PA Budget Deal Impacts Smart Growth Programs

October 15, 2009

Now that the 2009 budget is a done deal, it is time to assess the painful compromise reached by our government. The final budget has something for everyone to dislike, and the outlook for smart growth is a mixed bag. While some program budgets were severely cut, others dodged a bullet, at least for now. As we reflect on the outcome of the budget negotiations, let's consider the impact that these changes will have on communities across Pennsylvania.

Those of us who cherish our state parks and forests are breathing a sigh of relief as the budget only calls for $60 million in revenue to be generated from the lease of gas wells, less than originally proposed. The Department of Conservation and Natural Resources (DCNR) will be able to direct the placement of these wells in an orderly fashion, and we hope this will avert indiscriminate drilling that could damage our water resources. In addition, the Oil and Gas Lease Fund, a source of revenue for DCNR since in 1955, was not raided to fill the state budget hole as was originally proposed.

On the negative side, many agencies that perform vital work for Pennsylvania's communities received drastic budget cuts. The Department of Environmental Protection budget was cut by 27% at a time when monitoring of resource extraction is becoming more important.

Particularly disheartening are the cuts made to the Department of Community and Economic Development (DCED). The Land Use Planning and Technical Assistance Program, which helps communities to develop better land use plans, was slashed from $4,173,000 to $375,000. With an average plan costing from $30,000 to $45,000, this source of assistance is now extremely limited. Furthermore, DCED's Shared Services Fund was cut from $2,369,000 to $500,000, making it more difficult for communities to enter service sharing agreements.

In the end, our legislators and the Governor relied on short-term funding sources to find enough revenue to make this budget work. With the Rainy Day Fund now depleted and additional federal stimulus funds unlikely, most state government prognosticators are predicting that the 2010-2011 budget will be even more difficult to resolve. At 10,000 Friends, we will continue to speak strongly for smart growth principles as this debate rolls into the next budget cycle.