Yesterday, Governor Jerry Brown announced his “May Revise” for the budget. The proponents of the California Modernization and Economic Development Act – a proposed oil extraction tax for the 2014 ballot – offered the following statement in response to his press conference:

“Though we are pleased with the potential funds for K-12 schools and community colleges, the surplus in Governor Brown’s revise of the budget, like the passage of Proposition 30 last November, is only one step in the process of providing adequate funding for K-12 and higher education. An oil extraction tax is absolutely necessary to continue this trend and promote job growth in California.

“UC and CSU enrollment rates have dropped 20% because of recent tuition hikes. This can not continue. By the year 2020 as a result of decreased access to education, the Public Policy Institute of California predicts our state will not be capable of meeting economic demand for highly educated workers. This will only make it more difficult for businesses to find qualified employees, and will perpetuate high unemployment and wage stagnation in California.

“We have great respect for the Governor and especially for his work passing Proposition 30, which was a big step forward for California’s students and our economy. However, we could not disagree more about the urgent need to pass an oil extraction tax in our state and provide critical funding for schools, colleges and universities. Prop 30 should not be an excuse to continue giving away oil and gas that’s extracted from California and sold around the world – especially when making college more accessible has never been so important. Inadequate funding for higher education in California is still a very real problem with long term economic consequences, and a tax on extraction in California would be unnoticeable to commuters and taxpayers: it would only require oil companies to pay their fair share.

“Sacramento can practice real fiscal responsibility by using revenue from energy that belongs to California to boost our economy and create jobs at a time when 9.8% of Californians can’t find work – and subsequently, don’t pay taxes. That’s why CMED uses a consumer-friendly oil tax to make crucial investments in higher education, cities and towns and support for small businesses to switch to less-costly, cleaner forms of energy.”

More information and updates from the campaign can be found at http://www.cmedact.org

by Kevin Singer, Communications Coordinator, Californians for Responsible Economic Development

With one week left until the California Modernization and Economic Development Act – a proposed ballot initiative that would enact a tax on oil and gas extracted from California – is granted official summary and title by the Attorney General’s Office, the proponents of the measure are announcing an Earth Day rally and press conference. On Monday, April 22nd at 12PM students and allies will gather on the historic steps of Sproul Plaza in Berkeley to show their support for the bill, which would infuse California’s higher education system with $900 million for the purposes of reducing tuition and hiring more teachers. The rally will be followed by a press conference, during which the lead proponent, Jack Tibbetts, will give a statement and answer questions.

The California Modernization and Economic Development Act (CMED) places a 9.5% tax on the oil and gas that’s extracted from California, and would bring in over $2 billion of new revenue for the state. $1.2 billion would be allocated in four equal parts towards K-12, California Community Colleges, California State University and the University of California. Another $400 million would be used to provide businesses with subsidies for switching to cleaner forms of energy, and $300 million would be allocated for city and park infrastructure. “We want to demonstrate that students are willing to fight and vote for a bill in 2014 that consists of a complete package of investments for their future,” said Sera Tajima, Outreach Director for the campaign. “The fact of the matter is 2014 is an off-year election, and if Democrats are looking for a ballot initiative that will encourage student turn out, CMED is the obvious candidate,” Tajima added.

The announcement comes on the heels of the California Democratic Convention, where environmental activist and philanthropist Thomas Steyer spent a great deal of time talking about the need for an extraction tax. Though he did not specify a proposal he planned on backing, he did not rule out a ballot initiative if the California Senate and Assembly do not act. The bill has already attracted the attention and support from a wide variety of interest groups and individuals, and touts a growing list of endorsements on their website (www.cmedact.org/endorsements). In February, former US Secretary of Labor Robert Reich endorsed CMED, calling the ballot initiative a “no-brainer.” Since then, the group has received enthusiastic support from several environmental advocacy groups, including the Community Food and Justice Coalition, Asian Pacific Environmental Network, Sustainable Marin and San Rafael, and Mark Reynolds of Citizen’s Climate Lobby.

In a recent turn of events, Dr. Daniel Kammen, Nobel Prize recipient and co-author of Prop 87 (a similar measure on the 2006 ballot), wholeheartedly endorsed the proposal. “Placing a small surcharge on in-state production benefits the state dramatically, spurring innovation on the producer side to reduce costs, and bringing in funds that are critically needed to green the economy, re-invest in education, and meet basic needs.  California is at the forefront of the clean energy revolution, and has profited from this process.  The California Modernization and Economic Development Act is absolutely needed.”

Edits:

changed the word fee to the word tax, for article explaining difference, see here: http://www.clearthebenchcolora…

fixed a quote by Dan Kammen for accuracy

by Kevin Singer, Communications Coordinator, Californians for Responsible Economic Development

In 2011 alone, California produced a grand total of approximately 200 million barrels of oil and 230 billion cubic feet of natural gas, making our state the fourth largest producer of oil and the tenth largest producer of natural gas in the country. Yet, despite this, California does not get a dime for the resources that are extracted from our state and sold on the global market. This is because, unlike every other major oil and natural gas producing state in the nation, California has not enacted an extraction fee on the energy that is taken right from under our feet.

