CORRECTION: The sentence “Torrico also mentioned that the effect of a tax like this one would point toward a reduction in the production of crude oil, which could lead to a rise in transportation fuel costs for consumers” should have been attributed to Tupper Hull, not Alberto Torrico. The article below has been updated accordingly.
Alberto Torrico, California State Assembly majority leader and Democratic candidate for state attorney general, will be on campus today to speak about Assembly Bill 656, a bill aimed at generating up to $2 billion for higher education in California.
Also known as “˜Fair Share for Fair Tuition,’ the bill, which was recently passed through the State Assembly, proposes a 12.5 percent oil and natural gas severance tax that would be appropriated to the funding of the University of California, the California State Universities and California Community Colleges. Its revenue would be distributed between the three institutions as follows: 50 percent to CSUs and 25 percent to UCs and California Community Colleges, respectively.
The event was organized by Bruin Democrats, and similar ones have previously taken place at various college campuses, said Carrie McFadden, Bruin Democrats president and fourth-year political science student. She added that higher education is one of Bruin Democrats’ main priorities, and they support Torrico’s bill.
“Because we let oil companies make so much money off of our resources, we should get something out of it,” McFadden said. She said the tax on oil will not be detrimental to low-income populations because it will not be passed down to the consumer.
Torrico’s efforts are not the first of its kind. California is the only state in the nation that fails to charge oil companies a fee, the assemblyman said. He explained that these policies have been effective in the other states and said he is confident the same will result in California. In addition, Torrico’s proposal is lower than most existing ones, including Alaska’s 25 percent tax.
Groups also backing Fair Share for Fair Tuition include, but are not limited to, the UC Student Association and the Bruin Lobby Corps, which recently traveled to Sacramento, joining college students from all over the state in their efforts to lobby and support the bill, McFadden said.
Other campus groups have a completely different take on the issue. Andrew Kreitz, former chairman of Bruin Republicans, stressed his concern for the state’s already high tax burden and the harmful financial and job-related effects that he says will arise as a result.
“I would love to have cheaper tuition ““ everyone would ““ but the way towards economic recovery is not to tax and spend when we are already in the middle of a recession,” Kreitz said.
Additional opponents to AB 656 include the California Independent Petroleum Association and the Western States Petroleum Association, which are both largely concerned with the amount of job losses AB 656’s passage will trigger.
“It’s anticipated to cost about $10,000 California jobs. Consequently we feel it’s a bad tax policy for the state of California, particularly at a time when we have one of the highest unemployment rates in the history of the U.S.,” said Tupper Hull, spokesman for the Western States Petroleum Association.
Hull also mentioned that the effect of a tax like this one would point toward a reduction in the production of crude oil, which could lead to a rise in transportation fuel costs for consumers.
Rock Zierman, CEO of the California Independent Petroleum Association, said the bill’s inability to present a complete picture of all the costs involved is what is keeping the association from supporting AB 656.
Despite the opposition, Fair Share for Fair Tuition is now a grassroots movement that has successfully gathered 60,000 signatures and cards of support, Torrico said. With his visit to UCLA, the majority leader hopes to keep the momentum of his campaign going and explained what he thinks is a dire need for state funding to change.
“We spent more money on prisons than colleges for the first time,” Torrico said. “If we want to invest in higher education we have to find resources. AB 656 does that.”