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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | February 7, 2013 03:34 PM |
|---|---|
| From: | Senator Vincent J. Hughes |
| To: | All Senate members |
| Subject: | Co-sponsorship memo – Pennsylvania Investment Bank Fund |
| In the near future, I plan to reintroduce SB 1444 of the 2011-12 legislative session, which creates the Pennsylvania Investment Bank Fund within the Commonwealth Financing Authority (“CFA”). Rebuilding our infrastructure and creating jobs in this still fragile economy should be our number one priority. The Investment Bank Fund will assist in that effort by providing the CFA with flexibility to target capital investments to proven Pennsylvania economic development programs. Administered by the Commonwealth Financing Authority, the Fund will be capitalized from the following sources: 1. Beginning with the 2013 fiscal year, and annually thereafter, in any year in which a budget surplus exists, 25% of that surplus will be transferred into the fund. 2. All currently unexpended funds appropriated to the CFA under the Alternative Energy Investment Act (Special Session Act 1 of 2008) and dedicated for pollution control projects (section 304), renewables (section 307(b)) and high performance buildings (section 307(c)). Approximately $30 million remains available for renewable and high performance building projects, while an amount up to $25 million may remain unused for pollution control projects 3. All unexpended funds appropriated to the CFA for the Tax Increment Financing Guarantee Program (64 Pa.C.S. §1556). Currently, this balance is approximately $56 million. 4. All revenue dedicated to statewide initiatives through Act 13 of 2012, the impact fee imposed on Marcellus Shale drilling. This would be in addition to any impact fee funds allocated to the CFA for environmental initiatives. 5. All proceeds from loan repayments made to the CFA from current economic development programs. 6. Any other funds appropriated to the Investment Bank Fund under law. Funds appropriated to the CFA for the Investment Bank Fund may only be used for the following programs: 1. Business in Our Sites 2. First Industries 3. The Water Supply and Wastewater Infrastructure Program (PENNWORKS) 4. H2O PA 5. Alternative and clean energy projects, renewable energy projects, and high performance building projects under the Alternative Energy Act. In addition, the CFA would be authorized to transfer a portion of the funds annually to PENNVEST for purposes of funding eligible projects under the Pennsylvania Infrastructure Investment Authority Act. PENNVEST would have the discretion to bond such payments. The initial capitalization of the fund is estimated to exceed $150 million, without including revenue related to any potential budget surplus. By dedicating a portion of future budget surpluses and freeing up funds previously authorized by the General Assembly, we will be able to continue to make vital investments in our infrastructure and create job opportunities for our citizens. The Investment Bank Fund will provide the CFA flexibility to assess the needs of the Commonwealth and invest accordingly. It will also allow us to redirect funds from underutilized programs to those programs that have a proven record of success. Please join me in cosponsoring this legislation, which is part of the Senate Democratic Caucus’ PA Works initiative. Prior cosponsors were TARTAGLIONE, BREWSTER, FONTANA, SOLOBAY, FERLO, LEACH, COSTA AND BLAKE. |
Introduced as SB236