But, that isn't what it is going to be used for.
What kind of money are we talking about? Per the revenue impact of HB 3427, each of the next biennia will generate $1.6 billion to $3.1 billion for the Fund for Student Success. However, $423 million to $762 million will be sent to the general fund, an amount totaling approximately 25% of the new tax. In addition to collected taxes from businesses, the government will also add employees. Per the fiscal impact statement of HB 3427, government will also grow. In the first biennium, 87.62 FTEs will be needed to administer the various accounts within the Fund for Student Success and for the Department of Revenue to administer the CAT.
https://trackbill.com/bill/oregon-house-bill-3427-establishes-fund-for-student-success/1738419/
Establishes Fund for Student Success.
Directs Department of Education to conduct study to examine best methods for funding state’s system of kindergarten through grade 12 public education.] Directs department to submit report to interim committee of Legislative Assembly no later than September 15, 2020.] Specifies uses of fund, including transfers to State School Fund, Student Investment Account, Statewide Education Initiatives Account and Early Learning Account. Directs moneys to be transferred to State School Fund from Fund for Student Success. Increases fiscal year limit for transfers from State School Fund to High Cost Disabilities Account. Establishes Student Investment Account for purpose of distributing grants to school districts and certain public charter schools. Prescribes allowed uses for grant moneys, grant application requirements, inclusion of performance growth targets into grant agreements, calculation of grant amounts and accountability measures. Directs Department of Education to provide technical assistance related to grants, including coaching programs for grant recipients that did not meet performance growth targets and intensive program for high needs school districts. Directs department to make annual report to committees of Legislative Assembly related to education. Establishes Statewide Education Initiatives Account. Prescribes allowed uses of account. Provides for expansion of school breakfast and lunch programs, operation of youth reengagement system, establishment of Statewide School Safety and Prevention System, development and provision of statewide equity initiatives, provision of summer learning program for certain schools and funding for early warning system for high school graduation and directs Department of Education to fund those programs through account. Directs department and Educator Advancement Council to develop plan funded by account that would provide effective combination of programs and initiatives for professional development of educators. Establishes Early Learning Account. Prescribes allowed uses of account. Establishes Early Childhood Equity Fund. Provides for early childhood support grant program, to be funded by account. Decreases personal income tax rates. Imposes corporate activity tax, to be measured by commercial activity, defined as total amount arising from person’s transactions and activity in regular course of business. Exempts persons with taxable commercial activity of $1 million or less. Defines additional excluded persons exempt from corporate activity tax. Allows subtraction for percentage of taxpayer’s cost inputs or labor costs. Includes provision for sourcing of commercial activity to state. Requires persons and unitary groups with commercial activity above threshold to register with Department of Revenue. Preempts local government imposition of taxes upon commercial activity or receipts from grocery sales, other than existing taxes. Transfers net revenues from corporate activity tax to Fund for Student Success. Defines terms. Applies to tax years beginning on or after January 1, 2020. Takes effect on 91st day following adjournment sine die.
(Looks like another slush fund.)
bye bye intel, daimler/chrysler and nike.
You underestimate the deviousness of Kate Brown. That’s exactly what it’ll be used for. But the money that was going to be used for education and school purposes will be spent elsewhere.