Just say no
When Tom Wolf was running for governor two years ago, he ran a campaign largely based on his promise to institute a severance tax on Marcellus shale and use that money to improve the state’s public school system.
Voters bought into that plan, electing Wolf by a 20 percent margin over Republican incumbent Tom Corbett.
Last November with state government in the middle of its longest budget deadlock ever, a Franklin & Marshall College poll revealed that 67 percent of those polled supported a tax on Marcellus shale.
But the budget last year was passed without a Marcellus shale tax, and it appears very likely that this year’s spending plan will be approved without the measure.
After proposing an increase in the sales and income taxes along with a Marcellus shale tax in his budget address last February, Wolf has now backed off those plans, saying such broad-based tax increases won’t be necessary to fund this year’s budget.
So, what’s happened to plans for a Marcellus shale tax, which has had so much support from the public? Well, the main reason is staunch opposition from Republican lawmakers who control both the state House and Senate. In fact, that was one of the reasons for the budget deadlock last year, which turned into the longest such stalemate in the state’s history.
At one point, Wolf even cut his proposed severance tax in half, but it was still rejected by GOP lawmakers. Wolf now is apparently bowing to political reality by taking the tax off the table in this year’s budget talks. Whether directly related or not, he’s also cut back on a request for additional education funding from $350 million to $250 million.
In speaking out against the Marcellus shale tax, Republicans contended the industry has been hit hard by steep declines in natural gas prices with drilling halted in many wells across the state. They maintained that a severance tax would cripple the industry in Pennsylvania, forcing companies to look elsewhere for Marcellus shale.
While there’s no doubt the industry has suffered financially over the past year, it’s interesting to note that the fiscal woes didn’t stop oil and gas companies from spending $8 million on lobbying the state Legislature last year, according to Common Cause/Pa, a nonpartisan government reform group.
Of that amount, the report said $511,595 went to Republican candidates and PACs, while $186,600 went to their Democratic counterparts. Top recipients were Senate President Pro Tempore Joe Scarnati, $83,200; House Majority Leader Dave Reed, $42,100; and Senate Majority Leader Jake Corman, $35,500. All are Republicans. The leading Democratic recipient was Allegheny County Executive Rich Fitzgerald, who received $32,000.
Overall, the report said the oil and gas industry has spent $55.9 million on lobbying since 2007.
If nothing else, the contributions point out the weakness in the state’s campaign finance laws, as Pennsylvania is only one of 11 states without any limits on campaign donations.
“We really have to join the other states, which have recognized the power of political money and the influence it can have on determining public policy,” said Barry Kauffman, executive director for Common Cause/Pa.
Of course like a severance tax on natural gas, don’t look for any changes soon in the state’s campaign finance laws. Coincidence or not, the proposed changes have always been solidly opposed in the past by Republican lawmakers.