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Our View: Wolf’s severance plan seems ambitious

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<p>WILKES-BARRE &#8212; 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.</p><p>Appropriately called &#8220;Restore Pennsylvania,&#8221; the governor&#8217;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.</p><p>Wolf called it a massive rebuilding plan funded by a &#8220;modest severance tax&#8221; 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.</p><p>&#8220;Over the past four years, my administration has worked hard to improve our infrastructure and build strong, stable communities across the commonwealth,&#8221; Wolf said. &#8220;We&#8217;ve made progress, but we still have more work to do.&#8221;</p><p>When asked what alternatives would be considered if lawmakers fail to approve the plan, Wolf said, &#8220;I don&#8217;t know. Three&#8217;s nowhere else to get that amount of funding.&#8221;</p><p>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.</p><p>&#8220;It would be an uphill battle in the House,&#8221; Yudichak said. &#8220;&#8217;Restore Pennsylvania&#8217; is a bold and innovative plan to inject billions of dollars into infrastructure projects across the commonwealth through a fair severance tax.&#8221;</p><p><strong>&#8216;Time has come&#8217;</strong></p><p>Wolf said projects would be driven by local input about local needs.</p><p>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.</p><p>Yudichak said the governor&#8217;s idea is a far better plan than having to rely on a fragmented patchwork of local taxes and fees.</p><p>&#8220;Representing Luzerne County over the last two decades, I have consoled many families who lost their homes to natural disasters,&#8221; Yudichak said. &#8220;I&#8217;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.&#8221;</p><p>Yudichak said a growing number of Democrats and Republicans understand &#8220;we can no longer ignore our public infrastructure.&#8221;</p><p>&#8220;Restore PA is not a Democrat or Republican idea &#8212; it&#8217;s a good idea &#8212; an idea whose time has finally come,&#8221; said the lawmaker.</p><p><strong>GOP leaders respond</strong></p><p>House Republican leaders don&#8217;t seem sold. They issued the following statement:</p><p>&#8220;The governor&#8217;s proposal includes three of the worst ways to grow an economy: taxing, borrowing and uncontrolled government spending.</p><p>&#8220;While improving Pennsylvania&#8217;s aging infrastructure is a shared goal, it cannot come at the expense of the Commonwealth&#8217;s economy and taxpayers.</p><p>&#8220;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.&#8221;</p><style>
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<div class="neCaption">Gov. Tom Wolf shakes hands with state Sen. John Yudichak, D-Nanticoke, on Thursday after announcing his plan to use $4.5 billion to address the state&#8217;s infrastructure through enactment of a severance tax on natural gas. Wolf discussed his plan at a news conference at the Luzerne County Emergency Management Agency. </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2019/01/web1_TTL020119gov3.jpg</photo0><caption0>Gov. Tom Wolf shakes hands with state Sen. John Yudichak, D-Nanticoke, on Thursday after announcing his plan to use $4.5 billion to address the state&#8217;s infrastructure through enactment of a severance tax on natural gas. Wolf discussed his plan at a news conference at the Luzerne County Emergency Management Agency. </caption0><photoCredit0>Aimee Dilger | Times Leader </photoCredit0></div><div class="neFile"><img class="neImage" src="https://www.timesleader.com/wp-content/uploads/2019/01/web1_TTL020119gov2.jpg">
<div class="neCaption">Gov. Tom Wolf addresses his plan to restore Pennsylvania&#8217;s infrastructure during a stop at the Luzerne County Emergency Management Agency on Thursday afternoon. From left, state Sen. John Yudichak, West Pittston Mayor Tom Blaskiewicz, Wilkes-Barre Mayor Tony George, Luzerne County Manager David Pedri, Pennsylvania Emergency Management Agency Director Randy Padfield, and state Rep. Eddie Day Pashinski. </div></div><div class="metaInfo"><photo1>https://www.timesleader.com/wp-content/uploads/2019/01/web1_TTL020119gov2.jpg</photo1><caption1>Gov. Tom Wolf addresses his plan to restore Pennsylvania&#8217;s infrastructure during a stop at the Luzerne County Emergency Management Agency on Thursday afternoon. From left, state Sen. John Yudichak, West Pittston Mayor Tom Blaskiewicz, Wilkes-Barre Mayor Tony George, Luzerne County Manager David Pedri, Pennsylvania Emergency Management Agency Director Randy Padfield, and state Rep. Eddie Day Pashinski. </caption1><photoCredit1>Aimee Dilger | Times Leader </photoCredit1></div></div>
<div class="metaInfo"><bylineMeta><p>By Bill O&#8217;Boyle</p><p>boboyle@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Bill O&#8217;Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.</p></shirttailMeta></div>

Wolf’s plan to restore Pa.’s infrastructure dependent on gas industry severance tax