2010-11 BUDGET PRIORITIES FOR THE ENVIRONMENT

APPROPRIATIONS
Restore DEC Staff Positions
The New York State Fiscal Year 2010-11 Executive Budget Proposal for the Department of Environmental Conservation (DEC) eliminates 83 positions through attrition, on top of 411 staff lost over the past two years. Despite the agency’s increased responsibilities, the DEC has 700 fewer staff now than it did 20 years ago. Without staff, the agency cannot monitor air and water pollution or safeguard the well-being of the environment and New Yorkers. Staff positions should be restored through a combination of new fee proposals, shifting resources, eliminating environmentally harmful tax exemptions, and waiving the hiring freeze in order to ensure our air and water quality are protected.

Restore the Environmental Protection Fund
Environmental Advocates of New York opposes decreasing Environmental Protection Fund (EPF) appropriations to $143 million, a $69 million cut from last year. EPF appropriations have been cut by 30 percent for two years in a row, and are disproportionate when compared to other state programs. In addition, the $500 million in sweeps over the past eight years have left the Fund with less cash than needed to meet obligations for current projects. Not only does the proposed budget cut appropriations by one-third, it also zeroes out land acquisition and adds offloads for other programs. This threatens the integrity of the EPF by financing new projects without new funding, rather than financing projects that are the backbone of the Fund. Environmental Advocates calls for Legislature and the Governor to restore the EPF to last year’s level of $222 million. 

ARTICLE VII
Part C – Retrofit Waiver for Old Diesel Vehicles (S.6609/A.9709) - OPPOSE
Environmental Advocates opposes the Governor’s proposal to waive requirements to install pollution reduction devices on state-owned vehicles nearing the end of their useful life. The New York State Diesel Emissions Reduction Act (DERA) requires that state-owned vehicles, and vehicles operated on behalf of the state, must use ultra-low sulfur diesel fuel or install best available retrofit technologies in an effort to reduce particulate pollution. Allowing dirty vehicles to continue to operate until the end of 2013 subverts the intent of DERA and will allow unacceptable levels of pollution linked to premature death, asthma and cardiovascular disease. 

Part DD – Eliminate Sunset of Waste Tire Management/Recycling Fee (S.6609/A.9709) - SUPPORT Environmental Advocates supports extending the existing waste tire fee. Funds collected will be sent to the Waste Management and Clean Up Fund (previously the Waste Tire Management and Recycling Fund) and will support more than 100 positions at the DEC, in addition to efforts to reduce waste tire stockpiles. 

Part EE – Eliminate Various DEC Reporting Requirements (S.6609/A.9709) - OPPOSE
Environmental Advocates opposes the Governor’s proposal to eliminate various reporting requirements for the DEC. While the agency has experienced increases in responsibilities without equivalent increases in staff over the past 20 years, repealing obligations to produce certain reports, such as reports on the implementation of the State Air Pollution Control Act or the status of permits issued and pending for the treatment and disposal of hazardous waste, should be stricken from the budget.  

Part FF – Reduce the Amount of Real Estate Transfer Tax Revenue Deposited in the EPF (S.6609/A.9709) - OPPOSE
Environmental Advocates opposes reducing Real Estate Transfer Tax (RETT) revenue directed to the EPF from $199.3 million to $132.3 million. New York is struggling to honor its obligations based on past Fund sweeps. By reducing the cash that goes into the EPF, the State risks the closure of programs that protect the health of our air, land and water and spur economic development across the state.

REVENUE RAISERS
Real Estate Transfer Tax Increase
The EPF’s primary source of funding is the RETT, which has financed the Fund since it was created in 1993. After the housing market bubble burst, RETT revenue decreased. Annual revenue declined from $1 billion in 2007-08 to $422 million in 2009-10. By increasing the RETT rate, the increase in revenue would help both the EPF and the General Fund. The rate of assessment for the RETT is currently $2 for every $500, then a one percent mansion tax on homes $1 million or higher. The rate has never increased. By increasing the rate to $4 for every $500, and to a two percent mansion tax on homes worth $1million or more, the State could double RETT revenue. For instance, this year instead of realizing $400 to $500 million, the RETT could have realized $800 million to $1 billion. An increase would not be cost-prohibitive to sellers. The median home price is $205,000. At the current rate, a seller would pay $820. By doubling the tax, a seller would pay $1,640, a difference of $820 per home. 

Reusable Bag Incentive
New Yorkers use approximately 6.6 billion plastic bags every year. A plastic bag can take anywhere from 15 to 1,000 years to decompose; most get thrown out with the trash. In 2008, the EPA estimated that all U.S. consumers used 550 tons of plastic shopping bags, 90 percent of which went directly to landfills. Improper disposal of plastic bags results in bags lining streets and sidewalks, trees, storm drains and waterways. Plastic bags are made from an estimated 12 million barrels of petroleum each year, a resource we are quickly depleting. On average, one New Yorker uses 440 plastic bags annually. A five cent tax on plastic bags could generate $330 million in revenue for the State and encourage the use of reusable bags. Each person would pay $22 per year to use plastic shopping bags, but could avoid the tax by turning to reusable bags. Reusable bags can include totes now available in many convenience and grocery stores, or any bag a person already has on hand.  

Gas Tax Cap Repeal
On June 1, 2006, the eight percent sales tax on motor fuel was changed to eight cents per gallon. For example, if the cost per gallon is $2.80 (current average price), a motorist would pay a tax of only 80 cents for 10 gallons, instead of $2.24 for 10 gallons. While the motorist experiences a small savings of $1.40, the State has lost $600 million (actual and forecast) over the past four years. If the cap is not repealed, the State will forfeit another $177 million this year. The gas tax cap makes no sense for New York State policy at this time. The current projected deficit increases weekly and is more than $8.2 billion. New York State needs revenue to save important programs. Additionally, by subsidizing motor fuel, lawmakers encourage New Yorkers to drive more and discourage public transportation, which increases pollution and smog and threatens public health, especially among those suffering from lung and heart diseases.