1. What Is a "Corporate Education Surcharge"?

It's an additional tax on large corporate profits or high-volume sales designated explicitly for public education. Think of it as a "pay your fair share" rule for big businesses operating in Oregon, ensuring they reinvest a portion of their success back into schools. About 50% of people working at large corporations in Oregon have kids in public school, so consider this a pay increase for those people.

2. How Could This Work in Practice?

One model is a scaled-back version of Measure 97 — for example, a 1% surtax on corporate gross sales over $50 million, with all proceeds going to an Education Trust Fund. Alternatively, the surcharge could be applied to corporate income above a certain threshold (like a higher rate on profits over $10 million). This focuses the tax on multinational or high-revenue corporations, sparing small and local businesses (see "How Portland Metro Chamber and Business Lobbyists Undermine Education Funding").

3. Could This Be Implemented Locally in Portland?

Potentially, yes. Although the Student Success Act banned new local gross-receipts taxes... but f*ck it. If they don't want to play by the rules, why should we? A legislative carve-out could let local districts or regions levy a modest corporate tax. For example, the Portland metro area could pass a small payroll tax on companies with over 500 employees, dedicating the revenue to PPS.

4. What Safeguards Would PPS Want in Place?

• Maintenance of Effort Rules: Ensure the state doesn't reduce its normal school funding in response to new local revenues.

• Direct Earmarking: All surcharge funds go straight to the PPS budget or a dedicated Education Trust Fund, visible to the public.

• Transparency Reports: Show how surcharge revenue is spent—like hiring new teachers or reducing class sizes.

5. Why Would PPS Back a Corporate Education Surcharge?

Because traditional funding can't keep up with increasing costs in a high-cost area like Portland, adding an Education Surcharge on large corporations ensures a steady flow of money aimed explicitly at classroom improvements rather than relying on patchy state budgets or levies that burden homeowners.

6. Could This Actually Raise Substantial Money?

Yes. Even a 1% surcharge on the biggest corporations could generate hundreds of millions annually for Oregon's schools. A lower rate could still produce significant local funding for PPS if applied regionally, especially given Portland's concentration of large employers.

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

1. Draft/Propose Legislation: PPS leadership can work with lawmakers to create a bill allowing a local or statewide Corporate Education Surcharge.

2. Issue a Formal Resolution: The PPS Board can officially endorse such a tax, highlighting the direct benefit to local classrooms.

3. Engage Other Districts: Partner with neighboring school boards for broader support, forming a coalition that pressures Salem to allow a carve-out.

4. Push for Ballot Measure Options: If the Legislature doesn't act, PPS could champion a ballot initiative in the Portland metro area or statewide, letting voters decide.

8. How Is This Different from "Close Corporate Tax Loopholes and End Special Exemptions" or the CAT/Kicker Idea?

These approaches complement each other: closing loopholes ensures corporations pay what they already owe, while a surcharge adds a targeted boost specifically for education funding, and the CAT/Kicker ensures that money goes back to those that NEED it.

• Loopholes & Exemptions: Focus on preventing corporations from exploiting existing rules, such as single-sales factors, throwback rule eliminations, or special deals.

• Corporate Education Surcharge: Imposes a new dedicated tax on large corporations, regardless of loopholes, to directly fund schools.

• CAT & Kicker Reform: This bill tweaks existing laws (the Corporate Activity Tax and Oregon's "kicker") so corporations or high-income filers can't dodge or automatically reclaim money that could go to schools.

• Corporate Education Surcharge: This proposes an entirely new, dedicated tax on large corporate sales or profits to boost K–12 budgets—a direct channel to PPS that doesn't depend on fixing or modifying existing tax structures.

9. What's the Rationale for Labeling It an Education Surcharge?

The public sees precisely where the money goes by explicitly naming it for education. It emphasizes that big corporations should "chip in" for better outcomes—like smaller class sizes or extended school years—in the communities where they profit.