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WILKES-BARRE — Using the backdrop of the Luzerne County Emergency Management Agency, Gov. Tom Wolf on Thursday outlined his plan to build critical infrastructure across the state.
Appropriately called “Restore Pennsylvania,” the governor’s plan would be funded by a still-to-be enacted severance tax on the natural gas industry. Although the governor claims to have bipartisan support, Republican leadership in the Legislature has already questioned the plan.
Wolf called it a massive rebuilding plan funded by a “modest severance tax” that would generate $300 million per year that he would use to pay down about $4.5 billion in bonds. Wolf, who noted Pennsylvania is the only gas-producing state without a severance tax, said the funding would be used to prevent flooding, eliminate blight, and expand broadband to all Pennsylvanians.
“Over the past four years, my administration has worked hard to improve our infrastructure and build strong, stable communities across the commonwealth,” Wolf said. “We’ve made progress, but we still have more work to do.”
When asked what alternatives would be considered if lawmakers fail to approve the plan, Wolf said, “I don’t know. Three’s nowhere else to get that amount of funding.”
Sen. John Yudichak, D-Nanticoke, said there is Republican support in the Senate, but getting the proposed bill through the House would be a challenge. He said the difference with this plan is that it removes the severance tax from the state budget process.
“It would be an uphill battle in the House,” Yudichak said. “’Restore Pennsylvania’ is a bold and innovative plan to inject billions of dollars into infrastructure projects across the commonwealth through a fair severance tax.”
‘Time has come’
Wolf said projects would be driven by local input about local needs.
The initiative would provide funding to completely bridge the digital divide and for flood prevention that would protect against severe weather and save homes and businesses in flood-prone areas. Towns and cities could upgrade floodwalls and levees, replace high-hazard dams, and conduct stream restoration and maintenance.
Yudichak said the governor’s idea is a far better plan than having to rely on a fragmented patchwork of local taxes and fees.
“Representing Luzerne County over the last two decades, I have consoled many families who lost their homes to natural disasters,” Yudichak said. “I’ve had to deliver the bad news that FEMA was not going to rebuild their homes or their roads because the disaster did not meet federal thresholds.”
Yudichak said a growing number of Democrats and Republicans understand “we can no longer ignore our public infrastructure.”
“Restore PA is not a Democrat or Republican idea — it’s a good idea — an idea whose time has finally come,” said the lawmaker.
GOP leaders respond
House Republican leaders don’t seem sold. They issued the following statement:
“The governor’s proposal includes three of the worst ways to grow an economy: taxing, borrowing and uncontrolled government spending.
“While improving Pennsylvania’s aging infrastructure is a shared goal, it cannot come at the expense of the Commonwealth’s economy and taxpayers.
“Unfortunately, the governor has not included the General Assembly in the development of this proposal. If he had, he would know that there are not enough votes to enact a new energy tax, borrow billions of dollars and spend monies on more government programs.”
