Impact fee funds need more oversight
Jim McNutt/Observer-Reporter Exterior of the Observer-Reporter building in Washington.
Jim McNutt/Observer-Reporter Exterior of the Observer-Reporter building in Washington.
When the Observer-Reporter in December examined the distribution and spending of Act 13 natural gas drilling impact fee money, it found nearly $30 million given to local communities across the state was unaccounted for, since it was never properly reported to the state as required.
While that doesn’t mean local officials are using the money improperly, it did raise questions about why the state Public Utility Commission wasn’t compelling the communities to file their annual reports showing how the funds were being used.
That was because Act 13 legislation, signed into law when Tom Corbett was governor in 2012, gave no enforcement capabilities to the PUC to demand the communities report the spending or otherwise face penalties.
The PUC’s oversight of the program and the lack of reporting standards raised eyebrows, and now it’s getting the attention of state Auditor General Eugene DePasquale.
DePasquale announced last week his office will audit the program to determine what, if any, changes are needed. DePasquale said the Act 13 funds were “always on the radar” but the Observer-Reporter’s series “moved it forward on the schedule and made it a lot more urgent for us to look at.”
The audit is sorely needed to ensure that the hundreds of millions of dollars generated each year from impact fees placed on the Marcellus Shale industry are properly allocated and spent. The PUC has disbursed $856 million in the four-year history of the program.
There’s no doubt the impact fee money has been a boon for communities that want to expand their local police department or improve their roads. But the vast amount of money involved means it needs to be more closely monitored. That’s why the results of DePasquale’s audit are so important.
It’s too early to know what changes DePasquale’s audit might suggest, but it’s clear some adjustments be need to be made to Act 13. There’s just too much money at stake not to keep a more watchful eye on the impact fees.