Item 4: Adoption of Resolution 5023 Calling a City Election on May 17, 2011, on a Temporary City Income Tax to Raise Funds for Local Schools

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Attachment F Comparison of Election Date Impacts May 2011 November 2011 Impact on Unknown based on information Unknown, based on information Furlough Days available to date. Funds would be available to date. Funds would be used to reduce furlough days to the used to reduce furlough days to the extent possible. extent possible. Impact on Unknown based on information Unknown based on information Teacher Layoffs available. Funding would be used, in available. Funding would be used, in and Class Size part, to support teaching positions part, to support teaching positions and and thereby reduce teacher layoffs thereby reduce teacher layoffs and and minimize increases in class size. minimize increases in class size in the 2012-2013 school year and beyond for the life of the tax. Districts would need more information about when revenue would be available in order to determine whether bridging strategies could be used to fund teaching positions in 2011-12. Effective Date Tax may be effective as of January 1, Tax may be effective as of January 1, of Tax 20112011, although it would be unlikely that a tax approved at the November election date could be implemented in time for tax year 2011 collections (as of January 1, 2012). An alternative would be to have the tax effective as of January 1, 2012, which would leave sufficient time for implementa- tion activities prior to collection date for the tax. RevenueIf tax is effective as of January 1, If tax is effective as of January 1, Availability 2011, payments from taxpayers 2011, payments from taxpayers would be due April 15, 2012; would be due April 15, 2012; preliminary anecdotal information preliminary anecdotal information from City of Portland indicates 50-from City of Portland indicates 50- 60% of revenue would be received in 60% of revenue would be received in April and the rest in October when April and the rest in October when taxpayers who filed for extensions taxpayers who filed for extensions pay their taxes pay their taxes. If tax is effective as of January 1, 2012, revenue would be received in April 2013.