The cost of living in every state is on the rise. California is no exception. There are many proposed taxes hikes that state leaders are trying to sneak on the 2012 ballots.

Taxing Crude Oil and the Cost to Californians

The proposal is to levy a 9.9% extraction fee on each barrel of oil. City leaders are saying the oil taxes could bring in up to $3.5 billion for schools, while somehow preventing oil companies from raising the price of gasoline.

The opposition states that this would result in reduced in-state production, leading to an estimated loss of 10,000 jobs. And that the price of oil could increase by $1.3 billion a year which would ultimately lead to higher gas prices for people of California.

Governor Brown’s 7 Billion Dollar Tax Measure

California Governor Jerry Brown wants to raise taxes on the rich and raise sales tax. He is trying to push the measure on to next November’s ballot along with other tax measures.

Brown’s plan is to impose an extra 1% income tax on people making $250k a year, and 1.5% on those making $300k a year and 2% on individuals earning $500k a year. He also is pushing for a .5% sales tax hike much like Governor Chris Gregoire is attempting in Washington state. The California governor states the extra cost in taxes would last through 2016.

A projected $13 billion budget deficit has prompted this decision to raise cost of living in California The Brown Tax plan promises to reduce that deficit. Although a state budget watchdog agency reported much of the revenue promised wouldn’t materialize.

The measure would require a two-thirds super-majority vote and the Democrats control the legislature. Even so they are short votes , so without support from a few Republicans the initiative will be blocked. Earlier this year Republicans blocked a similar attempt to raise taxes.

Orange County officials stated that because of budget shortfalls they may divert property tax revenues away from public schools in January and May of next year. As a result hundreds maybe joining the unemployment line. The extra funds would be used to maintain correctional facilities and pay down the counties debts.

Are Politicians Breaking the Law?

It is interesting to note that the state is investigating the legality of Orange Counties desire to divert over 73 million dollars from public schools. A spokesperson for the state finance department stated that if Orange County follows through on its vow to redirect the funds, the state might take legal action against the county.

County Auditor David Sundstrom said he would not redirect the funds if he thought it was illegal and is trying to work with the state to find a resolution.

Citizens Willing to Pay more Tax for better education

According to a recent poll Californian’s are willing to raise their cost of living in order to fund better education. The 64% of Californian’s are advocating for a public school system that has endured three years of deep budget cuts. The general consensus, California’s public schools are in horrible shape. They are absolutely right for 66% of students in California have a GPA of 2.0 or below. Out of those polled many cited budget cuts ,wasteful spending and bureaucratic as the cause. And they’d be right!!

Does Education Need the Private Sector?

This is a future article because I feel very strongly about this subject. Should it be the government’s job to provide education to its citizens or simply regulate it? Wouldn’t education be better off in the private sector?

I know most companies have to answer to investors, make a profit and provide a quality product to be competitive. The Government has to do none of those things.

How would public schools do in a fair non-monopolized market? Think of the product our government is providing our children and then think how much money they are wasting to do so. Private and Charter schools are more regulated by the government, waste less, and could be funded with a lot less if the right strategy was employed.

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