Thursday, June 26, 2014

House-Passed GOP Budget Relies On Additional State Park, Forest Drilling For Funding

The House Wednesday passed, by a partisan vote of 110-93, a Republican-written General Fund budget in House Bill 2328 (Adolph-R-Delaware) that relies on $75 million in revenue from additional natural gas leasing in State Parks and Forests and $15 million in deferred funding for the farm conservation and historic preservation tax credits to remain in balance.
The House GOP leasing of additional DCNR land for “no surface impact” natural gas development is different from Gov. Corbett’s proposal because the House budget would divert the $75 million to the General Fund.   Gov. Corbett’s Executive Order issued in May would earmark the monies for State Park and State Forest projects.
The proposed $75 million in revenue is on top of the proposed $72.7 million transfer from the Oil and Gas Fund to fund DCNR’s State Parks and State Forest operations.
The deferral of tax credit funding was included in House Bill 2188 (Cutler-R-Lancaster) passed Tuesday by the House.  The Resource Enhancement and Protection Tax Credit Program (REAP) would be zeroed out eliminating $10 million per year and the Historic Preservation Incentive Tax Credit would also be zeroed out cutting $3 million per year.
The budget also assumes $226.5 million in transfers from other special funds, but NOT the Keystone, Storage Tank, Recycling, Underground Storage Tank Indemnification Fund or other environmental funds.
Other changes in the House GOP budget include--
-- Delays for one year the contribution of $6.2 million into the Alternative Fuels Incentive Grants Program;
-- Restores $2.25 million for Heritage Areas Programs;
-- Provides an additional $10.4 million in funding for DEP general operations; and
-- An additional $500,000 cut from Delaware River Basin Commission funding.
Other budget line items for DEP and DCNR are generally the same as the FY 2013-14 budget.
Broadly, the House GOP budget counts on $380 million in revenue from liquor privatization which may or may not happen and a total of $48 million in savings from deferred funding of 11 different tax credit programs in each of the next two years to remain in balance.
A spreadsheet showing changes between the FY 2013-14 budget is available online.  A proposed FY 2014-15 Financial Sheet is also available.
The House GOP proposal now goes to the Senate where budget discussions have been ongoing within that chamber.  The Senate is expected to work through the weekend to develop a plan that could get enough votes to pass the Senate.