transferred several programs formerly funded by the General Fund are now being paid for by the Environmental Stewardship (Growing Greener) Fund: $2.5 million to support county conservation districts; $873,000 in costs for the Delaware and Susquehanna River Basin Commission, Interstate Commission on the Potomac River, Interstate Chesapeake Bay Commission, Ohio River Valley Water Sanitation Commission, Delaware River Master; $2.25 million for DCNR’s Heritage Parks Program.

-- FY 2020-21 transferred $153 million from dedicated environment and energy funds to balance the state budget: PennVEST Fund - $10,000,000; PennVEST Drinking Water Revolving Fund - $26,000,000; PennVEST Water Pollution Control Revolving Fund - $9,000,000; Recycling Fund - $50,000,000; Underground Storage Tank Indemnification Fund - $30,000,000; Industrial Sites Cleanup Fund - $10,000,000; Industrial Sites Environmental Assessment Fund - $7,500,000; Agricultural Conservation Purchase Easement Fund - $5,000,000; Surface Mining Conservation & Reclamation Fund $4,000,000; Energy Development Fund - $1,000,000; Environmental Education Fund - $500,000; Highway Beautification Fund - $150,000. Read more here.

-- FY 2020-21 $48.8 million transferred from the Oil and Gas Lease Fund to pay for DCNR operations Read more here;

-- FY 2020-21 $15 million transfer from the Marcellus Legacy Fund to Hazardous Sites Cleanup Fund to continue the program with minimal funding Read more here.

-- FY 2020-21 $20 million transfer from the Oil and Gas Lease Fund to the Marcellus Shale Legacy Fund to the Environmental Stewardship Fund was not made in FY 2020-21. Read more here.

-- FY 2021-22 $20 million transfer from the Oil and Gas Lease Fund to the Marcellus Shale Legacy Fund to the Environmental Stewardship Fund was not made in FY 2021-22. Read more here.

-- FY 2021-22 $15 million transfer from the Marcellus Legacy Fund to Hazardous Sites Cleanup Fund to continue the program with minimal funding. Read more here.

-- FY 2021-22 $47.790 million transferred from the Oil and Gas Lease Fund to pay operating expenses for DCNR. Read more here.

NewsClips:

-- Spotlight PA: Gov. Wolf’s Final Budget Address Will Seek To Cement His Legacy

-- The Center Square: IFO: Revised Economic Forecast Shows Higher Revenue Estimate For PA

-- PG: Frick Park Reopens As Crews At Pittsburgh Bridge Collapse Pull Vehicles From Wreckage

Related Articles This Week:

-- Gov. Wolf Proposes $450 Million Growing Greener III Initiative Funded By Federal American Rescue Plan; Bipartisan Support Building For Conservation Allocation

-- Guest Essay: Commonwealth Budget Should Fully Fund Environmental Protection - By Rep. Greg Vitali, Minority Chair House Environmental Committee

-- South Mountain Partnership: Sign On To Letter Asking Counties To Invest Federal American Rescue Plan Funds In Local Conservation, Recreation And Place-Based Revitalization

-- Dept. Of Revenue: January State Revenue Collections $376.8 Million Over Estimate; $1.8 Billion Over Estimates Fiscal Year-To-Date

-- Independent Fiscal Office: January Revenue Collections $440.6 Million Over Its Estimate; $2.2 Billion Over Fiscal Year-To-Date

DEP/DCNR 2022 Priorities: