Tax hike overturn would hit school districts hard

A total of $1.09 million will be at stake for the La Grande School District in January.

The La Grande School Board was told Wednesday that the district would lose $1.1 million in revenue in the 2009-11 biennium if Measures 66 and 67, which together would allow income tax and corporate tax increases approved by the Legislature to remain in place, are rejected by Oregon voters in January.

The loss of revenue would hit an already financially strapped school district hard. La Grande had to trim $2 million in June because of a state revenue shortfall caused by the recession and falling enrollment.

“(The loss of $1.09 million in revenue) would rob us of a cushion if we have to make budget cuts and might prevent us from hiring back teachers to reduce class sizes, purchasing new textbooks and keeping sports and activities programs,’’ La Grande Superintendent Larry Glaze said Wednesday.

Voters will decide on Measure 66, which would increase personal income taxes, and Measure 67, which would boost corporate taxes, in a Jan. 26 election. The measures would raise $733 million for the state in 2009-11, about $285 million of which would go to public schools.

La Grande would not be the only local school district that would be hit hard by the failure of Measures 66 and 67. Information presented by Glaze on Wednesday, provided by the Confederation of Oregon School Administrators, indicates that the five other school districts in Union County would lose a combined $974,973 in 2009-11 revenue if the tax measures are rejected. The Union School District would lose $250,044, the North Powder School District $162,689, the Imbler School District $171,055, the Elgin School District $240,266 and the Cove School District would lose $150,919 in revenue.

Information released earlier by the Oregon School Boards Association indicates that in Wallowa County the Enterprise School District would lose $245,368, the Joseph School District $150,038, the Wallowa School District $148,212 and the Troy School District $12,639.

Glaze presented information provided by the Confederation of Oregon School Administrators on how the proposed tax increases would impact Oregonians at Wednesday’s board meeting.

The COSA information indicates that 97.5 percent of Oregonians will not have their taxes raised if Measure 66 passes. The Oregonians who would see their taxes increase are single people making more than $125,000 and couples making more than $250,000. Their taxes would increase between 1.8 and 2 percent for the income they make over $125,000 (for singles) and $250,000 (for couples).

The COSA information also addresses how Measure 67 would impact corporate taxes. Corporations would pay an additional 1.3 percent on profits over $250,000 in 2009 and 2010. This would be trimmed to 1 percent in 2011 and 2012.

Measure 67 would also raise the annual minimum corporate tax from $10 to $150 for corporations with revenues of less than $500,000.

In addition, corporations doing business in the state who do not pay taxes on their Oregon revenue because they are based outside the state would also be impacted. The proposed corporate tax increase would require such firms to pay about one one-thousandth of a percent of their Oregon revenue in taxes, according to COSA.

The La Grande School District is beginning a program in which representatives will provide information on Measures 66 and 67. The first program, open to the public, will be presented Dec. 7 at 3:30 p.m. in the La Grande High School AV auditorium.