Hey Folks,
I have been harping on how Urban Renewal and government economic development for its deleterious effects on our public schools and the economy overall, but the following article is another great example to bolster that argument. Right now in OR, cities and counties have not begun to fully use their legal ability to create more and larger UR area's or enterprise zones, so these taxing schemes have not been maximized to its fullest extent, yet. And currently, this system is taking about a billion tax dollars out of the OR state economy and the Portland school district is going to ask for more from the taxpayer.
Why didn't the use of these types of economic development plans for the last 40 years still not provide a tax base that could support the local school system? That was the promise made when the politicians asked for the support of the voters to create these taxing programs, but the fulfillment of those promises seem to be lacking in real value.
When the cities and counties start to become more dependent on these types of corporate sustainability programs, it will cause all the other taxing districts to have to raise the taxes on the people or cut basic services. The system will continue to pull a huge amount of our income taxes through the state's school equalization program that will also be doled out to cronies and special interest. It also creates a huge inequity in the so called school equalization program, because larger cities and more populated counties can circumvent the system to pull more of the money from the state's general fund than smaller cities or counties.
Then, much like Coos county's new Community Enhancement Plan, local politicians will use this system to accrue tax dollars and turn it into corporate welfare, union endowment plans and political slush funds---all to the detriment of the taxpayer. It is win, win, win for the tax and spend political elite, but it is lose, lose, lose for the average tax payer.....Rob T.
I have been harping on how Urban Renewal and government economic development for its deleterious effects on our public schools and the economy overall, but the following article is another great example to bolster that argument. Right now in OR, cities and counties have not begun to fully use their legal ability to create more and larger UR area's or enterprise zones, so these taxing schemes have not been maximized to its fullest extent, yet. And currently, this system is taking about a billion tax dollars out of the OR state economy and the Portland school district is going to ask for more from the taxpayer.
Why didn't the use of these types of economic development plans for the last 40 years still not provide a tax base that could support the local school system? That was the promise made when the politicians asked for the support of the voters to create these taxing programs, but the fulfillment of those promises seem to be lacking in real value.
When the cities and counties start to become more dependent on these types of corporate sustainability programs, it will cause all the other taxing districts to have to raise the taxes on the people or cut basic services. The system will continue to pull a huge amount of our income taxes through the state's school equalization program that will also be doled out to cronies and special interest. It also creates a huge inequity in the so called school equalization program, because larger cities and more populated counties can circumvent the system to pull more of the money from the state's general fund than smaller cities or counties.
Then, much like Coos county's new Community Enhancement Plan, local politicians will use this system to accrue tax dollars and turn it into corporate welfare, union endowment plans and political slush funds---all to the detriment of the taxpayer. It is win, win, win for the tax and spend political elite, but it is lose, lose, lose for the average tax payer.....Rob T.
Portland schools should say 'thanks' with a tax break: Editorial
When the school board asked voters to approve the current local option levy, district officials knew that a chunk of the new money would be captured by urban renewal districts and never make it to district classrooms. This year, according to officials, the levy will bring the district about $57 million, but an additional $7.5 million will be snagged for urban renewal. The district never expected to collect that $7.5 million, which would be reduced by property tax compression to about $4.5 million if, by some legal miracle, it were suddenly redirected to classrooms. The loss is, in effect, the price shouldered by taxpayers in order to send additional money to schools.
The legal miracle did happen this year, when lawmakers yanked the hands of urban renewal districts like Portland's out of the local option cookie jar. However, the law applies only to local option levies approved or renewed after the effective date of the law. Portland's levy was approved in 2011, well before the Legislature changed the rules. You see the problem.
So does the Portland school board, which on Monday will consider asking voters to renew the five-year local option levy they approved three years ago. In doing so, the board could reduce its local option tax rate marginally and let taxpayers keep the urban renewal savings, which the district didn't expect to collect in the first place. It's planning, instead, to keep the rate the same and grab the urban renewal money as a sort of windfall.
Read more at:
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