House Passes Severance Tax 104 to 94

The House of Representatives just passed Senate Bill 1155 that includes the Marcellus Shale natural gas severance tax by a vote of 104 to 94.
The House proposal as amended would distribute funds through this formula--
For FY 2010-11, 2011-12 and 2012-13 the first $75 million shall go to: $70 million General Fund, $5 million Department of Labor & Industry for job training and for contracting with community colleges and other institutions of higher education for job training programs.
After the above transfers, the money remaining is to be allocated as follows:
-- 40 percent to General Fund (the original House Democratic proposal was 60 percent);
-- 32 percent to the Environmental Stewardship (Growing Greener) Fund (the original proposal was 12 percent);
-- 16 percent to the Local Government Services Account;
-- 1.6 percent to Hazardous Sites Cleanup Fund;
-- 2.4 percent to Conservation District Fund;
-- 1.6 percent to Game Commission;
-- 1.4 percent to Fish & Boat Commission (the original proposal was 2.4 percent);
-- 1.6 percent to Low Income Home Energy Assistance Program;
-- 1.6 percent to Oil and Gas Environmental Disaster Recovery Account;
-- 0.8 percent to DEP for dam removal, restoration and repair; and
-- New -- 1 percent for the operation and administration of the Environmental Hearing Board.
Over time, the funds generated would go to these areas--
(from the House Fiscal Note)
In a press conference today, Senate Pro Tempore Sen. Joe Scarnati (R-Jefferson) threw cold water on the pending House Marcellus Shale natural gas production severance tax raising questions about the constitutionally of the vehicle used by the House, the size of the tax and the distribution of the revenue from the tax.
"This isn't about balancing the state budget, it's about addressing environmental and local government concerns," said Sen. Scarnati. "I think the House proposal will not pass the Senate without addressing the tax rate and distribution of funds."
Sen. Scarnati said the House "cleverly" used an unrelated bill and turned it into a tax bill which raises significant constitutional issues.
"It remains to be seen whether adults can come together for an agreement on this issue," said Sen. Scarnati. "The prospects of adding days to the Senate schedule are nil."
"We have said all along the refunding of Growing Greener is a priority for the Senate," said Sen. Scarnati. "We've said all along the major priority for a severance tax is local share and environmental programs."
NewsClips:
Scarnati: House Marcellus Shale Tax Bill Has Serious Flaws
Scarnati: House Marcellus Shale Tax Too High, Deadline Not Met
Jack Wagner: Worst Fiscal Crisis In State History On Horizon