Includes $15M in spending, $330M in borrowing
By Eric Boehm | PA Independent
HARRISBURG — Small businesses and families slammed by Hurricane Irene and Tropical Storm Lee, which hit the state in late August and early September, may receive additional state aid on top of the federal relief distributed.
The state Senate on Wednesday passed a package of bills that authorizes borrowing and spending about $350 million not only on flood relief but flood mitigation projects.
Small businesses will be eligible for up to $100,000 in state grants through the new programs, which will be funded through the state General Fund and will not exceed $10.3 million.
"If we did not work to support these businesses in their recovery efforts, we would have lost hundreds of jobs and further disadvantaged our local economy," said state Sen. John Yudichak, D-Luzerne
A separate bill will create a $5 million grant program for individuals and families.
Families of four earning less than $49,000 annually will be eligible for state grants of up to $10,000 under the bill, which will be funded from the state General Fund and capped at $5 million.
To be eligible a family must have received the maximum federal assistance of $30,200.
“I have many residents and business that are not operating since the flooding,” said state Sen. Lisa Baker, R-Pike, who sponsored two of the seven bills. “They look to us for help to get back on their feet and begin the process of rebuilding our community.”
Three other bills passed Wednesday authorize borrowing about $183 million for infrastructure spending intended to repair roads and bridges damaged by the floods and to build and improve flood mitigation projects. Those dollars will come from state-issued bonds and will be repaid over 20 years. The annual payment will be about $13 million, according to a Senate fiscal analysis.
When fully repaid, the infrastructure bills will cost taxpayers about $260 million.
A separate bill will create a state Disaster Relief Fund that will pay for infrastructure repairs not covered by federal disaster relief funds. The state treasury will operate the fund.
The $150 million in general obligation bonds that will fund the Disaster Relief Fund, will be repaid over 20 years with annual payments of $10.5 million, for a total cost of more than $200 million.
Matthew Brouillette, president and CEO of the Commonwealth Foundation, a Harrisburg-based fiscally conservative think tank, said the infrastructure investments are a core function of government, but questioned why new funds had to be set up when the state has $34 billion in debt accrued by existing off-budget authorities.
"Existing programs should be able to take care of this, so you don't have to increase the debt on taxpayers' back," Brouillette said.
The seven bills passed nearly unanimously and will go to the state House for consideration.
