The Patriot-News is reporting Gov. Corbett is now withholding his signature from the budget until the Senate and House do “meaningful pension reform” saying, "I am withholding signing the budget passed by the General Assembly while I deliberate its impact on the people of Pennsylvania."
There has been no agreement on general pension reform, although pension reform for elected officials is making its way through the General Assembly. The budget also does not include liquor privatization in any form. Both pension reform and liquor privatization were Gov. Corbett’s key priorities.
June 30, 2014
The Other Shoe Is Dropping-- The Fiscal Code Bill Makes Major Changes
The Senate Appropriations Committee late Monday made 66 pages of additions to House Bill 278 (Baker-R-Tioga), the Fiscal Code bill that follows to implement provisions in the General Fund budget. But this year, the bill includes creation of new programs, some which have never passed either the Senate or House, provides for transfers from special funds and makes other changes.
The Senate is expected to take final action on the Fiscal Code bill Tuesday which must then return to the House for a concurrence vote.
Here’s a quick summary of some of the major provisions--
Major Programs Included--
— Requires DEP to use funds to promulgate separate conventional and unconventional oil and gas regulations-- Senate Bill 1378 (Scarnati-R-Jefferson), House Bill 2350 (Causer-R-Cameron) were never considered by the full Senate, House)
— Creating new Rural Regional College-- Senate Bill 1000 (Scarnati-R-Jefferson) which passed the Senate, House Bill 1701 (Causer-R-Cameron) which did not pass the House.
— Reduction in Small Games of Chance license fee from $2,000 to $500
— Education funding distribution to local school districts
— Escheats: Reduce years, Treasury Enforcement, Bankers modernization
— $10 increase in Judicial surcharge
— City Revitalization and Improvement Zone Update: 3 Zones and 1 pilot in 2014, 2 Zones and 1 pilot in 2015
Transfer of Funds--
— Suspend transfer to Rainy Day Fund
— Transfers $17.6 million from the Horse Racing Fund
— Transfers $225,000,000 of tobacco venture assets to PSERS
— Transfers $8,000,000 in excess law enforcement grants from Gaming Board to General Fund
— Transfers $5,676,000 from Gaming Capital money to General Fund for Pittsburgh Penguins
— Transfer $20 million from State Forest Timber leases
— Transfers $95 million from DCNR Oil and Gas Fund for additional “non-impact” gas leasing
— Transfers $8,672,845 from the Alternative Energy Investment Act
Other Changes--
— Establish H20 account to hold gaming money and Act 13
— Distributed tobacco payment to program
— Civil Service reforms authorize operational contracts
— Appropriates funds from DGS to caucus operations
— Includes caucus earmarks of funds
Click Here for the most recent version of House Bill 278.
Senate, House Republicans Approve $29 Billion Budget
The Senate and House Republicans Monday approved, by party-line votes, a $29 billion General Fund budget with no tax increases, but which is based on $246.5 million in transfers from special funds, $95 million in additional “non-impact” natural gas leasing in State Parks and Forests and $75 million from a Philadelphia casino license that may or may not happen.
This compares to last year’s $28.5 billion budget and a $29.4 billion budget proposed by Gov. Corbett in February.
There has been no agreement on general pension reform, although pension reform for elected officials is making its way through the General Assembly. It also does not include liquor privatization in any form. Both pension reform and liquor privatization were Gov. Corbett’s key priorities.
Here’s a thumbnail of the new budget--
Agriculture
-- Transfer $17.6 million Horse Racing Fund for Dept. of Agriculture operations
Education
-- Community Colleges - $215,667,000, $3.5 million increase
-- Transfer to Community College Capital Fund - $48,869,000, no change
-- Regional Community College Capital Fund - $2.4 million
-- State Related Universities - Flat funding, except slight increase for PA College Of Technology
-- State System of Higher Education - Flat funding
-- PHEAA Scholarships - $5 million increase
Environmental Protection
-- DEP Operations - $12.4 million increase
-- Sewage Facilities Planning Grants - $500,000 increase
-- Delaware River Basin Commission - $500,000 cut
-- Alternative Fuels Incentive Grant Fund - $6.2 million
Conservation & Natural Resources
-- Heritage Parks Program - $2.75 million, up from $2.25 million last year
-- Transfer of $95 million from “non-impact drilling on DCNR Land
-- Transfer of $73 million from the Oil and Gas Fund for DCNR operations
-- Transfer of $20 million from State Forest Timber operations
-- NO transfer from Keystone Fund
Other Provisions
-- No transfer from the Underground Storage Tank Indemnification Fund
-- No suspension of tax credit programs like the farm conservation tax credit REAP or the Historic Preservation tax credit
Attorney General - $5 million increase
State Treasurer - $3.8 million increase
Auditor General - Flat funding
Judiciary - Flat funding
House - $1.9 million increase
Senate - $950,000 increase
Click Here for a copy of the line item spreadsheet. Click Here for the budget balance and transfers sheet.
