Tax and Budget

Gov. Tom Wolf presented his 2019-20 State Budget Proposal on February 5th, 2019.  The Pennsylvania Budget and Policy Center will be posting analysis, infographics and related documents on this page as they become available. Check back often for the latest updates.

The Pennsylvania Budget and Policy Center released the following statement from Director Marc Stier regarding today's release of the Independent Fiscal Office’s (IFO) Five-Year Economic and Budget Outlook for Pennsylvania:

HARRISBURG — The Pennsylvania Budget and Policy Center released the following statement from Director Marc Stier on the study, “Pennsylvania: A 21st Century Tax Code for the Commonwealth,” released today by the Pennsylvania Chamber of Business and Industry.

In 2014, Pennsylvania became the second-largest natural gas producer in the U.S. and remains so today, behind only Texas.  In 2017, gas production exceeded 5.3 trillion cubic feet and continues to rise. Despite rising production, Pennsylvania remains the only major gas-producing state that allows companies to drill without paying taxes that increase with the volume of gas extracted. 

A new statewide poll shows that a lack of state funding for public education is at odds with the priorities of Pennsylvanians of all political persuasions.

A response to some of the most frequent criticisms of intituting a severance tax in Pennsylvania. 

Natural gas drillers pay between 7-37% less in corporate net income taxes than they did at the beginning of the boom (2011-12) despite a quadrupling of the amount of gas drilled in PA.

Updated 6/5/18 by PBPC Policy Analyst Diana Polson.

The General Assembly has begun working on the budget for 2018-19 based on Governor Wolf’s budget proposal. So, this is a good time to look at the governor’s proposals in light of the recent history of funding for education in our state.

Governor Wolf’s budget would finally restore (in nominal dollars) the deep cuts to K-12 classroom funding made by Governor Corbett in 2011-12, which is a noteworthy accomplishment. However, inadequate funding and deep inequities still remain in our school funding system. Also, Governor Wolf continues to prioritize early education funding. His proposal this year, if enacted, would nearly double Pre-K funding since 2014-15. A signature focus of Governor Wolf this year is a substantial investment in Career and Technical Education and workforce development, with the aim of providing high school and post-secondary youth with critical STEM and other technical skills that can lead to good paying jobs.

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