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Oil tax for university system may hit students

By Emily Phillips

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Published: Wednesday, November 11, 2009

Updated: Tuesday, November 10, 2009

Many college students across the state would fight to be first in line to sign a piece of paper that could reverse the ever-worsening university budget crisis.

But that piece of paper would also impose a tax increase many California residents would not be willing to pay.

This is the dilemma causing much debate over Assembly Bill 656, drafted by Assembly Majority Leader Alberto Torrico.

“A lot of people are against a tax increase,” said Ryan Spencer, principal consultant for Torrico during a phone interview. “Even if there was a tax increase to help cure cancer, people would still be opposed.”

There would be a new 9.9 percent oil severance tax imposed upon California residents, according to the press release issued by Torrico’s office.

“California is currently the only producing state that does not have a severance tax,” according to the press release.

Right now, the California Faculty Association, California Federation of Teachers, CA State Student Association, California Teachers Association, Faculty Association of California Community Colleges and UC Student Association are all groups in support of the bill.

Junior computer science major Cory Mixon is not in support of the bill because it would impose another tax citizens would have to pay.

“I’m not a huge fan of taxes, no matter who is in support of the bill,” Mixon said. “I feel the higher education budget would not have been devastated with more monitored government spending.”

The fund would be distributed with 60 percent going to the California State University system, 30 percent to the University of California system and 10 percent to community colleges, according to the press release.

The bill will not be voted on until Jan. 11, but a final draft must be submitted by December, Spencer said.

“There are some minor issues with the bill as of now, but nothing that we can’t resolve,” he said.

The legislation is well intentioned, but does not solve higher education’s funding needs, said Erik Fallis, media relations specialist for the California State University chancellor’s office.

“The funding would not generate enough money to bring state funding support for the California State University back to where it was two years ago, let alone fund future enrollment growth or meet other increased needs,” he said.

Groups in opposition of the bill include the California Chamber of Commerce, the California Independent Petroleum Association, California Manufacturers and Technology Association, Western State Petroleum Association and Cal-Tax.

The California State University system has not taken a position on the bill.
The CSU trustees are currently working on proposing a budget request that “will call for the critical recovery of state funding for the university,” Fallis said.

He thinks students should raise awareness and continue to speak out.
“It is important that students make their voices heard in Sacramento in favor of the budget request and in support of public higher education,” he said.


Emily Phillips can be reached at
ephillips@theorion.com

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