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there are no local option levies that impact the Downtown District, and bonded debt tax rates will be reduced from year to year until the existing bonds are paid off. As can be seen in Table 9 in Exhibit G, in FY21, it is estimated that the City of Eugene foregoes about $1.3 million of revenue annually because of the Downtown District division of tax calculation. In FY26 after tax increment financing is terminated, the City of Eugene is estimated to receive $1.5 million of additional tax revenue per year. Lane County is estimated to forego $230,000 of revenue in FY21, and to benefit by $270,000 of additional tax revenue per year after division of tax is terminated in FY26. The impact on school districts from the termination of the urban renewal district is more complicated. Table 9 shows the foregone taxes, excluding any impacts from tax rate compression under Measure 5 and Measure 50 and excluding any impacts from the State school funding formula. Table 9 shows that the combined school districts (4J, Lane Community College, and Lane Education Service District) are estimated to forego $1 million of revenue in FY21, and to benefit by $1.2 million of additional annual tax revenue after the division of tax is terminated in FY26. This is not the complete story, however. The impact on schools from the division of tax calculation for urban renewal districts is use schools are mainly funded on a per-pupil funding formula (rather than by the level of property tax dollars generated within their boundaries). The State determines how much money must be allocated for the education of each pupil across the state. If the money is not available from local property taxes, the State will make up the difference. If more funds are available through local school property taxes, the State would have additional dollars to allocate as it chooses. In other words, the State can choose to allocate any extra money to education or to some other budgetary priority. If the State chooses to keep the money in education, some of that money would return to Eugene schools based on the applicable statewide school funding formula and the rest would be distributed to school districts across Oregon. The Lane County Assessor conducted an analysis of the impact of the Downtown District on School District 4J's local option levy, including the impacts of tax rate compression. It is a net loss of $275,000. The analysis is included as Table 10 in Exhibit H. That analysis is summarized in Table 11 on the following page. Note that the difference in the impact to overlapping districts between Table 9 and Table 10 is due to tax rate compression in the education category for an additional 945 properties that would occur if the Downtown District were not collecting division of tax revenue. Thisanalysisconcludesthat4JisbetterofffinanciallyiftheDowntownDistrict continuestocollecttaxincrementfundsthanitwouldbeiftaxincrementfinancing wereterminated. The reason is that taxes that ar limitations (i.e., the that happens, the education category of taxes must be reduced for a number of individual properties within the City because schools are already collecting as much as they can under ReportontheProposed2020Amendment 21