Gov. Rendell today proposed his 2010-11 state budget effectively locking in the 26 percent cut made in the Department of Environmental Protection and 18 percent cut at the Department of Conservation and Natural Resources made in the current year budget and the additional mid-year cuts.
The Governor's budget documents are available online--
-- Governor's General Budget press release;
-- Governor's press release on Health Care and Seniors;
-- Governor's press release on Reforming Taxes;
-- Governor's press release on Education, Preparing a Workforce;
-- 2010-11 detailed budget documents;
-- Proposed Budget Fact Sheets - Highlights, Addressing Future Deficits, School Funding, Childhood Education, Taxing Cigars, Smokeless Tobacco, Natural Gas Tax.
Budget Overview
Gov. Rendell proposed a $29 billion General Fund budget for 2010-11 that assumes the state will receive $2.75 billion in federal stimulus funds, without a broad-based tax increase, but he did propose changes in the personal and businesses tax code.
He also proposed a Stimulus Transition Fund to reduce the projected $2.4 billion deficit in the 2011-12 budget when federal stimulus funds are no longer available and takes a swing at the multi-billion dollar unfunded pension cost spike.
The Governor would generate revenue for the Stimulus Transition Fund, which could not be used until the 2011-12 budget, by calling on the General Assembly to make several changes to state's tax structure to make it fairer. He would --
-- Lower the 6 percent Sales Tax to 4 percent by eliminating 74 exemptions now in the law (but not food, clothing and prescriptions) and taxing legal fees and other items, eliminating the 1 percent vendor's discount and expanding the tax to tobacco products;
-- Cut the Corporate Net Income tax from 9.99 percent to 8.9 percent by adopting combined reporting, eliminating the Delaware loophole and eliminating the cap on net loss carry forward; and
-- Proposes a natural gas production severance tax that he estimates will generate about $178.6 million-- $17.9 million to be returned to communities with Marcellus Shale gas drilling impacts and $160.7 million to the Transition Fund..
The Governor also plans to take steps to deal with the looming unfunded pension cost spike in 2012-13 by increasing the Commonwealth's employer payments for the State Employees Benefit Fund by $200 million, reamortizing both the State Employee and School Employee Funds over 30 years and he laid out a schedule of increasing employer contributions over the next few years, capping annual increases at 3 percent.
Senate Republicans React
Senate Majority Leader Domining Pileggi (R-Delaware) said the Governor is proposing over $1.1 billion in increased spending at the same time the state is facing a budget deficit of $500 million. He also said now is not a time to radically restructure the state's tax system with the Governor leaving office. The next Governor should be involved in this discussion. He added he thought it was a question of timing on the Marcellus Shale severance tax. He doesn't not want to see the economic potential of this industry lilmited.
Senate Republican Appropriations Chair Jake Corman (R-Centre) said large sections of the Governor's budget are based on action by the federal government to provide additional federal stimulus funds and on passing health care legislation. It's a budget, he said, based on "a wing and a prayer." "Government spending will not get us out of this recession, jobs will."
Senate President Pro Tempore Joe Scarnati (R-Jefferson) said, "we aren't cowards if we don't raise taxes." On the Marcellus Shale tax, he said the Governor wanted and the General Assembly passed grant programs for solar and wind energy adding he isn't asking for that kind of support, only for the gas industry to be treated fairly.
Marcellus Shale Tax
The proposed Marcellus Shale natural Gas severance tax would charge companies a 5 percent tax on the value of the natural gas at the wellhead, plus 4.7 cents per 1,000 cubic feet of natural gas taken from the ground.
The Governor estimates the tax would generate $178.6 million in the 2010-11 fiscal year. The Governor would allocate $160.7 million to the proposed Stimulus Transition Fund and $17.9 million to local communities seeing infrastructure and other impacts in communities where drilling is occuring under a proposal that was not detailed.
Gov. Rendell projects the severance tax would generate $260 million in 2011-12, $320 million in 2012-13, $396.2 million in 2012-14 and $475.6 million in 2014-15.
