Oregon: Legislation increases school funding via new corporate tax, credit positive for state and school districts

Source: Patrick Liberatore, Baye Larsen, Eva Bogaty, Nicholas Samuels, Emily Raimes, Timothy Blake, Leonard Jones, Moody’s, Sector Comment, State government and public K-12 schools districts, May 23, 2019
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On May 16, Oregon Governor Kate Brown signed legislation that increases preK-12 education spending by a projected $1.2 billion for the state’s 2019-21 biennium starting July 1, 2019. Growth in state support is credit positive for Oregon school districts because it will increase resources as education costs continue to rise. The added funding comes from a dedicated state corporate activity tax established by the legislation. Besides generating more school funding, the tax is credit positive for the state because it will diversify its revenue sources, which are heavily reliant on volatile personal income taxes….