Jun 9, 2002 By M. Bradford Grabowski For The 2 min read

HARRISBURG – Facing a severe budget shortfall, Gov. Mark Schweiker has proposed saving nearly $85 million next year by eliminating a controversial grant program that state lawmakers use for local projects. But many lawmakers expect the grants to survive. They said they will insist that the grants be reinstated during negotiations this month for the 2002-2003 budget.

Fayette County communities, organizations and non-profit companies have received hundreds of thousands of dollars in grants annually.

The community development grants, called “Walking Around Money” in political slang, fund rescue vehicles, libraries, athletic fields, community events and many other items. The state Department of Community and Economic Development administers the grants.

Because party leaders, and not the full state Legislature, decide how each grant is awarded, the grants have been criticized as a tool that rewards legislators for their votes.

Schweiker suggested scrapping the grants in his $20.9 billion budget proposal because of sharply declining revenues, said spokesman Steve Aaron. A deficit exceeding $1 billion is expected for the fiscal year that ends June 30.

But Schweiker’s budget is flexible, Aaron added. Traditionally, governors have included little or no funds for the grants and later agreed to add more to the final budget.

“The governor’s entire budget is on table for negotiation, and certainly in negotiations [the grants] could return,” he said.

“We are working on this,” said Rep. Gene DiGirolamo, a Bucks County Republican and a member of the House Appropriations Committee. “It’s important to me because they do fund a lot of important projects. I’m hopeful and optimistic that we’ll be able to put some of that money back in.”

“That type of discretionary funding is very important to the communities I serve, particularly the small communities that may not have the resources to develop a grant application to some other type of program,” said Sen. Barry Stout (D-Bentleyville), who sits on the Senate Appropriations Committee. “So, I will fight to get support for them.”

In the latest round of grant awards, in April, Fayette County received a total of $23,000. Grants included $12,000 to Fayette City Recreation to renovate a facility, $6,000 to Redstone Township to construct a mini-park and $5,000 to the Saltlick Township Volunteer Fire Department to buy rescue equipment.