The state legislature’s “Budget season” officially starts with the Governor’s budget address on February 7. The state still faces difficult financial times, with no easy answers in sight.
Pennsylvania collected $2.2 billion in General Fund revenue in January, which was $10.4 million, or 0.5 percent, less than anticipated, Secretary of Revenue Daniel Meuser reported today. Fiscal year-to-date General Fund collections total $13.8 billion, $497.2 million, or 3.5 percent, below estimate.
Senate President Pro Tempore Joe Scarnati is still hopeful that a deal on natural gas severance fee can be reached this month, and many organizations are pushing for a tax to be enacted to help carry the state’s financial burden.
According to a report recently released by the Pennsylvania Budget and Policy Center, the state has lost more than $300 million in revenue since 2009 by not passing a tax on natural gas production.
The tax and budget policy research nonprofit said its drilling tax ticker breached the benchmark on Monday. The ticker uses monthly well-drilling reports to calculate the average total production and estimates taxes lost based on the 5 percent tax proposed by former Gov. Ed Rendell in 2009, as well as the 4.7-cent fixed surcharge per 1,000 cubic-feet of gas produced.