TORRICO, CFA INTRODUCE OIL SEVERANCE BILL TO FUND HIGHER EDUCATION

Historic measure would enact a tax on oil and natural gas at the wellhead in the state to create a funding mechanism for public higher education

As California continues to slash the budgets of its public higher education institutions, CFA and Assembly Majority Leader Alberto Torrico have taken a historic first step towards creating a dedicated funding source for the state's public colleges and universities.

Last week, Torrico introduced Assembly Bill 656 - sponsored by CFA - which would generate funding for all three segments of public higher education in California by enacting a new tax on oil and natural gas "severed" from California land or water.

California, the third-largest oil producing state in the country, is the only such state where oil is extracted without a tax. A similar fund in Texas has successfully endowed public colleges and universities in that state since the 1800s.

This new funding would supplement - and not replace - existing state funding.

The CSU doesn't have a defined funding source and is thus especially vulnerable in bad economic times. Since 2002, the CSU budget has been cut by nearly $800 million, resulting in faculty and staff layoffs, cuts to course sections and 10,000 eligible students being denied access to a college education.

"Our system has been decimated by funding cuts in recent years," said John Travis, Chair of CFA's Committee of Political Action/Legislation. "As our recently published Mortenson Report indicates, California is on course to irreparably damage its own economy if the state continues to disinvest in our public higher education system."

To learn more about the effect of persistent budget cuts to the CSU on California's economy, go to: http://calfac.org/CalAtTheEdge.html

"California is on the wrong track heading in the wrong direction," said Torrico. "Our prisons are overflowing and yet we are turning away students at our universities. The Master Plan for Higher Education is becoming a distant memory. This is not a sustainable path for California. We must invest more in higher education. It is a solid down payment on our economic future."

As of press time, CSU Chancellor Reed was reviewing this piece of legislation and has not yet taken a position on the bill, which could potentially generate billions of dollars for the system.

To read the text of the bill, go to: http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0651-0700/ab_656_bill_20090225_introduced.pdf

To read the news release on AB 656, go to: http://democrats.assembly.ca.gov/members/a20/press/20090225AD20PR01.htm