Pennsylvania gubernatorial candidates Dan Onorato, left, and Tom Corbett shake hands following Monday night's debate in Hershey. Taxation, government spending and the Marcellus Shale industry were hot button issues. At center is Ted Koppel, longtime anchor of the news program, “Nightline,” who moderated the candidate faceoff.

HERSHEY— Pennsylvania's gubernatorial candidates sparred Monday night in the first debate of the general-election campaign over which of them is better prepared to tackle the state government's fiscal challenges and lead it through uncertain times.

Both Republican Tom Corbett, the state attorney general, and Democrat Dan Onorato, the elected executive of Allegheny County, promised to avoid major tax increases and cut spending to balance the multibillion-dollar budget.

"I'm the only candidate running for governor who actually has to balance a budget every year," said Onorato, boasting that he has held property taxes in his county steady for seven consecutive years.

"The next governor has to be a leader. He has to be able to make tough decisions," Corbett said. "I have spent my career making tough decisions."

The hourlong debate before 1,350 guests at the Pennsylvania Chamber of Business and Industry's $225-a-plate annual dinner was moderated by Ted Koppel, the former longtime anchor of ABC News' "Nightline."

While the candidates addressed topics that also included a $3 billion debt in the state unemployment compensation fund, prison crowding and tort reform, the discussion repeatedly reverted to taxation and spending.

Corbett charged that initiatives Onorato supports, including increases in the public school subsidies and an expansion of early childhood education programs, would add $4 billion to annual state spending.

Onorato insisted the initiatives could be financed without higher taxes."What Tom doesn't understand is, you have to prioritize," he said.They also clashed over whether the state should tax natural gas drilled on the Marcellus Shale formation.Corbett warned that a new tax could harm the state's relatively young drilling industry and argued that Pennsylvania already gets revenue from the leasing of state forest land to drilling companies and income taxes paid by private lease holders.Onorato wants to use the tax revenue to bolster environmental enforcement, reimburse local communities for infrastructure repairs and preserve open space.He said he would enlist the state's universities, community colleges and technical schools in an effort to ensure that Pennsylvanians have the skills needed to fill tens of thousands of drilling-related jobs."We're already paying for these schools," he said. "Let's match the curriculums to the jobs that are out there."

Pennsylvania candidates for governor Tom Corbett, right, and Dan Onorato debate Monday in Hershey. Ted Koppel moderated the event.