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Budget cuts to affect Growing Greener II programs |
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Gov. Rendell’s proposed budget calls for drastic cuts in the Growing Greener II programs and could hurt the environment and the community.
By
DEBRA MASSIC |
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HARRISBURG, Pa. – The future of environmental programs and businesses in Pennsylvania lay in the hands of the Pennsylvania General Assembly, and voters in the November election. They will decide whether Gov. Rendell’s $800 million bond issue for “Growing Greener II” is enacted and who will pay the cost. The Ridge/Schweiker administration started “Growing Greener” to invest in stream cleanup, farmland protections, renovated water and sewer systems, improved parks and other upgrades to enhance communities, and in turn the environment and businesses. It was designed to help “leave Penn’s Woods’ better than we found them,” according to Gov. Rendell during his remarks on the proposed budget in early Feb. When it was first created, “Growing Greener” received $139 million and last year, $107 million. Funds will fall to $80 million this year without the approval of the bond. “Fiscal strains from the downturn in the economy have stretched the accounts of environmental programs,” Kurt Knaus, press secretary for the Department of Environmental Protection Agency said. “The Hazards [Site Cleanup] Fund will go bankrupt. This bond can bring them out of fiscal solvency. It is critical to cleaning up contamination and creating jobs.” Among the things the $800 million “Growing Greener II” bond will support are the clean up of acid mine drainage polluting streams, preservation of open space, watershed stream restoration, and economic redevelopment, according to Jan Jarrett, director of outreach for Citizens for Pennsylvania’s Future. It will also include the Hazards Site Cleanup Fund, a law Gov. Robert Casey signed into effect. “It’s real important that we get this money,” Jarrett said. “This state has a lot of environmental problems this could renew.” The bond will be broken down into three different areas. Farmland, forest and other open space protection from development, upgrades to parks and forests, and fish and game land improvements will receive $330 million. Efforts to cleanup hazardous sites, abandoned mines, streams polluted from abandoned mine drainage and other environmental hazards will be given $300 million. The remaining $170 million will revitalize the state’s towns, community parks, riverfronts and housing, and will promote “smart growth” planning. Some specific areas receiving funding are $80 million for Pennsylvania Energy Harvest, encouraging clean and renewable energy sources like biomass, wind, solar and small-scale hydroelectric. This investment will lead to a reduction in the $14 billion a year the state spends purchasing petroleum products, according to the DEP website. Recycling will also be boosted with $25 million to increase the $23.4 billion industry’s contribution to the economy. Brownfields are previously abandoned industrial sites that remain hazardous, but can be resold as prime real estate. The state will dedicate $40 million over the next four years to cleanup and redevelop the sites, inviting more businesses into the state. The bond will be financed through fees based on voter’s approval in November. One fee is 15 cents per pound on business’s release of toxic chemicals that The Patriot-News states will affect 1,436 firms within the state. Tipping fees on municipal waste will increase $5 per ton resulting in a $20 a year increase for a family of four, but that may change over the years, according to Knaus. A fee of $4 per ton will also be applied to companies, like coal ash producing power plants, which generate non-hazardous industrial waste. Gov. Rendell stated in his budget address that Pennsylvania is only using 14.8 of its constitutionally enabled debt. With the approval of “Growing Greener II”, 1 percent will be added to the debt now and no more than 6 percent in later years. The different fees will cover the debt. “The impact on our debt rating if any should be minuscule,” Gov. Rendell said in his budget address. “The impact on our quality of life, however, will be immeasurable.” Part of the emphasis on the $800 million bond is that it will improve the state’s environment and communities, including plans to enhance recreation and the overall quality of life. This in turn will stimulate businesses and young to people to move into the Commonwealth. “It’s a way of capitalizing on the environment,” Knaus said. “A clean environment and a good economy go hand in hand. We want to make the state more attractive so businesses will come here.” “It will act as an economic stimulant,” Jarrett said. “It offers tons of incentives and programs for businesses.” Local business organizations see a different picture. They predict major burdens being enacted, pushing businesses and young people away. About 23 business organizations including the Harrisburg Chamber of Commerce, the Pennsylvania Coal Association and Nation Federation of Independent Business have publicly expressed concern. According to the DEP web site, though, Pennsylvania businesses will benefit from more than $176 million in tax breaks, with the proposed fees only costing $28 million. In addition, the state is phasing out the Capital Stock and Franchise Tax. “They’ll be paying $1 in fees for every $6 in tax breaks they receive,” Jarrett said. Maura Donley, vice president of communications and membership for the Pennsylvania Chamber of Business and Industry said this ratio has fallen to $1 in fees for every $3.65 in tax breaks. As for the Capital Stock and Franchise, it has been a10-year phase out, so it not something new the state is doing for businesses. “The Governor’s office underestimates the impact [the new fees] will have,” Donley said. “We already have one of the worst businesses tax structures. For businesses from other states looking to move, [Pennsylvania] will be eliminated almost immediately. It’s a very bad situation.” Pennsylvania has lost 165,000 manufacturing jobs in the last few years, according to John Taylor, communications manager for Pennsylvania Manufacturers’ Association. The new budget will impose standards on businesses harsher than any other state. “It will make it more difficult for businesses to grow and jobs to stay, and it will push away young people,” Taylor said. “It’s just a way for the state to take more money out of private sectors. The more burdens you place you place, the less other states will want to do business here.” Another aspect of the proposed fee is a cap of $5 million per year for any one company which may own several plants that will be face heavy emissions fees. Lowering emission levels to zero is near impossible for most companies, so many will reach this $5 million mark, according to Taylor. “Even if PA businesses are in compliance with the DEP standards of emissions levels, they will still be surcharged,” Taylor said. “It is a lot of money, and the fact that they put on a cap on it shows the fees have no relationship to cleanliness. DEP Secretary Kathleen McGinty admitted as much- that it’s just a way to collect more money.” The debate over the budget within the Pennsylvania General Assembly will come to a close the end of June. If it is approved by the House then voters will make the final decision in November. Surveys show strong citizen support. The Pennsylvania Alliance for Restoration conducted a bipartisan poll showing that 71 percent of those surveyed supported the $800 million proposal. Even with the implementation of an extra cost of $20 a year for citizen’s waster removal, 65.9 percent approved. Quinnipiac University surveyed 1,356 Pennsylvania registered voters to see how they plan to vote on the issue. When it was not pointed out that the bond would be “tax-free”, 58 opposed it and 31 percent supported it. Asked the same question, only informed that it will paid for by garbage haulers and business polluters, the results switched to 59 percent approving and 26 percent against it. “There’s no question voters will approve it,” Jarrett said. “There’s overwhelming support.” “The General Assembly needs to look at the impact on individual citizens and businesses,” Taylor said. “The state government needs to throttle back the rate at which its spending relative to the tax burden it’s taking in.” “The state needs to learn to fuse economic interests and the environment, so it’s not jobs versus a clean environment,” Eric Epstein, an energy consultant for the Sustainable Energy Fund and a candidate for 15th Senatorial District, Dauphin County, said. “This is a reality with Gov. Rendell’s budget. Businesses shoulder most of the costs as penalties for polluting.” All stories in this magazine are the intellectual property of the individual authors. You may email comments about this story to: dlm352@psu.edu
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