He also repeated his proposal to hire 68 new employees at the Department of Environmental Protection and made unspecified increases in staff to allow the Department of Conservation and Natural Resources to oversee increased natural gas drilling in State Forests.
Note: All budget requests incorporate the budget reductions already taken in the 2009-10 budget.
Environmental Protection
Overall - General Fund budget cut $3.7 million, overall counting all funds cut $8.2 million
Personnel line items cut $1.3 million
Sewage Facilities Planning Grants cut $100,000
Sewage Faiclities Enforcement Grants cut $300,000
Stormwater Management - zeroed out
Environmental Stewardship Fund Watershed Protection cut $1 million
Conservation Districts cut $31,000
Nutrient Management Fund increase $614,000
Consumer Eduction Program - zeroed out
Recycling Fund - reducing grants $8.3 million because Recycling Fee needs to be extended
Conservation & Natural Resources
Overall - General Fund cut $994,000, overall counting all funds cut $23.7 million
Heritage Park Grants - zeroed out
Keystone Park & Forest Facilities - increased $3.9 million
Keystone Grants for Local Recreation - increased $3.2 million
Keystone Grants for Land Trusts - increased $1.3 million
Oil and Gas Fund - transfers $180 million to the General Fund to balance the budget from State Forest Marcellus Shale natural gas lease revenues.
Agriculture
Overall - General Fund $5.3 million, overall counting all funds cut $101,000
Conservation Districts cut $570,000
Nutrient Management Fund cut $100,000
Other
Environmental Stewardship Fund - for the first time more than half of the income in the Fund will go for debt service -- $36.8 million with only $33.2 remaining for projects. That amount will increase to $60 million of the $66 million in new revenues coming into the Fund.
REAP Tax Credit - As proposed last year in the two-year budget, the Resource Enhancement and Protection (REAP) farm conservation tax credit will be funded at $4.5 million, down from $5 million in the current year and $10 million in the first year.
Tuesday, February 9, 2010
Tuesday NewsClips
The Governor's budget address will now be at 10:30. An expected snowfall later today and Wednesday causes the House to cancel voting session Wednesday and lots of Committee meetings today and tomorrow. The Senate is expected to follow suit.
Budget Proposal To Be Unveiled By Rendell
Editorial: Don't Repeat Budget Mess
Editorial: Cutting State Workers, Programs Isn't The Right Budget Answer
Drillers Line Up Against PA's Marcellus Shale Tax
Op-Ed: Pause The PA Gas Rush
Three Mile Stretch In Lehigh County Extends Heritage Corridor
Public Asked To Report Bat Sightings
Richland Township To Get Solar Energy Boost
Gas Driller Hearing Planned
Sen. Yaw: DEP Soliciting Comments On Oil/Gas Regulations
Students Increase Recycled Placemat Production
Budget Proposal To Be Unveiled By Rendell
Editorial: Don't Repeat Budget Mess
Editorial: Cutting State Workers, Programs Isn't The Right Budget Answer
Drillers Line Up Against PA's Marcellus Shale Tax
Op-Ed: Pause The PA Gas Rush
Three Mile Stretch In Lehigh County Extends Heritage Corridor
Public Asked To Report Bat Sightings
Richland Township To Get Solar Energy Boost
Gas Driller Hearing Planned
Sen. Yaw: DEP Soliciting Comments On Oil/Gas Regulations
Students Increase Recycled Placemat Production
Monday, February 8, 2010
Sustainable Energy Conference July 12-16, Sustainable Scholars Program Applications Due
The Sustainable Energy Fund is now accepting applications for student and teacher as individuals or teams under its award-winning Sustainable Scholars Program to attend the Sustainable Energy Conference on July 12-16 at Lehigh University in Bethlehem, Pa. Applications are due February 15.
Teams can be comprised of professional educators from middle school, high school, vo-techs, colleges and universities. The conference is also open to college and university students. Each college and university team can bring up to three attendees; at least one team member should be an instructor.
Sustainable Energy Fund will provide attendance scholarships for at least 50 teams.
