Inside Harrisburg

by state Rep. Dan Frankel

Frankel welcomes governor's foresight on addressing future budget issues

On Feb. 9, Gov. Ed Rendell presented his 2010-11 budget proposal to the General Assembly. The House Appropriations Committee, on which I serve, began holding hearings on the budget even before the speech in an effort to expedite the process.

I applaud the governor's prudence in having the foresight to address two impending problems – the coming pension-cost increase and the end of federal stimulus funding. We will need to scrutinize carefully the exact details of how to generate the revenue needed to meet these challenges and prevent a multi-billion-dollar budget crisis, and other alternatives that may be more beneficial. I commend the governor for getting the conversation started.

I am very pleased the governor called for critics who demand budget cuts to be specific. We face very serious problems, and any realistic solution must include explicit details about how it will affect the citizens of the Commonwealth. Simply calling for general cuts doesn't address the impact of those cuts on workers and families, often disproportionately hurting our most vulnerable residents.

The governor is absolutely on point with two of the tax changes he encouraged – passing the Marcellus Shale natural gas extraction tax and closing tobacco tax loopholes. While these initiatives alone would not close the future budget gap, they are commonsense ways to help balance the 2010 budget. Thirteen of the 14 states that out-produce us in natural gas already have an extraction tax; the other, California, has a similar conservation fee.

With energy giants like ExxonMobil gearing up to drill in Pennsylvania's gas fields, it’s time to levy a tax on the industry benefiting from Pennsylvania's natural resources. If the severance tax is not adopted, cuts to public libraries and other services will be more likely, and local property tax bills may increase as a result of limited education funding from the state.

Additionally, we should end our bizarre practice of being the only state that doesn't tax cigars or smokeless tobacco, which would have the added benefit of discouraging more young people from using tobacco products. I have introduced legislation to close the tobacco loopholes, and I will continue working with the governor and fellow lawmakers from both parties to enact these and other commonsense changes.

As always, please contact my office at 412-422-1774, or visit my Web site at www.pahouse.com/Frankel, for assistance or information on these or any state-related matters.

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