Post by melody on May 6, 2013 18:49:33 GMT -5
Joint Legislative Conservation Committee
5/6/13, 12:00 p.m., Room G-50, Irvis Office Building
By Kati Lawson, PLS Intern
The Joint Legislative Conservation Committee received a presentation
( wallaby.telicon.com/pa/library/2013/20130506TX.PDF ) from the Pennsylvania Fish and Boat Commission (PFBC) at its latest Environmental Issues Forum. The information presented was on the Commission’s reallocation plan and revenue generating options for the budget crisis the commission could face in the coming years.
John Arway, Executive Director of the Pennsylvania Fish & Boat Commission, explained that he would provide an update on the fiscal challenges and opportunities the Commission has. “I’ve called it the ‘fiscal slope’ for a reason,” said Arway. “I refuse to face a ‘fiscal cliff’ situation like the federal government has created for itself.”
Arway explained that 62 percent of the Commission’s funding comes from licenses and fees, 25 percent is augmented by federal funding, and the rest either miscellaneous funding or funds from fines and penalties.
“We have seen a gradual decline in license fee revenue since 1990, which is consistent with numbers across the country,” said Arway. “The cause of the gradual decline is demographic changes in the Commonwealth.” Arway explained license fee increases causes a reduction in license sales the following year, so raising license fees will not create more revenue. He said New York is lowering its license fees and the Commission will be tracking the results.
“Anglers and boaters spend money that generates $220 million in taxes for the General Fund, and none of it comes back to the Fish and Boat Commission,” said Arway. “We rival fruit and vegetable agriculture in the state for the group that we serve.”
On expenditures, Arway said the Commission spends 63 percent of its budget on personnel, 26 percent on operating costs, and the rest on fixed assets, payments to other state agencies, and grants.
Arway presented information on the historical statuses of both the Fish and Boat Funds. He explained the importance of the reserve funds in both circumstances. “We have the spending authority from the governor’s office to spend $10 million more than we do but we cannot spend these funds without eating up our reserve funds and going broke in three or four years,” said Arway.
Arway explained the Commission’s general fiscal concerns include covering the pension and health care cost growth of commission employees, and paying rising operating costs with a flat or declining customer base. “The Commission is in good shape for the next fiscal year, but we will have to make gradual cuts starting in the 2014-15 fiscal year,” stated Arway.
Arway said that the Commission would have to either reduce expenditures or increase revenue. To reduce expenditures, he explained, he has challenged his staff to create a plan that would shrink the Commission back to its core mission and remain financially viable. Arway explained the plan, saying “We will realign our staff to complete the jobs that are necessary and reduce our staff through attrition, while also creating revenue through property management.”
To raise additional revenue now and create a new generation of fish and boat enthusiasts, Arway discussed expanding Mentored Youth Trout Day and creating a Voluntary Youth Fishing Permit. “By expanding the program throughout the state, the Commission could make an extra $6,000 for every 1,000 youth permits sold,” stated Arway.
Arway said the impact senior citizens have on the Commission grows every year because people are living longer and it is no longer feasible to offer lifetime licenses to 65 year-olds who could be fishing with that permit for thirty years. “We could either eliminate lifetime senior licenses or raise senior resident lifetime permits,” said Arway. “But we do need legislative help to put that plan into effect.”
Legislatively, Arway recommended changes to outdated Title 30 penalty fees and increased transportation funding. “$13.4 million gallons of the fuel taxed under the Oil Company Franchise Tax is motorboat fuel,” said Arway. “None of that tax money is going into a fund to repair boat ramps and provide other services to motor boaters.” Arway asked that the legislators used the same percentage rate on any proposed oil and gas taxes in the future to be used for the Commission.
Arway was asked if the license fee increase in 2012 was correlated in any way to Marcellus Shale drilling. Arway said any correlation was probably indirect and explained license fee trends were mostly driven by changes in weather.
Rep. David Maloney (R-Berks) asked if the legislature could take some of the financial pressure on the Commission for the funds it must spend to repair dams. Arway said the cap on the H2O PA program is currently keeping them from taking advantage of the funds to repair Pennsylvania’s high-hazard dam obligations.
Rep. Maloney also asked if Arway had executive power over the Commission’s funds. Arway explained that he does have discretion over the funds, but he asks approval from the Commission’s Board of Directors before seeking approval from the governor’s office.
Arway explained that he has published several articles on www.fishandboat.com.
The next Environmental Issues Forum will be held on June 17th and will feature Dr. David Nowak of US Department of Agriculture Forest Service.
