Just when Pennsylvania lawmakers look like they will be able to get a state budget in place prior to the end of the fiscal year in almost a decade, GOP lawmakers are sizing up support to make a run at a bill or amendment regarding an impact fee on companies drilling for natural gas in Keystone State.
Because Gov. Tom Corbett wants to wait until the finding from the Marcellus Shale Advisory Commission are finalized near the end of July, a spokesperson has stated he will veto any legislation aimed toward a tax but might be open to a fee. Therefore, legislators have been careful not to attach any such proposals to the state budget, so far.
Voters support a tax or fee upon fracking to help ease the burden of spending cuts being experienced by the $27.15 billion budget. Lawmakers would like to return to their districts for the summer break with a fee in place. However, they clearly have their work cut out for them. At a time when school districts are being asked to lay off teachers and other staff as well as close buildings and engage in several money saving practices, some financial relief from a per-well fee could help.
Because the findings of the Commission are not expected until near the end of July, Corbett wants to make any discussion regarding imposing a fee an issue in the fall. Many lawmakers are conscious of the fact that many voters might be eager to see a fee through, and could eventually vote in a more tax or fee friendly representatives. Currently, Pennsylvania is the only major natural gas producing state without a fee or tax in place.
The interesting part will be what Corbett does if the state House and Senate can get a bill rushed through before the summer break. Since the governor wants to hold off, his own party members might attempt to force his hand.
Still, the spending plan remains the more important piece of legislation, and unless a fracking fee amendment gets attached at some point, the budget should be in place by the end of the week. Lawmakers are preparing for what will be a frantic week of hearings and debates in Harrisburg.
Jason Gallagher is a former travel professional and long-time Pennsylvania resident. These experiences give him a first-hand look at developing situations in the state and everything included in the travel industry from technology to trends.
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