Shale tax comes up dry for 3d year

Pa. remains the only state not tapping extraction of natural gas. Corbett is waiting for a study report.

July 03, 2011|By Amy Worden and Andrew Maykuth, Inquirer Staff Writers
(Page 2 of 4)

The other is Corbett's Democratic predecessor, Ed Rendell. He first proposed a drilling tax in 2009, but pulled back after energy executives convinced him an infant industry needed room to grow.

He tried again in 2010. Unable to secure a tax in the budget that spring, he announced a commitment by legislators to pass one in the fall. The deal collapsed.

"I pushed hard to get a tax," Rendell recalled Thursday. "But it wasn't to be."

Corbett's maiden budget makes deep ($1 billion) cuts in aid to schools and colleges and slices millions from social-service programs that provide job training, health care, shelter, food, and counseling to the poorest citizens.

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Deep cuts were needed, in part, because the temporary infusion of hundreds of millions in federal stimulus funds is ending - a fiscal fact one veteran legislator likened to a precipice.

Sen. Jake Corman (R., Centre), chairman of the Senate Appropriations Committee, said, "We've been living in a fantasy land for the past several years with all the federal money coming down. Putting money that's short term into your annual operating costs leads to a cliff, which we had to drive right off this year."

The ranks of Corbett's own party were not entirely united on the shale issue. Despite his stance against any new tax, some GOP legislators tried last week to push through an impact fee.

That idea never made it to a floor vote, however, having been shot down by Corbett's threat of a veto.

Rep. Marguerite Quinn (R., Bucks) tried to tack on an impact fee by amending the fiscal code bill, a key piece of the budget package.

"I wound up withdrawing my amendment with a clear understanding that the fiscal code would not have gotten the votes it needed or passed the governor's desk," Quinn said.

"What I did get was a commitment from the speaker of the House and from our caucus chair that the shale will get taken up first thing in the fall."

But in a Capitol where the natural-gas lobby has become a formidable presence in recent years, her words have a familiar ring.

A year ago, Rendell announced a deal with lawmakers: They would pass the rest of the budget on time and approve a shale tax in the fall.

Not.

"The legislature promised it would," Rendell said Thursday, "and then reneged on its promise."

And even if a drilling fee or tax gets debated this fall, it will face strong resistance.

House Majority Leader Mike Turzai (R., Allegheny) said the industry had delivered jobs for thousands of recession-weary Pennsylvanians.

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