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Keystone Fund cut a hang-up for budget
Friday, July 13, 2007

HARRISBURG -- A relatively small item in the recently negotiated state budget deal -- a plan to shift $40 million from parks and libraries to hazardous waste cleanup -- threatens to snag passage of the $27.3 billion spending plan.

At least 15 House members from both parties are trying to block the plan to move funding from the Keystone Recreation, Park and Conservation Fund to the Hazardous Sites Cleanup Program.

The dispute could become a hurdle in getting the budget passed, said state Rep. Greg Vitali, D-Delaware.

"A lot of objections were raised in caucus. Lawmakers don't want to vote for this," he said.

Both funds are vital to the state's environmental health, state Rep. Kate Harper, R-Montgomery, said at a news conference.

"We cannot afford to raid one program for the other without having a profound impact on the quality of life for future generations of Pennsylvanians," she said.

The proposal would reduce the Keystone Fund's $80 million budget by half.

The fund was created in 1993. It uses revenue from the state realty transfer tax to fund community parks, recreation programs, libraries, museums and historic sites.

Sen. Mary Jo White, R-Venango, chief proponent of the funding shift, said it would ensure that the Department of Environmental Protection has enough resources to respond to emergencies.

Opponents of Mrs. White's plan say there are ways to fund waste cleanups without cutting the Keystone Fund.

A $650 million surplus in this year's general fund budget could be tapped, Ms. Harper said.

Other lawmakers suggest raising the $40 million through a tipping fee for trash haulers, a deposit on soft-drink cans and bottles or redirecting some corporate net income tax revenues.

Mrs. White proposed the funding shift as Senate Bill 913, but lawmakers now say the plan is more likely to be considered as part of a fiscal code bill that enables the state budget to be implemented.

"They'll want to put this in a bill that does many other things, things that are hard to vote against," Mr. Vitali said.

He and other lawmakers at yesterday's news conference say they would vote against any bills that include a cut to the Keystone Fund.

"A lot of people feel this way. It's rare that so many Democrats and Republicans get together on one issue," Mr. Vitali said.

The delay could put a wrinkle in passage of the final budget, which leaders agreed to during two weeks of wrangling that ended Tuesday.

"It strikes me as a problem they can work out. It's something leadership can make some adjustments on," Mr. Vitali said.

The governor's office thinks so, too.

"We believe the Legislature will agree that the critical need to continue cleaning up hazardous waste sites is a priority," said Chuck Ardo, spokesman for Gov. Ed Rendell.

That isn't the only issue that needs to be worked out before the state budget can be finalized, said House Republican spokesman Steve Miskin. Leaders have agreed to the budget in principle only, he said. They still have to work out details of line-item spending, the distribution of education funding and details of the governor's proposal to provide tax credits to movie producers who film in Pennsylvania.

"The budget framework was agreed to, but there are still about a thousand trip wires to be maneuvered through, around, under and across before this is a done deal," Mr. Miskin said.

The proposal to shift parks and recreation money to the waste cleanup fund is one of those trip wires, he said.

"Clearly, there are a number of legislators who have a difference of opinion about shifting those funds," he said.

The Hazardous Sites Cleanup Fund finances environmental rehabilitation of abandoned industrial facilities, ensures an emergency response network, provides state matching funds required for federal hazardous waste programs, pays to relocate residents and businesses affected by the release of hazardous substances and supports the recycling of household hazardous waste.

Since its creation in 1993, the Keystone Fund has provided $23.6 million, including $3.7 million to projects in Allegheny County for recipients including the Carnegie Library of Pittsburgh, the Community Library of Allegheny Valley in Harrison and Penn Hills Library.


Correction/Clarification: (Published July 14, 2007) State Rep. Chris Ross, R-Chester, is seeking to redirect $40 million in revenue from the corporate net income tax to a fund for hazardous waste clean-up. This story in July 13, 2007 editions inaccurately described his proposal.

First published on July 12, 2007 at 11:31 pm
Tracie Mauriello can be reached at tmauriello@post-gazette.com or 717-787-2141.
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