1. What Does "Corporate Tax Incentives Tied to School Funding" Mean?

It means no more free rides for corporations receiving tax breaks. If a business (like Intel) gets a big property tax abatement — e.g., an Enterprise Zone exemption or a Strategic Investment Program (SIP) deal — then a portion of those "saved" taxes must be redirected into school district budgets. This can be a Payment In Lieu of Taxes (PILOT), a direct deposit into a local Education Improvement Fund, or other enforceable contributions earmarked for K–12 (see Enterprise Zones in Oregon (Business Oregon).

2. Why Does This Matter for PPS?

Students are getting screwed over in favor of corporate profits. PPS stands to lose millions in property-tax revenue when local or state entities grant massive tax breaks to major corporations. By tying these incentives to school funding, PPS ensures that public giveaways — like smaller class sizes or updated facilities — directly serve a public purpose instead of letting corporations privatize the gains while schools struggle.

3. What About Claw-Back Clauses?

Claw-back clauses revoke or reduce a company's tax break if it fails to meet specific benchmarks—such as promised job creation, wage levels, or improvements in local school funding metrics. This ensures accountability: Schools recoup at least part of the lost revenue if corporations don't deliver (see Oregon's Strategic Investment Program (Business Oregon).

4. Is There a Precedent for This?

Yes, several states and localities nationwide use PILOTs or claw-back clauses. Oregon has frameworks like the SIP, but corporate accountability for school funding remains weak. PPS can draw on examples from other regions to build a robust model that ensures corporations who benefit also benefit the community.

5. How Would "Education ROI" Metrics Work?

An Education Return on Investment (ROI) means measuring how many new dollars actually reach the classroom, how student outcomes improve, or how many teachers are added. If the promised "economic growth" from a tax break doesn't boost school revenue or tangibly help local students, the incentive doesn't get renewed.

6. Could Companies Also Be Required to Invest in K–12 Programs Directly?

Let's go! In addition to making direct payments, corporations could fund STEM initiatives, workforce development programs, or apprenticeship pipelines in Portland schools, helping shape the next generation of skilled employees while offsetting the cost of their tax breaks.

7. What Actions Would PPS Take to Make This Happen?

1. Propose or Support Legislation: PPS can push for bills requiring all corporate tax abatements in Oregon to include a PILOT for local districts or enforceable community benefit terms.

2. Adopt Formal Board Policies: The PPS Board can refuse to approve or endorse any local tax abatement (e.g., in an enterprise zone) unless there's a direct, enforceable school funding component.

3. Collaborate with Neighboring Districts: Form a coalition of large Oregon school districts to demand that state or county incentive packages include dedicated resources for K–12.

4. Public Accountability Reports: PPS can track and publicly report how corporate tax breaks affect the district, highlighting the lost revenue and any claw-back/PILOT amounts collected.

8. How Is This Different From...

Force a 'Corporate Wealth Dividend' from the State Kicker or CAT?

• That approach modifies existing tax mechanisms (the "kicker" or Corporate Activity Tax) to recapture surplus or expand corporate taxes. Tie Corporate Tax Incentives focus on conditional property tax breaks or subsidies, requiring direct school contributions in exchange for those breaks.

Close Corporate Tax Loopholes and End Special Exemptions?

• Closing loopholes ensures companies pay what they already owe under the law. This idea adds an extra layer of accountability whenever the state or locality intentionally gives a discount or incentive.

Implement a Corporate Education Surcharge?

• A surcharge creates a new, dedicated tax on large corporations funneled to schools. In contrast, tying incentives to outcomes focuses on existing or new tax breaks, making sure they come with conditions benefiting K–12 education.