House Appropriations Committee Reports

Reports provided by PA Legislative Services

HARRISBURG - (3/4/08, 2:30 p.m., Room 140, Main Capitol)

The House Appropriations Committee held a budget hearing with the PA State Police (PSP) Commissioner Col. Jeffrey Miller

Members in attendance included Minority Chairman Mario Civera (R-Delaware) and Representatives Cherelle Parker (D-Philadelphia), Bill Keller (D-Philadelphia), Mario Scavello (R-Monroe), Stephen Barrar (R-Delaware), John Siptroth (D-Monroe), Dave Millard (R-Columbia), Ron Miller (R-York), Katie True (R-Lancaster), Dante Santoni (D-Berks), Gordon Denlinger (R-Lancaster), Craig Dally (R-Northampton), Doug Reichley (R-Lehigh), Dan Frankel (D-Allegheny), Lawrence Curry (D-Montgomery), Kathy Manderino (D-Philadelphia), Josh Shapiro (D-Montgomery), Matt Smith (D-Allegheny), Bryan Lentz (D- Delaware), Scott Petri (R-Bucks), Will Gabig (R-Cumberland), George Kenney (R-Philadelphia), Kathy Watson (R-Bucks) and Dave Reed (R-Indiana). House Judiciary Committee Chairman Tom Caltagirone (D-Berks) and House Gaming Oversight Committee Minority Chairman Paul Clymer (R-Bucks) also attended the hearing. House Minority Leader Sam Smith (R-Jefferson) also sat in on the hearing for a period.

Rep. Clymer noted the ongoing disagreement between the Gaming Control Board (PGCB) and the State Police regarding the contentious licensure of Louis DeNaples and Mount Airy Lodge Casino and asked Col. Miller to provide an overview of the situation. Col. Miller provided the committee a very detailed explanation of PSP's role in the licensure process and specifically on their role with the licensing of Louis DeNaples. In sum, Col. Miller explained that PSP made it very clear to PGCB and the Bureau of Investigations Enforcement (BIE) that certain information is protected by federal law and cannot be shared with non-law enforcement agencies. He further explained that PGCB initially referred DeNaples to PSP with concerns regarding his truthfulness in his deposition, but then proceeded to approve the licensure of DeNaples before PSP had time to conclude an investigation. Col. Miller emphasized that the accusations leveled against himself and retired Lt. Col. Ralph Periandi are false and opined there is no question that the State Police "followed the law to the letter" and all troopers have conducted themselves professionally. He referred to an instance in which DeNaples was asked by PGCB to provide certain documents, but they were not provided. He remarked that instance alone could have been grounds for denying licensure. He additionally noted that before the licensing hearing, PGCB had access to information that DeNaples was convicted in 1978 of conspiracy to defraud the U.S., DeNaples had possibly committed perjury before BIE, and is evidence of DeNaples' conduct in other illegal activities was referred to at least three outside agencies, not including PSP. Col. Miller referred to a letter he sent to former PGCB chairman Tad Decker, which Decker interpreted as a "green light" to move forward on DeNaples' licensure. Col. Miller clarified the letter merely said PGCB had enough information to determine suitability.

Col. Miller also clarified a statement in a press release sent out by the Governor's office. He explained he did not sign off on the copy of the release that was sent out and there was a statement attributed to him indicating his support for the licensing of Mount Airy Lodge, however he clarified that his remarks were simply a statement of his belief that the PGCB acted in good faith.

Rep. Clymer observed PGCB had enough information and there were enough "red flags' before awarding the Mount Airy Lodge Casino license. He asked if Col. Miller was contacted by any board members other than the chairman. Col. Miller replied "not I specifically", noting that he mainly dealt with the chairman. He stated he was under the impression that if BIE know something, the board should know it too. He emphasized the only reason PSP was involved with the licensure of DeNaples was because PGCB investigators shared information that they thought DeNaples had perjured himself. PSP did not conduct the background investigation on DeNaples. Once the investigation was begun, he noted, PSP could not share details, but they did let BIE know it was ongoing. Rep. Clymer remarked many members had wanted PSP to be the primary investigators in the gaming law. He then asked who will do international background investigations. Col. Miller replied BIE will do them or contract with an outside entity.

Rep. Caltagirone asked about recruiting, noting that New York and New Jersey offer better salary incentives. Col. Miller replied the budget does not speak to the difference between PA salaries and NY and NJ, but noted PSP is currently engaged in contract negotiations. He said the budget does not reflect the potential changes that will result from those negotiations, which is standard procedure. Rep. Caltagirone asked about the complement. Col. Miller responded PSP's complement was 4,157 when he became commissioner in January 2003 and now PSP is at its highest level ever and should be at full complement by 2009. Col. Miller explained they will never be able to be at 100% because of retirements. He suggested the statutory cap on the complement be looked at. He noted gaming and turnpike troopers do not count against the complement.

Rep. Reichley asked for a clarification on the time line of events regarding DeNaples. Col. Miller explained the judge issued his order on May 19, 2006; the potentially perjurous statements were made in depositions on August 16, 2006 and September 28, 2006. BIE first contacted PSP on September 13, 2006, when a BIE deputy director requested a meeting to discuss information believed to be of a criminal nature. On October 3, 2006 BIE asked PSP to request transcripts of the deposition to investigate if DeNaples committed perjury, which PSP did. Rep. Reichley asked how frequently BIE contacted PSP. Col. Miller replied "fairly frequently", adding that three or four contacts were made. He emphasized that he confirmed for BIE that the investigation was still in process. Rep. Reichley cited testimony of PGCB Chairman Mary DiGiacomo Colins that PSP could have told the board about the investigation. Col. Miller clarified her statements, noting she said PSP could have told BIE about the existence of an investigation. But, he stated, BIE referred their belief of perjury to PSP, so they were aware of the investigation. He remarked in the absence of an investigation, there would have been no reason for PGCB to provide copies of the transcripts of the deposition to PSP. Rep. Reichley asked about the process in which BIE makes recommendations to the board, but Col. Miller was not familiar with it.

Rep. Reichley asked how Col. Miller is sure that former PGCB Chairman Tad Decker knew PSP could not provide certain information. Col. Miller explained he and Decker met well in advance of the investigations and he explained to Decker the limitations of federal law. He noted Decker disagreed with him, but received letters from the Attorney General and FBI confirming PSP's position. Col. Miller told the committee that this is not a turf war and made sure the members understood that BIE and PSP have had a good working relationship.

Rep. Reichley asked if PSP would need additional manpower if assigned additional background investigation duties. Col. Miller replied the additional duties would not be a problem, provided adequate funding is made available. Rep. Reichley asked about a Morning Call article suggesting DeNaples' was involved with "title washing", but Col. Miller could not comment. He noted BIE was aware of the three additional referred to outside agencies because BIE made those referrals. He stated all four referrals made by BIE were unresolved at the time the license was issued. Rep. Reichley asked if there was any reason to compel licensure. Col. Miller was not aware of any, noting the board had the option to delay its decision or to award the license to a different applicant. He reiterated that DeNaples' refusal to provide requested documents qualifies is grounds for denial under PGCB regulations.

Rep. Reichley concluded his remarks by opining that PSP has been slandered by PGCB and PGCB should be recalled before the committee.

