Extraction Tax on Natural Gas Industry would Fund Governor’s “Back to Work PA” Plan

The COVID-19 global pandemic has affected Pennsylvania workers, businesses and communities.  Governor Tom Wolf unveiled his “Back to Work PA” plan and he wants to fund it with an extraction tax on the natural gas industry.

“Pennsylvania needs a comprehensive, forward-thinking plan to jump start our economy and support our workforce,” Gov. Wolf said. “Back to Work PA will make strategic and comprehensive investments to build a stronger and more diverse workforce, support Pennsylvania businesses while attracting businesses to the commonwealth, and assist communities with economic recovery efforts – all of which will help us get back on track and build a brighter future for Pennsylvania.”

Back to Work PA would be funded by an extraction tax on the natural gas industry in addition to the impact fee.  The governor estimates this would generate about $300 million a year to get Pennsylvanian’s back to work.

The plan would support workers impacted by the pandemic, address inequities, direct resources to support talent development for high-demand occupations, and focus on jobs that lead to careers with family-sustaining wages:

  • Invest in rapid reskilling, upskilling, and skills transfer to connect unemployed Pennsylvanians to new career opportunities.
  • Invest in programs that enhance digital literacy skills.
  • Expand on registered apprenticeship programs to include non-traditional occupations like health care, child care, information technology and manufacturing.
  • Expand on education and training opportunities that support middle-skill jobs and the skilled-trades.
  • Transform workforce development services, including individualized career coaching and enhanced wrap-around supports to address barriers to employment.
  • Support child care stabilization by increasing child care subsidies, assisting employers seeking to develop or expand on-site child care, assisting child care centers to expand services during non-traditional work hours, and eliminating child care deserts.
  • Support innovative programs that help re-entering citizens obtain credentials and access employment opportunities.

To support and attract businesses, Back to Work PA would develop a strong reshoring initiative. Supply chain issues have affected businesses across this country, and Pennsylvania’s manufacturing sector is poised to compete nationally and globally to address those needs.

  • Develop a strong reshoring initiative by prioritizing and recapitalizing existing programs such as:
    • Business in Our Sites
    • Industrial Sites Reuse Program
    • Pennsylvania Industrial Development Authority
    • Machinery and Equipment Loan Fund
  • Increase investment into an aggressive business attraction marketing strategy to package and promote reshoring programs.
  • Support innovation and entrepreneurs by developing a funding strategy to foster the creation of new companies and attract and retain talent in Pennsylvania.
  • Provide strategic financial planning opportunities for municipalities so that they can address the revenue losses experienced during the pandemic and prepare for potential future economic disruptions:
    • Expand Municipal Assistance Program (MAP) to provide additional services to municipalities.
    • Expand and Reform Act 47.
    • Expand Strategic Management Planning Program (STMP).

COVID-19 disruptions have shown that broadband access is a necessity. Back to Work PA would prioritize making high-speed internet access available to all Pennsylvanians by building out this infrastructure in unserved areas of the commonwealth. Pennsylvanians deserve an opportunity for economic vitality and internet access is a fundamental pillar to that opportunity.

“We know that no two jobs are exactly the same, no two workers are exactly the same, and no two businesses are exactly the same. The individualized services in the governor’s Back to Work PA plan connect job seekers to the education or training that will set them up for success in the labor market, while also helping businesses connect to the skilled workforce they need to thrive,” said Department of Labor & Industry Acting Secretary Jennifer Berrier. “By making these smart investments now, we can build up our workforce to make Pennsylvania’s workers the most in-demand in the country as we emerge into the new post-pandemic world.”