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WILKES-BARRE — Sens. John Yudichak and Tom Killion have introduced the bipartisan Restore Pennsylvania legislation as Senate Bill 725 — aimed at getting approval of Gov. Tom Wolf’s infrastructure initiative that would be funded by the monetization of a severance tax on the state’s natural gas.
According to Wolf’s plan, Restore Pennsylvania would inject $4.5 billion over the next four years in infrastructure projects across the Commonwealth. In January, Wolf first outlined his Restore Pennsylvania proposal at a news conference in Luzerne County.
However, House Speaker Mike Turzai, R-Allegheny, issued a statement Thursday saying Wolf’s Restore PA plan would more likely destroy Pennslyvania.
Yudichak, D-Nanticoke, and Killion, R-Chester/Delaware counties, said they are proud to stand with the governor in support of Restore Pennsylvania.
“This is a bipartisan proposal that imposes a responsible severance tax on natural gas that can fund much needed public infrastructure projects in every Pennsylvania county,” Yudichak said. “Passing Restore PA will create a 21st century infrastructure system that enhances our roads, our flood and storm water management systems as well as expanding access to essential broadband internet services that improve public safety, health care access, and economic development opportunities for under-served communities throughout Pennsylvania.”
Killion said well-working infrastructure is critical to the economy and job growth.
“Pennsylvania is the only major gas-producing state that doesn’t tax that finite natural resource,” Killion said. “Restore Pennsylvania will revolutionize how critical infrastructure projects are funded, and I am proud to work with the governor and my colleagues in the legislature to get this done for our communities and working families.”
In an emailed statement, Wolf said Restore Pennsylvania offers a real opportunity to make impactful infrastructure investments in Pennsylvania.
“Restore Pennsylvania is the only plan presented that can actually address the needs in every community,” Wolf said. “We have an opportunity to provide all of our students internet access, an opportunity to help our municipalities truly address the crippling effects of blight, an opportunity to help families devastated by flooding when the federal government turns its back on them, and so much more. We need to seize this opportunity for all Pennsylvanians.”
Turzai’s take
Turzai called Restore Pennsylvania “a $4.5 billion, debt-financed slush fund to be allocated at the whim of a new government board and paid for by yet another job-killing tax on the natural gas production industry.”
Turzai said Wolf has embarked on a very public and campaign-style tour of the commonwealth, promising communities a laundry list of new infrastructure projects conditioned on the General Assembly enacting his long sought-after severance tax.
This week, nearly five months after the governor announced Restore Pennsylvania, and just a few weeks before the General Assembly must pass a budget for next year, Turzai said the governor plans “to finally introduce” his legislation.
“Unsurprisingly, almost all the legislative support is among House or Senate Democrats, further demonstrating their party’s desire to recklessly borrow money and to tax employers in order to repay it,” Turzai said. “Let me be clear, infrastructure investment is critical to the ongoing success of Pennsylvania’s economy. The House Republican Caucus supports investments in transportation infrastructure, rural broadband, stormwater management, brownfield clean-up and other worthy infrastructure needs. No one disagrees with the value of these projects. House Republicans do, however, have serious issues with the governor’s irresponsible, anti-competitive, and likely insufficient proposal to pay for them.”
Turzai went on to say that House Republicans believe that infrastructure needs can be funded under existing programs and by the private sector.
“We recognize that our natural gas industry already pays its fair share of taxes and has provided an economic lifeline to many struggling families, towns and counties in our state,” he said. “The natural gas impact fee has already generated $1.7 billion in revenue since 2012, far more than is generated by traditional severance taxes in our neighboring states of Ohio and West Virginia. Natural gas producers and landowners have also paid an additional $5 billion in income tax since the Marcellus shale boom began. No other industry is singled out with a specific tax on their activity. Where the banking and insurance industries have industry-specific taxes, they do not pay business income taxes. Why would we attack the natural gas industry so directly?”
Bipartisan support
Guided by local feedback on the infrastructure needs of Pennsylvania’s communities, the Restore Pennsylvania legislation was introduced with strong bipartisan support, Yudichak said. House Bill 1585, sponsored by Reps. Jake Wheatley and Thomas Murt, has 99 cosponsors and Senate Bill 725, sponsored by Yudichak and Killion, has 25 cosponsors.
