Gain Share revenues higher than anticipated

Washington County Commission Chair Andy Duyck and Hillsboro Mayor Jerry Willey announced today that Gain Share revenues for the current 2014-15 fiscal year will be $6 million more than expected.

As a result, Duyck and Willey proposed sharing half of that — $3 million — with Washington County school districts for 2014-15, bringing the total Gain Share funding to be distributed to Washington County schools to $13 million over a two-year period.

In June 2013, Duyck and Willey pledged $10 million in Gain Share funds to county school districts over a two-year period.

"We are committed to continuing our partnership with local schools by supporting our school districts," Willey said. "And we want to let our local schools know about the additional funding now so that they can begin planning how to use these dollars in the coming school year."

The proposal would also continue the practice of distributing funds to each of the seven public school districts on a per-student basis using the state's Average Daily Membership-Weighted (ADMw) formula.

Under the plan, Hillsboro School District would receive $1.9 million in Gain Share funds in 2014-15. Discussions on how to spend the additional money will likely begin at the July 29 school board meeting.

Hillsboro's share of the Gain Share distribution in 2013-14 was $1.2 million, an amount that allowed the district to add three school days back to the calendar.

"We are thrilled about the county's and city's decision to invest additional dollars in our local schools," said Board Chair Kim Strelchun.

"At a time when we are finally able to begin restoring funds to our system, this money will help us gain even more momentum for the ultimate benefit of students. We are sincerely grateful for our ongoing partnership with Washington County and the city of Hillsboro."

Official approval of the proposal is anticipated after consideration by each taxing district that participates in property tax abatement agreements in Washington County, including the county, the city of Hillsboro, Metro, the Port of Portland and Tualatin Valley Fire and Rescue. "Gain Share allows local governments that have abated property taxes ... to channel some of the state income tax dollars that we generate back into the local community," Duyck said. "We are proud to distribute even more of these Gain Share funds to Washington County schools this year as a result of this successful state-local partnership." Gain Share was created by the 2007 Oregon Legislature to restore fairness between the State of Oregon and local governments involved in Strategic Investment Program (SIP) agreements. SIP agreements allow local governments and key businesses to negotiate alternative taxing arrangements when businesses are willing to invest at least $100 million in an urban area or at least $25 million at a rural location in Oregon.

As a partial trade-off for limiting local property taxes, Gain Share provides local governments a portion of the personal income tax revenue generated by the retention and creation of SIP-related jobs.

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