5/6/13, 12:00 p.m., Room G-50, Irvis Office Building
By Kati Lawson, PLS Intern
The Joint Legislative Conservation Committee received a presentation
( wallaby.telicon.com/pa/library/2013/20130506TX.PDF ) from the Pennsylvania Fish and Boat Commission (PFBC) at its latest Environmental Issues Forum. The information presented was on the Commission’s reallocation plan and revenue generating options for the budget crisis the commission could face in the coming years.
John Arway, Executive Director of the Pennsylvania Fish & Boat Commission, explained that he would provide an update on the fiscal challenges and opportunities the Commission has. “I’ve called it the ‘fiscal slope’ for a reason,” said Arway. “I refuse to face a ‘fiscal cliff’ situation like the federal government has created for itself.”
Arway explained that 62 percent of the Commission’s funding comes from licenses and fees, 25 percent is augmented by federal funding, and the rest either miscellaneous funding or funds from fines and penalties.
“We have seen a gradual decline in license fee revenue since 1990, which is consistent with numbers across the country,” said Arway. “The cause of the gradual decline is demographic changes in the Commonwealth.” Arway explained license fee increases causes a reduction in license sales the following year, so raising license fees will not create more revenue. He said New York is lowering its license fees and the Commission will be tracking the results.
“Anglers and boaters spend money that generates $220 million in taxes for the General Fund, and none of it comes back to the Fish and Boat Commission,” said Arway. “We rival fruit and vegetable agriculture in the state for the group that we serve.”
On expenditures, Arway said the Commission spends 63 percent of its budget on personnel, 26 percent on operating costs, and the rest on fixed assets, payments to other state agencies, and grants.
Arway presented information on the historical statuses of both the Fish and Boat Funds. He explained the importance of the reserve funds in both circumstances. “We have the spending authority from the governor’s office to spend $10 million more than we do but we cannot spend these funds without eating up our reserve funds and going broke in three or four years,” said Arway.
Arway explained the Commission’s general fiscal concerns include covering the pension and health care cost growth of commission employees, and paying rising operating costs with a flat or declining customer base. “The Commission is in good shape for the next fiscal year, but we will have to make gradual cuts starting in the 2014-15 fiscal year,” stated Arway.
Arway said that the Commission would have to either reduce expenditures or increase revenue. To reduce expenditures, he explained, he has challenged his staff to create a plan that would shrink the Commission back to its core mission and remain financially viable. Arway explained the plan, saying “We will realign our staff to complete the jobs that are necessary and reduce our staff through attrition, while also creating revenue through property management.”
To raise additional revenue now and create a new generation of fish and boat enthusiasts, Arway discussed expanding Mentored Youth Trout Day and creating a Voluntary Youth Fishing Permit. “By expanding the program throughout the state, the Commission could make an extra $6,000 for every 1,000 youth permits sold,” stated Arway.
Arway said the impact senior citizens have on the Commission grows every year because people are living longer and it is no longer feasible to offer lifetime licenses to 65 year-olds who could be fishing with that permit for thirty years. “We could either eliminate lifetime senior licenses or raise senior resident lifetime permits,” said Arway. “But we do need legislative help to put that plan into effect.”
Legislatively, Arway recommended changes to outdated Title 30 penalty fees and increased transportation funding. “$13.4 million gallons of the fuel taxed under the Oil Company Franchise Tax is motorboat fuel,” said Arway. “None of that tax money is going into a fund to repair boat ramps and provide other services to motor boaters.” Arway asked that the legislators used the same percentage rate on any proposed oil and gas taxes in the future to be used for the Commission.
Arway was asked if the license fee increase in 2012 was correlated in any way to Marcellus Shale drilling. Arway said any correlation was probably indirect and explained license fee trends were mostly driven by changes in weather.
Rep. David Maloney (R-Berks) asked if the legislature could take some of the financial pressure on the Commission for the funds it must spend to repair dams. Arway said the cap on the H2O PA program is currently keeping them from taking advantage of the funds to repair Pennsylvania’s high-hazard dam obligations.
Rep. Maloney also asked if Arway had executive power over the Commission’s funds. Arway explained that he does have discretion over the funds, but he asks approval from the Commission’s Board of Directors before seeking approval from the governor’s office.
Arway explained that he has published several articles on www.fishandboat.com.
The next Environmental Issues Forum will be held on June 17th and will feature Dr. David Nowak of US Department of Agriculture Forest Service.