For Immediate Release
May 19, 2010
Contact: Nathan Flood
717-787-4420
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A Conversation with Senator Brubaker

Brubaker Introduces Legislation To Dedicate Existing Tax Credits to Food Banks

The state's Neighborhood Assistance Program offers tax credits to businesses that contribute to worthy causes in the community, such as donations to regional food banks and programs to support affordable housing, crime prevention, education and job training. This program has served as a vital source of funding for regional food banks in recent years by providing an incentive for businesses to make substantial donations of food and funds to help those in need. However, state spending reductions and recent revisions to the program have made it increasingly difficult for Pennsylvania's food banks to compete for funding.

While the number of Pennsylvanians who have turned to food banks for assistance has increased by more than 50 percent over the past two years, state support for food banks through the Neighborhood Assistance Program has steadily declined in recent years. The increased demand for services and reduced state support is placing a great deal of stress on regional food banks across the state.

Last year, state support for the Neighborhood Assistance Program fell from $18 million to $9 million. The governor's budget proposal for 2010-11 would reduce this funding to $8.1 million. Tax credits allocated to Pennsylvania food banks dropped from $4.2 million in 2008-09 to $2.8 million in 2009-10. The Department of Community and Economic Development recently communicated to food banks that their awards will be reduced to $1.8 million in 2010-11.

I introduced legislation recently that would ensure that food banks will continue to have access to funding through this tax credit program. Senate Bill 1353 would direct the Department of Community and Economic Development to provide special consideration for charitable food donations, mandating that 25 percent of these existing tax credits will be allocated for donations to food banks.

It is important to note that Senate Bill 1353 would not preclude DCED from funding other valuable community initiatives through the Neighborhood Assistance Program. Under the governor's current budget proposal for the program, more than $6 million of the proposed $8.1 million in tax credits would still be available to encourage businesses to invest in other worthwhile initiatives that will help to improve the quality of life in our communities.

It is also important to note that my legislation would not add to overall state spending. We are facing another difficult budget year, and my goal is for the General Assembly to pass a responsible state budget on time without the need to increase broad-based taxes. Senate Bill 1353 would not force taxpayers to spend additional money for the Neighborhood Assistance Program; it would only ensure that regional food banks are entitled to their fair share of existing tax credits.

In 2008, Pennsylvania's regional food banks distributed about $200 million worth of food to Pennsylvanians in need. Regional food banks generally distribute between $10 and $15 worth of food for every $1 donated. As co-chairman of the legislative Hunger Caucus, I am deeply grateful for the efforts of our local and regional food banks to help Pennsylvanians in need, and I am hopeful that Senate Bill 1353 will ensure that they have access to the funding they need to continue providing essential nutrition to members of our communities.