Rep. Parker asked about diversity in recruitment. Col. Miller explained a federal consent decree in the 1970's required diversity to be 9% and over the years that percentage was increased to 12%, until 1999 when the consent decree was repealed. The result of this decree, he explained, was PSP hired a significant number of minorities (448) during that time. Those hirees are now starting to retire, he stated, which is drawing the current percentage down to the current rate of 7.3%. Col. Miller highlighted a number of initiatives to increase the number of minorities in the complement, including testing at more locations, Latino community advertising, advertising in local community newspapers and on mass transit. He noted that the 124th class was 20% minority and 20% female and the two classes this year will be 14.6% minority in the and 11% minority respectively, and 14.2% and 21% female respectively. Senator Hughes asked about minorities in higher ranks. Col. Miller stated the number of high ranking minorities is growing, indicating that is due to promotions. Rep. Parker commended him for his strategic plan for recruitment.

Rep. Parker then remarked on the increasing trend of law enforcement calling for mandatory reporting of lost and stolen guns. Col. Miller stated he supports the governor's proposal to require mandatory reporting of lost or stolen guns. He opined a compromise can be reached on the issue.

Rep. Keller asked about efforts to reach out to veterans for recruiting. John Brown, Deputy Commissioner of Professional Responsibility, explained veterans get preference points in the testing process and a waiver in some education requirements. He noted they are trying to attract veterans.

Rep. Scavello asked about the appropriation for gun checks. Col. Miller explained the fee for PICS (PA Instant Check System) was never adequate and therefore required an annual appropriation. The budget proposes to increase the fees to $10, which would cover the costs and eliminate the need for that appropriation. Rep. Scavello asked about the status of patrolling Philadelphia highways. Col. Miller said there are now about 60 troopers in Philadelphia and as of March 1, all interstates in Philadelphia are patrolled by PSP. He opined that staffing level will be adequate and noted PSP is also involved in gun violence issues in the city. Col. Miller stated PSP does not have adequate barracks in the area and is working to obtain a plot of land next to the existing barracks, where they will build a new facility and tear down the existing facility for a parking lot. Rep. Scavello asked if Philadelphia provides reimbursement for PSP services. Col. Miller replied it does not, indicating no municipality provides reimbursement.

Minority Chairman Civera asked about recommendations to improve the gaming law. Col. Miller suggested that the recommendations in the Grand Jury's presentment should be looked at, noting that one recommendation he supports is opening suitability hearings. He also noted a recommendation to move BIE to a criminal justice agency. Col. Miller also suggested the law be looked at regarding how information must be presented to an applicant, using an example of a known mafia member applying for a license. Although the individual would be denied, due process would entitle him to have access to certain protected information.

Rep. Siptroth remarked on the growth in his area and asked about changes to the complement. Col. Miller explained the increase in the complement has enabled additional troopers to be deployed across the state. He stated he would submit the numbers to the committee.

Rep. True asked about the number of DNA samples processed. Col. Miller said the main DNA lab is in Greensburg and another lab is in the Bethlehem area. He stated last year 85,485 convicted offender samples were loaded and they had 678 cold case hits. He noted the process is labor intensive, but the overall benefits are tremendous. Rep. True asked if PSP needs help. Col. Miller replied they receive a federal grant and pursue all money they can, noting the grant money is starting to dry up. He added they have to look at upgrading facilities because the processes are dramatically different from those of a few decades ago. He stated there is some funding in the budget, but the grants enable them to have a few more personnel and buy additional equipment.

Rep. Denlinger asked about the statewide radio system. Col. Miller stated he is optimistic, remarking he has seen evidence that the 800 MHz system is working. He said they used the system during the entire Nickel Mines incident and it worked well. There are 14 stations for voice, 1,395 mobile offices with data, and 845 voice users. All of Troop G is on the system and the helicopters are using it, he added. He expects the system to be fully operational for voice by the end of 2009.

Rep. Denlinger asked about the potential impact of leasing the turnpike. Col. Miller said he has had discussions, but noted PSP would still be needed if the road were to be leased, so they would not see much change in their function.

Rep. Denlinger asked about trends in law enforcement. Col. Miller responded he has seen an increase in mid and small cities with violent crime. He noted some of these crimes are related to gangs, stating that in 2007, 255 gangs were identified in PA. He stated the challenge is for law enforcement to work together and share intelligence. Col. Miller also suggested the rising cost of providing services will force departments to join together or disband. He indicated his support for increased regionalization.

Rep. Millard asked what happens if the increase in the firearms sale surcharge is not implemented. Col. Miller replied PSP will need a supplemental appropriation of $3.8 million. Rep. Millard then asked about the status of the aerial fleet. Col. Miller stated they have eight helicopters and seven fixed wing aircraft, however they have just finalized arrangements to replace five of the fixed wing aircraft with four better planes. They are also in discussions with the governor's office to determine if it would be better to standardize the fleet with lease purchase options with a fixed cost. He noted the helicopters are equipped with radios "that can communicate with pretty much anyone we need to."

Rep. Miller asked about deployment, citing the cost of providing services to those municipalities without local police forces. Col. Miller remarked the median population of those municipalities without local police coverage (not including Philadelphia and Pittsburgh) is approximately 5,100. The three largest are Hempfield, Unity and Macungie. He remarked it is worth exploring proposals to require some sort of payment from those municipalities that rely on PSP in order to add fairness to the system. He referred to a bill by Rep. Mike Sturla (D-Lancaster) what would implement a $52 assessment based on population. This bill would inject $59.4 million into the General Fund, he noted. He opined such proposals warrant evaluation. Rep. Miller noted many members support the concept, but have problems with the "cliff" and he suggested such a proposal would need some sort of phase-in mechanism.

Rep. Dally referred to the press release discussed earlier and asked why the governor felt the need to defend PGCB. Col. Miller explained the intent of the release was to shed light on inaccuracies. Rep. Dally then asked about the portion of PSP's budget funded out of the Motor License Fund. Col. Miller responded 73% of PSP's budget is from the fund and the remainder is from the General Fund. He stated the vast majority of what PSP does is uniformed marked enforcement in patrol zones. He remarked Budget Secretary Masch is very precise and expressed his confidence that PSP's budget complies with the legal requirements on those funds.

Rep. Dally referred to a Legislative Budget and Finance Committee report that found PSP uses approximately 42% of its time to patrol. Col. Miller stated that "is a moving target" and opined PSP averages 54% obligated time. He stated he would like the ratio of obligated to unobligated time to be 50/50. Rep. Dally also asked for a status update on the consolidated dispatch centers. Col. Miller explained two centers are in operation (Harrisburg and Norristown), two have been built but are not in operation (Greensburg and Wyoming) and they have bought land for the fifth (Clarion), but it has not been built yet. He explained they are not moving forward with bringing the final three into operation because staffing questions still need to be resolved and the 800 MHz radio system needs to be fully deployed.

Lastly, Rep. Dally urged Col. Miller to support HB 466, which provides for the duties of sheriffs. Col. Miller did not comment, but there was a noticeable reaction from the audience.

Kimberly Collins, PA Legislative Services

HARRISBURG - (3/4/08, 9:00 a.m., Room 140, Main Capitol)

The House Appropriations Committee held a budget hearing with the Department of Environmental Protection (DEP).

