Harrisburg – Feb. 11, 2015 – State Sen. Jay Costa (D-Allegheny) issued the following statement concerning Gov. Tom Wolf’s plan to use a new proposed 5 percent gas severance tax to renew Pennsylvania’s investment in public education. The governor unveiled the plan today at an event in Thorndale.
“The governor has made a responsible and balanced proposal to tax the shale industry to help fund education. The connection between the proposed severance tax and educational investments makes sense. The new tax will provide resources that will help reverse the devastating impact of the $1 billion in education cuts made by the Corbett administration that have plagued the education community.
“Investing in education and meeting the needs of schools, students and taxpayers requires new resources. Using the proceeds of a reasonable tax on shale drilling is a policy option that should be explored in detail by lawmakers.
“Pennsylvania’s current impact fee is insufficient and does not help schools and taxpayers. Governor Wolf’s proposed Pennsylvania Education Reinvestment Act is the correct, balanced approach that will generate additional revenues from the Marcellus industry. This reasonable proposal will allow Pennsylvania gas to be competitive in the market and will not overburden the industry.”
According to the governor’s office, the new severance tax proposal is modeled on the West Virginia approach. Wolf’s plan would continue to make payments to impacted communities and they would be held harmless. The plan also includes exemptions for certain wells and protections for property owners who lease land for exploration.