Whereas, California is the only state amongst the top ten oil-producing states [1] that does not charge an oil severance tax; and,

Whereas, an oil severance tax is a tax levied by the state government on a percent of the value of the oil and natural gas extracted from state territory; and,

Whereas, giving fossil fuel companies and corporations to profit from California’s natural abundance without contribution to the state that provides them this advantage is a license that no companies or corporations deserves; and,

Whereas, state allocations to the University of California (UC) and California State University (CSU) are discretionary and only codified by the annual Budget Act, rather than by constitutional or previously existing statute; and,

Whereas, SB 1017 (Evans) [2] would implement a 9.5% oil extraction tax; and,

Whereas, SB 1017 (Evans) creates the California Higher Educate Fund; and,

Whereas, SB 1017 (Evans) can generate $2 billion to $2.5 billion dollars to fund higher education, state parks, and human resources in California if passed; and,

Whereas, SB 1017 (Evans) commits to funding higher education (50%), state parks ($250 million), and human/health resources ($250 million) with its proceeds; and,

Whereas, many students in the UC, CSU, and California Community Colleges (CCC) support SB 1017 (Evans) [3]; and,

Whereas, allocations from this Fund would be administered and overseen by a 15-member California Higher Education Endowment Corporation, which would include one UC student member appointed by the UC Regents and one CSU member appointed by the CSU Trustees; and,

Whereas, allocations from this Fund would be restricted to the following purposes: reduction of system-wide tuitions and fees, hiring of faculty and reduction of class sizes, purchase of instructional materials, support for English as a second language (ESL) programs, and deferred maintenance; and,

Whereas, it is evident that a pattern of disinvestment of California state funds from public higher education has led to a total of 84% increase in the UC tuition and fees since 2007-2008 academic year [4]; and,

Whereas, the targeted taxation of California’s most precious resources and wealthy companies would directly support California public higher education with allocation guaranteed by statute; and,

Whereas, multiple campus organizations from UC Irvine had voiced their opinions in support of SB 1017 (Evans) to fund California higher education; and,

Whereas, a majority of UC students take out loans in order to pay for the high tuition; and,

Whereas, research shows that the next possible recession can be caused by the students’ inability to repay their debts from student loans due to high tuition costs [5]; and,

Whereas, the proceedings from SB 1017 (Evans) can possibly avoid this recession due to the additional funding to higher education in California, thus creating a chance to decrease tuition costs with the funding from oil extraction; and,

Whereas, funding higher education should be one of the key priorities in the state of California; and,

Let it be resolved that the Associated Students of University of California, Irvine (ASUCI) formally supports California SB 1017 (Evans); and,

Let it be finally resolved that copies of this resolution shall be sent to UC Irvine Chancellor Michael Drake; UC President Janet Napolitano; Governor Jerry Brown; Assemblyman Allan Mansoor (District 74 – Costa Mesa); UC Board of Regents; The Orange County Registrar; The New University; KCUI 88.9 FM; UCSA Office of the Legislative Director; the Office of the External Vice President of the following student associations: Berkeley ASUC, ASUCD, USAC (Los Angeles), ASUCM, ASUCR, ASUCSB [Statewide Affairs], ASUCSD, UC Irvine AGS, SUA (Santa Cruz).

Sources

1.      http://www.usatoday.com/story/money/business/2013/08/03/the-most-oil-rich-states/2613497/

2.      http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_1001-1050/sb_1017_bill_20140214_introduced.htm

3.      http://www.neontommy.com/news/2014/04/students-push-oil-taxation-bill-fund-california-public-universities

4.      http://blogs.kqed.org/newsfix/2012/07/18/csu-and-uc-tuition-hikes-over-time/

5.      http://www.npr.org/2014/03/27/294858103/senator-warns-of-a-student-loan-bubble