State Rep. Martin Causer and Senate President Pro Tempore Joe Scarnati have concerns over Gov. Tom Wolf’s proposed budget unveiled Tuesday.
The tentative spending plan proposes to increase spending to $33 billion in the next fiscal year, an increase of $1 billion.
“His proposed budget increases state spending at a time when we should be living within our means, just as working families across our Commonwealth are forced to do,” Scarnati, R-Brockway, said. “The governor’s cuts to health and veterans programs and drastic cuts to agriculture are immensely troubling. As budget discussions advance, we are committed to continuing our goal of balancing the budget without broad-based tax increases and excessive spending.”
Causer, R-Turtlepoint, said he is also worried about Wolf continuing efforts to place a severance tax on natural gas drilling, which Causer calls one of the top industries in rural Pennsylvania.
“He claims Pennsylvania is the only drilling state without a severance tax, but ignores the fact the industry pays impact fees — probably because the bulk of those fees are directed to supporting the needs of communities where drilling takes place, rather than being sent back to Harrisburg for the governor to spend on his programs of choice,” Causer said.
Causer said Wolf is also bringing back his plan to impose a $25 per person annual fee in communities that rely solely on the Pennsylvania State Police for law enforcement services.
That is something that Causer calls an “unreasonable and costly burden for rural communities where the demand for law enforcement services is generally very low.”
He added, “That’s an attack on rural communities. We’re not asking for extra policing. We’re just asking for a basic level of coverage. To pay state taxes and assess a per-person fee is double taxation, and I think that’s wrong.”
Causer said he believes Wolf’s budget is more realistic than what he’s proposed in the past, and added that the governor’s travels throughout some of the rural region last year may have helped.
“I realize it is an election year for the governor, and my impression is he doesn’t want a protracted budget debate,” Causer said.
The proposed severance tax was a point of contention for oil and gas industry representatives as well.
Daniel J. Weaver, president/executive director of the Pennsylvania Independent Oil & Gas Association, said, “Year after year, the legislature has rightfully rejected calls for an additional tax on natural gas production in the Commonwealth. We encourage them to reject this proposal once again, and allow natural gas development and pipeline construction to continue to grow and provide economic opportunities, jobs and energy savings for Pennsylvanians.”
Weaver took issue with the timing of the severance tax proposal, which came the same day as the Department of Environmental Protection announced a “250 percent … increase (in) well permitting fees.”
He called it “more evidence that the Wolf administration is seeking to punish Pennsylvania’s energy producers and job creators.”
Mike Butler, Consumer Energy Alliance’s Mid-Atlantic executive director, called Wolf’s decision to propose an energy tax increase unfortunate, especially with what he called the winter’s record-cold temperatures and higher-than-normal energy bills.
“The tax could send production firms to other states with more attractive tax structures and predictable, reasonable regulation, resulting in a loss of jobs and tax revenue,” Butler said, adding this could lead to price increases being passed on to consumers, which could mean lost business, too.
While there were a lot of concerns raised about Wolf’s proposed spending plan, there were some positive points as well.
Causer said he is encouraged by the focus on education, specifically career and technical education, as well as the need to bring more jobs and economic opportunity to the Commonwealth.
“It’s also encouraging to see the governor is not calling for any broad-based income or sales tax hikes in this year’s plan,” he said.
Dolores McCracken, president of the Pennsylvania State Education Association, said Wolf has made funding Pennsylvania’s public schools the top priority.
“Gov. Wolf knows that investing in our public schools is one of the most important things state government can do,” she said. “He’s said that from the moment he took office, and he’s never wavered in his commitment to Pennsylvania’s public schools and the 1.7 million students who learn there.”
Meanwhile, Attorney General Josh Shapiro said Wolf presented a responsible budget and a positive vision for Pennsylvania.
“It’s clear both the Governor and the Legislature are focused on fighting the heroin and opioid epidemic — Pennsylvania’s number one public health and public safety challenge,” Shapiro said. “The prosecutors and agents in my office will continue working with the Governor and the Legislature to expand our efforts to combat this crisis that claims 14 Pennsylvanians’ lives each day, and I am confident law enforcement will have what we need to protect our citizens.”