Force a state ‘Corporate Wealth Dividend’

TL;DR

Oregon's "kicker" law and Corporate Activity Tax send money back to corporations and wealthy taxpayers instead of fully funding schools. PPS can fight for a new measure or legislative change to redirect part of those funds to public education in Portland.

1. What Exactly Is Oregon's "Kicker" and the CAT?

  • Kicker: Oregon's Constitution refunds state tax revenue above the forecast to taxpayers (individual and corporate).

  • Corporate Activity Tax (CAT): A newer tax designed to help fund education. However, it may not fully address high-cost districts like PPS; corporate refunds can still undermine school budgets.

2. Why Does This Matter for Portland Public Schools?

PPS faces huge funding needs — from teacher salaries to hiring needs — while corporations and wealthy individuals receive sizable "kicker" refunds. The CAT was meant to bolster education but isn't sufficiently targeted to high-cost areas like Portland.

3. What's the Core Idea Behind a 'Corporate Wealth Dividend'?

To divert a portion of the kicker refunds — especially for corporations (e.g., Nike, Inc., Intel, Columbia, Lithia Motors, PacifiCorp) or very high-income individuals (e.g., Phil Knight & family, Tim Boyle, Travis Boersma, Robert B. Pamplin Jr., Andrew Miller) — or to expand/increase the CAT in a way that directly benefits PPS.

4. Is That Even Legal, Given the Oregon Constitution?

Who cares? Go for it. Local politicians covering PPS at the state level love to "talk" and brag about minor accomplishments that bear no risk to THEIR political lives; let's see them take up the people's cause and go after apex predators that bite back. The CAT could be adjusted by the Legislature (with enough political will) to include a "Metro Education Surcharge" specifically benefiting PPS.

5. What Could Redirecting the Kicker Look Like?

  1. Corporate Kicker: Prevent corporations from pocketing refunds and sending that money to high-cost school districts.

  2. High-Income Threshold: Create a new bracket so only those above a certain personal income level lose part of their kicker, which then goes to schools.

  3. Metro-Specific Surcharge: Adjust the CAT to capture more from businesses operating in PPS boundaries.

6. Is There Any Precedent for Doing This?

Yes, in 2022, there was a legislative discussion about capping or redirecting the kicker. It didn't pass. PPS can build on that momentum by emphasizing how schools, especially in Portland, still suffer under the current system.

7. Why Is PPS Involved in This Statewide Issue?

Because the kicker law and CAT structure directly affect PPS revenue streams, if a giant pot of money is rebated to corporations while local classrooms struggle, PPS has every right to question that policy and advocate for changes that would bring more funds to Portland's students.

8. What are the key actions that PPS will take?

  1. Draft or Champion New Legislation: PPS can collaborate with legislators in Salem, proposing a bill or constitutional amendment to carve out a share of the kicker/CAT for Portland schools.

  2. Board Resolution & Advocacy: The PPS Board of Education can pass a formal resolution declaring the need for a kicker or CAT reform and then lobby state leaders and the public.

  3. Coalition Building: Work with other large Oregon districts or public entities suffering from insufficient funding, forming a united front to push for kicker/CAT adjustments.

  4. Public Campaign: Use PPS's communications channels to highlight how existing kicker refunds starve local classrooms, galvanizing public support for a reallocation.