State Capitol Roundup for July 31

Here's this week's abbreviated version of State Capitol Roundup courtesy of state Rep. Bob Mensch, R-147:

House-Senate Conference Committee Meets on Budget

With the state budget impasse now entering its fifth week, a six-member conference committee has been charged with negotiating a budget agreement. The joint House and Senate committee is comprised of Republican Leader Sam Smith (R-Punxsutawney), House Democrat Leader Todd Eachus (D-Luzerne), Appropriations Chairman Dwight Evans (D-Philadelphia), Senate Majority Leader Dominic Pileggi (R-Delaware), and Senate Appropriations Committee Chairmen Jake Corman (R-Centre) and Jay Costa (D-Allegheny). The committee met for two days this week. Select members of the committee will be meeting with the governor Friday to attempt to reach a compromise. House Republicans continue to emphasize the need to pass a fiscally responsible budget that is balanced, that recognizes the reality of the worst economic recession since the Great Depression by not increasing taxes, and that keeps government spending under control. If an agreement is not reached soon, the governor has stated that he will ask for the Senate's budget bill as soon as possible to authorize spending for government operations while vetoing all other line items. For the latest budget news, visit PAHouseGOP.com

Drilling in Marcellus Shale Carries Enormous Potential if Not Taxed

The governor's proposed tax on natural gas extraction in the Marcellus Shale would negatively impact the growing industry, according to a study released this week by Penn State University. Rep. Brian Ellis (R-Butler), chair of the House Oil and Gas Caucus, cited the study to state that the Marcellus Shale natural gas formation alone could generate $13.5 billion in economic activity in the next 11 years. Ellis also reinforced that Gov. Ed Rendell's plan to impose a production tax on natural gas would cause a 30 percent drop in drilling activity and an estimated $880 million loss between now and 2020. Members of the House Oil and Gas Caucus are opposed to the proposed tax at the wellhead on natural gas extracted from areas of the Marcellus Shale. For the latest legislative news, visit PAHouseGOP.com