Pennsylvania Passes Budget with No Fees on Gas Extraction

Pennsylvania’s Republican-controlled state legislature gave final approval on Wednesday, June 29th to a $27.15 billion budget that will cut spending by three percent from the current fiscal

PA State Senator John Yudichak. Photo courtesy of CitizensVoice

year. The budget, which does not include any tax increases, would cut about $860 million, a 13% reduction, from public schools and scale back funding considerably for public universities, lawmakers said.  No Democrat from either house voted in favor of the budget.

The budget that does not include a tax on gas production.  Pennsylvania remains the only state of 15 major gas producing states to have neither a severance tax or drilling fee on gas producing industry.  A Quinnipiac poll in June 2011, showed that those polled support, 69 percent to 24 percent, a new tax on companies drilling for natural gas. Even 69 percent of Republicans polled support such a tax.

Governor Tom Corbett campaigned on a platform of no taxes on Marcellus shale and has stuck to that campaign promise in his proposed budget, and the legislature follows suit. Corbett collected $835,720 in contributions from gas interests according to Common Cause/Conservation Voters of Pennsylvania study.

State Senator John Yudichak (D-14th) says the issue is not dead, and that the legislature will address the issue of Marcellus tax or fees this Fall.  Yudichak, a strong voice for a Marcellus Shale Impact Fee or Severance Tax, also stated that he is disappointed the legislature failed to enact a fair and responsible fee on natural gas drilling, which would have significantly helped address adverse environmental issues associated will drilling.

Continue reading on Examiner.com Pennsylvania Budget passes without a Marcellus tax or fee – Scranton Public Policy | Examiner.com http://www.examiner.com/public-policy-in-scranton/yudichak-on-budget#ixzz1QrneZ57l