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No Action: House Members Wrestle With Severance Tax, Transportation Funding Proposals
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Faced with only three weeks of voting session until the Senate adjourns for the year, House Democrats attempted to get organized this week by having a lively caucus to discuss adoption of a Marcellus Shale natural gas production severance tax and a transportation funding proposal. They promptly disagreed and left town after canceling one of their three voting days this week.
Severance Tax
The natural gas severance tax is clearly the golden goose and everyone is trying to get their share of the revenue for their own pet programs.
Key legislators like Rep. David Levdansky (D-Allegheny), Majority Chair of the Finance Committee, Rep. Bud George (D-Clearfield), Majority Chair of the Environmental Committee and Rep. Bob Freeman (D-Lehigh), Majority Chair of the Local Government Committee, held a press conference Monday with environmental and sportsmens groups urging the adoption of House Bill 1489 (George-D-Clearfield).
Their proposal would allocate revenue in nine different directions: 60 percent for the General Fund to balance the budget, 15 percent – Environmental Stewardship Fund (Growing Greener Program); 5 percent – Liquid Fuels Tax Fund (local governments any where); 4 percent – Hazardous Sites Cleanup Fund; 4.5 percent – distribution to municipalities where drilling occurs, for certain purposes; 4.5 percent- distribution to counties where drilling occurs; 3 percent – LIHEAP heating assistance; 2 percent – Game Commission; and 2 percent – Fish & Boat Commission. Other legislators want to put more money towards balancing the budget, additional property tax relief, increased funding for school districts and many other worthy causes.
There was no agreement on a proposal among House Democrats and House Republicans remain opposed. Nevertheless, House Democratic leaders have set aside Monday as "severance tax day" to debate the issue.
Transportation Funding
Meanwhile some other House Democrats seem to be pushing a $1.2 billion transportation funding bill-- Special Session House Bill 8 (D.Evans-D-Philadelphia) or House Bill 1800 (D.Evans)-- which would raise revenue by adopting an 8 percent oil company profits tax, increasing the existing oil franchise tax by 52 mills per gallon (about 6.5 cents per gallon of fuel), increasing vehicle and driver registration, licenses and vehicle inspection fees and authorizing public/private partnerships to create more toll roads.
The bill would provide $501 million in transit funding and $785 million in highway and bridge funding.
The fact the bill went to the House Appropriations Committee and bypassed the House Transportation Committee raised concerns among Democrats, but especially Republicans who cried foul saying the Democrats are always willing to violate the rules to get their way.
A spokesperson for Senate Republicans said again this is an issue best left for next session, not for the last few days of the voting session this year. They also repeated the Senate will not be returning to voting session after the November elections.
The House Appropriations Committee is due to consider the Democrats' transportation funding bill on Monday and Leadership has set aside next Tuesday for debating transportation funding issues, at least that the plan.
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9/20/2010 |
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