Members in attendance included Chairman Dwight Evans (D-Philadelphia), Minority Chairman Mario Civera (R-Delaware) and Representatives Stephen Barrar (R-Delaware), Steven Cappelli (R-Lycoming), Scott Conklin (D-Centre), Gordon Denlinger (R-Lancaster), Brian Ellis (R-Butler), Dan Frankel (D-Allegheny), John Galloway (D-Bucks), William Keller (D-Philadelphia), Bryan Lentz (D-Delaware), Kathy Manderino (D-Philadelphia), Fred McIlhattan (R-Clarion), Mike McGeehan (D-Philadelphia), Tim Mahoney (D-Fayette), David Millard (R-Columbia), Ron Miller (R-York), John Myers (D-Philadelphia), Cherelle Parker (D-Philadelphia), Scott Petri (R-Bucks), Sean Ramaley (D-Beaver), Dave Reed (R-Indiana), Doug Reichley (R-Lehigh), Dante Santoni (D-Berks), Mario Scavello (R-Monroe), John Siptroth (D-Monroe), Matthew Smith (D-Allegheny), Katie True (R-Lancaster), Greg Vitali (D-Delaware) and Jake Wheatley (D-Allegheny).

Chairman Evans asked for details about the governor's budget proposal for the department. DEP Secretary Kathleen McGinty replied that the budget is flat compared to last year's spending except for the increase associated to salaries and benefits under the state contract. She noted that the contracts for Black Fly and West Nile Virus spraying were renegotiated resulting in a combined savings of over $1.3 million. A new aspect of the budget is advanced flood protection and high hazard dam repair, she stated. She also noted an appropriation of $1.25 million for the environmental program management, which pays the salaries of nine employees dealing with flood issues. Lastly, the Secretary noted that the budget includes a doubling of grants to municipalities for flood projects.

Chairman Evans asked what type of job creation can be expected from the budget proposals. Secretary McGinty responded that the dam and flood projects are capital projects that will create jobs. She explained that the state is required to make changes in the floodplains because of new federal standards, adding that if the changes are not made the price of flood insurance will go up.

Rep. Miller asked how the Secretary can justify reducing the line item for conservation districts by $500,000. Secretary McGinty stated the proposed amount of $3.1 million is the same as last year, but it was increased in the final budget by the legislature to $3.6 million. She said she believes the conservation districts do essential work but the department's budget can only allow an appropriation of $3.1 million.

Rep. Miller commented about the state of Texas which had a problem with its electrical grid because of a lack of wind for the wind turbines. He asked if that could happen in Pennsylvania. Secretary McGinty replied that PJM is very involved in alternative energy and they will step in if they feel there is an overabundance of use of one energy source. She noted that PJM can dispatch a variety of resources so she does not believe Pennsylvania could face this sort of problem. Rep. Miller voiced his concern about the pricing of wind energy and about the reliability of wind as an energy source.

Rep. Miller then inquired if the department's budget includes funding for biosolids. The Secretary explained that the department has a number of staff members who work on standards related to biosolids. She noted that they also do work related to the types of lands where the biosolids can be applied. Rep. Miller asked how the department's biosolids policies compare to other states. Secretary McGinty replied that most states use the biosolids instead of putting them in landfills. The state's standards on the use of biosolids are based on federal standards, she explained.

Rep. Myers asked if the department is looking at certain energy crops, to which Secretary McGinty said she would provide the list to the committee. Rep. Myers asked if the department has determined what crops grow best in which parts of the state, and how urban areas can participate. Secretary McGinty commented that Pennsylvania is a robust agriculture state, and a leading producer of soy. She offered that in one urban area, a company has a plant that uses oil from restaurants to make a biodiesel product.

Rep. Myers asked what cellulosic ethanol will look like in the future. He also asked how farmers can be convinced to grow switchgrass rather than other crops like tomatoes. Secretary McGinty answered that price is the most important thing to farmers. She commented that Pennsylvania is in a good situation because if it starts with corn ethanol it can move to cellulosic in the future because about 75-80% of the structure of the ethanol plants is the same for cellulosic ethanol.

Rep. Reed asked if the department will make the information public from the hearings it held on the use of federal funding for mine reclamation. The Secretary answered yes, and added that the information from the detailed focus groups will also be made available. She said she expects a report to be available from the general public hearings within about a month, but she is not sure when the detailed focus group information will be made available.

Rep. Reed inquired if the department has seen any trends in the meetings it held. Secretary McGinty responded that the department has constantly seen the pride that watershed groups have for the cleanup they do regarding abandoned mine discharge. She noted that the federal law allows the state to use up to 30% of the funds for water reclamation. She added that she also wants to create an investment vehicle to better use the funds over the long run. Rep. Reed asked when the state will receive the money. The Secretary responded that the state will receive about $27 million this year and then in 2009-10 it will receive about $50 million, which should gradually increase over the next 15 years.

Rep. Reed asked if the Secretary supports proposals to extend electricity rate caps. Secretary McGinty stated there is a need for interventions like long-term contracts and phasing in the rate increases over time. She acknowledged that the legislature is running out of time with regard to this issue. The governor wants to keep the current rate cap expiration schedule in place but he wants to create options to lessen the impact, she said, adding that extending the rate caps is not the preferred policy.

Rep. Siptroth asked how the state is doing in addressing a significant backlog of permits. The Secretary responded that federal law was changed and made it more difficult for developers to get permits. She explained that the department changed its permitting process and cleared out the backlog. She added that developers can now receive an answer on a permit in a short period of time.

Rep. Siptroth asked what legal action the state can take to force the State of New York to consider reducing reservoir levels which could lessen the flood problem along the Delaware River. He also asked if the budget includes enough money for floodplain mapping. Secretary McGinty stated that DCNR budget includes $2.4 million for remapping the Commonwealth's flood maps. With regard to the Delaware River basin, she noted that Pennsylvania is part of the Delaware River Basin Commission, which has taken steps to reduce flooding. She added that the commission worked to control reservoir spills to prevent flooding and also to allow room in reservoirs for snowpack. Lastly, she noted that there is a proposal under consideration that would develop mandated buffers and setbacks on all streams in Pennsylvania.

Rep. Siptroth inquired if the budget includes funding for small stream cleanup. The governor proposed to double the grant program for local municipalities that includes stream improvements, she answered. She noted that if there is debris from a flood blocking the stream the department will issue emergency permits to allow municipalities to clean that up.

Rep. Millard asked when the cleanup of the Starr Tire Pile will be completed. He also asked the Secretary if she would support creating drop- off sites for old tires. Secretary McGinty replied that the cleanup should be done by July or August of this year. She noted that they had a contractor problem so they had to find another one to do the last stage of the cleanup. She expressed support for the idea of tire drop-off areas, adding that Pennsylvania is home to the largest tire recycler in the country.

Rep. Millard inquired if the department has considered working on flood projects with the local conservation districts. Secretary McGinty said 391 program dollars go directly to local governments for that type of project. She noted that the program also funds local municipality required matches when they receive federal funding.

Rep. McGeehan voiced his concern about development along the Delaware River and the fact that DEP has been cut out of riparian rights issues. Secretary McGinty commented that the department has some jurisdiction with regard to riparian rights but it only applies when a development encroaches on state lands. Rep. McGeehan stated he has a concern that this problem will grow in other parts of the state and he believes DEP should weigh in on the environmental impact of development. The Secretary assured him that when the issue is within the department's jurisdiction they are involved.

