Correction: The article written by David Armstrong has been clarified. As mentioned above by Petrushma Moroni, the bill states that the tax cannot be passed on to consumers. Armstrong’s article did allude to the notion that he (we) would be paying higher gas prices for the rest of our lives. This has been taken out to avoid further confusion.
It should be noted that the nature of the oil industry is to raise prices as the reserve and available amount of oil reduces over time.
By David Armstrong
For the Daily Titan
California higher education is bleeding. The budget was cut by $888 million for the 2008-10 fiscal years, according to the Law Analysts’ Office.
Assembly Bill 656 will create an oil tax of 9.9 percent to fund higher education, an estimated billion dollars per year, according to the California Chronicle. However, should the state push this through?
AB 656 will create the California Higher Education Endowment Corporation and an oversight board to run it. The board are a dozen political appointees, five of whom are from community colleges, Cal State Universities and Universities of California and the other seven people coming out of Sacramento.
This dirty dozen will appoint a CEO to the CHEEC, who will then staff the company with personnel to accomplish its mission of refunding education.
The premise for the bill is outlined in Section 1, where Assemblyman Alberto Torrico (D-Fremont) estimates that in 2025, 41 percent of workers will need a degree to work in California. No evidence, he just said it.
Torrico plays the race card, claiming that by 2020, Latinos will make up 40 percent of the workforce (probably) but only 12 percent will have a college degree.
And this bill will fix that? And what are the equivalent ratios for whites, blacks or Asians? He doesn’t say. He doesn’t care.
The point is, before a single class is reinstated or a professor is paid at 2008 wages, more than a dozen new bureaucrats will be receiving salaries, health care, pensions and everything that government pays for that people hate.
This bill is supposed to give back money that the schools already had, so what do we need a new bureaucracy for? Why can’t the money be funneled through old channels? Because this new money has a mandate.
According to the bill, the money can only be spent on curriculum and programs related to renewable energy for community colleges, anything leftover is then allocated to the CSUs and UCs. I’m not against the environment, but it seems there are two environmental debates.
The first is clean water at Lake Tahoe. I love Lake Tahoe, and I’m all for a clean planet, but before my tuition can be reduced to below $2,000 a semester, the money has to make sure proper liberal indoctrination occurs in California’s lovely community college system.
Call me selfish and elitist, but I’m going to ask for something more than additional green programs at Mt. San Antonio College.
This is money that may never even reach community colleges. For those who don’t remember, California just weathered a budget crisis which in consequence brought us the February Agreement, the cause of the massive budget cuts.
A compromise as part of the agreement was to remove the gas tax provision from the budget. Currently, two assemblymen, two senators and the governor are being recalled as a result of the February Agreement.
In the May 21 special election, one proposition would have taken money gathered from the Millionaire’s Tax (to fund the care of the mentally ill) and the Smoker’s Tax (to fund anti-smoking programs) to pay for the state’s deficit.
The proposition failed, but it demonstrates the naked power grabs that sometimes take place in Sacramento. In the 2010-11 budget discussions, are they going to opt for taking of AB 656 monies to pay off the Prison Guard Union?
There are a lot of problems in the state, and the last thing California needs is another tax to fund green programs while politicians try to rob the crazies and teen smokers.
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This is just flatly untrue. Doesn’t the Daily Titan fact check their editorials?
Here’s what the bill says:
“The tax imposed by this part shall not be passed through
to consumers by way of higher prices for oil, natural gas, gasoline,
diesel, or other oil or gas consumable byproducts, such as propane
and heating oil. The board shall monitor and, if necessary,
investigate any instance where producers or purchasers of the oil
or gas have attempted to gouge consumers by using the tax as a
pretext to materially raise the price of oil, natural gas, gasoline,
diesel, or other oil or gas consumable byproducts, such as propane
and heating oil. ”
Got that? There’s a provision in AB 656 stating that the cost of the severance tax cannot be passed on to consumers.
“California higher education is bleeding. The budget was cut by $888 million for the 2008-10 fiscal years, according to the Law Analysts’ Office.”
The Legislative Analyst’s Office (note name) actually reports that state funds for UC/CSU were cut by $2 billion in 2009-10 and $800 million for community colleges. The situation is much dire than the author contends.
Further, Alberto Torrico indeed cares about Asian students, in contradiction to the author’s statement. Torrico is half Asian, and served two terms as chair of the Legislature’s Asian Pacific Islander Caucus.
In the May 21 special election, one proposition would have taken money gathered from the Millionaire’s Tax (to fund the care of the mentally ill) and the Smoker’s Tax (to fund anti-smoking programs) to pay for the state’s deficit.
You intend:
In the May 21 special election, one proposition would have taken money gathered from the Millionaire’s Tax (to fund the **mental health care** ) and the Smoker’s Tax (to fund anti-smoking programs) to pay for the state’s deficit.
Harold A. Maio, retired Mental Health Editor
khmaio@earthlink.net
@ petrushma moroni
You are correct that provision exists in the bill. I did not miss it. However, the oversight board has no powers to regulate or otherwise police oil companies that do pass the buck along. The bill says the oil companies shouldn’t, but there are many laws that aren’t being debated in committee, that actually are in effect, that are ignored, even if there is language that provides for enforcement. That provision appears to be lip service to silence detractors of the bill and I don’t buy it for a minute.
Furthermore, the oil companies already do not justify their prices. When a gallon of gas hit $5 last year, consumers received for reasons “turmoil in the middle east” and speculation. As though there isn’t ALWAYS turmoil in the M.E. or speculators GUESSING about the future! So how will the oversight board determine if the buck has been passed along or if this increase is just part of typical market fluctuations in response to a shifting business climate?
@ Scott Lay
My source of the LAO (how did I get that L error?) is http://www.lao.ca.gov/2009/bud/feb_overview/feb_overview_031309.aspx
I saw the K-12 reductions and ignored them (because we’re only talking about Higher Education). What I found in that source, and drew my conclusions from, was from Figure 1, How the February 2009 Budget Package Closes the $40 Billion Shortfall. If you could tell me where you got your information, I would be happy to read it.
And to your second point, I isolated Latinos from the bill because that group is specifically mentioned in deference to other racial groups. From that and only from that, I drew the conclusion that Latinos are the Assemblyman’s favorite. Still, assuming he does have great love for the Asian community, he’s leaving out Blacks and Whites from the discussion. In my opinion, it was silly for him to even bring up race.