SACRAMENTO – Speaker Fabian Núñez (D-Los Angeles), Speaker-elect Karen Bass (D-Los Angeles), and other Assembly Democrats today joined students, educators, and school support staff to introduce a bill to fund education and reduce teacher “pink slips” by closing loopholes for Big Oil and taxing their windfall profits.

“While California is facing billions in cuts to schools, big oil companies are raking in record profits -- without paying for the oil they take from California.,” Speaker Núñez said. “If red states like Texas, Colorado, and Montana tax oil production to fund the services they value, then so should we.”

“We have to make tough choices as we grapple with funding education,” added Speaker-elect Bass. “It’s imperative that we ensure smaller class size in order to provide our children with a quality education. This is about making it happen.”

AB 9xxx would set a 6 percent severance tax on oil extracted in California. The revenue would be used to mitigate teacher layoffs from the Governor's proposed cuts. AB 9xxx also responds to overall petroleum industry profiteering by placing a 2 percent windfall profits tax on oil companies.

The bill would generate $1.2 billion in yearly revenue for the state, making sure California gets its fair share from record oil company profits. Oil production is one of the most profitable industries in the world, and all 21 other oil producing states in America already levy a severance oil tax at rates ranging from 2 percent to 15 percent on oil producers. Most of those states spend more per pupil on education than California.

AB 9xxx prohibits the producers or purchasers of oil from using the tax to raise prices at the pump. It gives the Board of Equalization and the Franchise Tax Board tools to keep oil companies from passing through price increases.

Legislative Democrats have already reluctantly backed $7.5 billion in spending cuts, deferments, and other cost controls to valued state services, including Medi-Cal and Supplemental Security Income. To close the state’s remaining $7.5 billion budget deficit while preserving vital state institutions like K-12 education requires balancing cuts with new taxes and fees. Even so, Assembly Republicans recently rejected a bill that would close a yacht tax loophole, enabling the owners of yachts to avoid paying sales taxes on their boats if the vessel is kept offshore for three months. All legislative Democrats supported that proposal.

Here are links to audio of Speaker Núñez, Speaker-elect Bass and teacher Christine Boatman from today’s news conference at William Land Elementary School in Sacramento:

Speaker Núñez says the “gusher giveaway” to oil companies must end.

Speaker Núñez says cutting education is not the answer to balancing the state’s budget.

Speaker Núñez says oil companies already pay similar taxes to those proposed in AB 9xxx in all the other oil producing states.

Speaker Núñez says closing the oil tax loophole will bring in much needed revenue.

Speaker Núñez says today’s scheduled vote on AB 9xxx will show who is supporting education and who is supporting oil companies.

Speaker-elect Karen Bass says the massive education cuts proposed by the Governor are irresponsible. (2:01)

Pink slipped teacher Christine Boatman on receiving her lay off notice.