The PA Budget and Independent Colleges and Universities

1. The PA Budget and Independent Colleges and Universities October 2008

2. Overview of 2008-2009 PA Budget The 2008-2009 General Fund budget is $28.3 billion, an increase of $1.1 billion, or 3.98 % over last year’s budget. More than 32% of this increase is for education. This budget includes $350 million for state’s worst bridges, $15 million for airport and rail improvements $1. 2 billion is appropriated for water and sewer infrastructure improvements. The budget sets aside $650 million for investments in alternative and renewable energy projects.

3. PA Agencies with Resources for Independent Colleges and Universities DCED DEP DCNR PHFA CFA

4. DCED: Community Revitalization Programs The Community Action Team (CAI) received $987,000. This program coordinates the planning, technical and financial assistance, and implementation of key community development projects among the state agencies and departments involved in such projects. The New Communities Program—includes Main Street, Elm Street, and Enterprise Zones—received approximately $17.8 million. This program helps communities address needs such as downtown revitalization, residential improvements, or economic development. Infrastructure Development Program received $22.5 million. This program provides grants and loans to develop and improve business sites. Opportunity Grant Program received $28 million. This program is used by the Governor’s Action Team to maintain and expand existing industries and attract new ones in PA.

5. DCED: Community Revitalization Programs Housing and Redevelopment Assistance received approximately $33.6 million. This program provides grants to communities, redevelopment authorities, and nonprofit organizations to improve blighted neighborhoods through redevelopment, to revitalize central business districts in aging communities to provide low-and moderate-income housing. Land Use Planning received approximately $4.2 million. This program helps communities in the preparation, updating, and implementation of municipal and county comprehensive plans. Urban Development Program received $20.5 million. This program provides grants for urban development and improvement projects. Small Business Development Centers received $7.3 million. This program provides assistance to small businesses and entrepreneurs through education and networking events.

6. DCED: Keystone Innovation Zone The Ben Franklin Technology Development Authority provides funding for the University Research Grants program Keystone Innovation Zone grants are funded through the BFTDA. These grants are used to drive economic development partnering between universities and community focused-organizations. Approximately $50.7 million has been appropriated for the BFTDA.

7. DCED: The Global Alumni Network This is part of the World Trade Initiative which received $14 million. This program was established in June of 2007. It develops a network to help the DCED identify new trade and investment opportunities by connecting them with international alumni of PA colleges and universities.

8. DEP: Growing Greener • The Growing Greener II program funds projects that invest in the following: • Protection of watersheds • Mine drainage remediation • Advanced energy • Flood protection • Brownfields remediation • Open space conservation • Farmland preservation

9. DEP: PEDA • The Pennsylvania Energy Development Authority (PEDA) provides grants, loan guarantees for alternative energy projects and related research referring to deployment projects, manufacturing, or research involving the following kinds of fuel: • Solar energy • Wind • Low-impact hydropower • Geothermal • Biologically derived methane gas, including landfill gas • Biomass • Fuel-cells • Coal-mine methane • Waste coal • Integrated gasification combined cycle • Demand management measures, including recycled energy and energy recovery, energy efficiency, and load management.

10. DEP: Alternative Fuels Incentive Grants • This program was developed to reduce PA’s dependence on imported oil, improve air quality, and foster economic development by encouraging the deployment of innovative energy technologies. • It provides funds for projects from early-stager research to commercial implementation of technologies that offer measurable benefits for air quality and emerging PA businesses. • Alternative fuels include the following: • Compressed natural gas • Liquefied natural gas • Liquid propane gas • Ethanol • Methanol • Hydrogen • Coal-derived liquid fuels • Fuels derived from biological materials

11. DEP: Energy Harvest Program This goal of this program is to promote advanced energy technologies proven to generate jobs, improve air quality, preserve land, protect watersheds, and enhance energy security. Provides funds for clean energy projects to be built in Pennsylvania utilizing sources such as biomass, wind, solar, small-scale hydro-electric, landfill methane, coal-bed methane, and waste coal.

12. DCNR The Department of Conservation and Natural Resources provides funds for the protection and maintenance public green space. Some of the funding programs include the Community Conservation Partnerships program and the Keystone Recreation, Park, and Conservation Fund

13. PHFA The Pennsylvania Housing Authority is an independent agency that provides financing for housing development projects It is the leading provider of capital for affordable homes and apartments. Created to help enhance the quality and supply of affordable homes and apartments for older adults, persons, or modest means, and persons with disabilities, the PHFA operates homeownership programs, rental housing development initiatives, and a foreclosure prevention effort.

14. PHFA: Homeownership Choice Programs • All programs require the following: • A sponsoring partnership of a municipal entity, a for profit builder developer and a non-profit builder developer. • A 1 to1 match with 50% being provided by the municipal entity. • Homeownership Construction Initiative • New construction single family or duplex housing. • Mixed Use Facility Financing Initiative • Funds the rehabilitation of the upper floors of store fronts on the commercial corridors of urban neighborhoods and core communities to provide either rental or ownership housing.

15. PHFA: Homeownership Choice Programs • Neighborhood Revitalization Initiative • Offers funding opportunities to encourage infill construction and/or rehabilitation of vacant homes in urban neighborhoods and core communities. HFA: Homeownership Choice Programs

16. CFA • The Commonwealth Financing Authority (CFA) was created in 2004 to administer the programs created in the economic stimulus package. • The CFA will administer two new programs: • H2O PA Act • Alternative Energy Investment Act • The CFA process

17. Multiple Sources of Project Funding • Independent colleges and universities are undertaking projects dealing with the following: • Community revitalization • Energy and conservation • Preserving and maintaining open space • Housing and business development • State funding is only one sources of funding. The private sector, the federal government, and local governments are other sources.