Let’s think about this for a moment. California, the ninth largest economy in the world, is ranked 43rd in the country in terms of K-12 spending per pupil. The University of California, the flagship public university system of the nation, has seen a 14% decrease in funding since 2010. And at a time when a quality college education has never been more important, tuition is skyrocketing, making a diploma unaffordable for an increasing number of young Californians. Meanwhile, at 9.8% unemployment, even those who have graduated from college find themselves without work or working at jobs they are tremendously over-qualified for. The appalling disrepair of our municipal infrastructure only discourages employers from bringing more jobs to our state. But our state government has its hands tied behind its back. The $250 billion dollar state debt all but assures that there will be no additional funding for education and infrastructure in the near future.

And we are giving away our oil and natural gas. We have the wealth to fund the investments that California needs and deserves and we are giving it away. This is to say nothing of that fact that by not charging an extraction fee on oil and natural gas, our state, which prides itself as a leader of reducing CO2 emissions, is not putting a price on the CO2 that eventually makes its way into the atmosphere. To say this is ridiculous would be an understatement. It is an outrage.

The California Modernization and Economic Development Act (or CMED) would put an end to it. By implementing a modest 9.5% extraction fee on oil and natural gas (Alaska, hardly an enemy of big oil, has implemented a fee of 24% on oil and natural gas that’s extracted from the state), CMED would raise between 2 and 2.5 billion dollars in revenue for California. A little more than half, 1.2 billion dollars, would be allocated in four equal parts for K-12, California Community Colleges, Cal State Universities, and the University of California for the purposes of increasing quality and restoring tuition to 2010 levels. 400 million dollars will be used to support small businesses by aiding their transition to cheaper, carbon-free and carbon-reduced forms of energy, which would in turn empower them to expand, hire additional workers, and reinvest. An additional 300 million dollars would be apportioned to the general funds of California County Governments for the purpose of upgrading and better maintaining municipal infrastructure, funding the conservation of regional park land and providing a multitude of other public services.

These are more than investments, they constitute a complete vision for responsible economic development in California. Making that vision a reality is as easy as ending the giveaway of our oil and natural gas, but it’ll take a popular movement if we truly want to realign the policies in Sacramento with the wishes and desires of Californians. Simply by taking a few moments, right now, and visiting www.cmedact.org, liking our Facebook, following us on Twitter, telling your friends or donating anything you can, even $5, you can provide the crucial grassroots support we need. It’s that easy. You could be the difference between failing to qualify and qualifying CMED on the 2014 ballot, so that Californians can have a chance to pass it democratically.

We can do this California, but not without your support. If you think it’s ridiculous that we are giving away our oil and natural gas at a time when California is more cash-strapped than ever, join our cause. It won’t be easy, but together we will qualify and pass the California Modernization and Economic Development Act and put our state back on the right track.

Last month there was great news for AB 1648, the California DISCLOSE Act.  Speaker John Perez, who is a co-author of AB 1648, stood up in front of a couple of hundred activists at a Los Angeles County Democratic Party meeting and said, to a roaring round of cheers, that “we are going to get the DISCLOSE Act passed!”

This was fabulous news, because the California DISCLOSE Act is crucial to fighting back against Citizens United and unlimited anonymous spending in SuperPACS by making political ads in California clearly show their three largest funders.  Without it voters will be crushed by the Chevron’s and Koch Brothers of the world.

Speaker Perez really has to make it happen because unfortunately, with huge opposition from the California Chamber of Commerce and its big-money corporate allies who would rather keep voters in the dark, it doesn’t look like there’s any Republican Assemblymembers that will vote for it, denying it the 2/3 vote it needs as it currently stands.

Fortunately, Speaker Perez could amend the bill to be a majority vote bill to put it on the 2014 ballot, but he has to act quickly, because the legislative session is over August 31st and it still has to get through the Senate.

The good news is that the California Democratic Party will be fully behind him, since it just endorsed it.   As California Democratic Party Chairman John Burton said:

“The California Democratic Party strongly endorses AB 1648, the California DISCLOSE Act.  We agree with the overwhelming percentage of California voters who favor more disclosure of who is paying for political ads.  Our democracy is at risk when special interests can dominate politics while hiding their influence.”

Not to mention that AB 1648 has 44 Assembly co-authors, that over 65,000 people have signed petitions for it, and it has been endorsed by over 300 organizations and leaders, from the League of Women Voters to Courage Campaign to Sierra Club California.  Everybody knows how important it is to stop corporations and billionaires from buying elections by hiding when they pay for political ads!

Unfortunately, time is running out.  The good news is that at the CDP e-board two weekends ago, Speaker Perez told a number of Democratic activists again that he would get it passed.  One of them reported that “he said that he always gets a bill through after he promises he would do it, and that he has a good track record on doing it.”  He said DISCLOSE Act supporters “needed to concentrate on the Senate as we didn’t have to worry about the Assembly”.

It’s getting a little late, but with promises like that from Speaker Perez, I’m sure he’ll be a hero to Californians everywhere by getting it through — in which case, everybody be ready to help get it through the Senate!

In the meantime, sign the petition yourself at:  http://www.CAclean.org/petition

Carole Lutness

Member of the Legislative Committee of the California and Los Angeles Democratic Parties