The Senate and House Republicans (by and large) gave final approval to the FY 2012-13 General Fund budget-- Senate Bill 1466 (Corman-R-Centre)-- a day early touting the $27.67 billion spending plan as another no-tax, on-time budget.

However, passing the follow-along bills covering changes to the Tax Code, Fiscal Code and the Education Code looked more like the old days as the debates and bill votes Saturday went way beyond the 11:00 p.m. deadline both chambers established for legislative work.  Technically, for members, it was still June 30 when the House and Senate finished their last votes at 1:30 a.m. or so July 1.

House Democrats said the budget does not do enough to restore funding for education, address the state’s transportation infrastructure needs nor supports the Commonwealth’s neediest citizens, especially when the Independent Fiscal Office projects there will be an additional $400 million in state tax revenue for the coming year.

The overall spending of $27,656,381 is an increase of $470,728,000 over FY 2011-12 and over the $27.1 billion budget Gov. Corbett proposed in February.

The final budget restores cuts to environmental programs proposed by Gov. Corbett-- $38 million for the Keystone Recreation, Parks and Conservation Fund, $20 million for the Agricultural Conservation Easement Purchase Program and $6 million for the Alternative Fuels Incentive Grant Fund.

Other highlights include:

Department of Conservation and Natural Resources

-- $2.5 million less overall than FY 2011-12, most personnel line items, same as Governor’s request

Department of Environmental Protection

-- $11.8 million less overall than FY 2011-12 ($6.6 million in personnel line items) more than Governor’s proposed cuts of $10.5 million

-- Sewage Facilities Planning and Enforcement Grants zeroed out

-- $29,000 less for County Conservation Districts

Department of Agriculture

-- $3.5 million less overall than FY 2011-12, restoration of funding cuts proposed by Governor

-- $245,000 cut to General Government Operations

-- $10,000 less transferred to County Conservation Districts than FY 2011-12

-- $27,000 less transferred to Nutrient Management Fund

Commonwealth Financing Authority

-- $3.5 million more totalling $85.5 million

State System of Higher Education

-- PA Center for Environmental Education - zeroed out again ($368,000)

-- McKeever Environmental Center - zeroed out again ($213,000)

Click Here for a House Republican summary of the budget.  Click Here for a House Democratic summary.  Click Here for a line by line budget spreadsheet.  A summary and House Fiscal Note are available.

            Related Budget Bills

Several related bills implementing parts of the budget were also give final approval--

Tax Code: House Bill 761 (Cutler-R-Lancaster) further exempting certain transfers from the realty transfer tax and making 23 other changes to implement the FY 2012-13 budget.  A summary and Senate Fiscal Note are available.  Among the changes are--

-- Establishes a new Resource Manufacturing Tax Credit (Shell ethane plant) up to $66 million/year;

-- Increases Research and Development Tax Credit from $40 to $55 million;

-- Expanding the Education Improvement Tax Credit program;

-- Establishes a new $3 million Historic Preservation Incentive Tax Credit; and

-- Provides an additional exclusion from realty transfer tax for transfer of a family farm.

Fiscal Code: Senate Bill 1263 (Browne-R-Lehigh) amending the Fiscal Code to implement the budget agreement, including provisions which extends the prohibition on Cities of the Third Class from filing bankruptcy to November 30, 2012; further provide for conventional oil and gas well blanket bonding requirements; Prohibiting DEP from issuing permits in the South Newark Basin until January 1, 2018 unless a study of the impact of drilling is done by DCNR; and directs the Legislative Budget and Finance Committee, in consultation with PennVEST, is directed to conduct a study of how the state can meet nutrient reduction planning targets in any watershed implementation plan by December 30, 2012.  A summary and House Fiscal Note are available.  The bill was amended and passed by the House and returns to the Senate for a concurrence vote.

NewsClips: Provision Would Prevent Drilling In Bucks County

                 Legislators Weigh Drilling Moratorium For SE PA

Welfare Code: House Bill 1261 (Quigley-R-Montgomery) further providing for eligibility for public assistance, providing for a county human services block grant pilot study, ends general public cash assistance for 70,000 people, but not medical assistance.  A summary and Senate Fiscal Note are available.

Education Code: House Bill 1901 (Everett-R-Lycoming) amending the Education Code to implement the FY 2012-13 budget, provide for employee background checks and other changes.  A summary and Senate Fiscal Note are available.

7/2/2012