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<br /> <br /> <br />Reduced or Suspended Tax – if the State increases school funding so that this tax is no <br />longer needed in order to achieve the goals, or if the State requires that local income tax <br />dollars reduce other State funding for the districts <br /> <br /> <br />Review of Tax – districts must report to the council each year how the tax revenues were <br />spent <br /> <br /> <br />Review Panel – districts must create a review panel consisting of specific members <br />designated in the resolution <br /> <br /> <br />School District Support – each school district must provide a written statement by March <br />16 that the district supports the council placing the measure on the May ballot in order <br />for the City Manager to submit the measure to the County Elections Chief <br /> <br />School District Response: The FY12 projected deficit for 4J is $24 million and for Bethel is <br />between $4.8 and $7.6 million. The districts requested that two City income tax scenarios be <br />developed. One scenario would raise a net of $26.6 million for schools, with approximately $19 <br />million for 4J and $7.6 million for Bethel. A second scenario would raise $16.8 million for <br />schools, with approximately $12 million for 4J and $4.8 million for Bethel. Because of the <br />desired split of tax revenues by percentage of Eugene residents in each district, it was not <br />mathematically possible to size a tax that would solve the entire deficit for both districts <br />perfectly. <br /> <br />Staff requested responses from each district about the impacts of these City income tax scenarios <br />on teacher layoffs, furlough days and class size. Their responses are included below. <br /> <br />Response from Bethel: <br /> <br /> <br />1.How much revenue is needed in FY 12 to allow Bethel to eliminate instructional furlough <br />days and keep average class size from increasing? <br /> <br />Depending on finalized state revenue numbers (which will be determined by the end of the <br />legislative session or possibly sooner), they need: $4.8 million to $7.6 million. <br /> <br /> <br />2.Will Bethel impose instructional furlough days or increase class size if a local income tax is <br />approved by the voters in May? <br /> <br />It is possible Bethel will still have to increase class size or impose instructional furlough days. <br />Imposing an income tax to collect $4.8-7.6 million does not guarantee that amount being <br />available for use in FY 12 because: <br /> <br /> <br />there is no guarantee of collection rates; <br /> <br /> <br />this does not include the cost of implementation of the tax; <br /> <br /> <br />the timing of the receipt of tax revenue in the District may be very late into FY12 or even into <br />FY13; and <br /> <br /> <br />estimated tax revenue may not match realized tax revenue. <br /> <br />If a school income tax were projected to raise the entire amount of the FY12 deficit, until Bethel <br />receives the entire first year of new City income tax revenues, the District cannot guarantee the <br />number of teachers, the number of furlough days or class sizes. A major concern for the District <br />is “bridging the gap” or responsibly covering the expense of providing the service (instructional <br />days and maintaining class size) until the projected revenue is received. The “bridging” <br /> \\Cesrv500\cc support\CMO\2011 Council Agendas\M110214\S1102144.doc <br /> <br />