RESOLUTION No. SUBSTITUTE 36129 AS AMENDED

Provide bridge funding for Portland schools for 4 years until the State Legislature provides adequate and stable school funding and support a county-wide funding package for local schools, human services and public safety.

WHEREAS,  in the City of Portland, we are proud of being a great place to live.

WHEREAS,  we know the ability to attract and keep businesses and families in Portland depends on strong public schools, safe neighborhoods and vital services to seniors, persons with disabilities and other vulnerable members of our community.

WHEREAS,  in the current economic climate, we recognize that individuals, families and businesses are struggling and that now more than ever, quality public and community services are essential to maintaining a high quality of life.

Public Schools

WHEREAS,  the City of Portland is valued for having quality public schools where students continue to make gains in meeting rigorous academic standards, where a high percentage of families choose public education, where the citizens actively support the schools and ensure every child receives a quality education.

WHEREAS,  the City Council is committed to supporting quality local education to produce

well-educated students, acknowledging that strong public schools attract families and businesses, produce independent and responsible citizens, a well prepared and highly skilled work force, and ensure that all children reach their full potential in school and in life regardless of income, race, gender, sexual orientation, ethnicity, religion, or mental or physical ability.

WHEREAS,  quality public education is critical to closing the achievement gap and maintaining diverse communities.

WHEREAS,  the Council supports rigorous academic standards and appropriate assessments for all Oregon students.

WHEREAS,  through various constitutional and other changes that have taken place, primary responsibility for funding schools has been moved to the State Legislature, but the State has not provided adequate school funding for local schools to enable the schools to achieve their vital mission of preparing our children to enter college and the workforce.

a.  WHEREAS,  local governments, parents, educators and other citizens have worked hard to achieve adequate and stable funding for all Oregon schools and began and continue to support the statewide, non-partisan efforts of the Coalition for School Funding Now!

WHEREAS,  local school districts have suffered budget cuts over the last twelve years because of property tax limitations, the phase-in of equalization without additional funds, and the Oregon legislature’s inability to enact either meaningful tax reform or stable educational funding.

WHEREAS,  local school districts have lost funding with the distribution of income taxes from the metro area to subsidize rural areas across Oregon, while City schools have suffered from higher costs of special need students.

WHEREAS,  in the past, the City has contributed over has contributed over $40 million from its general fund, including providing services valued at over $2 million per year related to parks, recreation and law enforcement, to supplement local school funding;

WHEREAS,  every school district in the City faces substantial and unprecedented budget shortfalls, and the City of Portland has a commitment to represent the interests of the students attending public schools within the City.

WHEREAS,  the City Council believes that the challenge of achieving stable and adequate school funding should be resolved by a statewide solution and expects the state legislature and citizens of this state to develop a long-term, viable solution.

WHEREAS,  it does not appear that adequate funding for schools will be approved and allocated during the current legislative session. Therefore, the City Council finds that temporarily supporting education in the City of Portland is a matter of immediate City concern and believes it must act on its commitment to assist this community with the crisis by developing a funding package to augment school district revenues within the City for the 2002-03, 2003-04, 2004-05, and 2005-06 school years, while the State is developing a long-term plan.

WHEREAS,  the City will allocate proceeds of the surcharge to fund performance audits of the school districts within the City to be conducted jointly by the City Auditor and the County Auditor in order to achieve cost-savings through more efficient use of resources, opportunities to improve school effectiveness, and capacity-building for increased accountability. Beginning with the 2003-2004 fiscal year, all revenues generated from this tax are subject to an independent review by the Office of the City Auditor. The City and the County auditors will work with all the districts in the appropriate jurisdictions to define the scope and design of the performance audits. The auditors will provide an opportunity for the districts’ management to respond to the audit reports and will deliver the audit findings directly to the individual Boards of Educations.

WHEREAS,  a School Efficiency and Quality Advisory Council shall be established. It will include representatives of parents, educators, taxpayers, business leaders, union leaders, and governmental leaders, including the Mayor of Portland and the Multnomah County Chair.

WHEREAS,  the individual school districts and Boards of Education will provide a detailed accounting of the expenditures of local funds to the School Efficiency and Quality Advisory Council on a semiannual basis.

Districts and Boards shall responsibly apply resource management, cost containment, and organizational structure to ensure that every tax dollar - whether raised locally or received from the state - is used are used most effectively to provide a high quality educational experience to all students.

Districts and Boards will also report to the School Efficiency and Quality Advisory Council about what their specific action plans are for school performance and the achievement goals for all students, including the disparity between high-and low-performing children, especially the achievement gaps between majority students and low-income students, children of color, children with disabilities and culturally and linguistically diverse students.

The Advisory Council will distribute a report to residents in the community and to the City Council and Board of Commissioners about the use of these tax dollars.

No additional allocation of revenues to any school district shall occur if the Advisory Council, City Council and Multnomah County Board of Commissioners have determined that the funds have not been spent as specified in this resolution.

The intent of the funding for school districts is primarily to prevent urgent cuts. The Advisory Council may determine that the state administrative costs may need to be absorbed by the school districts.

