Specialist outlines benefits of local option tax for schools

‘It is a difference maker. It allowed us to fund programs more adequately.’ — Bob Reese

The past nine years in Pendleton represent proof.

This is the belief of Bob Reese of Pendleton. Reese has witnessed first hand how a local option tax can make a difference during difficult financial times. He was the Pendleton School District’s director of business services when its voters approved a local option tax in 2000, one it has retained since then.

Funds from the option levy have helped the Pendleton School District weather extremely trying financial times over the past decade, Reese said Tuesday in La Grande.

“It is a difference-maker. It allowed us to fund programs more adequately,’’ Reese said.

Reese spoke in La Grande at a meeting of the school district’s local option tax advisory committee. The committee was formed to examine whether the school district should seek a local option tax.

Reese said the Pendleton School District received $460,000 in additional funding as a result of its local option tax in 2008-09. The district received $285,000 in additional tax revenue plus $175,000 in equalization funding from the state. School districts with local option taxes qualify for state equalization funds.

Reese believes a major reason voters approved a local option levy in Pendleton is that voters were made aware of the equalization funds the school district would receive if they passed the levy.

“It was a major selling point,’’ Reese said. “ The incentive from the state was huge.’’

La Grande would receive about 25 cents from the state in equalization funding for each dollar it receives in local option tax money, said La Grande School District Superintendent Larry Glaze.

The Pendleton School District has received equalization funding each year since voters approved a five-year local option tax in 2000. Voters approved a second five-year local option tax in 2005, Reese said.

Reese was with the Pendleton School District for 10 1/2 years before retiring four months ago. He is now a purchasing and marketing specialist with the Umatilla-Morrow Education Service District.

Reese said that during Pendleton’s two successful option levy campaigns it has targeted voters who have supported levies in the past and not those who oppose them.

“It is hard to convince people who are anti-tax to vote to increase taxes,’’ Reese said.

He said campaign workers called people known to support levies up to four times to make sure they sent their ballots in.

Oregon school districts have been able to seek local option taxes since about 1999. The tax in a sense is an outgrowth of Measure 5.

School districts are limited in the property taxes by Measure 5, which voters passed in 1990. Measure 5 limits the amount property owners pay in taxes to schools to $5 for every $1,000 of property value. The passage of Measures 47 and 50 by voters several years later does not allow this $5 per $1,000 rate to increase. However, they allow school districts to seek local option taxes when there is a difference between the overall assessed value of property in a school district and the market value. A local option tax cannot exceed the difference.

The La Grande School Board decided via consensus Oct. 21 to look into an option levy. The reason is the district is facing a budget crunch because of reduced funding from the state due to the recession and declining enrollment. Declining enrollment is taking a big financial toll because school districts receive about $6,000 from the state per student.

The school district had to trim about $2 million from its budget in June because of a funding shortfall. A local fundraising campaign was needed to fund sports and activities in the district.

The school district’s local option tax advisory committee will make a recommendation to the school board in November or December.