Rep. True asked the Secretary to comment on the status of the Chesapeake Bay Tributary Strategy. Secretary McGinty replied that she understands there is concern about the plan. This issue has been discussed for about 20 years, but only recently has it become a federal mandate, she stated. She suggested that the issue related to clean up of the Bay is finding money to pay for it. She added that this is just a small amount of the $20 billion statewide need for water and sewer upgrades. Rep. True asked for an estimated cost for compliance to the 184 treatment plants within the tributary. The Secretary explained that the department initially estimated a cost of about $190 million but after meeting with stakeholders the proposal has been changed. She noted that the task force working on this issue estimates the number to be about $620 million. Municipalities need monetary support to effectively address this issue, she stated. Rep. True commented that there are areas that simply don't have the money to pay for the upgrades. She then asked how the department measures nutrient runoff from agricultural sources. Secretary McGinty replied that they are based on gauges in the streams and other measuring devices. She also noted that the amount from point sources have been provided to the EPA from each sewage treatment plant in the tributary.

Rep. Wheatley asked if there is money in the budget for companies that have developed a product and want to move it to the next stage. He specifically pointed to a cellulosic project. Secretary McGinty replied that the governor's Energy Independence Strategy is specifically aimed at this "second stage" aspect. She commented that government is good at providing initial funding for companies but there is a need funding during the interim period before Wall Street is willing to invest. Rep. Wheatley asked how much money is available in the Strategy for companies that are ready to produce a product. The Secretary replied that $150 million is earmarked for earlier stage companies.

Rep. Wheatley asked how the state can best develop coordinated policies related to water and sewer issues. Secretary McGinty stated that in southwestern Pennsylvania, 83 municipalities are working on agreements. She noted that there is also talk about collaborative work on stormwater issues. There is some money available for these types of projects, she said.

Lastly, Rep. Wheatley asked how Pennsylvania is doing regarding environmental justice. The Secretary explained that there is a board working on this issue. She stated she would like to hold a statewide summit on environmental justice. The state has been successful thanks to the Clean Vehicles Program, which has put a number of counties in attainment with the Clean Air Act, she noted.

Rep. Barrar asked if the nutrient reduction requirements in the Chesapeake Bay Tributary Strategy will be required statewide. Secretary McGinty explained that federal nitrogen and phosphorus reduction requirements are being applied across the state. Rep. Barrar asked if the only help the department provides is nutrient trading. Secretary McGinty said that is one option, but she added that most of the money for water infrastructure is available from PENNVEST, which does about $400 million in sewer and water treatment projects. Rep. Barrar asked if this problem could have been caused by the elimination of funding for the 391 program, to which the Secretary answered no because that money could not be used to upgrade the plants.

Rep. Barrar asked if it is true that some of the sewer authorities are being asked to meet requirements that are higher than what is required by the federal government. Secretary McGinty responded that the limits are under revision right now, and she acknowledged that there are requirements in other parts of the state that are more stringent than the Chesapeake Bay requirements. She explained that the Clean Water Act requires every state to inventory its watersheds and determine if they are impaired and figure out why. She explained that this is why some of the plants are facing a larger problem in the southeastern part of the state. Rep. Barrar inquired if the DEP and EPA definitions of stream impairment are the same. Secretary McGinty answered yes.

Rep. Barrar commented that HR 539, of 2005 directed DEP to place a moratorium on all actions required of affected entities relating to implementation of the PA Chesapeake Bay Tributary Strategy, and it required the department to complete a report. He asked if the department has completed the required report. Secretary McGinty replied that the department respected the resolution and completed a lengthy stakeholder process. She said the final report of the stakeholder process was made available in November 2006. Rep. Barrar inquired if the administration would support another moratorium. The Secretary answered no because the state is out of time and must work to meet its reduction requirements.

Rep. Barrar stated that municipal authorities are facing huge fines because of particulate matter release, and he asked what the department does with the fines. Secretary McGinty explained that the fines go into the state's Clean Water Fund, which is a restricted account that is used to support specific programs that are prescribed by the legislature. Lastly, Rep. Barrar questioned if the amount of fines coming into DEP has increased significantly in the past few years. The Secretary responded that she does not have specific numbers at this time but she believes there is nothing remarkable in terms of trends related to the fines.

Rep. Conklin noted that one treatment plant in his district already has reduced its nutrient emissions by a significant amount and he asked if they would still be required to reduce it by a certain percentage. Secretary McGinty replied that the amount of reduction is based on pounds and not a percentage. She suggested that if they already have a small amount of emissions they would be below the limit.

Rep. Conklin noted that the legislature rejected a tipping fee that would have provided $.50 to Growing Greener II. He asked how this funding would have helped rural areas facing crumbling water infrastructure. Secretary McGinty noted that Pennsylvania imports more trash than any other state. About 40% of the trash in Pennsylvania is imported, she said, adding that those foreign entities would have paid a significant amount of any tipping fee increase. She said she does not have a specific number but she believes the amount that would have been raised would not have been inconsequential.

Rep. Scavello asked if the state can pressure New York City to keep its reservoirs at 75% capacity to avoid a flooding potential along the Delaware River. Secretary McGinty said there can be a program to require a 25% reserve in the reservoirs, but the question is how to manage them when there is rain and snow. She noted that some people argue that the reservoir should always have a 20% void but that creates a problem because they are drinking water reservoirs meant to hold water. She added that there are times of the year when the amount falls to about a 40% void so it can't be a 25% requirement all year round.

Rep. Scavello noted that a large area of the Monroe County levee system was swept away during storms. He asked if there is money available to repair the area. Secretary McGinty noted that the governor's proposed tripling of capital dollars for flood protection would provide funds for this type of project. She added that these type of projects need to be part of the capital budget bill.

Rep. Scavello asked if there are wastewater treatment plants in Pennsylvania that use the waste solids as an energy source. The Secretary responded that Pennsylvania is a water rich state and because of that fact it has not worked to take advantage of newer technology.

Lastly, Rep. Scavello inquired if there is enough funding to fix all of the state's dams by 2010. Secretary McGinty said there is enough money to address the remaining 17 Commonwealth-owned high hazard dams and provide 30% funding for the municipalities owning the 21 other high hazard dams. She added that the municipalities would likely be eligible for PENNVEST money.

Rep. Ellis asked if legislation will be necessary to implement the spending of the new federal mine reclamation money. Secretary McGinty replied that she is not sure but she believes the state should consider it. She added that they should also consider creating an investment vehicle for the funds.

Rep. Ellis asked if the department has a list of the fines and fees that it imposed last year. The Secretary said yes, adding that she would provide the list to the committee. Rep. Ellis asked how the funds augment the department's budget. Secretary McGinty said the funds pay the salaries of personnel who implement a variety of programs. She suggested that this is not a good way to do business when expenditures are based on the collection of fees.

