A balanced Pennsylvania budget is due in less than one week. It is an election year. Stakes are high. Can Governor Corbett cut any more funding to public schools, State Universities, social service programs and other public services and have any chance of winning reelection?? Where will the $1 billion shortfall in revenues come from???
More and more it appears that Republican legislators–and perhaps even Governor Corbett–are taking a second look at a statewide natural gas drilling severance tax. The new revenue source would supplant the natural gas industry endorsed “impact fee”. A severance tax is supported by Democratic Candidate Tom Wolfe and almost all Democratic legislators. Every drilling state except Pennsylvania has adopted a severance tax. Now with money tight and an election on the line. Pennsylvania may see some movement on this issue.
Naturally the natural gas industry opposes any such tax. It is on the offensive noting that passage of a severance tax will has a significant impact on fracking in Pennsylvania. Of course only time will tell and with over $2 billion committed to new pipeline construction projects and hundreds of wells already drilled and ready to frack and harvest vast natural gas reserves, it will be interesting to see if a reasonable severance tax has much, if any impact, on the booming new industry in Pennsylvania.
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