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Marcellus Shale

Expect “Impact Fee” Debate This Fall

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The governor’s Marcellus Shale Advisory Commission has voted to recommend it, and the industry even endorses it.  “The industry and the Marcellus Shale Coalition has been very clear of its support of an impact fee that’s competitive, that’s styled to address the un-met needs of local governments,” said Marcellus Shale Coalition president Kathryn Klaber. 

Klaber stressed that the Marcellus Shale Coalition supports a “competitive” impact fee, citing a new study of the economic impacts of the booming Marcellus Shale industry.  “What we’re seeing in this study are some very large numbers in terms of economic activity and tax benefits… and we wouldn’t want to change that mix so much that we’d be thwarting the kind of investment that this study highlights.”

joe scarnati, SB 100, marcellus shale

Senate President Pro Tem Joe Scarnati has Already Introduced Impact Fee Legislation

Asked about the prospects of an impact fee on Thursday, Senate President Pro Tem Joe Scarnati (R-Jefferson) said further discussions are needed.  “I’m open to ideas, but certainly I want to see as much driven back to where the drilling activities are.  Impact fee is certainly an appropriate name for what we’re trying to address here,” Scarnati told reporters.  He does acknowledge, however, that it would be difficult to pass an impact fee bill, which doesn’t provide some money for statewide environmental projects. 

While the stars appear to be aligning in favor of an impact fee this fall, not everyone is one board.  “The local impact fee is too narrowly conceived.  There are impacts of natural gas drilling that fall well beyond communities that actually have natural gas wells,” said Sharon Ward, director of the Pennsylvania Budget & Policy Center.  Ward supports a broader severance tax, and so do House Democratic leaders.  They’re backing a new bill that would tax gas producers 30-cents per 1,000 cubic feet of natural gas severed. 

However, Governor Tom Corbett has made it clear that he will not sign a severance tax.  He’s previously left the door open for an impact fee – as long as no money is used for the General Fund – but has not commented publicly on the advisory commission’s recommendations.  The Marcellus Shale Advisory Commission’s final report is expected to be released on Friday.

Capitol Rotunda - Facing House Chamber

Largest State Workers Union Approves New Contract

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The state’s largest employees union has approved  a new contract calling for some concessions.  Members of the American Federation of State, County and Municipal Employees Council 13 voted to approve the contract with the state by a 4 to 1 margin.

David Fillman, executive director, says members did lose a couple of sick days and there’s a wage freeze in the first year, but all totaled for the four year contract, it’s a very fair contract.  Fillman says it’s fair not only for the employees, but also fair within the confines of the economic situation today and the budgets as we go forward. Members will also have to contribute more to the cost of their health care benefits.

The four year contract does call for wage increases in the final three years.  Fillman says it’s four years of labor peace and they can live with that.  AFSCME represents about 45,000 state employees.

The Service Employees International Union Local 668 is still voting on a new state contract. The union represents about 10,000 state workers and they are voting by individual ballots.  Those ballots are due by mail or to their chapter by August 9th. 

The Corbett administration reached deals with the two unions in late June, after requesting concessions in the face of a difficult budget.

Governor Corbett’s Transportation Funding Advisory Commission Votes on Recomendations

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The final report of the Transportation Funding Advisory Commission is due to the Governor on August 1st. The panel voted Monday on a series of recommendations, including changes in fees and fines for drivers and uncapping a tax on oil companies. The goal is to fill a transportation funding gap, and develop more predictable funding to fix roads and bridges and pay for mass transit.

The commission recommends raising the driver’s license and vehicle registration fees to reflect inflation.   PennDOT spokesman Dennis Buterbaugh says whenever the fee is set, it can take another 10, 15, 20 years before they look at the fee again to see if it needs to be adjusted.  The recommendation calls for a 3% annual adjustment for inflation for many of the fees.

The commission is also suggesting some cost savings measures, such as biennial registrations and 8 year driver’s licenses.  This would cut registration and licensing paperwork in half and result in annual savings to the state.

The commission is calling for the cap to be removed from the Oil Company Franchise Tax.  For the average drivers, that could mean about $132 more a year out of pocket after the change was phased in over five years.   But Buterbaugh says those figures assume the entire change in the tax would be passed on to drivers, and the last time the fee was raised, almost none of it was passed along.

The commission has also recommended a number of fund transfers and other efficiencies.

The panel’s goal was to find $2.5 billion dollars in recurring annual revenue for transportation.

State Transportation Secretary Barry Schoch, who chaired the commission, says none of the recommendations should come as a surprise to the Governor. He says Governor Corbett will review each carefully when he receives the final report.  Schoch says the Governor put the charge out to them, saying transportation is important to him and he wants to know how to finance it.

Airedale Terrier

Governor, First Lady to Welcome “First Pets”

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Governor Tom Corbett and his wife Susan can hardly wait to hear the pitter-patter of little paws at the Governor’s Residence.  “We have two Airedale puppies coming.  We’ve had Airedales, three of them so far.  Right now I call them four and five,” Governor Tom Corbett tells us.  Without names for the pups, the Corbetts are turning to the children of Pennsylvania for some assistance.  “We’ve received a number of entries so far.  There are some cute entries, and then there are some adults writing in as kids,” Corbett quipped. 

