With court challenges aside, Portland State 'full steam ahead' on payroll tax plan

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Portland State University's campus in southwest Portland.

(RICK BOWMER/The Associated Press)

UPDATE: This story was updated with reaction from the chamber of commerce.

A proposed payroll tax on metro businesses that would solely benefit Portland State University cleared a legal stumbling block last week and reported another major campaign check.

A Multnomah County Circuit Court judge approved ballot language for the proposed payroll tax last Wednesday. The judge also dismissed a challenge filed by the Portland chamber of commerce challenging the measure's legality.

The court ruling means campaign organizers may now start collecting signatures to put the payroll tax on the ballot in November. Supporters need 34,164 signatures by July 26.

"It's full steam ahead," said Karen Pelland, spokeswoman for the Yes for PSU campaign. "We're committed to making this a reality."

The campaign will hold an all-day signature gathering event May 10 on the PSU campus. Pelland said the goal is to secure 5,000 valid signatures in the next three weeks. The campaign plans to use both paid and volunteer signature gatherers to meet its goal.

Thus far, PSU's philanthropic arm is far-and-away the major contributor to the campaign. On April 22, organizers reported another $125,000 check from the PSU Foundation, bringing total campaign contributions from the organization to $375,000.

The only other reported campaign contribution of $140 from miscellaneous donors came Feb. 14.

Pelland said it's early in the campaign, but she said the foundation is committed to passing the payroll tax. "We're still sort of ramping up support broadly from the business spectrum, student spectrum," she said in an interview.

The proposed one-tenth of one percent payroll tax on wages paid by metro business owners would generate an estimated $40 million per year for PSU. Money would pay for need-based scholarships for PSU students, counselors, professors and emergency tuition assistance for students.

The payroll tax plan isn't without its critics. Sandra McDonough, the Portland Business Alliance president, fought the payroll tax in the courts, said she continues to hope that PSU finds another way forward. "We hope that PSU will understand that a big public fight over a ballot measure will not serve anyone well, especially the institution they want to make stronger."

Pelland said organizers are committed to raising awareness and news coverage about the plan from "all over the state, and frankly, the country."

"We believe it's a new model that other states might look to," she said of a dedicated payroll tax for a college or university.

Pelland said the campaign has nine staffers and also hired Winning Mark, the campaign consultancy firm run by veteran political operative Mark Wiener. Thus far, the campaign paid Winning Mark $123,802 for big-picture political strategy and marketing support.


-- Andrew Theen
atheen@oregonian.com
503-294-4026
@andrewtheen

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