This proposal has been floating around for a while, but it now looks to be concrete. As reported by the SacBee, Speaker Núñez is proposing to raise taxes on oil companies to help reduce education cuts:
Núñez, a Los Angeles Democrat with close ties to education unions, is proposing a two-pronged approach by levying a 6 percent tax on all oil produced within the state, and imposing a 2 percent tax on windfall oil profits.
Together, the taxes would generate an estimated $1.2 billion a year for a cash-strapped state that still faces an $8 billion deficit for the fiscal year starting in July. Under the speaker’s bill, ABX 9, oil tax revenues would be dedicated for schoolteachers, who are facing potential layoffs under Gov. Arnold Schwarzenegger’s across-the-board budget cuts.
This is basically Prop 87 again, and it’s a worthwhile proposal. The article goes on to note that the bill is likely to be opposed by Republicans. Which is probably the point here – to further expose the Yacht Party as out of touch, elitist, and defending the wealthy at the expense of schools.
Sure, this is low hanging fruit, and it’s not exactly a permanent solution to the structural revenue crisis. But I like the politics. Even though, as David notes below, we’re seeing a remarkable movement come together to protect education, the Republicans remain obstinate, and not as many Californians as we’d like see the need to raise taxes to finally fix our 30-year old revenue shortfall. Calling out the Republicans like this, and forcing them to make a public defense of unpopular companies at the expense of children is a great way to lay the groundwork for what will be a long struggle.