Table of Contents
What is the Keystone Fund?
To help meet the growing demand for outdoor recreational and community services in the Commonwealth, the Keystone Recreation, Park and Conservation Fund was created in 1993 with overwhelming support by Pennsylvania legislators and voters.
Act 50 passed with nearly unanimous support in the General Assembly (48–0 in the Senate and 196–3 in the House) and established a new, dedicated funding source—a 15% share of the state’s realty transfer tax.
In November 1993, Pennsylvania citizens strongly affirmed the legislative action, with 67% of voters voting “yes” on a referendum to supplement the new funding stream with $50 million in bond revenue.
In establishing the Keystone Fund, the General Assembly sought to create a dedicated and permanent funding source for making investments in recreation, parks, conservation, libraries, historical preservation, and education.
What is the realty transfer tax?
As established by Act 50 of 1993, the Keystone Fund is funded through a dedicated portion of the realty transfer tax, a joint tax paid by the seller and buyer during a real estate transaction.
The seller and the buyer are each required to pay 1% of the total purchase price, for a total of 2%. Revenue from this joint tax is split, with half (1%) directed to the state and the other half (1%) divided equally between the local municipality and school district.
Fifteen percent (15%) of the state’s share of revenue from this tax is then placed into the Keystone Fund to be allocated to projects as established by law.
Since the Keystone Fund relies solely on the realty transfer tax, changes in the volume of real estate transactions and real estate values directly impact the amount of revenue dedicated to the Keystone Fund each year.
How is the funding used?
The Keystone Recreation, Park and Conservation Fund is a critical dedicated funding source for recreation and conservation projects, libraries, and historical preservation initiatives.
Act 50 requires that 15% of the state’s realty transfer tax receipts be put into the Keystone Fund for distribution by the following state agencies:
| State Agency | % |
| Pennsylvania Department of Conservation and Natural Resources (DCNR) | 65% |
| Pennsylvania Historic and Museum Commission (PHMC) | 13% |
| Pennsylvania Department of Education (PDE) | 4% |
| State System of Higher Education (SSHE) | 18% |
DCNR Funding
DCNR receives funding allocated by law for the following uses:
- 30% (of the 15% of the realty tax) goes to the Bureau of State Parks and Bureau of Forestry to rehabilitate and upgrade state park and forestry infrastructure; up to 10% may be granted to organizations and municipalities for rails-to-trails projects and up to 10% may be granted to municipalities for river protection and conservation projects
- 25% is provided as grants for local recreation initiatives, such as ballparks and playgrounds
- No less that 10% is to be provided to land trusts for natural areas and open space planning and acquisition
The funding is managed by two DCNR bureaus: the Bureau of Recreation and Conservation (which allocates money for local recreation, rail-trails, and land trust projects) and the Bureau of Facility Design and Construction (which manages the funds used for parks and forestry improvements).
PHMC Funding
Approximately 20-25% of the Keystone Fund money that PHMC receives is distributed in the form of grants for preservation, rehabilitation, and restoration projects. The remaining funds are used internally to maintain and repair museums and sites owned and operated by the state.
PDE Funding
Library funding is distributed by PDE through a competitive grant process. Grants are available to public libraries and municipalities for structural improvements, accessibility projects, and new construction or renovation projects. There are two types of grants: major grants for projects requesting more than $75,000, and mini grants for projects of $75,000 or less.
SSHE Funding
Distribution of Keystone Fund money to 10 state-owned universities is based on a formula—set by the Board of Regents—that takes into account total enrollment, number of buildings, amount of deferred maintenance at each campus, and other criteria. The 10 universities are the only recipients of this money.
How do I apply for a grant?
All grants are administered by the state agencies responsible for their respective Keystone Fund project areas.
Contact the offices below for information about available funding, eligibility, and application deadlines.
Conservation and Recreation Grants
Pennsylvania Department of Conservation and Natural Resources | Grants Website
Historic Preservation Grants
Pennsylvania Historical and Museum Commission | Grants Website
Library Grants
Pennsylvania Department of Education, Office of Commonwealth Libraries | Grants Website