Tax and Budget

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.

While the details are different, the basic theme of our analysis of the governor’s budget proposal this year is essentially unchanged from last year and the year before. Once again, Governor Wolf has presented another austere budget that, within the political limits of Harrisburg, makes progress on issues critical to Pennsylvanians. But because of those political limits – and through no fault of the governor – it does not make fast enough progress.

Last year, Mayor Jim Kenney boldly called for the School Reform Commission (SRC) to be disbanded and for control over our schools to be returned to the city. In doing so, he took on the responsibility to pay for schools at a time when growing deficits are expected over the next five years. 

We at PBPC have long argued that the education of Philadelphians shouldn't be a responsibility of the city alone. Not just Philadelphia but the entire commonwealth suffers because the state share of education funding has fallen from almost 50% to less than 35% of total funding.  

Marc Stier, Director of the Pennsylvania Budget and Policy Center, made the following statement following the release of the Trump Administration's proposed federal budget for FY 2019:

 

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