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SACRAMENTO – A new revenue proposal to fund public education and natural resources in California failed to gain the approval of the Senate Appropriations Committee on Monday.
The bill, SB 241, which would impose a 9.5 percent tax on oil companies for the extraction of oil or gas in California’s jurisdiction, was moved to suspense.
If the committee fails to act on the bill by Friday the bill will become a two year legislative effort.
“Fracking will vastly increase California’s oil extraction and the state is inexplicably poised to give it away for free,” said Sen. Noreen Evans (D-Santa Rosa), the bill’s author. “We should capture some of those revenues through an industry tax to reinvest in education and our own natural resources.”
Unlike the soda and tobacco tax legislative proposals this year, the oil tax proposal is industry specific and not levied at consumers. Moreover, the oil industry, already enriched by unprecedented profits, will swell its environmental footprint and revenues in California through fracking.
California is the fourth largest oil producing state in the nation and the only top ten producer that does not impose an oil severance tax. In Alaska, the tax ranges from 25-50 percent, in Texas it's 4.75 percent and in Kansas, 8 percent.
For years, California has balanced its budget by cutting government spending. As a result, in 2011-12, state spending fell to its lowest level since 1972-73.
Tuition at the University of California and California State Universities increased 310 percent and 283 percent, respectively, in the last decade. Assistance to the aged, blind and disabled was reduced to 1983 levels. The public education sector alone lost 40,000 jobs in the last five years.
SB 241, also known as the California Education and Resources Reinvestment Act (CERRA), would potentially secure billions of dollars in new revenues during the estimated course of current oil production in California.
If fracking in the Monterey shale region is allowed, those estimates would increase significantly. Revenues would be divided with 93 percent of the new revenues to fund the public education system and the remaining 7 percent going to state parks.
A grassroots, student-led group, the California Modernization and Economic Development Act, is also gathering signatures to qualify a similar initiative for the 2014 ballot. This year the California Democratic Convention voted to endorse an oil severance tax policy.
“Californians elected us to govern,” continued Evans. “It would be irresponsible of us to leave billions – possibly trillions – of dollars on the table while we lament the austerity budgets of the last few years and when we lack current funding to restore core service programs.”
State Senator Noreen Evans represents the Second Senatorial District, including all or portions of the Counties of Humboldt, Lake, Mendocino, Marin (caretaker), Napa, Solano and Sonoma. Senator Evans Chairs the Senate Committee on Judiciary.
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SACRAMENTO – Gov. Edmund G. Brown, Jr. issued an official proclamation declaring the month of May as “California Small Business Month.”
“This month, we reaffirm our commitment to helping California’s small businesses thrive and prosper,” said Gov. Brown. “The Governor’s Office of Business and Economic Development, along with key agencies of state government, works to facilitate economic growth through collaboration with small businesses. Supporting small-scale private- sector job creators is among our most promising strategies to enhance California’s human capital, expand job opportunities and increase our competitive advantage in the global marketplace.”
As part of Small Business Month, California Small Business Advocate Barbara Vohryzek on Thursday spoke to a wide array of business owners, city leaders, and small business advocates at San Francisco’s Small Business Week event.
Vohryzek recognized the contributions and importance of California’s 3.5 million small business owners, the largest amount of any state.
“As the single biggest business sector of our state, California’s small businesses have been the foundation of our state’s continuing – and accelerating – recovery,” said Vohryzek. “As California’s Small Business Advocate I am proud to serve and support these dynamic business owners across the Golden State.”
Brown’s proclamation highlights the importance of the state’s 3.5 million small businesses which comprise 99 percent of all firms and employ 52 percent of the workforce.
GO-Biz works closely with small business owners to provide resources and technical assistance, help them navigate the State’s regulatory and procurement processes.
The Small Business Advocate has held a series of “GO-Biz Brown Bag It!” events across the state on issues crucial to California small businesses including implementing the Affordable Care Act, access to training funds, GO-Biz support services and more.
For more information visit: www.business.ca.gov .
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