Like most states across the country, Pennsylvania is need of major infrastructure upgrades. This week, Governor Tom Wolf announced his budget, which included a plan to restore and upgrade infrastructure across the state.
His budget included $4.5 billion for “impact projects” throughout Pennsylvania, including high-speed transportation and internet, over the next four years, but the cost would be covered by a proposed severance tax on natural gas drillers and not everyone supports that proposal.
This shale tax is something Wolf has tried in the past, according to The Philadelphia Inquirer, which says the state’s Republicans immediately opposed the Democratic governor’s plan and said it would adversely impact the drilling industry in the state.
Pennsylvania currently imposes an impact fee on shale gas wells but does not tax the amount extracted. The fight over the tax could delay the budget from passing and the money from getting to the infrastructure projects where it is needed.