Each year SEF provides attendance scholarships to teachers, professors, and student champions to attend the Scholars boot camp which precedes SEF's annual Sustainable Energy Conference. During the boot camp attendees have an opporunity to learn from the industry's best sustainable energy trainers. Attendees learn the science behind renewable technologies, basic system design, and installation.
After the boot camp attendees have the opportunity to particpate in the annual Sustainable Energy Conference where larger issues related to energy conservation, energy efficiency and renewable energy are presented by leading experts. Topics include manufacturing, public policy, finance, marketing, and consumer trends.
Upon returning to their respective institutions, grant recipients are tasked with integrating sustainable energy into their curriculum. More than 94 teams from 69 different institutions have participated in the program since its inception. For more information, visit the Sustainable Scholars Program webpage.
Teams can be comprised of professional educators from middle school, high school, vo-techs, colleges and universities. The conference is also open to college and university students. Each college and university team can bring up to three attendees; at least one team member should be an instructor.
Sustainable Energy Fund will provide attendance scholarships for at least 50 teams.
Each year SEF provides attendance scholarships to teachers, professors, and student champions to attend the Scholars boot camp which precedes SEF's annual Sustainable Energy Conference. During the boot camp attendees have an opporunity to learn from the industry's best sustainable energy trainers. Attendees learn the science behind renewable technologies, basic system design, and installation.
After the boot camp attendees have the opportunity to particpate in the annual Sustainable Energy Conference where larger issues related to energy conservation, energy efficiency and renewable energy are presented by leading experts. Topics include manufacturing, public policy, finance, marketing, and consumer trends.
Upon returning to their respective institutions, grant recipients are tasked with integrating sustainable energy into their curriculum. More than 94 teams from 69 different institutions have participated in the program since its inception. For more information, visit the Sustainable Scholars Program webpage.
An Open Letter To The Agricultural Community From The Chesapeake Bay Foundation
The Chesapeake Bay Foundation published an advertisement in regional newspapers this morning to the agriculture community to take a second look at federal legislation meant to restore the Bay watershed.
The Chesapeake Bay Foundation extends an invitation to the agricultural community to join us in an open dialogue about how to achieve clean water and maintain a strong agricultural economy in the Bay region. In our minds, these are complementary goals. The Chesapeake Clean Water and Ecosystem Restoration Act (S. 1816 and H.R. 3852) will help Pennsylvania support thriving, well-managed, and profitable farms that can continue producing healthy food for our citizens.
In fact, Bay farmers have made substantial progress in reducing pollution to our streams, rivers, and the Chesapeake Bay. Many farmers have planted cover crops, installed streamside buffers, embraced no-till planting, and improved manure management. As a result, since 1985, EPA’s Bay Program Office estimates that agriculture has put in place practices sufficient to reduce more than 50 percent of its share of the nitrogen and phosphorus pollution reductions necessary for clean rivers and a clean Bay. By comparison, during the same time, pollution from urban stormwater runoff has increased—and the reality remains: We all need to do more.
Today, after decades of broken promises, all sources of pollution to the Chesapeake watershed will face a court-ordered pollution budget known as a Total Maximum Daily Load (TMDL). State and federal governments are working together to establish this pollution budget that will set nitrogen and phosphorus pollution reduction targets for all sources in the watershed—agriculture, wastewater treatment plants, urban stormwater, and more. States must prepare “watershed implementation plans” that will detail how they will achieve the pollution reduction goals of the TMDL. If not adequately written or implemented, states will face federal penalties. Although details will be left to the states, significant pollution reductions will be required by the TMDL and associated implementation plans.
The Chesapeake Clean Water Act would provide critical tools to help this process. The bill authorizes significant federal funds to help states, towns, cities, rural areas and farmers to meet the obligations that will come as part of the “watershed implementation plans.” Not less than $96 million is authorized for desperately needed technical assistance for agricultural producers.
