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Budget Analysis: State Police Fees, Severance Tax Back on the Table

Wednesday February 8th, 2017

Gov. Tom Wolf released his 2017-18 budget proposal on Tuesday. Two major issues were included that, if enacted, will impact townships.

  • A per-capita fee on State Police services:Wolf has proposed a $25 per-capita fee on municipalities that rely exclusively on the State Police for protection. PSATS opposes any plan, including a per-capita fee, that would mandate townships to pay for State Police services. However, PSATS does support legislation that would allow townships to voluntarily contract with the State Police for patrol and ordinance enforcement services.
  • A natural gas severance tax:The governor’s proposed budget would also impose a 6.5-percent severance tax on natural gas extraction. The plan includes a credit for the local natural gas impact fee, which has benefitted municipalities throughout Pennsylvania. While it appears the governor’s intent is to keep the impact fee in place, the complete details of the governor’s proposal haven’t been released. PSATS is working to ensure that the proposal does not reduce the allocation or amount of impact fees distributed to municipalities.

Note: PSATS staff will give a more detailed analysis of the 2017-18 state budget during a free member’s only webinar from 9 to 9:45 a.m. Thursday, February 9. To register, click here. If you are unable to participate in the live discussion, the webinar is being recorded and will be posted at connect.psats.org. Click on "Education" and choose "Members Only."