HB 3360
Requires that moneys from the corporate income and excise tax kicker be used for the funding of school construction and maintenance projects and infrastructure improvements.
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Sign in to take actionPublic sentiment
Support
55%
Oppose
45%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill redirects money from the state’s corporate income and excise tax "kicker" – the surplus revenue generated from these taxes – to fund school construction, maintenance, and infrastructure improvements. The funds can only be used for these specific projects and are limited to certain school districts. The bill’s impact is contingent on voters approving a constitutional amendment, House Joint Resolution 13, in the next general election. If approved, the changes would take effect on the same date as the amendment.
Key provisions
- Money from the corporate income and excise tax kicker will be directed to school construction and maintenance projects.
- The funds are limited to specific school districts.
- The changes apply to biennia beginning on or after June 30, 2027.
- The bill’s implementation is dependent on voter approval of House Joint Resolution 13.
- Grants to school districts are capped at $500,000 biennially, with a matching requirement.
- Districts receiving grants must have submitted general obligation bonds in the preceding three years and not received voter approval for bonds in the past 10 years.
- Districts receiving grants must have reserve funds of not more than eight percent of their adopted budget.
- The Department of Administrative Services will report on revenue estimates annually.
Who is affected
- School districts
- Students
- Taxpayers (personal income)
- The Oregon Department of Administrative Services
Sponsors
Official sponsors from legislative records.
Primary sponsors
Rep Neron
Cosponsors
Arguments in favor
Reasons to support this legislation.
Supporters of eliminating or redirecting the "kicker" system emphasize the need for stable and predictable funding in education. Many that the current system is outdated and no longer effective, as it relies on an irregular funding source that can lead to budget uncertainty. Instead, they advocate for passing bills like SB 573, which would eliminate the kicker entirely or redirect funds towards a school facility improvement fund. Testifiers highlight the importance of investing in safe and functional learning environments, citing personal experiences with inadequate infrastructure and its negative impact on student focus and engagement. They also emphasize the need to address Oregon's growing deferred maintenance costs, with many supporting HB 3360 as a crucial step towards upgrading school infrastructure and ensuring safe learning environments for students.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of the proposed legislation express concern that leaving the existing education funding formula intact would perpetuate a cycle of increasing costs, undermine efforts to balance the state's budget, and send a message that the state is not committed to responsible fiscal management. Many that reducing or eliminating the kicker program would be a more fiscally responsible use of taxpayer dollars, allowing for more targeted and effective funding of education programs. They argue that the current structure of the kicker is outdated and no longer serves its original purpose, and that preserving it would only add to the state's financial burden, as taxpayers already bear a significant portion of the cost for failing schools.