Furthermore, the legislation would establish an interstate water-quality program created to complement existing state programs, lower the costs of reducing pollution flowing into the Bay, and provide a revenue stream for farmers. The program would allow those that can reduce pollution more cost effectively, like farmers, to sell pollution credits to those with higher compliance costs. Estimates are that the program could bring $300 million to farmers in the Chesapeake region annually. Finally, the bill would establish an unambiguous pollution budget and reduction target, bringing predictability to the restoration effort and prompting long-term planning and funding strategies.
CBF has worked for many years advocating for increased conservation funding and helping farmers implement pollution control practices. In Pennsylvania, CBF successfully obtained $15 million to fund farm conservation efforts from the Pennsylvania Infrastructure Investment Authority (PENNVEST), setting a new precedent for financing agricultural practices from these funds normally directed toward municipal infrastructural improvements. We worked with a coalition to pass the Resource Enhancement and Protection Act (REAP) and our restoration program has worked with private landowners to install more than 2,000 stream miles of forested buffers.
In Maryland, we have led efforts to implement and promote rotational grazing through a “Grazer’s Network” of beef and dairy farmers and have battled for the Bay Restoration Fund and the 2010 Bay Trust Fund. In Virginia, through a cooperative partnership with the agricultural community known as the Waste Solutions Forum, we have promoted and sought funding to identify viable, alternate uses of excess animal manure that are profitable.
Most recently, CBF successfully advocated for changes in the federal Farm Bill that resulted in $638 million for agricultural conservation programs and technical assistance to Chesapeake region farmers. We have consistently demonstrated, through our actions and public statements, our commitment to clean water and a thriving agricultural economy.
CBF remains committed to these goals. Working together, we can ensure both are achieved, but it will require our collective efforts. Please go to our webpage and share your thoughts and ideas on ways we can work together. Visit cbf.org/ag2010 or call Lamonte Garber in CBF’s Pennsylvania office at 717/234-5550.
We welcome your input and look forward to working together for the benefit of our waters, our farmers, and our future.
Will Baker, President
Chesapeake Bay Foundation
Matt Ehrhart, Pennsylvania Executive Director
Chesapeake Bay Foundation
The Chesapeake Bay Foundation extends an invitation to the agricultural community to join us in an open dialogue about how to achieve clean water and maintain a strong agricultural economy in the Bay region. In our minds, these are complementary goals. The Chesapeake Clean Water and Ecosystem Restoration Act (S. 1816 and H.R. 3852) will help Pennsylvania support thriving, well-managed, and profitable farms that can continue producing healthy food for our citizens.
In fact, Bay farmers have made substantial progress in reducing pollution to our streams, rivers, and the Chesapeake Bay. Many farmers have planted cover crops, installed streamside buffers, embraced no-till planting, and improved manure management. As a result, since 1985, EPA’s Bay Program Office estimates that agriculture has put in place practices sufficient to reduce more than 50 percent of its share of the nitrogen and phosphorus pollution reductions necessary for clean rivers and a clean Bay. By comparison, during the same time, pollution from urban stormwater runoff has increased—and the reality remains: We all need to do more.
Today, after decades of broken promises, all sources of pollution to the Chesapeake watershed will face a court-ordered pollution budget known as a Total Maximum Daily Load (TMDL). State and federal governments are working together to establish this pollution budget that will set nitrogen and phosphorus pollution reduction targets for all sources in the watershed—agriculture, wastewater treatment plants, urban stormwater, and more. States must prepare “watershed implementation plans” that will detail how they will achieve the pollution reduction goals of the TMDL. If not adequately written or implemented, states will face federal penalties. Although details will be left to the states, significant pollution reductions will be required by the TMDL and associated implementation plans.
The Chesapeake Clean Water Act would provide critical tools to help this process. The bill authorizes significant federal funds to help states, towns, cities, rural areas and farmers to meet the obligations that will come as part of the “watershed implementation plans.” Not less than $96 million is authorized for desperately needed technical assistance for agricultural producers.
Furthermore, the legislation would establish an interstate water-quality program created to complement existing state programs, lower the costs of reducing pollution flowing into the Bay, and provide a revenue stream for farmers. The program would allow those that can reduce pollution more cost effectively, like farmers, to sell pollution credits to those with higher compliance costs. Estimates are that the program could bring $300 million to farmers in the Chesapeake region annually. Finally, the bill would establish an unambiguous pollution budget and reduction target, bringing predictability to the restoration effort and prompting long-term planning and funding strategies.
