The bill, AB 3X 9 by Speaker Fabian Nunez was dismissed as a political stunt by Republicans, who say Democrats are more interested in embarrassing Assembly Republicans than actually solving the state’s budget problems.

“It’s bad political theater masquerading as responsible tax policy,” said Assemblyman Chuck DeVore, R-Irvine, the ranking Republican on the Assembly Revenue and Taxation Committee. “It’s actually bad fiscal and energy policy."

But for now at least the speaker’s office isn’t talking. “It is a work in progress,” said Nunez spokesman Richard Stapler. “We will likely have more information tomorrow [Wednesday].”

The bill would create a new 2 percent oil tax for any oil company that earns more than $10 million in net income. It would also impose a new 6 percent “oil severance tax” based on the gross value of each barrel of oil produced in the state.

There is no estimate yet for how much revenue the new taxes would generate for the state.

DeVore said the proposal would "devastate oil production in California if it’s passed," and would lead to an increase in Calfornia's gas prices, despite language in the bill that specifically prohibits oil companies from passing the cost of the new tax on to consumers.

The bill language was introduced Monday, and is being fast-tracked by the Speaker’s office. It is scheduled to be heard in Assembly Revenue and Taxation Wednesday, and on the Assembly floor some time this week, right before the Legislature adjourns for spring break.

According to the bill language, all of the money raised by the bill “shall be deposited in the General Fund and allocated exclusively for the purpose of funding grades K through 14 education.”

The timing of this vote is no accident. Gov. Schwarzenegger has proposed 10 percent cuts to education programs in the state. This week, teachers across the state will begin receiving notices that they may not have jobs in the fall.

The governor’s press office said the govenror has not seen the details of the proposal, but did not support the concept. "The governor doesn’t believe we can resolve our chronic budget problems by raising taxes, which is why we need budget reform," said Schwarzenegger spokesman Aaron McLear.

“This really is a drill,” said DeVore. “I wouldn’t want to insult the Democrats’ intelligence that they actually believe in the policies they’ve advocated. Clearly, these policies would devastate California’s domestic oil production.”