Rep. Ellis asked for an example of a regional energy project that would receive grant funds under the proposed Energy Independence Capital Assistance program. Secretary McGinty responded that it would provide funding for projects like the three waste coal plants that were recently permitted. Rep. Ellis inquired if there would be a funding cap per project. The Secretary replied that the limitations are twofold, one being the overall demand for dollars and the other is the law regarding bond financing. Since the revenues would be derived from Commonwealth issued bonds, IRS rules would apply so the money would have to be used according to those rules, she stated. Rep. Ellis asked why the funding is controlled by the Budget Department instead of DEP. Secretary McGinty said there are some projects that the department would invest in but a chunk of the money would be used for RCAP instead of creating a series of new programs. She added that she is not sure how the actual funding would be distributed among the departments. Rep. Ellis asked how the number of $850 million for the bond issue was determined. The Secretary said it was based on activities in the state and a huge unmet need. She commented that the amount was not determined by a precise science but it will help the state better "win the game" in energy development.

Lastly, Rep. Ellis asked for an update on the lawsuit that Pennsylvania joined against the EPA. Secretary McGinty explained that Pennsylvania joined the lawsuit because the emissions program instituted by former Governor Ridge is now in jeopardy. She said the Pennsylvania Clean Vehicles Program is based on tailpipe standards in California. She noted that only the greenhouse gas aspect of the testing is in jeopardy, and the rest of the program is unaffected.

Rep. Denlinger expressed concern about the cost of the Chesapeake Bay Tributary Strategy for people in Lancaster County. He added that it is impossible to deal with the legacy sediment issues in the area. Rep. Denlinger then asked for an update from the Secretary on what the department has done with Growing Greener II dollars, specifically with regard to the number of acres of wetlands restored, miles of stream buffers restored, acres of abandoned mine lands that have been reclaimed, and the number of abandoned wells that have been plugged. Secretary McGinty said she would be happy to provide that information with the committee.

Rep. Denlinger inquired if DEP gets involved in eco-terrorism issues. The Secretary noted that Pennsylvania has not had any serious eco-terrorism incidents. She added that the department does work with law enforcement personnel to address the issue of meth labs. Rep. Denlinger asked if the department has a list of potential eco-terrorism groups. Secretary McGinty said she will check with her staff on this issue, but she noted that when there is something of a criminal nature it is passed on to the Office of the Attorney General because they have law enforcement ability.

Rep. Denlinger asked if the department has done any research on using landfill materials for energy sources. Secretary McGinty said yes, noting that methane gas is captured from landfills. She added that the department is also involved in different gasification projects using municipal solid waste. There are some proposals to extract the materials from the landfills but it seems to be more economically feasible to divert the current waste instead of digging up the old waste, she remarked.

Rep. Petri said he has heard concern from his constituents about a disconnect with local conservation districts. He asked how the state can reconnect regulatory enforcement with the changing economy to speed up the permit process. Secretary McGinty stated that sometimes additional resources are necessary, and sometimes procedures must be changed. She suggested that there is a possibility to use a third-party review for permit applications.

Rep. Petri asked how to incentivize people living in floodplains to move out of those areas. The Secretary responded that the incentives would be buyouts or flood proofing. She explained that DEP cannot use the money for flood projects that are not structural in nature. Rep. Petri suggested holding a summit to discuss how FEMA can revamp its rules to speed up decisions on buyouts or remediation. The Secretary agreed that it is an important issue. She noted that only in the past few years has FEMA been able to provide funding for buyouts in floodplains.

Rep. Petri noted that DEP has jurisdiction over the placement of landfills and he asked if a rule should be put in place giving local officials the opportunity to prevent them from being located in their area. Secretary McGinty explained that the process begins with a county solid waste management plan. She said that when it is relevant the department does an analysis of placement of landfills and if additional landfill space is not necessary they can prevent it from being located in a certain area. However, she added that local officials cannot say that they never want a landfill located in their area.

Rep. Keller asked how the channel deepening project on the Delaware River is progressing. Secretary McGinty replied that the situation is better than it has been in several years. Rep. Keller opined that it will be the biggest economic development project the state has ever seen.

Nate Collins, PA Legislative Services

ARRISBURG - (3/4/08, 10:00 a.m., Room 140 Main Capitol)

The House Appropriations Committee held a Budget Hearing with Secretary Michael DiBerardinis and the Department of Conservation and Natural Resources.

Members in attendance included Minority Chairman Mario Civera (R-Delaware) and Representatives Bill Keller (D-Philadelphia), Mario Scavello (R-Monroe), Scott Conklin (D-Centre), John Siptroth (D-Monroe), Dave Reed (R-Indiana), Gordon Denlinger (R-Lancaster), John Myers (D-Philadelphia), Greg Vitali (D-Delaware), Kathy Manderino (D-Philadelphia), Scott Petri (R-Bucks), Thaddeus Kirkland (D-Delaware), Don Walko (D-Allegheny), Joe Petrarca (D- Westmoreland), and Dave Millard (R-Columbia).

Rep. Hutchinson, Minority Chairman of the House Environmental Resources and Energy Committee, noted the department received $2 million extra for state forest operations, and asked how it will be used in light of the fact that there is no increase in timber sales revenue. State Forester Jim Grace remarked most of the money will go towards increased labor costs. He added that a significant drop in the price of oak and other quality hardwoods has stalled timber revenues. Rep. Hutchinson remarked that he wants to be "ever vigilant" that a healthy amount of cutting is done, for the health of the forest as well as the health of the economy. With regard to gypsy moths, Rep. Hutchinson asked if there are likely to be problems with spraying. DiBerardinis remarked that with $3 million in state funding and $1.5 in federal funds, he is comfortable and expects a large expansion in spraying.

Rep. Siptroth asked about the $2.4 million appropriated to flood plain maps. Secretary DiBerardinis explained that as part of the PAMAP program, of which DCNR is the lead agency, Pennsylvania is creating one of the most sophisticated digital mapping programs in the country. He remarked it is expensive to get aerial photography in place, and noted one third of the state still needs to be photographed. Secretary DiBerardinis confirmed the maps will be available, once completed, to agencies and local governments, and reported working closely with FEMA and PEMA throughout the process.

On the subject of gypsy moths, Rep. Siptroth asked if there is enough money to conduct thorough spraying operations. Secretary DiBerardinis affirmed he thinks the funding will be enough, but clarified the DCNR flyovers cover mainly forested areas.

Rep. Siptroth asked if the Heritage and Parks program is being replaced, in light of an apparent 79% reduction in funding. Cindy Dunn, Deputy Secretary for Conservation and Technical Services, reported the department requested the same amount for the program as it did last year.

Rep. Scavello inquired if it is too late for municipalities to sign up for gypsy moth spraying. Grace confirmed the deadline was last September or October. Rep. Scavello asked if it is accurate to assume the formula in the spray has been weakened. Grace stated the formula was less effective last year, and has been doubled this year. Rep. Scavello asked if anything is being done about the tent caterpillar. Grace remarked insects that defoliate at the end of the summer are not as dangerous as ones that defoliate at the beginning of the summer. He stated the department is not spraying for them right now. Rep. Scavello then asked about the oil and gas fund. Secretary DiBerardinis commented it generates $5 million a year, which by law goes to forest upkeep.

Rep. Vitali asked for an explanation of the Conservation Landscape Initiatives. Secretary DiBerardinis explained that the department looks for large concentrations of land whose ecological, social and economic value can be elevated. He noted DCNR invested significantly in the public lands of the Pennsylvania Wilds, building up trails and public access to waterways, as well as providing opportunities for kayaking, canoeing, birdwatching and other activities. He added the department works with DCED and local governments to build up local infrastructures as well.

