During a recent City Council meeting, Portland Councillors Steve Novick, Angelita Morillo, and Jamie Dunphy discussed a contentious proposal to increase the Portland Clean Energy Fund (PCEF) tax from 1% to 1.33% in order to generate approximately $66 million annually for the city’s general fund. This proposal has ignited controversy, particularly among residents who feel overtaxed and concerned about the potential departure of major companies from the city. Additionally, Oregon Governor Tina Kotek has urged local governments to refrain from imposing new tax increases for the next three years.
Councillor Candace Avalos, a supporter of the original PCEF tax, expressed skepticism regarding the proposal’s legality and possible unintended consequences. She raised concerns about the risk of litigation and the political implications of using PCEF funds to backfill the general fund, asserting that it would undermine the fund’s original purpose. The city’s legal counsel, according to City spokesman Cody Bowman, has not provided a formal written opinion on the proposal’s legality, and there’s debate around whether the Council has the authority to raise the tax without voter approval.
Avalos pushed for clarity on these legal questions during the meeting, but her inquiries were deflected by Novick, who suggested discussing them privately with the city’s lawyers. This exchange highlighted tension within the council, particularly regarding transparency and decision-making.
Some external experts have challenged the Council’s claim of authority to raise the tax without voter approval, leading to concerns that the matter could ultimately lead to legal disputes. As the meeting concluded, Novick mentioned the proposal emerged after feedback in a city-led budget session, although he indicated willingness to reconsider the tax hike if budget cuts could be avoided.
The Finance Committee is expected to further discuss the proposal later this month.
Source link
