1. What are Tax Increment Financing (TIFs) and Urban Renewal Areas (URAs)?

Predatory Corporate Tax Breaks. Many cities hand out incentives called “Tax Increment Financing” (TIF) or designate Urban Renewal Areas (URAs). These are property-tax abatements to encourage real estate development. In a TIF district, a portion of property taxes that would normally go to things like schools gets diverted to pay for development projects — often big corporations or well-connected commercial developers. In theory, TIF aims to boost economic growth in blighted areas, but too often, it just hands companies a sweet deal while our classrooms get robbed of the funding they need.

2. Why Should Public Schools Care About URA, TIF, and Abatements?

Because every time a TIF or abatement is handed out, the school district loses out on property-tax revenue for years — sometimes decades. That money could have paid for better teacher salaries, updated textbooks, or modern facilities. Instead, it will pad the pockets of corporations under the banner of “urban renewal.”

3. Does Portland Have URA or TIF Districts?

Yes. Portland has lots of them. Agencies like Prosper Portland (the city’s economic development arm) orchestrate these districts to “stimulate growth.” But that growth comes at a cost: The property-tax revenue that should fund our schools ends up paying for development bonds and sweetheart deals instead.

4. Why Should PPS Get Involved?

Because PPS loses millions in potential property-tax dollars over the lifespan of these URAs. Every dollar diverted is a dollar not going to teacher pay, up-to-date textbooks, or modern classrooms. It’s time for PPS to say, “We won’t bankroll big developers while our kids lose out.”

5. What Does “Opting Out” Look Like?

Portland’s city council typically approves or expands URAs with minimal input from the school district. “Opting out” means PPS would refuse to participate — refuse to let its portion of property taxes flow into these URAs — unless the city or county compensates the schools for that loss. It’s a shot across the bow: “If you won’t protect our funding, we won’t sign off on your new TIF expansions.”

6. Is This Legal Under Oregon Law?

Maybe. Who cares? Do it. Cities have broad authority over URAs, but PPS is a major stakeholder. By publicly rejecting new URA expansions or threatening legal action, the district forces a negotiation. The legality isn’t clear, but letting City Hall or Prosper Portland simply walk away with education dollars is unacceptable.

7. Sue?

Yep. Threatening to sue or refusing to sign off on the TIF sends a message: “If you keep giving away our property-tax dollars to developers, we won’t play ball.” It forces city officials and corporations to think twice before they dole out new tax breaks without a plan to protect school funding.

6. What About a “Clawback” or “School Impact Fee”?

If corporations want a fat property tax break, they should compensate the schools starving of funds. A “School Impact Fee” means that if a big business gets a property-tax abatement over a certain threshold — say, $1 million — it must pay an in-lieu fee to the school district. This ensures our classrooms aren’t left high and dry by sweetheart deals.

7. Have We Seen Anything Like This Before?

Yes. In some states, companies that get substantial tax breaks are required to offset the loss to local schools. This isn’t reinventing the wheel — it’s just ensuring that if corporations profit from special deals, schools and students don’t lose out.

8. Aren’t These Tax Breaks Supposed to Promote Development and Create Jobs?

Trickle-down economics. Still waiting on that promise 50 years later.

9. What Happens if the City and Corporations “Cry Foul”?

Who cares? You can’t teach children with corporate excuses. A strong, well-informed, confident local student body outweighs any corporation any day.

10. What’s the End Goal Here?

To stop handing out free rides to giant corporations while our schools beg for crumbs. Public schools can fund smaller class sizes, better technology, safe buildings, and the staff needed to give every child a fair shot by reclaiming that lost revenue - whether through opting out of TIF, imposing an impact fee, or forcing negotiations.

11. How Can Voters Support This?

• PPS Acts: Adopt a resolution that refuses new TIF diversions or requires full offsets for lost revenue.

• PPS Promotes and Supports Ballot Measures: Vote yes on measures that require corporations with significant tax breaks to pay their fair share to schools.

• PPS Speads the Word: Challenge the myth that tax breaks are always good for our neighborhoods. The numbers often don’t add up for public education.