Suggestions can be made online or mailed, but must be received by next Monday, July 25th.  The two kids who submit the winning puppy names will receive an autographed photo of the Governor, First Lady and “First Pets.” 

Governor Corbett says there are a few names that are already out of the running:  “Maggie was the first Airedale, Fergie was the second Airedale, and Daisy was the one that we had as Attorney General.  She lived to be about ten and a half, and she died back in November of 2009.”

Appearing on “Ask the Governor,” Corbett discussed his dogs, both new and old.  “It’s the largest terrier of the terrier breed.  They’re black and tan.  Right now, as puppies, they look like little black bears,” Corbett said of the Airedales.  “They were messengers in World War I, they’re police dogs in England.  They are great dogs; very loyal,” Corbett explained. 

Airedales are also known as skilled hunters.  “There won’t be any groundhogs at the Governor’s Residence, I can guarantee you that,” Corbett joked.  

(Photo credit: Mary Bloom, copyright AKC)

Governor Corbett’s Marcellus Shale Commission Endorses an Impact Fee

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The Governor’s  Marcellus Shale Advisory Commission is recommending an impact fee that directs money to local governments to deal with the effects of drilling. Lt. Governor Jim Cawley, who headed the commission, says it does not recommend what the fee should look like or how it would be distributed. He says they believe that’s a matter that best resides in the legislative process.

Cawley says their charge from Governor Corbett was to determine whether or not there were uncompensated impacts that might require an impact fee.  He says in some cases they found that there are.  He says what that fee what look like is a matter for the administration and legislature to tackle.

Cawley called the report the “end of the beginning.”  He says the document will be a recommendation to the Governor.  No work begins until he says go. A final written version of the report based on Friday’s voting was being prepared to present to the Governor.  It will be made public on July 22nd.

The panel also recommended a new look at the 1961 law regulating gas extraction, to revisit language barring “forced pooling” of Marcellus gas. Patrick Henderson, the governor’s energy executive, says other formations are subject to pooling under that law, including the Utica Shale. Forced pooling could compel a landowner to lease out mineral rights if most of their neighbors have agreed to leases.

The report of the commission comes after a series of meetings that began in late March. The commission also made a number of other recommendations regarding

Lt. Gov. Jim Cawley

Lt. Gov. Jim Cawley

emergency response and economic and workforce development related to the Marcellus Shale boom.  A number of the recommendations will require legislative action.

Thank you, Pennsylvania and Keep Those Emails Coming!

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    This week, we wrapped up our second “Ask the Governor” taping with more fabulous questions from our Radio PA listeners and followers of PAMatters.com. First off, THANK YOU! We launched “Ask the Gov” to provide a conduit between you and your state government and the response has been fantastic. We should also thank Governor Tom Corbett for his time and efforts in giving us this monthly opportunity to interact. 
    The vast majority of questions emailed in so far have been topical, intelligent and sincere. I only wish we had time enough each month to get to each and every one while we have the governor in the studio. If you do not hear your question in a program, it doesn’t mean we ignored you. It’s possible that we just didn’t have time or we’re saving your question for a future taping. Suffice to say, we’ll get to as many as we can in each show, so keep them coming.
    Submitting a question is as simple as clicking on the Ask the Gov link at the top of the PAMatters.com page. Make sure you include your name and town. The one rule we have is: no anonymous questions.
    Our next taping with Governor Corbett is scheduled for August 11th. We plan to spend more time on Marcellus Shale issues preview the big items on the fall legislative agenda.
    In the meantime, keep checking back with us for the latest news from the state capital and around Pennsylvania, and check us out on Facebook and Twitter (@PAMatters).

 

Governor Tom Corbett Defends Education Budget

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The new state budget has been in place for about two weeks now, but its impact on public schools is still being sorted out.  “We don’t know yet how many teachers wound up being furloughed, and how many program cuts, so we’re trying to gather that information,” says Tom Gentzel, executive director of the Pennsylvania School Boards Association (PSBA). 

Governor Tom Corbett points out that state education funding has actually increased.  “When it comes to the basic education formula, we actually increased it over the 2008/2009 level,” Corbett said on Radio PA’s monthly “Ask the Governor” program.  He places blame on the prior administration for cutting school funding from the state, only to back-fill with federal stimulus money.  “That money is gone,” Corbett concluded. 

By balancing their budgets with federal stimulus money, Corbett says many school districts set themselves up to fall off this funding cliff.  At least one school district got it right though, according to Corbett.  He singled out Northern Lehigh School District on the program.  “They did not take the federal money and put it into their basic funding formula.  They haven’t laid anybody off, they haven’t cut any classes, they were – in my opinion – responsible in that.” 

However, the PSBA’s Tom Gentzel stresses it was the legislature who put the federal money into schools’ regular appropriation.  “So this wasn’t just a decision on the part of school districts… it was a part of the state funding for education,” Gentzel explains.  He adds that school districts are feeling the pain beyond the basic education funding line item. 

