AB 656, authored by Assembly Majority Leader Alberto Torrico, would have established an oil and gas severance tax (California being the only oil and gas producing state in the union not having one) and earmarked the proceeds for puiblic higher education, giving our universities a financial base upon which to operate and easing the burden on the general fund.
On Thursday, the Assembly Appropriations Committee took action on it that essentially defeats the bill for this legislative cycle. The committee deleted the oil and gas severance tax portion of the bill and replaced it with a simple reporting requirement. The amendments require the state Board of Equalization to annually report to the legislature the amount of revenue that would be generated for public higher education if the oil and gas tax was implemented.
Maybe it can be resurrected as we get closer to trying to deal with this year’s budget problems, especially since the Governor has placed a high priority on helping the CSU’s and UC’s recoup some of their cuts. This could be the way top offset the Governor’s political shenanigans of trying to play off higher education unions against the prison unions.
sure if this is actually the case. Someone I know asked Torrico’s office about it and apparently they are still expecting the bill to be voted out next week with the tax portion in it.