The Record: $1.7 Billion Cut/Diverted From Environmental Programs Last 10 Years

With the FY 2012-13 General Fund budget now final, we now know investments in environmental protection and restoration programs have been cut over $1.7 billion over the last 10 years, starting with the record cuts and staff furloughs by Gov. Rendell in each year of his administration.

Gov. Rendell's share of these cuts/diversions is $1.4 billion.  Gov. Corbett's share is $314.7 million, so far.

Here's an itemized list of the cuts and diversions--

-- $533 million in Act 339 grants intended to support wastewater plant operations over the last nine years were eliminated to balance the budget ($52 million or so each year);

-- $143 million diverted from the DCNR Oil and Gas Fund to balance the FY 2008-09 budget;

-- $79 million cut from the DEP and DCNR General Fund budget during FY2009-10;

-- $60 million diverted from the DCNR Oil and Gas Fund to balance the FY 2009-10 budget;

-- $100 million in 2002 from the Underground Storage Tank cleanup insurance fund to balance the budget (although this is slowly being repaid over 10 years);

-- $52.7 million “one-time” diversion from the Keystone Recreation, Parks and Conservation Fund in 2006 to balance the budget;

-- $50 million in 2007 and 2008 from the Environmental Stewardship Fund, which supports mine reclamation and watershed restoration, to fund the Hazardous Sites Cleanup Program because there was no agreement on how to fund that program;

-- $201.9 million in FY 2007-08, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13 from the Environmental Stewardship Fund to pay debt service on the Growing Greener II bond issue and taking funding away from restoration projects each year for the next 25 years – reflecting a pattern of only environmental programs being required to address their own bond debt service;

-- $15 million from the Recycling Fund in to balance the FY 2008-09 budget;

-- $18.4 million put into budgetary reserve in 2008-09 from the Department of Environmental Protection and Department of Conservation and Natural Resources;

-- $5 million reduction in Resource Enhancement and Protection (REAP) farm conservation tax credit program in FY 2009-10;

-- $102.8 million cut from the DEP and DCNR General Fund budget in FY 2010-11 budget;

-- $180 million diverted from the DCNR Oil and Gas Fund to General Fund in proposed FY 2010-11 budget;

-- $5.5 million reduction in Resource Enhancement and Protection (REAP) farm conservation tax credits in FY 2010-11;

-- $5 million in additional cuts to the agencies to balance the FY 2010-11 budget;

-- $3.9 million in across-the-board cuts to help fill gaps caused by reduced federal Medicaid appropriations-- $2.4 million from DEP, $1.5 million from DCNR;

-- $669,000 from the Safe Water line item in DEP's budget;

-- $102.8 million cut continued from the FY 2010-11 DEP and DCNR General Fund budget in FY 2011-12 budget;

-- $8.3 million Mid-year budget freeze cuts additional resources for environmental programs: Agriculture: $2.6 million; DCNR: $1.5 million; and DEP: $4.2 million.

-- FY 2012-13 budget eliminates $11.8 million in General Fund monies from DEP, and $2.5 million from DCNR.

-- FY 2012-13 budget continues the $102.8 million cut made by Gov. Rendell beginning in FY 2010-11.

-- FY 2012-13 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000).

DEP/DCNR Staff Cuts

DEP's authorized complement is now 2,759, down from 2,770 last year and 3,211 in FY 2002-03, and DCNR's is now 1,375, down from 1,389 last year and 1,391 in FY 2002-03.

The FY 2012-13 budget includes a reduction of at least 14 positions in DCNR and 11 positions in DEP.

In addition, the Rendell Administration used over 100 DEP Air, Waste and Water Quality field staff  to act as managers for federal stimulus projects, projects funded by the Energy Harvest and PA Energy Development Authority programs taking time away from permit reviews, inspections and compliance activities.

The FY 2009-10 budget cuts alone required DEP and DCNR to furlough or eliminate 333 full time positions. DCNR had to eliminate or reduce hours for 1,131 seasonal workers, putting appropriations for DEP at 1994 levels and for DCNR at 1995-96 levels.

One result of all these cuts is the permit review backlog DEP said was already building in 2009 and in truth the last 7 years, delaying hundreds of millions of dollars in economic development projects across the state.

Of course, DEP and DCNR still have the same amount of work to do, the same laws to enforce and State Forests and State Parks to protect and manage.

In the case of DEP, they face the further challenge of new programs to get up and running, like the electronics recycling program, and the continuing challenges of regulating Marcellus Shale drilling.

            General Fund Budget Perspective

The state's General Fund budget has always been a huge part of how environmental programs and agencies are funded, but that has changed dramatically over the last 9 years.

In most cases, General Fund cuts to DEP and Agriculture resulted in significant staff reductions with only a small portion being made up in things like permit review fee increases.  In the case of DCNR, monies from the Oil and Gas Fund fed by Marcellus Shale drilling revenues on State Forest land made up many of the losses.

Here's some perspective--

-- Dept. of Environmental Protection:

   General Fund FY 2002-03: $728.2 million

   General Fund FY 2012-13: $124.8 million

-- Dept. of Conservation & Natural Resources:

   General Fund FY 2002-03: $322.9 million

   General Fund FY 2012-13: $52.7 million

-- Department of Agriculture:

    General Fund FY 2002-03: $274.3 million

    General Fund FY 2012-13: $129.5 million


7/2/2012

Go To Preceding Article     Go To Next Article

Return to This PA Environment Digest's Main Page