PRESS RELEASE

December 16, 2008

NEW YORK'S GREEN WATCHDOG CRITICIZES GOVERNOR'S PROPOSAL TO CHANGE ENVIRONMENTAL FUNDING FORMULA & CUT ENVIRONMENTAL PROTECTION FUND BY MORE THAN 30%

Cost-Cutting Proposals Will Derail Conservation & Public Health Projects, Reduce Funds for Air & Water Quality Monitoring

(ALBANY, NY)—Environmental Advocates of New York today criticized Governor David Paterson’s proposed 2009-10 budget as hazardous to the health of the state’s natural resources. The green group focused its attention on detrimental changes to the funding formula for the state’s Environmental Protection Fund.  

“Governor Paterson is faced with some tough choices this budget season and every New Yorker anticipates cuts to critical programs and services. However, we are disappointed that the Governor again proposed flawed changes to the funding formula for the state’s Environmental Protection Fund,” said Alison Jenkins, Fiscal Policy Program Director, Environmental Advocates of New York. “This proposed change has the potential to undermine the stability of environmental funding in New York and fails to account for the positive economic impact of spending on the environment.”

The Governor’s budget proposal includes changing the Environmental Protection Fund’s funding formula by updating New York’s bottle deposit law to include non-carbonated beverages such as bottled water and sports drinks, and requiring beverage companies to transfer unclaimed bottle and can deposits to the Fund. The estimated $118 million in unclaimed deposits would replace the Fund’s current revenue source—the Real Estate Transfer Tax (RETT). While Environmental Advocates strongly supports enactment of the Bigger Better Bottle Bill, RETT revenue should continue to be the primary source of support for the Environmental Protection Fund.

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 not dependent on state budget fluctuations and is supported by revenue from the state’s Real Estate Transfer Tax (RETT), which has been tested in previous economic downturns and remains a source of increased investment in environmental programs and protection.

Governor Paterson has proposed a 20 percent reduction to the Environmental Protection Fund appropriation, from $255 million to $205 million. Cuts to the Fund will derail projects that range from conservation and recycling to public health and water quality across the state. The Fund also stimulates the state’s economy by creating and protecting jobs in the fields of agriculture, manufacturing, education and waste management, among others.

In response to Governor Paterson’s proposal to cut 241 staffers at the state’s Department of Environmental Conservation (DEC), Environmental Advocates is calling on state leaders to maintain staff at the already beleaguered agency.

“For more than a decade, the Department of Environmental Conservation has done ‘worse with less.’ New York needs to reverse that trend and protect public safety and our drinking water,” said Jenkins. “Staff cuts at the state’s already eviscerated environmental agency will result in fewer inspectors to monitor water and air pollution. With increasing pressure to drill for natural gas in the Southern Tier, it’s critical that New York State has staff to monitor water quality and protect the public.”    

Staff cuts at the DEC will result in less protection for the state’s natural resources as the agency is responsible for approving water pollution permits, air quality monitoring in accordance with the Clean Air Act, brownfield remediation, and the transportation, disposal, and treatment of hazardous and toxic wastes, among other duties. Environmental Advocates is particularly concerned about growing threats to water quality associated with natural gas drilling in the Marcellus Shale Formation.

In order to protect New York’s water quality, the DEC must maintain staff levels.. New York’s water quality is already in danger. Earlier this year, Environmental Advocates of New York’s report on the state’s water pollution permit program, Permission to Pollute, documented that 90 percent of permits are being rubber stamped, resulting in millions of gallons of unmonitored pollutants released into New York waters. This lack of oversight is mainly due to lack of staff at the DEC.

“Instead of cutting back on environmental protection, New York should eliminate tax breaks that hurt natural resources. For example, bunker fuel, the dirty sludge used to power cargo ships, is tax exempt. The emissions from burning this sludge are linked to a host of health problems including cancer and asthma. Eliminating this tax exemption could bring in nearly $40 million in revenue while encouraging cargo ships to burn cleaner fuels,” said Jenkins. “Environmental Advocates’ report, $aving Green, documents more than $100 million in annual revenue that could support environmental needs. To responsibly balance the budget and protect the health of our families, New York should cut projects or policies that work against the state’s environmental goals, rather than deplete the Environmental Protection Fund.”

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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.