Thursday, May 9, 2013

Portland's "Education" Urban Renewal Area may take money out of PPS classrooms

Today's Tribune reports that a local attorney is arguing before the Oregon Department of Revenue that urban renewal property taxes paid out for education would force reductions in other property taxes going to Portland Public Schools and other education districts, because they’ve already hit the $5-per-$1,000-in-assessed-value property tax cap set by Measure 5.

How does that affect PPS?

To get PPS to cheerlead for the new urban renewal area, the city threw a bone to the district: We'll help you rebuild Lincoln High School.

But, because of Oregon's property tax limitations, any money spent by the urban renewal agency on schools results in a dollar-for-dollar reduction in the amount that the district can collect in property taxes.

In other words, the $10 million that PPS would get from the urban renewal area will be offset by a reduction of $10 million for classrooms.  PPS, you got played and you might choke on the bone the city threw to you.