New Pennsylvania Democrat governor seeks bipartisan approach

By David DeKok and Hilary Russ HARRISBURG, Pa./NEW YORK (Reuters) - Pennsylvania's new governor, Democrat Tom Wolf, highlighted his status as a political outsider during his inaugural address on Tuesday, asking legislators to work together to fix major problems facing their state. "I'm not a product of our political system," Wolf said after being sworn in as the state's 47th governor. "Together we can find an approach that works. That's what I have done throughout my career." Wolf, who turned around his family's failing cabinet business, is not a complete stranger to politics, having served as Revenue Secretary under former Democratic Governor Ed Rendell. His bipartisan approach is likely to encounter strong resistance, however, with a legislature led by Republicans. Even Wolf's predecessor, fellow Republican Tom Corbett, was unable to win support for most of his policy initiatives. Wolf, 66, campaigned on restoring cuts to education funding, which Democrats say topped $1 billion under Corbett. But Wolf must also address a $2.3 billion budget shortfall for the fiscal year beginning in July, according to information released by his transition team. Wolf has proposed a 5 percent extraction tax on Pennsylvania's booming natural gas industry. He claims that could generate $1 billion in new revenue for education. But Republican leaders are seeking action on issues like the growing public pension burden and the selloff of state liquor stores. Senate Majority Leader Jake Corman, who took power last month after a revolt by Republican conservatives against their former leader, told Reuters through a spokesman that he wants to see action on "spending issues" before new taxes are addressed. Republican House Speaker Mike Turzai on Sunday said in a local television interview that an extraction tax is "the wrong thing at this time." To rebuild Pennsylvania's middle class and economy, Wolf said he would focus on "jobs that pay, schools that teach" and a government that works. "We need to be bold. We need to work together and we need to get started," Wolf said. He also addressed protesters whose loud chanting against natural gas extraction could be heard throughout his speech. "To the protesters here today, help me develop these opportunities in a way that is clean, safe and sustainable," he said. House Minority Leader Frank Dermody said Republicans should be able to work with Wolf, who was the only Democrat to unseat a sitting Republican governor in November elections. "Serious compromise on the most pressing of (the state's) challenges and issues is not only possible, but necessary if we want to move Pennsylvania forward," he said. (Reporting by David DeKok in Harrisburg and Hilary Russ in New York; Editing by Alan Crosby)