Political Reaction
Sen. Vincent Hughes (D-Philadelphia), Minority Chair of the Senate Appropriations Committee, said, “Today, in an effort to pass a budget bill before the start of the new fiscal year, Senate Republicans advanced a $29.1 billion spending plan to the House of Representatives. This budget bill, which will make it to Gov. Corbett’s desk for his approval tonight, is both a sham and a farce; a obvious attempt at a spending plan which creates no sustainable revenues, and fails to appropriately fund schools, job creation, and human services. This is flim-flam sham budget does nothing but move Pennsylvania backwards.
“The misguided spending plan is balanced using more than $2.5 billion in budget gimmicks, bloated revenue estimates, and one-time fund transfers. Rather than explore options for sustainable revenues such as a Marcellus Shale severance tax or Medicaid expansion, Gov. Corbett and Pennsylvania Republicans have instead decided to implement budget tricks that will leave the Commonwealth with a structural deficit for 2015, and beyond. These revenue pillars are so shaky, that the General Assembly may be forced to return to make significant repairs to the spending plan early next year. Frankly, this budget is not worth the paper it will be printed on.
“Senate Republicans will praise the $300 million added to education in their spending plan, without mentioning that these funds are only a small step to restore the $1 billion cuts in education spending authored by the Governor throughout his tenure. As a result of this shortfall, local property taxes are likely to again increase throughout the state. Once again, because of Gov. Corbett’s inability to take responsibility for poor budget decisions, local property taxpayers and school students will be forced to shoulder the burden of this spending plan.
“After reviewing the budget passed by Senate Republicans today, it is clear to me that their only goal was to finish the budget on-time; without any concern about getting it right for the people of Pennsylvania. The passage of this spending plan is simply a failure, as it will only perpetuate the budget problems facing the Commonwealth, throughout the next fiscal year.”
House Minority Leader Frank Dermody (D-Allegheny) said, “We are supposed to be voting on a 12-month budget for the commonwealth of Pennsylvania. What the Republicans are putting before us is a spending plan based on false assumptions that will likely lead to many state programs running out of cash months ahead of time.
“This budget locks in deep budget cuts to education, health care, human services and many other programs made by Republicans in the last three budgets. It demonstrates the failure of their approach to governing. Most other states had budget surpluses this year, but in Pennsylvania we are dealing with insufficient revenue for yet another year.
“The last three budgets got us to this point. This flawed budget will take us even further in the wrong direction. It’s a budget that sets Pennsylvania up for failure.
“Budget votes have consequences and the people of Pennsylvania are in for a lot of unnecessary suffering because of the vote taken tonight to pass this unworkable Republican budget.
“Well before the next governor’s budget plan is presented to the General Assembly, we will be scrambling to plug the leaks created by this one.”
Rep. Joe Markosek (D-Allegheny), Minority Chair of the House Appropriations Committee said, "This budget is irresponsible and dangerously shortsighted. It relies on more than $1.7 billion in unsustainable revenue sources and one-time budget gimmicks that will result in a structural deficit that will dwarf the current budget hole.
"In addition, Gov. Corbett and the majority party are turning a blind eye to the needs of most Pennsylvanians, choosing to prioritize business tax breaks over funding for our schools. This budget contains more than $880 million in business tax cuts, bringing the total to $2.1 billion over Corbett’s tenure.
"However, those tax breaks have not helped. Pennsylvania has the dubious distinction of being one of only 11 states to face a revenue shortfall this year while we continue to linger near the bottom of the list for job growth.
"Meanwhile, the majority party continues to shortchange our future – the students of Pennsylvania. During this governor's tenure, our schools were forced to increase class sizes, reduce course offerings, cut more than 20,000 teachers and other education jobs, and increase local property taxes. Higher education has become unaffordable, and our college graduates carry the third-highest debt load in the country."
"During Gov. Corbett's first budget address in 2010, he proclaimed that 'The day of reckoning has come.' However, it appears to me that he's now interested in delaying the day of reckoning for his own failed policies."
NewsClips:
Sen. McIlhinney Lone Republican Voting Against Budget
June 29, 2014
Senate Republicans Move $29 Billion Budget Out Of Appropriations Committee
On Sunday evening, Senate Republicans amended House Bill 2328 (Adolph-R-Delaware) to create a $29 billion General Fund budget without any new taxes. This compares to the House-passed $29.1 billion budget sand last year’s $28.5 billion budget.
