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AVOCA — State Rep. Mike Carroll began his comments with a qualifier — and it’s a big one.
“Assuming we will have the funding necessary, this problem along Mill Creek will be fixed,” said the Democrat from Avoca.
Carroll along with Department of Environmental Protection Regional Director Mike Bedrin and local leaders gathered near the creek to discuss Avoca Borough’s challenges with flood control and how the Restore Pennsylvania infrastructure proposal will help prevent future flooding.
“Like other municipalities across Pennsylvania, Avoca faces a flood control problem, with recurring flooding on Mill Creek bringing damage to local businesses,” Bedrin said. “With the increased frequency of extreme weather, the problem isn’t going away anytime soon. The community needs a lasting solution. Restore Pennsylvania gives us that solution, on the scale we need.”
Restore Pennsylvania, the governor’s $4.5 billion proposal that would be funded through a “common-sense severance tax” to rebuild infrastructure, will increase resources for storm preparedness and disaster recovery.
However, Gov. Tom Wolf faces opposition from a Republican-controlled Legislature that hasn’t budged on a severance tax on natural gas companies for several years now. And when Wolf announced the plan in Wilkes-Barre in late January, Republican leadership in the Legislature didn’t seem to support it.
At the time, they said the governor’s proposal includes three of the worst ways to grow an economy: taxing, borrowing and uncontrolled government spending.
‘Economic, emotional impact’
But Carroll said the initial reaction to the severance tax idea has softened a bit, with “movement” on both sides that could lead to some compromised solution.
Addressing Friday’s news conference, it was noted that Avoca has a history of floods and ice jams near the York Avenue bridge on Mill Creek. DEP dam safety expert Doug Hill discussed a proposed two-part, public-private project to create a floodplain and then raise the bridge and modify the channel.
The floodplain work is underway, with $150,000 in grant support from DEP. But additional funding is needed to support the project’s estimated remaining $1.5 million cost. If passed, Restore Pennsylvania would be able to fund this project and others like it around the state.
Avoca Council President John Boone said Mill Creek has flooded several times in recent years.
“There has been an economic and emotional impact on residents and the borough,” Boone said.
When Wolf was in Wilkes-Barre to outline his plan to re-build critical infrastructure across the state, he said the still-to-be enacted severance tax on the natural gas industry 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.
When asked what alternatives would be considered if lawmakers fail to approve the severance tax, Wolf said, “I don’t know. Three’s nowhere else to get that amount of funding.”
Coalition opposed
Marcellus Shale Coalition president David Spigelmyer issued a statement on behalf of the coalition. He said Pennsylvania already has a tax on natural gas — an impact fee — that generates hundreds of millions annually for critical infrastructure programs.
“This existing annual tax revenue, when combined with other business taxes paid by the industry as well as lease bonuses and royalties tied to natural gas development on state land, has provided nearly $5 billion in revenue since unconventional shale gas development began,” Spigelmyer said. “Imposing additional energy taxes will cost consumers, hurt local jobs, especially among the building and labor trades, and negatively impact investment needed to safely produce clean and abundant energy that’s ushering in a new era of manufacturing growth.”
Since 2011, Luzerne County has received $10.5 million in impact tax revenue — including $1.4 million specifically dedicated to flood control — and $85,000 was granted specifically for Mill Creek channel repairs.