Eating Your Seed Corn

Governor Corbett’s state budget proposal speaks volumes about his priorities.  Oil and gas drillers will get a better deal than they get in any other state with significant Marcellus resources, since the proposed impact fee is much lower than the extraction taxes imposed by other states.  To pay for this largesse, he makes dramatic cuts to higher education.  This means our children will have to incur even larger student loan debts to pay for the education so vital to ensuring their future as well as that of our economy.

Our farmers have an expression for the strategy of sacrificing investments that will pay off in the future for the sake of short term gain.  It’s called “Eating your seed corn".  That sums up perfectly what is going on here.  Critically important investments in our future workers and leaders have been sacrificed.  Well established industries that made enormous campaign contributions are receiving huge breaks.  How do you think that’s going to work out over the long term?

All Hail Holy Saint Grover!!

It’s almost amusing to hear Budget Secretary Charles Zogby complaining about the state’s projected revenue shortfall in 2012.  This is a situation totally constructed by the Corbett Administration.  While running for Governor, Mr. Corbett signed Tea Party favorite Grover Norquist’s pledge not to raise taxes under ANY circumstances.  As a result, he will not propose a severance tax on Marcellus Shale gas.

Pennsylvania is the only state with significant Marcellus gas resources that does not impose a severance tax.  Even oil and gas friendly states like Texas and Louisiana have a severance tax.  Imposing a reasonable severance tax simply will not drive the drillers away, as long as the tax is competitive with that imposed by other states.

The reason the situation is almost amusing, but not actually so, is because of the impact Gov. Corbett’s genuflection to St. Grover is having on the citizens of Pennsylvania.  Our schools will be underfunded and teachers will be laid off.  Many low income Pennsylvanians will go without health insurance due to the cancellation of adultBasic.  The list goes on and on.

Most folks agree with the Corbett Administration that we need to tighten our fiscal belts in these tough economic times.  But, it defies logic to refuse to tax Marcellus Shale gas when everyone else is doing so.  One is forced to conclude that this Administration must be in the pocket of the oil and gas interests.

Here’s a simple question for the Corbett Administration – what is more important to you:  blind obedience to St. Grover or looking out for your constituents, the citizens of the Keystone State.  I guess we already know the answer to that one.