(Credit for Photo: <p>Pennsylvania has long been a leader in energy innovation and remains a major energy producer but sustaining its position will require a realistic view of what the fossil fuel industry can deliver going forward as neither significant job creation nor increased tax revenue is expected from the sector, a new report showed. (Adobe Stock)</p>

(Reported by Danielle Smith, Keystone News Service)

(Harrisburg, PA) A new report warns Pennsylvania’s budget is headed for a crisis, and the fossil fuel industry won’t be able to bail it out. Researchers say the sector’s long-term decline and years of generous tax concessions have deepened the state’s fiscal pressures. Trey Cowan with the Institute for Energy Economics and Financial Analysis says Pennsylvania faces a demographic crunch involving an aging, slow-growing population that’s driving spending up. He explains that the fees that Pennsylvania producers pay on natural gas extraction are a tiny fraction of the state’s budget. Cowan argues the report reveals that, structurally, fossil fuels are restricted from becoming a tax revenue generator that could help out the Pennsylvania economy. Backers of the fossil fuel industry, including the Trump administration, argue the continued expansion of fossil fuels ensures energy independence, grid reliability and economic growth.