Rep. Denlinger acknowledged receiving complaints about the potency of the gypsy moth spray last year, and remarked he is encouraged that it has been strengthened this year. He asked if the infrared photography of deer populations is the same as the flyover mapping done for the PAMAP program. Secretary DiBerardinis remarked they are very different technologies, with the infrared photography taken at night. While the department is not currently conducting infrared photography operations, Secretary DiBerardinis did not rule out future work in that area. Rep. Denlinger inquired about DCNR's policy regarding the purchasing of additional land. Secretary DiBerardinis explained there is always a question of whether the department can manage additional land. He noted sometimes DCNR works with counties and non-profits to manage land. He stated that while smaller parcels of land are generally not a problem, bigger issues arise when acquiring 5,000 or 10,000 acres at a time. Secretary DiBerardinis stated that during his tenure as secretary, DCNR has acquired more than 100,000 acres of land. He added that with regard to Heritage sites, the department provides baseline funding to help keep the facilities operating, and then they are left to their own devices to raise extra funds.

Rep. Myers asked how alternative energy fits into the scope of DCNR. Secretary DiBerardinis explained the department is looking at the possibility for siting windmills on public lands, and is considering the possibility of having the state forests support carbon neutral energy. Rep. Myers asked if the department has to pay to clean up forest residue produced everyday. Grace remarked that in the "economic wood chain," DCNR has to pay to have someone take it. Rep. Myers inquired whether, if the state got into the timber business for cellulosic fuel, it would use hybrid poplar trees. Secretary DiBerardinis reported the department is looking at all the possibilities.

Rep. McIlhattan, speaking on behalf of Rep. Sam Smith (R-Jefferson), inquired about ongoing renovations at Clear Creek State Park, and noted Rep. Smith indicated he would like the department to send letters of explanation to local representatives to apprise them of the latest developments in the renovation. Secretary DiBerardinis offered that DCNR is committed to doing a better job of informing the public. He explained the renovations at Clear Creek are a 300 day job, which makes it hard to complete without impinging on more than one season. He pledged to sit down with Rep. Smith and other stakeholders to review the plans for the park.

Rep. Millard, remarking on the PAMAP funding, noted comments from an outside agency indicated DCNR would need more than it is receiving to complete the project. Secretary DiBerardinis remarked that the $2.4 the department requested is enough to complete the flyover of the state, but in order for the maps to have an ongoing utility, future flyovers will be required to keep the maps up to date. He commented the frequency of those flyovers is the question.

Mike Howells, PA Legislative Services

5-8-07

The HOUSE APPROPRIATIONS COMMITTEE met 5-8-07 to consider

HB 13 Readshaw - (PN 1447), which amends "An act encouraging landowners to make land and water areas available to the public for recreational purposes by limiting liability in connection therewith and repealing certain acts" by stating that an owner of land who either directly or indirectly invites or permits any person to use his property for recreational purposes does not assume responsibility for or incur liability for any injury to persons or property caused while hunting. (Prior Printer Number: 38, 1439) - The bill was unanimously reported as amended by A00593 (Keller), which is a technical amendment clarifying the relation of the bill to particular definitions.

3-7-07

The House Appropriations Committee held a budget hearing with the Department of Conservation and Natural Resources (DCNR) and the agency Secretary Michael DiBerardinis. Secretary DiBerardinis was joined by Larry Williamson who serves as the Deputy Secretary for Conservation and Engineering Resources, Bureau of Forestry Director Jim Grace, and Rita Calvan who serves as the Deputy Secretary for Administration.

Members in attendance included Representatives William Keller (D-Philadelphia), Craig Dally (R-Northampton), Scott Conklin (D-Centre), Dante Santoni (D-Berks), John Siptroth (D-Monroe), Gordon Denlinger (R-Lancaster), David Millard (R-Columbia), Ron Miller (R-York), Dave Reed (R-Indiana), Doug Reichley (R-Lehigh), and the Republican Chair of the House Health and Human Services Committee George Kenney (R-Philadelphia).

Secretary DiBerardinis submitted his testimony for the record and welcomed questions from the Committee.

Rep. Siptroth asked whether the funding from the Forestry Legacy program is going to be integrated into DCNR's budget. Secretary DiBerardinis said the program is federal and there is a high level of competition to receive the grants. Although Pennsylvania has experienced limited success in this area they are looking to expand the program to the state. Grace added that there was only one grant through the program last year, which was matched by Growing Greener. The revenue from securing land and easements far surpasses legacy fund dollars, he said. Rep. Siptroth stated that he believes accessibility issues to hunting clubs needs to be addressed. Secretary DiBerardinis said the Department has been approached by a handful of people who want to put their properties into easements, and they are trying to strike a balance between preserving the land and providing public access to it. Rep. Siptroth then said that with more development in these areas the replenishment of aqueducts needs to be examined as well.

Rep. Reed mentioned the tipping fee increase in the Hazardous Sites Cleanup Fund and asked what the additional funding is used for. Secretary DiBerardinis said the money is used to pay down debt bonds from Growing Greener II. Rep. Reed stated that Governor Rendell said during the passage of Growing Greener II that the project was being implemented without having to raise taxes or fees and asked whether the extra charges make his previous statements inaccurate. Secretary DiBerardinis said the additional fees were assessed in an effort to protect the integrity of the $625 million in Growing Greener II funds, adding that his concern is not added costs but ensuring that the best application of the money is being met.

Rep. Conklin asked what initiatives are being taken by the Department in alternative energy investments. Secretary DiBerardinis said small wind mills are being constructed on state park land to serve as a source of energy in addition to being a learning source. DCNR is also working with the private and public sectors for citing factors regarding the wind mills, and the legislature's involvement would be welcomed, the Secretary said. He added that state parks are also being looked at as a promising source in the biofuel industry but the Department is not yet clear on what their specific role will be as we enter the age of alternative energy.

Rep. Denlinger questioned whether DCNR has any plans for acquiring additional land in the coming year. Secretary DiBerardinis replied the Department is within their framework in caring for the over 2 million acres under their jurisdiction. DCNR would like to add extra land while being able to protect and support the land they already have and applications come to the Department by county and local governments asking that they look at protecting the lands of importance to their community, Secretary DiBerardinis said. Larger land parcels with ecological significance are usually brought up by more established organizations like conservation groups, or promoted by legislators. Secretary DiBerardinis said that keystone dollar and Growing Greener funds are used to sustain these areas. Rep. Denlinger asked if DCNR is looking at any specific areas to acquire in 2007 and the Secretary replied the Department responses to state land maintenance are either driven by demand or where land is under the most development pressures.

Rep. Miller said there seems to be a delay in responses for searches in the PA Natural Diversity Inventory. Secretary DiBerardinis answered that the inventory is used as a tool for developers and county planners, and any delays would be due to the reviews that need to be completed among several state departments and federal agencies. DCNR is aware of this delay, the Secretary added, and is working on the issue to speed up the process. Rep. Miller asked whether enough money is present in the budget to help with the process and the answer was that the funds are not in this year's request. Rep. Miller inquired if there has been a fair amount of revenue earned from the oil and gas lease fund. Grace said that the income is mainly coming from the gas lease storage area, and with 389 gas wells within the system there is $4-5 million created in revenue each year. These monies go to a dedicated fund and help to operate the state park and forest system, Grace added. When Rep. Miller asked if the gas fund will increase over time, Grace replied that as the price of gas goes up royalties from the fund will increase, and he expects more oil wells to be leased in the future.

