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2012 State Budget Signed; Energy Issues Move through Other Legislation

Minutes before the midnight deadline on June 30, Governor Tom Corbett signed the state’s 2012-13 budget, which reflected more than $700 million more in spending that the original February budget proposal.  Also delivered to Corbett were changes in the state’s fiscal and tax codes, which authorize budget spending and revenue collections, and also included language for the ethane cracker tax credit (below).

The state budget sets the Fiscal Year 2012-13 spending level at $27.656 billion, a $370 million increase over the 2012 approved spending level, an increase agreed to due to better than expected state revenues.

At the same time, the state spending plan reinstitutes the transfer of gross receipts taxes to the Alternative Fuels Incentive Grant Program, to the tune of $6 million in FY 2012-2013. And the Commonwealth Financing Authority will receive $3.5 million in additional funds for 2012-2013 from the General Fund, bringing its total to $85.5 million. The budget passed on Saturday reflected the loss of $35 million in federal funds for the State Energy Program.