Corbett's Budget Eviscerates Programs, Still No Tax on Gas Drilling

NEPA Politics

Good Evening from Scranton!

It's that time of year again folks! Time for the Governor's annual slash and burn fest! Once again Gov. Tom Corbett (R-Gas Drilling Industry) is just slashing away at every part of the budget that helps out the middle class and the poor while refusing to raise any kind of revenue. That includes enacting a fair severance tax on the natural gas drilling industry, like every other major gas producing state does. Of course, why would he do that when that very industry bought him during his campaign for a cool $1 million?

Once again this year there is expected to be a revenue shortfall. You would think that when you're looking at a revenue shortfall it might be a good idea to, oh I don't know, raise some revenue? Of course Corbett can't do that because he signed that pesky pledge that all those Republicans are signing these days. A pledge that supersedes his oath of office and states that he will never, ever raise taxes no matter what. It's all well and good to pledge not to raise taxes on the middle class and the poor while we climb our way out of this recession, but why not impose a tax on this multi-billion dollar industry that has been raking in huge profits off our land while poisoning our drinking water?

The Governor has an answer to that question. An answer that is completely & utterly absurd. He claims that if we enact any kind of tax on these corporations, that they will leave the state. Where are they going to go? The gas is here. The Marcellus Shale formation that holds this vast reserve of natural gas covers the entire state minus the southeastern corner. Besides, any other state that they could go to to drill has a severance tax, even bright red states like Texas and Oklahoma. Also, considering that we have been called "The Saudi Arabia of natural gas," I highly doubt that these corporations would leave.

They're here to stay, tax or no tax. But, of course they enjoy operating in a tax free environment. That's why they donated a million dollars to Corbett's campaign in 2010. Of course Senate Republicans are also to blame for the lack of a fair tax on the industry. Prior to the election in 2010 then-Gov. Ed Rendell (D-Philadelphia) proposed enacting a severance tax of 5% of the price of natural gas sold plus a fixed charge of $0.047 per thousand cubic feet of natural gas produced (the same as neighboring West Virginia). House Democrats, who controlled the chamber, supported this proposal. Republicans controlling the Senate were opposed, but promised to negotiate in good faith with House Democrats and the administration for a compromise. A deadline was agreed upon. That day came and went. Clearly Senate Republicans had no intention of reaching an agreement and intentionally stonewalled because many polls showed then-Attorney General Corbett comfortably leading Allegheny Co. Executive Dan Onorato (D).

2011 came and Republicans had taken control of the Governor's office as well as the House and had retained control in the Senate. Republicans in both chambers had begun to support the idea of a tax or fee on the industry. Maybe it was because their constituents had finally become fed up with having flammable tap water with methane and other chemicals used in the gas extraction process seep into their drinking wells. Speaking of which, the Department of Environmental Protection under Corbett has just allowed one of these corporations to stop furnishing clean water to a number of families in Dimock Twp. that had their wells tainted. The EPA is now evaluating the situation and may provide water for these families.

Anyway, knowing that Corbett would veto any "tax," the idea of an "impact fee" began circulating throughout the Capitol. Both chambers came up with separate plans to levy fees on individual wells based on how long the well had been operated and how much gas it produced. Both plans are giveaways to the industry, but it would be better than nothing. The chambers have yet to reconcile their differences between their respective bills. The bills differ sharply on how much money the state versus local governments would receive. Corbett actually indicated that he would be open to an impact fee bill, however, he opposes any money going into the state general fund, because that would just be horrible for the state to collect any revenue from this industry while they're tearing up state forests and putting a huge strain on our highway system.

Here's a look at some plans in the legislature compared to other states:

Just visit the Pennsylvania Budget and Policy Center at http://pennbpc.org/severance-tax-ticker if you want to see just how much revenue the state has lost out on because of all of this. Meanwhile, the governor is cutting services on top of cuts to those same services he cut last year. He made drastic cuts to education last year, that disproportionately affected poorer school districts. Then a few months later he gave a speech about how important education is, and then proposed more cuts for this year's budget. Some school districts were forced to raise property taxes as a result. He then tried to push a bill through the legislature to prevent that, basically forcing schools to make draconian cuts. He also cut funding to state universities by a whopping 50% last year with more to come this year.

Corbett is also proposing cutting The Human Services Department Fund by 5% on top of the 37% cut from last year. This would affect programs that provide services for the homebound such as Meals on Wheels. Also affected are literacy programs, parenting classes, youth mentoring, and other family focused services. Corbett, not being a big fan of the environment as I already explained, is proposing another 3% cut on top of a 10% cut from last year for DEP, state parks, and forest bureaus. Also getting the hatchet are organizations that provide legal services to low-income individuals. A 10% cut on top of the 19% cut from last year.

All of these budget cuts are happening while the middle class and the poor are struggling to get by. While average Pennsylvanians work paycheck to paycheck, the natural gas industry makes billions off of our natural resources while contaminating our environment. We have been suffering long enough, it's time for Gov. Corbett to stop catering to the gas industry and start taking care of the people of our state. None of these budget cuts would be necessary if the gas industry were taxed at a fair rate.