September 18, 2015
Harrisburg – Sept. 18, 2015 – State Sen. Jim Brewster (D-Allegheny/Westmoreland) said today that the Senate Republican stopgap budget plan is a non-starter because it represents one-third of an already-vetoed budget and it does not include property tax relief or a reasonable Marcellus Shale extraction tax.
Brewster voted against the $11.22 billion Republican stopgap budget proposal. The Republican short-term budget, which would fund government through Oct. 31, 2015, was approved along party lines.
The Senate Republican stopgap budget (Senate Bill 1000) is roughly one-third of the Republican budget (House Bill 1192) that was vetoed by Gov. Tom Wolf in late June. Wolf has said that he plans to veto the stopgap if it reaches his desk.
Brewster’s comments:
“The Republican stopgap budget is simply a non-starter. The plan does not include property tax relief, nor does it have a responsible Marcellus Shale extraction tax that is tied to additional education funding.
“It is simply one-third of an already vetoed spending plan. Appropriately, the governor has pledged to veto this short-term effort. A stopgap spending plan addresses funding issues temporarily, but may result in more distress over the long-term. The whole exercise is a waste of time.
“Instead of working toward a comprehensive spending plan that includes real dollars for education, job creation, human services or deficit reduction, Republicans have refused to compromise and negotiate toward a resolution of the budget impasse.
“The governor has offered compromises and solutions on the two main Republican issues — pension reform and liquor sales — yet they continue to be inflexible. After more than two months of refusing to compromise, the best the Republicans can do is offer an unacceptable, short-term, short-sighted, deficient plan.”
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July 21, 2015
Shale tax devoted to education; retains local government share
Harrisburg – July 21, 2015 – As Pennsylvania continues operating without a General Fund spending plan, state Sen. Jim Brewster (D-Allegheny/Westmoreland) said today that his “Extraction for Education” proposal could help move talks forward and bring closure to key budget issues: enhanced education funding and a new Marcellus Shale extraction tax.
In late June, the Republicans passed a $30.2 billion plan without input from Gov. Wolf or legislative Democrats. Wolf vetoed the proposal. The Republican plan did not include a new shale extraction tax and would have provided little new money for education.
Brewster said both sides need to come together and work on a dedicated education funding plan via a shale extraction tax. His plan, he said, could help lay the foundation for a comprehensive budget solution because it would smooth over differences on key issues.
“My plan would place a responsible Marcellus Shale extraction tax layered over the current Act 13 impact fee,” Brewster said. “The effective rate of the levy is 5 percent, which is reasonable and clearly in line with energy extraction taxes in other states.
“New tax revenues generated as a part of my plan would be entirely dedicated to education funding.”
Brewster’s “Extraction for Education” plan (Senate Bill 395) would cap the total severance tax levy and make the effective rate 5 percent. Under the plan, impact fee expenses (Act 13) would be credited against a shale driller’s extraction tax liability.
Brewster said that education funding, a reasonable extraction tax, property tax relief and covering a $1.3 billion structural deficit are critical budget issues that remain unresolved.
In March, Gov. Tom Wolf proposed a bold funding plan that would reverse the $1 billion in education cuts over the last four years. His budget proposal also calls for property tax relief and significant increases in education funding.
Brewster said a 5 percent energy tax may generate an estimated $700 million depending on the price of gas. His plan specifically calls for the new revenues from the tax to be combined with additional state funding and distributed via the new basic education subsidy formula that was developed by the Basic Education Funding Commission.
“Shale drillers have a responsibility to pay a reasonable tax for reaping a Pennsylvania resource,” Brewster said. “Under my plan they can be assured of a specific rate and their revenues would be used specifically to help school students and taxpayers.”
The lawmaker added that it is critical that a new energy extraction tax be levied at a rate that ensures market competitiveness. Brewster was in private business for more than 20 years prior to his election to the Senate, rising to vice president of Mellon Bank in Pittsburgh.
“I’ve put my years of experience in private business and banking to use in helping me craft the approach so that it is balanced,” Brewster said. “My plan is fair to the industry and the citizens of Pennsylvania.
