California is the Only Major Oil Producing State without an Extraction Tax

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National budget crisis has put public education into scarcity for the future of those who wish to obtain a higher level of education. With dramatic increases in tuition and fees students are rallying and protesting in desperation to be heard with hopes to experience change in how we are handling the states budget deficit. CSU’s administrators have proposed to address the budget shortfall through layoffs, furloughs, tuition increases, course and enrollment reductions as being the primary solution while very little pressure has been placed on Governor and the states legislature to make higher education a priority.

One possible solution before the legislator is AB 656. The bill is sponsored by proposes to levy an extraction tax on natural gas and oil companies who profit from our state’s natural resources. California being the only major oil-producing state that does not levy an extraction tax – that is said can be a reliable source for higher education. In contrast, Texas public universities receive more than $400 million a year in revenue from mineral and oil rights.

Tuition has seen a dramatic increase of 32% and is for-seen to increase another 10% within the next year. CSU system-wide is calling for a reduction of enrollment by 40,000 students over the next two years.

Title: California’s Crisis of Higher Education

Source:, 10/24/2009


Author: Diane M. Blair

Student Researcher: Gina R. Sarpy

Faculty Evaluator: Glenn Carter

Sonoma State University: Sociology of Media, Fall 2009