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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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SACRAMENTO – The unified California golf industry formally released findings last week from The California Golf Economy: Economic & Environmental Impact Report. Industry leaders gathered at Del Paso CC (Sacramento, Calif.) to share the 52-page report with media and governmental leaders.
Commissioned by Golf 20/20 for the California Alliance for Golf (and prepared by SRI International) the study documents the golf industry's financial impact upon the state – $13.1 billion of overall economic activity that supports more than 128,000 jobs, $4.1 billion of wage income, and more than $346.6 million in charitable giving annually.
The study also details the golf industry's environmental record with respect to water conservation, energy efficiency, and prudent environmental stewardship.
"Golf is more than a game; it is a business providing economic vitality for myriad California communities, jobs for thousands of residents, healthy outdoor recreation for families, necessary green space, and millions of dollars in charity to various local community causes," said California State Senator Ted Gaines (R-El Dorado Hills).
According to the 2013 study, with 921 unique golf facilities within the state, golf in California is an industry that generates more direct economic activity than movie theaters, fitness/recreational sports, greenhouse/nursery crops, and amusement/theme parks.
It brings visitors to the state, spurs new construction, generates retail sales, and creates demand for a myriad of goods and services ancillary to the industry.
Almost unique among participatory sports, golf gives back through direct charitable activities and supports hundreds of non-profit organizations dedicated to youth, seniors, individuals with disabilities plus educational initiatives and other community-based endeavors.
“The golf industry adds $13 billion to the California economy, provides jobs for thousands, charity to many, and outdoor recreation for persons of all ages,” commented California State Senator Steve Knight (R-Santa Clarita).
In addition to the economic impact of golf, the SRI study provides keen insight into the golf industry’s use of water.
The study reveals that golf consumes less than 1.2 percent of the total water used to irrigate crops, accounts for less than 1 percent of the total fresh water consumed in the state, and generates significantly higher economic returns per acre-foot of water than most other water-intensive industries.
The CAG General Membership Meeting and News Conference included representation from the following allied golf organizations: Northern California Golf Association (NCGA), Southern California Golf Association (SCGA), Northern California PGA Section (NCPGA), Southern California PGA Section (SCPGA), California Golf Course Superintendents Association (CGSAA), Pacific Women’s Golf Association (PWGA), Women’s Southern California Golf Association (WSCGA), Women’s Golf Association of Northern California (WGANC), Women’s Public Links Golf Association of Southern California (WPLGA), Golden State Chapter of the Club Manager’s Association (CCMA), California Turfgrass & Landscape Foundation, (CTLF), Southern California Municipal Golf Association (SCMGA), California Golf Course Owners Association (CGCOA), San Francisco Public Golf Alliance (SFPGA) and the Northern California Golf Representatives Association (NCGRA).
Also in attendance were representatives of leading golf management companies including: American Golf Corporation, Club Corp, CourseCo, Empire Golf, Greenway Golf, Kemper Sports, Poppy Holding Inc., ValleyCrest, and a contingent of media representatives.
“After weathering the deepest recession since the 1930s and dealing with some of the over saturation caused by the boom of the 90’s, we’re headed back up again,” said California Alliance for Golf President and Southern California PGA Section CEO Tom Addis III. “It is apparent that our industry agrees, and continues to care about the future of the game, well-evidenced by the representation we had at our recent general membership meeting and news conference.”
To obtain a copy of The California Golf Economy: Economic & Environmental Impact Report and/or its executive summary visit The California Alliance for Golf Web site: http://www.cagolf.org/governmentrelations/golf-economic-study.html .
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SACRAMENTO – State Controller John Chiang on Wednesday released his report covering California's cash balance, receipts and disbursements in April 2013.
Total revenues equaled $15.03 billion, narrowly missing estimates by $119.9 million (-0.8 percent).
Through the first 10 months of the fiscal year, total revenues exceeded the governor's January projections by $4.6 billion (+6.1 percent). Personal income taxes led the gains by exceeding expectations by $4.4 billion (+8.5 percent).
“We've reached an important milestone in California's economic recovery. For the first time in nearly six years, we closed out a month without borrowing from internal state funds to pay our bills,” said Chiang. “But, there remains significant debt that must be shed before we can claim victory and these unanticipated revenues provide us with an important opportunity to take further steps toward long-term fiscal stability.”
During the past six years, the state was forced to borrow at unprecedented levels from its own internal special funds and from Wall Street in order to meet its payment obligations.
More aggressive cash management tools were also deployed, including the withholding of some payments and the use of IOUs for only the second time since the Great Depression.
June 2007 was the last time the state was able to pay its bills without leveraging its internal funds.
The state ended the last fiscal year with a cash deficit of $9.6 billion, and by April 30, 2013, that cash deficit narrowed to $5.8 billion. That deficit is being covered by $10 billion in external borrowing, which the state will begin repaying later this month.
Personal income taxes for April came in $275 million below (-2.2 percent) monthly estimates outlined in the governor’s budget. This was largely due to fewer returns filed and more refunds paid out than expected in the month of April.
Corporate taxes for April were $6.6 million above (0.5 percent) monthly estimates. Sales tax receipts were $113.4 million above (26.6 percent) estimates.
Track how April personal income tax receipts flowed by visiting the Controller’s revenue tracker, http://www.sco.ca.gov/april_2013_personal_income_tax_tracker.html .
For more news, please follow the Controller on Twitter at @CAController, and on Facebook at California State Controller's Office.