Wolf: GOP leader won't budge on shale tax

HARRISBURG - Gov. Wolf emerged from closed-door budget talks Monday saying he was "stunned" by what he called "the continued intransigence" of a top Republican legislator opposed to a new tax on natural-gas drillers.

Wolf said House Speaker Mike Turzai (R., Allegheny), one of the legislature's most vocal opponents of the severance tax proposal, "would rather do good things for his friends in the oil and gas industry than help find a way to fund schools."

"We are not going to have a good future in Pennsylvania until we figure out how to fund schools," the governor said.

In an interview Monday, Turzai called Wolf's comments - and recent propensity for attacking individual legislators - "petty and childish."

"When you are losing a substantial policy discussion, you resort to ad hominem attacks," the speaker said.

Wolf, he added, "needs to get serious."

Turzai has said repeatedly that a new tax on natural-gas drillers would hurt one of the state's fastest-growing industries, resulting in a loss of jobs and tax income. He has also noted that there is an impact fee on drillers that raises roughly $225 million annually.

The tense tone behind Wolf's words reflect the fact that nearly two weeks into the budget stalemate, little progress has been made on reaching an agreement on key sticking points. Wolf wants to use the tax on drilling in the Marcellus Shale to fund public education. Other issues include property-tax cuts, pension reform, and liquor privatization.

The deadline for a new budget was July 1, the start of the new fiscal year. Without a spending plan in place, the state loses some of its spending authority and will be unable to pay contractors, as well as local governments and social service nonprofit organizations.