PRESS RELEASE

March 5, 2009

NEW YORK’S ENVIRONMENTAL PROTECTION FUND NEARS ZERO BALANCE

EFFORTS TO PLUG BUDGET HOLE WITH “GREEN” MONEY DERAIL CRITICAL PROJECTS STATEWIDE  

(ALBANY, NY)—According to a review of documents obtained through Freedom of Information Law (FOIL) requests, Environmental Advocates of New York predicts the state’s Environmental Protection Fund will soon be insolvent as a result of recent deficit reduction measures. The documents show that current funding requests will zero out the Fund before the end of the State Fiscal Year on March 31^st.

The recently passed Deficit Reduction Bill includes sweeping $50 million from the Fund for general budget relief. Governor David Paterson and Budget Director Laura Anglin must now decide if they will execute a law authorizing the state to transfer monies from the general treasury to the Fund to fulfill its commitments and maintain solvency. The group has sent a letter to the Governor and Budget Director Laura Anglin asking for compliance with the law to protect the Fund.  

“The state has written more checks than it can cash and New York’s air, land and water will pay the price,” said Alison Jenkins, Fiscal Policy Program Director, Environmental Advocates of New York. “We’re calling on Governor Paterson and Budget Director Anglin not to exercise their authority to take the Environmental Protection Fund’s last dollar. The health of our families and our natural resources deserves better.” 

Environmental Advocates’ review of state agency documents shows that approved—and those pending approval—contract extensions, new contracts, or contract modifications submitted by state agencies to the Division of the Budget (DOB) total more than $33.5 million for the current state fiscal year. Added together, these cash outlays will bankrupt the Fund.  

The combination of recent authorization to sweep $50 million from the Environmental Protection Fund and anticipated disbursements will leave the Fund insolvent. Please refer to the chart below.

Delayed state payments or failure to honor New York State’s commitments will force dozens of municipalities, nonprofit organizations and others to fire employees, thus exacerbating our economic woes.

The Environmental Protection Fund was created in 1993 as a dedicated trust fund to preserve New York’s natural and historic heritage. Currently, the Fund is supported by revenue from the state’s Real Estate Transfer Tax, which has been tested in previous economic downturns and remains a source of increased investment in environmental programs and protection. In 2007, a law was passed to grow the Fund to $300 million in the 2009-2010 State Budget.

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Environmental Advocates of New York is the state’s government watchdog, holding lawmakers and agencies accountable for implementing policy that protects natural resources and safeguards public health. Environmental Advocates works alone and in coalitions, and has more than 7,000 individual and 130 organizational members. The 501(c)(3) is also the New York affiliate of the National Wildlife Federation.