Environmental Funding Last Priority For House Democrat Severance Tax Plan

A Marcellus Shale natural gas severance tax proposal by House Democrats circulating this weekend would make funding for environmental programs the last priority of their plan to raise over $300 million in the coming fiscal year.
According to reporting by Capitalwire.com, House Democrats are proposing a $307 million plan for FY 2011-12 which would provide $139 million for the General Fund to balance the state budget, $75 million for additional property tax relief, $37 million for counties and municipalities, $28 million for the Environmental Stewardship (Growing Greener) Fund and $28 million split in seven different ways:
-- 1.6 percent for the state Hazardous Sites Cleanup Fund;
-- 2.4 percent for conservation districts;
-- 1.6 percent for the State Game Commission;
-- 2.4 percent for the Fish and Boat Commission;
-- 1.6 percent for the Low Income Heating and Energy Assistance Program;
-- 1.6 percent for a disaster relief fund; and
-- 0.8 percent to DEP for dams.
The House Democratic plan would divide future revenues using this formula: The first $75 million (50 percent for property tax reduction and the remainder for job-creation tax credit and job-training programs), and of the remaining revenues 60 percent would go to the General Fund and 40 percent divided 9 ways:
-- 16 percent to counties and municipalities;
-- 12 percent for the Environmental Stewardship (Growing Greener) Fund;
-- 1.6 percent for the state Hazardous Sites Cleanup Fund;
-- 2.4 percent for conservation districts;
-- 1.6 percent for the State Game Commission;
-- 2.4 percent for the Fish and Boat Commission;
-- 1.6 percent for the Low Income Heating and Energy Assistance Program;
-- 1.6 percent for a disaster relief fund; and
-- 0.8 percent to DEP for dams.
Again according to Capitalwire.com, the Senate Republicans are proposing a more modest program with a much lower tax rate to provide $153.5 million to the General Fund and $77 million split evenly between local governments and environmental programs.
The Senate Republican plan would divide future revenues by allocating 50 percent for the General Fund, 25 percent for local governments and 25 percent for environmental initiatives.