Rep. Siptroth questioned if the lieu of tax payment increase pertains to future or current properties and Secretary DiBerardinis replied that it applies to both.

Rep. Reichley asked if there is a potential for public or private partnerships to arise, noting that businesses who could advertise in state parks might be interested in supplementing the costs that DCNR currently pays for park and forest management. While the Secretary agreed that this idea worked extremely well in the City of Philadelphia with designated park land, there is a lack of commercialism around state park lands making the concept less successful. DCNR is working on the development of program oriented relationships with businesses, Secretary DiBerardinis continued. For example, DCNR could enter into a partnership with outdoor Cabela's to sponsor park-rented kayaks, he said. Rep. Reichley stated that he thinks relationship building with businesses would be financially beneficial, and suggested that the Department look into tax credit inducements for commercial enterprises to get them involved with these state programs.

Rep. Dally spoke of the State Heritage Parks program, asking whether the decrease in this line item would affect the funding for projects in a park in his district. Secretary DiBerardinis answered that he has no fear of the Department's ability to support the parks and keep them thriving through the year. He mentioned that a construction project in the park in Rep. Dally's district is moving along and that he would get back to him on the project's timeline.

Rep. Hutchinson said that he was glad to see an increase in the Department's operational budget and asked whether they have considered looking at the Trenton-Black River wells for gas drilling purposes. Grace replied that since the last time this possibility was looked at, DCNR has learned that deep drilling has excellent potential for revenue because the oil wells are far apart and the gas return is high. The application for a lease has been re-evaluated and a new planning process for oil drilling at the site is underway. Rep. Hutchinson asked whether specific projects were undertaken in the success of the PA Wilds or if the project was successful in itself. Secretary DiBerardinis said there were many goals reached with the project, mainly in the promotion of conservation, stewardship and the local economy. He mentioned the popularity of the elk herd loop with impressive pathways, the dark skies area of the state and the Pine Creek Gorge, which is listed as one of the nation's most beautiful trail ways. The Department has been working with the marketing employees of the Department of Community and Economic Development on attracting a greater number of tourists to Pennsylvania's natural lands, Secretary DiBerardinis said. He admitted that while more work needs to be done in the infrastructure of the project, including empirical data collection and research to show the impact of the Department on the project's success, he is pleased that it has been hugely successful.

Rep. Santoni mentioned that he sits on the House Tourism Committee and there has been discussion among committee members on utilizing state parks for lodging purposes. Secretary DiBerardinis said DCNR stands in the middle on this issue. He agreed that a new level of accommodation should be brought to parks in terms of cabins and lodges and external partnerships with private businesses should be developed, but stated it is not in the Department's mission to bring resort-type lodging to parks and forests. Additionally, the introduction of resort lodging to parks in other states has been met with spotty successes, the Secretary added.

Rep. Millard asked for an update on the Department's promotion of the timber industry. Secretary DiBerardinis said timber is a reliable annual source for Pennsylvania and earns $36 million in revenue per year, and DCNR has developed a strong relationship with the timber industry. Grace said there is an average of 14,500 acres of woodland covered by the Department for timber sales and the Department's goal is to remain steady on this number. Secretary DiBerardinis noted that they are excited to deal with the timber industry in other endeavors, such as the sale of wood pulp for biofuel technologies. Rep. Millard inquired if there is enough funding to support research ventures on PA woodlands and what role DCNR plays in the ornamental tree sales. Grace said close to $1 million per year is spent on studying hardwood forest regeneration, but ornamental trees are under the Department of Agriculture's responsibility. Rep. Millard asked for an update on the Department's beautification program. Grace replied $500,000 was spent for three to four years in order to complete massive cleanups, but with the work done it now only costs $100,000 per year to maintain the natural beauty of the state's parks and forests. Rep. Millard then asked if DCNR plans to continue their efforts in flight photography of deer herds. The Secretary said they were approached in recent years by the Game Commission to aid in this venture but were not asked this year for their continued help with the program.

Rep. Kenney asked the Secretary to explain to the committee the problem with finishing Benjamin Rush State Park in Philadelphia. Secretary DiBerardinis said the funding is there to complete the park and open the disputed 250 acres to the public, but a Philadelphia city Councilman is refusing to strike an unused path from a map of Philadelphia and holding up the process, likely so that the city can utilize it themselves. Rep. Kenney noted that he has been working on this issue with Senator Mike Stack (D- Philadelphia) and he would like the problem to be examined by a judge so the park can finally be enjoyed by city residents.

Report Prepared by Lindsay Meehan, PLS

HARRISBURG - (3/5/07, 3:00 p.m., Room 140, Main Capitol Building)

The House Appropriations Committee held a hearing with Secretary Dennis Wolff of the Department of Agriculture (PDA).

Members in attendance included Vice Chairman William Keller (D-Philadelphia), Minority Chairman Mario Civera (R-Delaware), and Representatives Jake Wheatley (D-Allegheny), Scott Conklin (D-Centre), Craig Dally (R- Northampton), Gordon Denlinger (R-Lancaster), Katie True (R-Lancaster), John Siptroth (D-Monroe), Fred McIlhattan (R-Clarion), David Millard (R- Columbia), Ron Miller (R-York), Doug Reichley (R-Lehigh), Matt Smith (D- Allegheny) and Mario Scavello (R-Monroe). House Agriculture and Rural Affairs Chairman Michael Hanna (D-Clinton) and Minority Chairman Art Hershey (R-Chester) were also in attendance.

Secretary Wolff submitted his testimony for the record and invited the panel to ask questions.

Minority Chairman Civera asked whether the $400,000 cut in personnel costs was going to prevent the Department from covering its responsibilities for this fiscal year. Secretary Wolff said the funds are adequate despite the decrease in their complement, pointing out that some personnel increases have been made as well, such as the increase of regulatory authorities. Minority Chairman Civera inquired if additional funds would be necessary for certain bureaus with increased responsibilities and mentioned the Bureau of Weights and Measures. Secretary Wolff responded by saying that funds are adequate in this area and the employment of 22 additional people will help cover the 46 counties under the Department's jurisdiction. He said other issues of importance - food safety, dog law and plant health, are also financially efficient in this budget cycle. Secretary Wolff went on to say that the Department has grown more efficient in its information technology services with the Garrason system, a $16 million upgrade in computer purchases and the development of a central database for PDA information. He summarized by saying that the Governor's proposed budget is sufficient to cover the costs of PDA's responsibilities.

Rep. Hanna inquired about the hardwoods industry and asked whether the Department can do anything to increase Pennsylvania's hardwood revenue. Secretary Wolff said over a billion dollars each year is acquired in hardwood sales, most of which are earned through exportation. Domestic sales are also successful, Secretary Wolff noted. Rep. Hanna asked for an update on the court dismissals of ordinances for the ACRE initiative. Secretary Wolff said there have been 28 requests for ordinances received by the Attorney General's office; five have been filed and one was withdrawn, and there were three ordinances dismissed on technicalities. Secretary Wolff said he is anxious to see how the Supreme Court rules on a pending case, adding that the Department has had no problems in passing ordinances and their methods in dealing with ACRE have appeared to be effective.

