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Pennsylvania's Independent Fiscal Offce

Background

Pennsylvania’s Independent Fiscal Office provides nonpartisan revenue projections and budgetary analysis to the state legislature and citizens. It is like the U.S. Congressional Budget Office in that it does not advocate for or against policies.

By law, the IFO must provide an analysis, including economic impact, of all tax and revenue proposals submitted by the Governor or the Office of the Budget. It also issues annual revenue projections for the state.

In recent years the IFO has issued a number of reports tracking the ups and downs of the Marcellus Shale impact fees and weighed in on the effective tax rate drillers pay. It has also examined how Pennsylvania’s impact fee stacks up against other states that levy a severance tax on the oil and gas industry.

Latest Posts

Pennsylvania natural gas production still growing, but pace has slowed

Natural gas production in Pennsylvania continues to grow, but its rate of growth has slowed significantly in recent years. During the first six months of 2017 statewide natural gas production grew by about 3 percent, compared to the same time period in 2016, according to Matthew Knittel, director of Pennsylvania’s Independent Fiscal Office (IFO). The IFO [...]

Gas severance tax won’t have big impact in Pennsylvania, says researcher

A natural gas severance tax has been a hot-button issue in Harrisburg for nearly a decade, but the plan recently approved by the state Senate is unlikely to have a major impact–  either in terms of government revenue, or drilling company investment decisions, according to a researcher from the nonpartisan environmental economic think tank, Resources for [...]

Local governments hurt by declining impact fees, says Moody’s

Declining impact fee revenue from Pennsylvania’s Marcellus Shale natural gas industry is hurting many local governments’ budgets, according to a new report from Moody’s Investors Service. “The data show that hydraulic fracturing has been very important to these towns,” says Moody’s analyst Michael Higgins. But he points out that as natural gas production has risen [...]

Report: gas impact fee revenue will hit record low this year

Revenue from Pennsylvania’s natural gas drilling impact fee is expected to hit a record low this year, according to a report from the state’s Independent Fiscal Office. The IFO projects the fees will bring in $174.6 million–down 7 percent compared to last year. It’s a 23 percent decline since peaking at $225 million three years [...]

Report: Gas impact fee revenue will keep declining

Pennsylvania will continue to see less money from natural gas drilling, according to a new analysis from the state’s Independent Fiscal Office. This year the drilling impact fees brought in $187.7 million– the lowest amount ever. The IFO projects revenue will continue to decline next year, potentially setting a new record low. “The impact fee [...]

Gas drilling impact fees fall to $188 million

As expected Pennsylvania’s gas drilling impact fees fell to the lowest amount ever last year, according to figures released by the state Public Utility Commission Wednesday. The fees brought in $187.7 million in 2015– down from $223.5 million collected the year before. Over the pas five years, the fees have brought in more than a [...]

Gas impact fees expected to drop 17 percent this year

The year 2016 is already shaping up to be a bad one for Pennsylvania’s gas industry, and it’s going to hurt state and local governments too. Impact fees paid by drillers are projected to bring in the lowest amount ever — $185.5 million — according to a new analysis by the state’s Independent Fiscal Office. It’s [...]

Wolf’s gas tax would be among highest in nation, says Independent Fiscal Office

Governor Wolf made taxing the natural gas industry the centerpiece of his campaign, and if he gets his way, he could move Pennsylvania from having one of the lowest effective gas tax rates in the country to one of the highest. That was the analysis presented Monday at a joint senate committee hearing in Harrisburg [...]

With his first budget, Wolf gears up for gas tax fight

Governor Wolf made taxing natural gas drillers the centerpiece of his campaign. As he prepares to give his first budget address Tuesday, the issue has once again taken center stage in Harrisburg. Pennsylvania is the only major gas-producing state without a severance tax, but it does levy many other levy taxes on drillers. A gas tax [...]

Analysis finds Pa.’s effective tax rate on shale gas wells among lowest

Pennsylvania has one of the lowest effective tax rates on shale gas extraction, according to an analysis from the state’s Independent Fiscal Office (IFO). The analysis only considers Marcellus gas wells going into production this year. It compares Pennsylvania against ten other shale gas-producing states around the country. “The states we examined were either a large [...]

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