budget cuts in PA - Chancellor of U Pitt response

[nngmm]

<p>[Chancellor</a> Mark A. Nordenberg | University of Pittsburgh](<a href=“http://www.chancellor.pitt.edu/state-budget/]Chancellor”>http://www.chancellor.pitt.edu/state-budget/)</p>

[levirm]

<p>I wish that someone would run the numbers - how much would a gas extraction tax generate and what cuts could be avoided if we had it? The public needs to know!</p>

[charlieschm]

<p>A Republican state senator said the most likely gas extraction tax rate would generate $300 million a year. That wouldn’t close the deficit, but it would reduce the severity of the pain.</p>

<p>The Democrats in the State House passed a much higher gas extraction tax rate last year, but it never was considered in the Republican controlled Senate. Now the Republicans have large majorities in both houses.</p>

[levirm]

<p>Thanks, charlieschm. Do you know who said this and what this rate is?</p>

[walkinghome]

<p>[Taxing</a> natural gas is a political football in Pennsylvania](<a href=“http://www.post-gazette.com/pg/11058/1128043-85.stm]Taxing”>http://www.post-gazette.com/pg/11058/1128043-85.stm)</p>

<p>

Let’s say you’re a gambler on a losing streak and you’re a whopping $4 billion in the hole. But things have started turning around, and a few hot hands have brought you $300 million or so.</p>

<p>Then you stun the other players by just quitting the game and leaving all that cash on the table.</p>

<p>Some critics say that’s exactly what state officials are doing by not passing a severance tax on the huge amount of natural gas being pumped from the Marcellus Shale deep underground in much of the state. Unlike 30 other states, Pennsylvania doesn’t have a tax on extracting that particular nonrenewable energy source.</p>

<p>“For us to be the only state that doesn’t tax shale gas makes no sense,” said Rep. Dan Frankel, D-Squirrel Hill. “Eliminating that important revenue option from the upcoming budget is irresponsible.”

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