How Measure 5 works
With the passage of Measure 5, local property taxes for schools were limited to $15 per $1,000 of assessed value of property and reduced over time to $5 per $1,000 of assessed value that was reached in 1995. Property taxes had been rising and at the time, Oregon had one of the highest property-tax rates in the country. Tax payers wanted relief, and some districts were not able to fund schools adequately because local voters were not willing to vote in high property tax rates to fund schools. Districts ability to fund school varied greatly and the equalization of funding across districts was a pro-measure 5 selling point. At the time, lawmakers did voice concerns that more funding would fall to the state legislature and this would create pressure to fund education at the expense of other state services.
For school districts such as Portland that had property taxes set at $16.77 per $1,000(1) of assessed value in 1990 this resulted in dramatic reductions in K-12 funding for such districts over time.
The promise was that the State legislature would fund schools adequately, and thereby reducing the gross differences in Education Funding across districts. Unfortunately, the state legislature has never been able to fund schools adequately. Of course what is defined as adequate is subject to interpretation. Knowing this the state legislature sought to define adequate funding with what is known as the Quality Education Model (QEM), but the state has never been able to fund K-12 education at QEM levels.
For school districts such as Portland that had property taxes set at $16.77 per $1,000(1) of assessed value in 1990 this resulted in dramatic reductions in K-12 funding for such districts over time.
The promise was that the State legislature would fund schools adequately, and thereby reducing the gross differences in Education Funding across districts. Unfortunately, the state legislature has never been able to fund schools adequately. Of course what is defined as adequate is subject to interpretation. Knowing this the state legislature sought to define adequate funding with what is known as the Quality Education Model (QEM), but the state has never been able to fund K-12 education at QEM levels.
1 Smith, G. A. (February 01, 1995). Living with Oregon's Measure 5: The Costs of Property Tax Relief in Two Suburban Elementary Schools. Phi Delta Kappan, 76, 6, 452-61.
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