There are still many details lacking, particular amendments to the Fiscal Code which will include language related to any budget deals to adopt unrelated programs and information on which state tax credit programs will be suspended.
There has been no agreement on general pension reform or liquor privatization, Gov. Corbett’s key priorities.
The Senate is expected to have a floor debate on the budget bill on Monday. Midnight June 30 is the deadline to have the state budget in place.
Here’s a thumbnail of what is known now--
Agriculture
-- Horse Racing Fund transfer of $17.6 million, same as last year
Education
-- Community Colleges - $215,667,000, $3.5 million increase
-- Transfer to Community College Capital Fund - $48,869,000, no change
-- Regional Community College Capital Fund - $2.4 million
-- State Related Universities - Flat funding, except slight increase for PA College Of Technology
-- State System of Higher Education - Flat funding
-- PHEAA Scholarships - $5 million increase
Environmental Protection
-- DEP Operations - $12.4 million increase
-- Sewage Facilities Planning Grants - $500,000 increase
-- Delaware River Basin Commission - $500,000 cut
Conservation & Natural Resources
-- Heritage Parks Program - $2.75 million, up from $2.25 million last year
Funding Sources:
-- Non-Impact Drilling On DCNR Land - $95 million
-- Alternative Fuels Incentive Grant Fund - $6.2 million
-- NO transfer from Keystone Fund or Underground Storage Tank Indemnification Fund
Attorney General - $5 million increase
State Treasurer - $3.8 million increase
Auditor General - Flat funding
Judiciary - Flat funding
House - $1.9 million increase
Senate - $950,000 increase
Click Here for a copy of the line item spreadsheet. Click Here for the budget balance and transfers sheet.
NewsClips:
Corbett Looks To Philly Dems To Get Pension Reform
June 28, 2014
June 27, 2014
June 30 PA Environment Digest Now Available
The June 30 PA Environment Digest is now available. Click Here to print entire Digest.
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 bill is now in the Senate as budget discussions continue between the Senate, House and the Governor’s Office.
The Senate and House declared June 28 a non-voting day, but are scheduled to return to voting session and 4:00 and 5:00 on Sunday, June 29. Midnight June 30 is the deadline to have the state budget in place.
Chesapeake Bay Foundation-PA Calls For Restoration Of Farm Conservation Tax Credit
The Chesapeake Bay Foundation’s Pennsylvania Executive Director, Harry Campbell, issued the following statement Wednesday in response to proposed budget cuts to vital tax credit programs that benefit Pennsylvania farmers and clean water efforts throughout the Commonwealth.
Of particular concern is the proposed two-year suspension of Pennsylvania’s Resource Enhancement and Protection Program (REAP) farm conservation tax credit program included in House Bill 2188 (Cutler-R-Lancaster) passed by the House Tuesday.
Growing Greener Coalition Issues Environmental Funding Plan If Severance Tax Adopted
The PA Growing Greener Coalition, the largest coalition of conservation, recreation and preservation organizations in the Commonwealth, Friday made its case for why environmental funding must be contained in any severance tax package passed by the legislature.
EPA: Pennsylvania Falls Short In Meeting 2013 Chesapeake Bay Cleanup Milestones
The U.S. Environmental Protection Agency reported Thursday Pennsylvania exceeded its 2013 Chesapeake Bay cleanup milestone for phosphorus by 242,000 pounds, but fell short in meeting the nitrogen goal by 2 million pounds and sediment reduction milestone by nearly 116 million pounds.
PEC Asks Sen. Scarnati, Rep. Causer To Respond To Concerns On Conventional Well Bills
The Pennsylvania Environmental Council Friday asked Sen. Joe Scarnati (R-Jefferson) and Rep. Martin Causer (R-Cameron) to respond to several significant concerns about Senate Bill 1378 and House Bill 2350 that would regulate conventional oil and gas wells differently than unconventional (Marcellus Shale) wells.
PEC said it was concerned about statements made by both members at the Senate and House Environmental Committees this week that the bills were meant to take conventional wells out of the basic law-- Act 13-- regulating oil and gas well activities leaving open the question of what kinds of environmental standards would apply to conventional wells.
Franklin Kury To Receive Ralph Abele Conservation Heritage Award July 14
The Fish and Boat Commission Thursday announced it will present the Ralph W. Abele Conservation Heritage Award to former Senator Franklin Kury to recognize his lasting conservation impact as the author and champion of Article I, Section 27 of the Pennsylvania Constitution, also known as the Environmental Rights Amendment.
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