CBF has worked for many years advocating for increased conservation funding and helping farmers implement pollution control practices. In Pennsylvania, CBF successfully obtained $15 million to fund farm conservation efforts from the Pennsylvania Infrastructure Investment Authority (PENNVEST), setting a new precedent for financing agricultural practices from these funds normally directed toward municipal infrastructural improvements. We worked with a coalition to pass the Resource Enhancement and Protection Act (REAP) and our restoration program has worked with private landowners to install more than 2,000 stream miles of forested buffers.
In Maryland, we have led efforts to implement and promote rotational grazing through a “Grazer’s Network” of beef and dairy farmers and have battled for the Bay Restoration Fund and the 2010 Bay Trust Fund. In Virginia, through a cooperative partnership with the agricultural community known as the Waste Solutions Forum, we have promoted and sought funding to identify viable, alternate uses of excess animal manure that are profitable.
Most recently, CBF successfully advocated for changes in the federal Farm Bill that resulted in $638 million for agricultural conservation programs and technical assistance to Chesapeake region farmers. We have consistently demonstrated, through our actions and public statements, our commitment to clean water and a thriving agricultural economy.
CBF remains committed to these goals. Working together, we can ensure both are achieved, but it will require our collective efforts. Please go to our webpage and share your thoughts and ideas on ways we can work together. Visit cbf.org/ag2010 or call Lamonte Garber in CBF’s Pennsylvania office at 717/234-5550.
We welcome your input and look forward to working together for the benefit of our waters, our farmers, and our future.
Will Baker, President
Chesapeake Bay Foundation
Matt Ehrhart, Pennsylvania Executive Director
Chesapeake Bay Foundation
Monday NewsClips
Recession To Affect Rendell Budget
Rendell's Wish List To Shrink
Politics May Avert Budget Standoff
John Baer: Ed's Last Budget, Don't Expect A Lot
Editorial: Marcellus Shale Tax, Time Is Right To Begin Revenue Stream
Editorial: State's Gas Pains, Taxing New Industry Budget Imperative
Family Dilemma: Natural Gas Rights vs. Black Heritage
Op-Ed: PA Must Fight Federal Regulation Of Natural Gas Drilling
Flood Control Efforts In Export Still Awaits State Approval
Pittsburgh Water Customers Question $5 Water, Sewer Line Insurance Charge
Editorial: Put Price On Stormwater
Editorial: Common Cost In Scranton Sewers
Local, State Grants Help To Develop Abington Park
Game Commission Plans More Deer Management Road Trips
Governor's Awards For Environmental Excellence Awards Dinner April 20
Take A Green Tour At The Philadelphia Flower Show
Will Green Jobs Spur Legislation?
Susquehanna Valley Students Put Spotlight On Gas Drilling- Video
Conservation District Inspires Children To Study Environment
Gas Industry Ripple Effect Pricing Some Out Of Homes
Editorial: Nuclear Power, Pros And Cons
Abandoned Kettle Creek Mine Stabilization Done
Conversation With Marcellus Shale Coalition Executive Director
Rendell's Wish List To Shrink
Politics May Avert Budget Standoff
John Baer: Ed's Last Budget, Don't Expect A Lot
Editorial: Marcellus Shale Tax, Time Is Right To Begin Revenue Stream
Editorial: State's Gas Pains, Taxing New Industry Budget Imperative
Family Dilemma: Natural Gas Rights vs. Black Heritage
Op-Ed: PA Must Fight Federal Regulation Of Natural Gas Drilling
Flood Control Efforts In Export Still Awaits State Approval
Pittsburgh Water Customers Question $5 Water, Sewer Line Insurance Charge
Editorial: Put Price On Stormwater
Editorial: Common Cost In Scranton Sewers
Local, State Grants Help To Develop Abington Park
Game Commission Plans More Deer Management Road Trips
Governor's Awards For Environmental Excellence Awards Dinner April 20
Take A Green Tour At The Philadelphia Flower Show
Will Green Jobs Spur Legislation?
