A measure on the ballot for Portland metro-area voters is looking to raise upwards of $250 million per year to support people experiencing homelessness through funding services like case management, rent assistance, addiction and mental health services.
Measure 26-210, referred to the ballot by Metro — the regionally elected government for Multnomah, Washington and Clackamas counties — would do so by taxing high-earning area residents and businesses.
The measure is asking voters to approve two new taxes.
The first is a 1% marginal income tax on individuals earning more than $125,000 annually or couples who earn more than $200,000. The second is a 1% tax on the profits of businesses that have annual gross receipts of more than $5 million.
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“The housing service measure that we have on the ballot for May is going to be more important now than ever,” Lynn Peterson, Metro Council president, told OPB.
If passed, money from the measure would be distributed to counties based on population, Paul Slyman, Peterson's chief of staff, said: About 45% would go to Multnomah County, 33% to Washington County and 21% to Clackamas County. Five percent would then go to "Metro oversight and administration."
The measure was first brought to the Metro Council by HereTogether Oregon, a coalition of service providers, business leaders, elected officials and advocates focused on responding to homelessness in the Portland area.
The Portland Business Alliance, the region’s largest chamber of commerce which represents about 1,900 businesses, is a notable supporter of the measure, and was also at the table in drafting the measure, Andrew Hoan, PBA’s CEO and President, said.
“Homelessness year in and year out for half a decade has been front of mind for voters, but similarly homelessness as a crisis has been front of mind for the business community,” Hoan said. “It’s important that people understand that the business community is absolutely compassionate about the neighbors it sees on our streets.”
Hoan continued: “Businesses are often on the front lines of responding to homelessness when they find those who are experiencing an unsheltered life at their doors, on their doorsteps at their businesses needing help.”
The most vocal opposition against the measure has come from the Alliance for an Affordable Metro, or AAM, a group that says it “represents Oregon’s leading job creators across the state.”
Joe Gilliam and Shaun Jillions, members of AAM, filed a legal challenge against the measure in March, stating it is too vague and that parts of it are undefined and inaccurate.
A Multnomah Circuit Court judge resolved the case, changing part of the ballot caption to make it more clear.
AAM has also said that the measure lacks accountability and oversight.
HereTogether said that if passed, the measure would require a 20-member oversight body to have public meetings and ensure full transparency of its work.
Fifteen of those members would represent the three counties and there would also be representatives from the city of Portland and the Metro Council.
The measure also includes annual performance audits, either through the independently elected Metro Auditor or through an outside auditing firm.
The measure also includes a 10-year sunset after which the Metro Council will decide whether to extend, change or end the program. If the council does extend the program, it will be subject to voter approval again.
The Metro Council referred the measure to the May ballot back in February, before the full brunt of the coronavirus hit Oregon. AAM’s criticism of the measure has increased amid the economic fallout due to the pandemic.
Jillions with AAM called the move forward with the ballot measure "wildly hypocritical" after Metro had announced job layoffs related to the coronavirus.
“At the end of the day, now is simply not the appropriate time for this measure,” AAM said in a recent statement. “While nobody could have anticipated the severity of the economic crisis that would accompany the coronavirus outbreak, the reality for our state is experiencing what many economists have predicted will be the worst recession since the Great Depression.”
The Alliance continued: “The tax is inevitably going to increase the price of basic essentials like food and groceries while also making it more difficult for employers to survive in the current economic environment. It’s a recipe for disaster.”
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AAM launched television ads urging people to vote "no" on the measure last Friday — referencing the ongoing coronavirus pandemic.
"In our worst crisis, with thousands out of work, when so many are hurting, is now the time to raise over $2 billion in new taxes?" AAM's ad asks.
HereTogether launched television ads in support of the measure.
After conducting a poll last week, HereTogether said there is positive community support for the measure, even amid economic fragility — out of 600 likely May voters, nearly 60% said they would vote "yes" on the measure, according to the poll, which had a 4% margin of error.
Metro Council President Lynn Peterson said the coronavirus pandemic has shown how necessary support services are for the region’s vulnerable population.
“We all know that a lot of folks have lost their jobs,” Peterson said. “And that demand for the services between rental assistance, mental health services, physical health services and drug addiction and career counseling is going to be more needed now than ever.”
Peterson said 90% of individuals and 94% of businesses in the region will not be paying the tax.
“It was specifically targeted to make sure that those who have the ability to pay will be paying for it,” Peterson said. “Those who do not have the ability to pay, especially in this moment, will not be paying for it.”
Hoan with Portland Business Alliance echoed that sentiment, reiterating that businesses will be taxed only on their profits.
“This tax, people need to understand, is a tax on profits, so your overall sales in the region minus your costs. That delivers your profits,” Hoan said. “For companies that aren’t profitable, which, let’s be honest here, there will be many companies that are struggling not just now but maybe a year or two into the future, their liability will be lessened.”
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He said the tax structure makes it so that when businesses are doing well they will pay into the program and when they’re not profitable, they won’t be forced to.
Hoan also said he agrees with Peterson on the importance of the measure during the financial instability the pandemic has brought to the region.
“We will see more individuals who were living paycheck to paycheck, clinging to their homes, who may find themselves in an unsheltered condition,” he said in regards to economic fallout from the coronavirus. “The need for this measure has never been more heightened. … We’ll need these kinds of resources to be able to support these people as we get through this crisis.”
Ballots will start being mailed to voters on April 29. Voters will have until May 19, Election Day, to return their ballots. State elections officials are urging Oregonians to stay home and vote by mail instead of using ballot drop boxes.
Ballot postage is now free for voters due Senate Bill 861 which was signed into law last August by Gov. Kate Brown.