“All funds that are generated will be used to help schools, taxpayers and children and not be used for anything else,” Brewster said. “The relationship between the shale extraction tax and education must be clear.”
Brewster said he is hopeful that Republican leadership will join with Gov. Wolf and Democratic lawmakers in forming a budget that prioritizes property tax relief, school funding and job creation.
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February 11, 2015
Harrisburg – Feb. 11, 2014 – Gov. Tom Wolf’s plan to use the proceeds from a new 5 percent gas severance tax to fund education is being applauded by state Sen. Jim Brewster (D-Allegheny/Westmoreland).
“Using shale tax revenues to rebuild education following the severe cuts made by the Corbett administration is the right thing to do,” Brewster said. “These cuts have impacted our schools and burdened our taxpayers and new resources are desperately needed.
“The proposed 5 percent tax will not harm the industry and connecting it to education will help close the funding gap that has developed as a result of short-sighted policy and an ineffective shale impact fee.”
Brewster said that Corbett cut $1 billion from education during his tenure. The senator said that the entire education community has suffered as a result.
In mid-December, Brewster announced his plan to use severance tax revenue to make investments in education. Brewster’s “Extraction for Education” plan parallels Wolf’s proposed “Pennsylvania Education Reinvestment Act” in several ways, including the call for a 5 percent shale tax levy, the retention of impact fee payments to communities under the umbrella of the tax ceiling and the direct tie to education.
Brewster introduced his plan this session as Senate Bill 395. He said he expects consideration of a severance tax plan to be a part of budget negotiations this year.
“I am pleased that the governor has announced a reasonable shale extraction tax and that he plans to use the proceeds of the tax to support education,” Brewster said.
According to the governor’s office, the new levy will generate in excess of $1 billion by the end of 2017. The plan is modeled after the tax structure now in place in neighboring West Virginia.
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February 10, 2012
HARRISBURG, Feb. 10, 2012 — State Sen. Jim Brewster today said he voted against the recently approved gas drilling legislation because it fails to raise enough revenue and stifles local community zoning and input.
Following final legislative approval yesterday, the bill (House Bill 1950) is now in Gov. Tom Corbett’s hands for enactment.
“I favor the gas drilling industry and the many good jobs it will create,” Brewster said. “But this legislation doesn’t require the industry to pay its fair share of the tax burden, muzzles local input, and doesn’t take steps to help Pennsylvania workers obtain jobs in the industry.
“With schools and struggling families facing additional budget cuts this year, I find it unfathomable that Pennsylvania would hand the industry one of the lowest tax rates in the nation.”
Brewster said states like Texas and Oklahoma impose severance tax rates that are three times higher than what House Bill 1950 would assess Pennsylvania’s gas drillers. He said there was no reasonable explanation for leaving so much potential tax revenue on the table that could have been used to lessen budget cuts to schools, human services, public transit and so many other programs and services.
Brewster said he also wanted the bill to include incentives for the industry to hire Pennsylvania workers, more local zoning control and more environmental safeguards.
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April 19, 2011
McKeesport, April 19, 2011 – Calling it an opportunity to get a first- hand look at the state’s new booming gas drilling industry, State Sen. Jim Brewster today joined fellow Democrats for a tour of several well sites in southwestern Pennsylvania.
“Much has been written, said and debated about this new Marcellus Shale industry that promises to be such a boost for our economy and job market,” Brewster said. “This tour will provide me an opportunity to get a first-hand look and talk to the folks who operate and work at these drilling sites.”
The tour was arranged by Sen. Tim Solobay (D-Washington). The lawmakers are expected to visit several well sites, a gas processing center, and rehabbed drilling site.
Brewster said he plans on asking industry representatives questions about community impact, the prospect of hiring more Pennsylvania workers, their thoughts on being assessed a possible severance or impact fee and what steps they can take to protect the region’s water supply and environment.
“Both the Marcellus Shale and Utica natural gas formations will provide a great deal of economic promise for many years to come,” Brewster said. “Our task is to make sure that Pennsylvania workers have an opportunity to get jobs in this industry — and that sufficient steps are taken to protect our environment and communities.”
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