Rep. Hershey noted that there is no funding mentioned in the budget this year for farmers market development, and little funding for the Healthy Farms, Healthy Schools program. Secretary Wolff said the initiatives did not receive much funding because they were passed late last year, adding that farmers markets have been gaining funds through PDA grants, adding that there is a $500,000 line item to increase nutrition education in schools. Rep. Hershey asked whether it would make sense to split the funds between the two programs so that they are both able to thrive. Secretary Wolff agreed that it is a good idea and promised that the Department would look into his suggestion.

Rep. Siptroth asked if every county has a dog warden. Secretary Wolff responded that some counties have their own wardens and other counties choose to share. Rep. Siptroth suggested that the law require someone other than the State Police to enforce dog laws and the Secretary said certain situations should be referred to a humane officer. Rep. Siptroth stated that in a particular situation in his county, the designated humane officer could not be reached to remedy a situation, nor could the police who have too many other responsibilities. He stated that his office has received a number of calls asking whether costs charged to smaller kennels could be reconsidered so that they could pay less. Secretary Wolff said those suggestions are being considered now in a period of public comment, and added that there are misconceptions by kennel owners regarding the registration of dogs and the specific regulations that are currently being worked out. Rep. Siptroth asked whether Secretary Wolff would support an increase in the fee for animals to be spayed and neutered and the Secretary said he would.

Rep. McIlhattan requested an update on the successes of the PA Preferred program in communities statewide. Secretary Wolff replied that it is a very popular program and has achieved enough success that the Department is planning on expanding it. He added that the Bureau of Markets has done a wonderful job and the program has been introduced to farmers markets as well as certain restaurants and he hopes that it will continue. Rep. McIlhattan congratulated the Secretary on the successes of Pennsylvania Standard bred horse sales. He said while neighboring states have done well in providing horse parks for those who own horses for riding rather than racing, Pennsylvania has not taken a lead on this and asked if the Department would consider the development of these areas. Secretary Wolff said he agrees the PDA could do better in providing public access areas for horse riders and said he would look into the idea.

Rep. Conklin mentioned the success of the First Industries Fund and asked for an explanation on the status of the program. Secretary Wolff replied that the Department of Agriculture has been a winner in the inclusion of Governor Rendell's economic development package, with $100 million going towards machinery loans and small business first loans. With an interest rate of 4%, the Secretary acknowledged that the savings are substantial and added that the Department has loaned over $21 million through the program and they are joining with the Department of Community and Economic Development in looking at areas of the state that have not yet taken advantage of the program. Secretary Wolff added that there has been talk of expanding the small business cap and expanding the loan guarantee program due to the early successes they have seen. Rep. Conklin asked whether there was been any discussion of expanding the program commercially. Secretary Wolff said there has been no draft legislation on the matter as of now.

Rep. Miller stated the Governor has proposed decreases in important funding, such as a 36% decrease in the soil and water fund and decreases in funding to the highly regarded conservation districts. He asked whether such a decrease could be warranted, considering that the programs are crucial to Pennsylvania. Secretary Wolff agreed that the conservation districts do a wonderful job and work well with the Department of Agriculture and the Department of Environmental Protection, but increased funding to the programs would take money from leadership development teams and ombudsmen. Rep. Miller also mentioned the importance of the nutrient management program, which isn't supported in this year's budget. Secretary Wolff said level funding in this area is given to provide farmers with grants and agreed that the programs are important and will be continued despite the lack of additional money this year. Rep. Miller pointed out that while there was a carryover in funds for the nutrient management program last year that money is no longer available. Secretary Wolff said any additional funding would need to be examined in next year's budget. In relation to the concern about funding to conservation districts, the Secretary said there have been discussions on how to provide them with a steady monetary source such as changing the funds to non-lapsing and adding members to the State Conservation Commission.

Rep. Wheatley mentioned agriculture mobiles and asked how he would get one to his district. Secretary Wolff said there are two Ag mobiles now which have been both popular and educational and he would send the representative information on how to request them. Rep. Wheatley then asked who monitors the number of Pennsylvanians who are living without proper food and nutrition. Secretary Wolff suggested he ask the Department of Public Welfare, but when they notify the PDA of the situation a number of state and federal programs are put into place to assure that citizens are receiving enough food for their families. He explained that these include the USDA-sponsored emergency food assistance program which receives $12 million in funding per year and the commodity support food program receiving $5 million per year. Rep. Wheatley asked if the numbers have been up, down or level in recent years. Secretary Wolff replied that 12% of Pennsylvania's families are found to be below the poverty level (for a family of three, making less than $16,000 per year). This number has increased in the past few years, he added, especially with the new class of citizen referred to as the 'working poor', who are at jobs full -time and still do not make enough to feed their families. Rep. Wheatley asked if the programs mentioned are federal or state funded programs. Secretary Wolff said $2.1 million is provided in federal administration costs for the commodity support program, and $4.6 million is provided to Pennsylvania for operational costs. Rep. Wheatley noted the decrease in the farmers market nutrition funding and the $700,000 less in money for state food purchase program. Secretary Wolff replied that while some of the program funds have been cut, they have been supplemented in other programs such as the school breakfast program which has received an additional $23.5 million for this fiscal year. Rep. Wheatley inquired if access to the First Industries Fund will be expanded to include urban and more rural communities that tend to lack access to the information. Secretary Wolff said the two components of the fund are grants and loans, and grants have already been received by areas of Philadelphia. He added that he would like to see the funding expanded in these areas and information on the program dispersed more effectively.

Rep. True reiterated the Committee's concern about the lack of funding for nutrient management programs and conservation districts. She said she hopes the Governor pays attention to these factors in the redistribution of funds during budget talks. Rep. True asked whether enough funds are present to ensure that research programs can be sustained. Secretary Wolff said that 95% of the funding needed to maintain programs has been secured and commitment to research projects will continue.

Rep. Smith said he shares Rep. Wheatley's concern on food insecurity throughout the Commonwealth and the loss of funding to the state food purchase program and the farmers market program. He asked whether enough money is available to secure funding for food security to ensure that products are safe to eat from growing on the farm to the family table. Secretary Wolff replied the USDA has done significant work with the packing and retailing industry for food handling assurance and trained inspectors review eating and drinking establishments as well. A lot of money has been spent on improving this system, and real time information can be entered into a central database with new wireless laptops, the Secretary added. He noted he Department of Health has also been involved in establishing this uniform process.

Rep. Denlinger asked why new administration fees were needed in regard to the dog law. Secretary Wolff replied that the Department hired a Deputy Secretary who deals exclusively with that issue, in addition to more kennel inspectors so they would reach their full complement. Rep. Denlinger said he has a concern that the issue has become too politicized with the regulations. Secretary Wolff stated that with additional staff and changes on certain statutes such as the strengthening of penalty levels, a better quality of care will be established. When asked whether the Department was under political pressure from organizations such a PETA, Secretary Wolff replied that the dog law has definitely been the most discussed issue he can recall, adding that he believes they should look at new information to incorporate into existing regulations.

Rep. Millard said h