Monday, October 5, 2009

Maybe Another Agreement On New Budget Proposal

Senate Leaders, House Democrats and Gov. Rendell announced there may be agreement on a third budget proposal which reduces overall General Fund spending to $27.8 billion rather than $27.9 billion. Although, all parties said there were lots of "details" to work out.
The new General Fund budget proposal means a 26.7 percent reduction in funding for the Department of Environmental Protection ($58 million) and a 18.5 percent reduction for the Department of Conservation and Natural Resources ($21 million).
A Budget III bullets sheet is available online
The new agreement eliminates the natural gas severance tax, the tax on small games of chance and a Sales Tax on live cultural performances the House Democrats could not support.
The agreement includes leasing State Forest land for Marcellus Shale drilling, authorizing Table Games at casinos, tax amnesty, a tax on little cigars, transfers from the Rainy Day and Mcare funds and the remainder of the tax provisions included in Budget Agreement II.
The Senate is expected to amend the tax provisions into House Bill 1531 later today. The bill was passed Friday by the House.
A Budget III tax summary is available online.
Here are some highlights--
Agriculture
-- Overall- $67.8 million, a reduction from $76 million
-- Conservation Districts - $1.65 million, a reduction from $1.66
DCED
-- Land Use Planning Assistance- $375,000, a reduction from $3.7 million
DCNR - 18.5 Percent Reduction - $21 million
-- Overall- $92.3 million, a reduction from $113.3 million
-- State Park Operations- $50.3 million, a reduction from $59.6 million
-- State Forest Operations- $17.1 million, a increase from $16.9 million
-- Heritage Parks- zeroed out, a reduction from $7.6 million
Penn State University
-- Agricultural Research - zeroed out, a reduction from $24 million
-- Agricultural Extension Services- zeroed out, a reduction from $28.5 million
DEP - 26.7 Percent Reduction - $58 million
-- Overall- $159 million, a reduction from $217 million
-- General Government- $14.1 million, a reduction from $17.1 million
-- Conservation Districts- $3 million, a reduction from $3.6 million
-- Stormwater Management- zeroed out, a reduction from $2 million
-- Sewage Facilities Grants- $1 million, a reduction from $1.5 million
-- Sewage Facilities Enforcement- $3 million, a reduction from $4.9 million
Insurance
-- Repayment from Storage Tank Insurance Fund- zeroed out, a reduction from $3 million
State System of Higher Education
-- PA Center for Environmental Education- $368,000, no reduction
-- McKeever Environmental Center- $213,000, no reduction
The Senate is expected to include General Fund items in Senate Bill 1085.
A copy of the Budget III spreadsheet is available online.
A copy of the Budget III Fiscal Code changes is available online. Fiscal Code provisions are expected to be amended into Senate Bill 1042.

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