WHEREAS,  the City, County, Portland Association of Teachers and District intend to establish an Advisory Committee with respect to Portland Public School District No. 1:

a.  The Advisory Committee will be composed of 2 members appointed by the Portland Association of Teachers, 2 members appointed by the PPS District; 1 member appointed by the Portland City Council; and 1 member appointed by the Multnomah County Board.

b.  The Advisory Committee shall be charged with making findings and recommendations for the creation of a balanced and competitive compensation package that reduces cost of benefits and increases teacher salaries. The report is due by 10/31/03/.

c.  The City, County, Portland Association of Teachers and District will commence discussions concerning Article 10 of the PPS/PAT Agreement relating to staffing needs.

d.  Upon the recommendation of the Mayor of Portland and the Multnomah County Chair, the City Council and County Board, the annual funding provided by the City and the County to local schools will be re-evaluated if the above actions are not undertaken.

Public Safety

WHEREAS,  safe neighborhoods and the capacity to adequately arrest, prosecute, incarcerate and supervise offenders, id critical to a healthy and prosperous community.

WHEREAS,  Multnomah County is responsible for providing three-fourths of the local public safety system through the Sheriff'’ Office, the District Attorney and the Department of Community Justice.

WHEREAS,  due to an on-going series of severe state cuts and cycles of local revenue shortfalls, the local public safety system is at serious risk.

WHEREAS,  Multnomah County has been forced to reduce the jail bed capacity by 497 beds in the last two years. This has resulted in early release of offenders, while at the same time the County has been forced to reduce the capacity to supervise these same offenders in the community.

WHEREAS,  Critical health, treatment and mental health services to offenders in jail and on supervision is a proven method at reducing recidivism. Changing the behavior of offenders through cost-effective treatment significantly reduces the likelihood of them cycling through the jail system, thereby saving the county the high cost of incarceration. Due to on-going cuts, Multnomah County’s ability to provide these critical services has been significantly reduced.

Human Services

WHEREAS,  Multnomah County is the community’s human services safety net. The County provides vital health, mental health, addiction treatment, and senior and disability services to those in our community who live on the margin.

WHEREAS,  caring for the community’s most vulnerable and to invest in proven and effective community based services that save us money in the long run are matters of vital county concern.

WHEREAS,  supports for the elderly to maintain independent living in order to avoid more expensive nursing home care have been cut or withdrawn altogether.

WHEREAS,  service to the chronically mentally ill, basic health care and medications for the medically needy have been eliminated.

WHEREAS,  research has shown that outpatient treatment for the mentally ill avoids expensive hospital costs. Research also tells us that effective alcohol and drug treatment reduces the likelihood that criminal activity will occur. The County is poised to dismantle critical outpatient services for the severely mentally ill, including crisis services, clinics and treatment.

WHEREAS,  Ballot Measure 28, while defeated statewide, was supported by 57% of voters in Multnomah County.

WHEREAS,  over the course of the past year, the local governments have been forced to manage through a series of severe cuts and budget reductions. This includes painful cuts to direct services related to the failure of Ballot Measure 28, the series of Special Sessions, Emergency Board actions, across the board reductions and local budget shortfalls and service reductions.

WHEREAS,  the Oregon State Legislature and the Governor have continued to disinvest in our community’s vital public infrastructure. They have failed to adequately fund schools and have reduced funding for public safety, health and senior services to the point where it endangers people’s lives and livelihoods.

WHEREAS,  if, as a result of the City’s adoption of this temporary business license fee surcharge to support local schools, public safety, and human services, the State acts to attach those revenues for statewide purposes or decrease the base funding allocation for schools, public safety or human services, the Council will consider whether to seek immediate termination of the tax.

WHEREAS,  should the State adequately restore funding for local schools, public safety or human services during the next three years, the Council will consider whether to immediately seek termination or a reduction of the surcharge or other disposition of the proceeds consistent with this resolution.

NOW, THEREFORE, BE IT RESOLVED, that the City will impose a surcharge on the Business License Fee of approximately $20 million in 2002-03, and $6 million per year for 2003-04, 2004-05 and 2005-06.

BE IT FURTHER RESOLVED, the City supports the Board of County Commissioners for Multnomah County in their efforts to:

a.  Refer a measure to the voters on May 20, 2003, to impose a temporary personal income tax for Multnomah County to benefit local public schools, public safety and human services.

b.  Develop a school funding allocation formula based on ADMw for FY 2003-04; and consider applying ADMw and/or an other equitable allocation formula for all districts in the county the following years.

BE IT FURTHER RESOLVED, the City shall aggressively pursue with the state legislature alterations to school equity and special education formulas and adjustments to limitations on local options to substantially increase revenue available to schools throughout Multnomah County.

BE IT FURTHER RESOLVED, net revenues for Portland City schools generated from these tax adjustments will only be used as follows:

a.  To promote the current or improved student-teacher ratios.

b.  To promote a full school year.

c.  To fund programs designed to achieve improvements in academic success of all students, including programs in English as a Second Language, Special Education, Alternative Schools and TAG/AP.

d.  To fund key student support programs and services that provide a quality school experience and retain students in school.

e.  To fund performance audits.

f.  To communicate with all citizens regarding achievement and accountable use of these tax doll

BACKING SHEET INFORMATION

AGENDA NO. 232

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. Substitute 36129 As Amended