When including the federal stimulus money, basic education funding was trimmed by about $400-million dollars (though Governor Corbett was correct when he said the state’s share increased).  The Accountability Block Grants, which fund full-day kindergarten programs, were cut by about $150-million dollars.  Completely eliminated was the reimbursement of charter schools.  That line item received more than $220-million dollars last year.

PA School Districts

Will Act 1 Changes Give Voters Greater Say?

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State lawmakers’ last act before the summer break was to send Governor Tom Corbett a bill to limit the Act 1 exceptions that allow school districts to raise property taxes above the rate of inflation, without a voter referendum.  Governor Corbett called it an essential bill of the budget season, and managed to cajole lawmakers into a compromise. 

Governor Tom Corbett

Gov. Tom Corbett Visits With Students at Nativity School in Harrisburg

Appearing on Radio PA’s monthly “Ask the Governor” program, Corbett said the compromise should help keep school district spending under control.  Would he sign a bill to further reduce the remaining exceptions?  Yes.  “But, let’s take that half a loaf that we have right now and see how it’s working,” Corbett says.  The new law will take effect in July 2012. 

Pension costs represent one of the big exceptions that lawmakers ultimately kept in the Act 1 law.  Corbett says the pension woes were created by years of underfunding.  “There are a lot of sins of the past that are being paid for now, by everybody,” Corbett adds. 

Franklin & Marshall College political science professor Terry Madonna says it remains to be seen whether this new law will truly give PA taxpayers the chance to vote on property tax increases above the rate of inflation.  “One of the things that will play out will be whether or not this law… with two exceptions, whether those exceptions are meaningful,” Madonna tells us. 

As Governor Corbett awaits the opportunity to evaluate the law’s success, he notes that taxpayers are also the first line of defense against out-of-control school spending.  “We’re in a municipal [election] year,” Corbett says, emphasizing taxpayers’ ability to elect their school board members. 

Many school officials are already concerned that the new law will lead to additional reductions in educational programming.  They know it’s difficult to convince voters to approve any hike in property taxes.

New Law Holds Drug Dealers Accountable

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One of the 46 new laws that Governor Tom Corbett signed, on Thursday, will reclassify the offense of drug delivery resulting in death.  The Pennsylvania District Attorneys Association (PDAA) tells us a 2005 state Supreme Court decision tied prosecutors’ hands by requiring that they prove the drug dealer acted with malice.  “It became almost impossible to prove because it was a two-party transaction and one of the parties was dead, and unable to testify as to what was going on,” says PDAA executive director Richard Long. 

Now, if you sell – or otherwise provide – illegal drugs to a person who dies a result, you would face a first degree felony.  The maximum penalty is 40 years behind bars.  “Obviously we think that is more in line with the gravity of the crime that has been committed,” Long tells us.  The new law takes effect in 60 days. 

Bath Salts

A Statewide Ban on "Bath Salts" was Signed Last Month

Combined with the new ban on bath salts and other synthetic drugs, Corbett’s signature on HB 396 makes it the second of the PDAA’s priorities to be enacted in the past few weeks.  They hope lawmakers will vote to close several Megan’s Law loopholes in the fall.

Among the several dozen other new laws signed this week is SB 101, which will increase the penalties for public officials who violate the open meeting requirements of the Sunshine Act.  SB 260 will bring Pennsylvania in line with Centers for Disease Control recommendations that call for HIV testing to be a part of routine medical care (though you can still opt out). 

Finally, another ‘blue law’ bites the dust.  Thanks to SB 419, you’ll soon be able to buy a motorcycle on Sunday.

State Capitol Facing North Office Building

PA’s Industry Partnerships Program Now Permanent

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The Industry Partnerships program attempts to match skilled workforce training to the industries and jobs that exist in the Keystone State.  Supporters say it will help to fill the gap that exists between the skills employers need and the skills that are available in the workforce.  “There’s nothing worse in the world than to train somebody for a job that doesn’t exist,” says Tony Ross, president of United Way of Pennsylvania.  Ross says that Governor Tom Corbett’s signature on SB 552 codifies the program, thus improving its long-term viability.

Mike Brubaker

State Sen. Mike Brubaker (R-Lancaster)

The program dates back to 2005, and the Department of Labor & Industry reports that some 118,000 people have received training since that time.  “More than 6,300 businesses have taken part in more than 80-partnerships throughout the state,” adds State Senator Mike Brubaker (R-Lancaster).  Brubaker was the prime sponsor of SB 552.  Pennsylvania’s Industry Partnerships program is also becoming a model for the rest of the nation. 

The new state budget includes about $1.6-million dollars for the program’s administration.  Tony Ross tells us another of the benefits is that it covers such a broad swath of industry.  “Everything from health care, to manufacturing, to Information Technology – you name it – any industry can access this opportunity.”

Both the State House and Senate voted unanimously to make the Industry Partnerships program permanent.  Governor Tom Corbett signed it – along with 45 other new laws – on Thursday.