Susquehanna Valley Students Put Spotlight On Gas Drilling- Video
Conservation District Inspires Children To Study Environment
Gas Industry Ripple Effect Pricing Some Out Of Homes
Editorial: Nuclear Power, Pros And Cons
Abandoned Kettle Creek Mine Stabilization Done
Conversation With Marcellus Shale Coalition Executive Director
Sunday, February 7, 2010
Sunday NewsClips
Rendell To Propose Another Tight Budget This Week
Storm Clouds For Rendell's Final Budget
DEP Issues Boil Water Advisory For Western PA
PPL: Coal Waste Impoundment Secure
DEP Opening Scranton Oil And Gas Office
Governor's Office Publishes Agency Plans For Regulations
Great Backyard Bird Count February 12-15
EPA, Philadelphia Zoo Earth Day Student Poster Contest
Storm Clouds For Rendell's Final Budget
DEP Issues Boil Water Advisory For Western PA
PPL: Coal Waste Impoundment Secure
DEP Opening Scranton Oil And Gas Office
Governor's Office Publishes Agency Plans For Regulations
Great Backyard Bird Count February 12-15
EPA, Philadelphia Zoo Earth Day Student Poster Contest
Saturday, February 6, 2010
Saturday NewsClips
LIHEAP Spending Declines In Northwest PA
Ransom Twp. Cleanup Leads To DEP Involvement
Wastewater Violations Minor, Wyoming Valley Authority Says
Centralia Approaching The End
Sealing Mines, Installing Treatment Systems Restores McKean County Stream
Mine Drainage Treatment Restores Drinking Water In Lloydville Run
February 9 PA Forests Webinar By Penn State
Opinion- Welcome To Pennsylvania-The State Of Extraction
Ransom Twp. Cleanup Leads To DEP Involvement
Wastewater Violations Minor, Wyoming Valley Authority Says
Centralia Approaching The End
Sealing Mines, Installing Treatment Systems Restores McKean County Stream
Mine Drainage Treatment Restores Drinking Water In Lloydville Run
February 9 PA Forests Webinar By Penn State
Opinion- Welcome To Pennsylvania-The State Of Extraction
Friday, February 5, 2010
Feb. 8 PA Environment Digest Now Available
The February 8 PA Environment Digest is now available. Click here to print this Digest.36 House Democrats Urge Governor To Stop Leasing State Forest For Gas Drilling
Rep. David Levdansky (D-Allegheny) led a group of 36 House Democrats this week to sign a letter to Gov. Rendell urging him not to lease additional State Forest lands for Marcellus Shale natural gas drilling.
The letter, written to the Governor in advance of his budget address on Tuesday, recommends that a natural gas severance tax instead be levied on the gas already being drilled, which would obviate the need for the leasing of additional state forest lands in order to raise revenue for the state. Click here to read more...
Friday NewsClips
Gas Drilling Meeting Draws Lots Of Interest
Gas Lease Will Pay For Township Drilling
Wayne County Filmmaker Wins Sundance Award For Drilling Documentary
Philadelphia Green City Plan To Reduce Stormwater Runoff
Recycling Rewards Program Expanded In Philadelphia
Groups: Not Enough Money For Great Lakes In Obama's Budget
Senate Committee Gets Line On Steelhead, License Fees
Study Finds Wind Power Feasible In Downvalley
Editorial: Penn State Panel Takes On Climate Change Emails
Gas Lease Will Pay For Township Drilling
Wayne County Filmmaker Wins Sundance Award For Drilling Documentary
Philadelphia Green City Plan To Reduce Stormwater Runoff
Recycling Rewards Program Expanded In Philadelphia
Groups: Not Enough Money For Great Lakes In Obama's Budget
Senate Committee Gets Line On Steelhead, License Fees
Study Finds Wind Power Feasible In Downvalley
Editorial: Penn State Panel Takes On Climate Change Emails
Subscribe to:
Posts
(
Atom
)