Budget Watch
In This Issue: 

MarcellusEnacting Marcellus Shale Impact Fee Gains Momentum in General Assembly

Both members of the Senate and House are pushing for passage of a bill that will impose an impact fee on natural gas drillers operating in the Marcellus Shale region.

 

In the Senate, the Senate Resources and Energy Committee approved S.B. 1100. The bill is expected to be considered by the full Senate next week.

 

As amended by the committee, S.B. 1100 would impose a 10-year fee schedule. The fee would be $40,000/well in the first year and drop to $10,000/well in the tenth year, with no fee in the eleventh and subsequent years.

 

It is estimated that the fee would generate $70 million in revenue in the first year and $757 million over the first five years.

 

The revenue would be collected by the Public Utility Commission and a majority of it would be designated to support the infrastructure of towns, cities, and counties in the Marcellus Shale region.

 

No funding received from the fees would be invested in the state general fund to decrease the drastic education, health care, and human services funding cuts being proposed in spending plan for the upcoming fiscal year

(July 1, 2011 - June 30, 20012).

 

In the House, Rep. Quinn (R-Bucks) has introduced H.B. 1700, which also mandates an impact fee. Like the Senate proposal, Rep. Quinn's proposal also does not designate any revenue to the general fund.

 

Driving action on imposing a fee on the natural gas wells in the Marcellus Shale Region is a Quinnipiac University poll released this week that showed Pennsylvanians strongly support (69% to 24%) a tax on natural gas drilling. To read the poll findings, click here.


Budget2Budget Bill Begins Moving Through the Senate

On Tuesday, the Senate Appropriations Committee agreed to H.B. 1485 (the House approved spending bill) without any amendments. 

 

By Senate rules, the Senate is required to consider the bill on three separate days. The bill is now on the Senate calendar for second consideration. It will likely be considered a second time and referred back to the Appropriations Committee to be amended.

 

AdvocatesAdvocates Supporting Multiple Issues Push For More State Spending 

As state elected officials race to finalize the budget by June 30, many groups are raising concerns about proposed funding cuts.

 

The Save Our Homes Coalition joined the Philadelphia Court of Common Please Mortgage Foreclosure Steering Committee in holding a press event to urge Governor Corbett and members of the General Assembly to continue funding the Homeowners' Emergency Assistance Program (HEMAP) in the fiscal year 2011-12 spending plan.

 

Members of the Service Employees International Union (SEIU) held umbrellas and sang "It's Raining Now! Spend the Surplus!" at the state capitol on Thursday. The participants were sending the message that the state revenue surplus of over 1/2 billion dollars should be spent now and not put in a Rainy Day Fund.

 

Representatives from ADAPT held an overnight protest against budget cuts to disability services last Monday.

 

SchoolCity Council Approves Plan To Raise $53 Million For School District

At the committee level, Philadelphia City Council approved a plan, primarily based on a 1-year, 3.85% property tax, to generate $53 million in revenue for the School District. The plan would also use funds from the city's surplus and raise parking meter rates, to raise $53 million to contribute to the Philadelphia School District's $629 million budget hole. A final vote on the plan is scheduled for Thursday.


The following are stories and links from across Pennsylvania, and the country, that provide additional information on local, state, and federal funding and spending plans.
 

(Click to View Article)    

Enacting Marcelus Shale Impact Fee Gains Momentum in General Assembly

Pittsburgh Post-Gazette, June 15, 2011

Senate panel OKs impact fees on shale gas wells 

 

Bloomsburg Business Week, June 15, 2011

Drilling impact fee bill heads to Pa. Senate floor 

 

The Pennsylvania Budget and Policy Center, June 15, 2011

Comparing Rep. Quinn's Marcellus Drilling Fee to Other Plans 

 

Scranton Times-Tribune, June 15, 2011

Poll: Strong support for drilling Impact fee looms larger in budget debate 

 

Budget Bill Begins Moving Through the Senate

You Tube, PA Budget News, June 16, 2011

House Speaker Sam Smith: This Will Be A Tough Budget 

 

Allentown Morning Call, June 14, 2011

Mid-Afternoon Budget Update 

 

Erie Times-News, June 14, 2011

Pennsylvania budget likely to pass on time this year 

 

Advocates Supporting Multiple Issues Push For More State Spending

Harrisburg Patriot-News, June 16, 2011

Singing demonstrators tell Pennsylvania lawmakers to spend surplus to lessen budget cuts 

 

You Tube, June 16, 2011

"It's Raining Now" flash mob at the Capitol

 

Harrisburg Patriot-News, June 14, 2011

Disability rights activists cited for camping during protest of Pennsylvania budget cuts

 

City Council Approves Plan To Raise $53 Million For School District

Philadelphia Inquirer, June 19, 2011

How Philadelphia's City Council decided on a property-tax boost

 

Philadelphia Daily News, June 17, 2011

Council votes to raise property taxes 3.85%

 

Philadelphia Inquirer, June 17, 2011

Philadelphia City Council looks set to raise property tax to help schools

Issue 8
June 6 -June 19, 2011

 

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Budget Watch a publication of the Urban Affairs Coalition. provides information on and analysis of local, state and federal budget processes. We take a close look at funding proposals and, when appropriate, cuts made in the current (fiscal year 2011) and previous fiscal years and their impact on clients, nonprofit organizations, service provides, and communities.

 

Founded in 1969, the Urban Affairs Coalition unites government, business, neighborhoods, and individual initiative to improve the quality of life in the region, build wealth in urban communities, and solve emerging issues. Visit us at www.uac.org or contact us here.

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