Providence Mayor Wants To Tax College Students

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ERIC TUCKER | May 13, 2009 09:23 PM EST | AP

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Heather Lee, president of the Brown University Graduate Student Council, center, stands with fellow graduate student Gideon Goldin, left, as they talk with a student raising money for a Pakistani relief fund on the Brown University campus in Providence, RI., Tuesday afternoon, May 12, 2009. Providence Mayor David Cicilline would like to institute $150-per-semester tax on the 25,000 full-time students who attend Brown and three other private colleges and universities in the city, saying they use resources and should help ease the burden on struggling taxpayers. (AP Photo/Stephan Savoia)

PROVIDENCE, R.I. — The mayor of Providence wants to slap a $150-per-semester tax on the 25,000 full-time students at Brown University and three other private colleges in the city, saying they use resources and should help ease the burden on struggling taxpayers.

Mayor David Cicilline (sis-ah-LEEN-ee) said the fee would raise between $6 million and $8 million a year for the city, which is facing a $17 million deficit.

If enacted, it would apparently be the first time a U.S. city has directly taxed students just for being enrolled.

The proposal is still in its early stages. But it has riled some students, who say it would unfairly saddle them with the city's financial woes and overlook their volunteer work and other contributions, including money spent in restaurants, bars and stores.

"We want to support the city as best we can, but financially is not really what we can afford to give," said Heather Lee, president of the Brown Graduate Student Council. "We're more able to provide labor, we're more able to apply the things that we're learning in the classroom, than we are to write a $300 check."

Cities often look for revenue from universities to compensate for their tax-exempt status, and many schools already make voluntary payments to local governments. Providence's four private schools _ Brown, Providence College, Johnson & Wales University and the Rhode Island School of Design _ agreed in 2003 to pay the city nearly $50 million over 20 years.

The idea of a student head tax has been floated before in other cities, generally to start discussions about collecting money from universities in lieu of taxes.

But Tony Pals, spokesman for the National Association of Independent Colleges and Universities, said he knows of no city that charges students a direct fee.

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"The bottom line is, a tax like this has never gone into effect," Pals said. "The timing is also unfortunate, given the significant amount of budget-cutting that institutions have had to go through because of the recession."

The four schools generate more than $1 billion a year in economic activity, said Daniel Egan, president of the Association of Independent Colleges and Universities of Rhode Island. They employ nearly 9,000 people in a city of roughly 172,000.

"We think the indirect and direct benefit of students within the community would outweigh any costs," Egan said.

Cicilline's office said there is no study showing how much students cost Providence for the use of police and fire protection and other services. The city points out that the private schools' property, valued at more than $1.7 billion, is tax-exempt.

Many college students are already involved in tutoring, arts education and mentoring for public school students. Providence College, for instance, offers student volunteers to staff after-school programs, and Brown is raising money for a $10 million endowment to help the city school system.

Even so, Cicilline said everyone should be expected to help the city through this economic crisis. He said he wants students to have a vested interest in their city instead of seeing themselves as visitors just passing through.

"It's really about a shared commitment to the well-being of your community that you're a part of," the mayor said. "Everyone should be doing their part and coming to the table."

Students at Rhode Island College, a state school in the city, and the Providence campus of the University of Rhode Island would be exempt.

A city head tax on students would need approval from both the City Council and state lawmakers. However, a similar measure failed in the state Legislature in 2005, and Rhode Island's colleges are likely to fight this proposal, too.

Josephine Nash, a Brown junior from New York City, said the idea seems reasonable, provided it doesn't overly burden students on financial aid. "I do spend the majority of my year here, and I do use the services of the city," she said.

But Susette Holman, a Johnson & Wales freshman also from New York, said her mother works seven days a week, sometimes 14 hours a day, to put her through school. "I have three sisters at home, so how's she going to be able to provide an extra tuition fee?" she asked.

University administrators also object, saying students and their families spend years saving for college and shouldn't have to bear more costs. Tuition at Brown costs nearly $40,000 a year, with about 40 percent of undergraduates receiving financial aid.

"Given at least the rhetoric of trying to retain students, be a place that's attractive to students and young people shortly after college, it just seemed counterintuitive to at least the students I talked to," said Richard Spies, Brown's executive vice president for planning.

PROVIDENCE, R.I. — The mayor of Providence wants to slap a $150-per-semester tax on the 25,000 full-time students at Brown University and three other private colleges in the city, saying they us...
PROVIDENCE, R.I. — The mayor of Providence wants to slap a $150-per-semester tax on the 25,000 full-time students at Brown University and three other private colleges in the city, saying they us...
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- Sara Addis I'm a Fan of Sara Addis 3 fans permalink
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I'm trying to move back to RI, where I went to school, and love Providence.

But if it weren't for the services the schools provide to the city....I definitely would be far less attracted.

Somewhat affordable, safe, busy neighborhoods. Places to eat and drink on the hill. Education resources. http://www.huffingtonpost.com/2009/05/13/providence-mayor-wants-to_n_203220.html#

    Favorite    Flag as abusive Posted 06:44 PM on 05/26/2009

I feel bad for the students. Most of them probably read this site and think this is an original bit of reporting, not an AP repost http://www.google.com/hostednews/ap/article/ALeqM5hnQEInlr_FwvVT3j0UHbnwLPux4gD985GM1O0

    Favorite    Flag as abusive Posted 11:19 PM on 05/15/2009
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As someone living outside of the US, let alone Rhode Island, I have no axe to grind here. But I do work in a university: where all universities are state-run, so this tax-free charity issue doesn't arise.

While I have some sympathy for Brown students, who are already paying tuition (something else that doesn't happen where I live), the problem here is with the university. I had always understood that US universities' charitable status was intended to avoid income or corporation tax on donations which were used to run the institutions/pay for research/offer financial aid. It had never occured to me that they made no contribution towards the services in their area. This seems wrong to me, and I can see why Providence wants to raise some money from the Brown campus.

For all the posters who claim they lived in Providence and didn't use the services: what about street lighting, sewerage, clean water, and access to the emergency services? I gather that Providence is a bit rough around the edges, but just contemplate how much rougher it would have been living there without those services.

    Favorite    Flag as abusive Posted 02:58 AM on 05/14/2009
- Gidster I'm a Fan of Gidster 218 fans permalink
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That should be taken into the accounting of the residence fee.

    Favorite    Flag as abusive Posted 08:53 AM on 05/14/2009
- lilpeg I'm a Fan of lilpeg 2 fans permalink

So, maybe the residence fee could just be quietly raised. Or a special sales tax district created around the campuses might work. Or howz about a town-wise tax on beer (see below).

    Favorite    Flag as abusive Posted 09:17 AM on 05/14/2009

Such a tax would be discriminatory. And ridiculous. I went to Brown for four years and the only services I ever used was walking down the hill to the train station to get out of Providence.

    Favorite    Flag as abusive Posted 01:56 AM on 05/14/2009
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Good, I'm glad you left. Or does this sound self-centered like the rest of your posting. Sorry no one here liked you but you do realize you're not the only person here to go to named universities. Brown taught you to look at the big picture unfortunately this excludes the little guy.

    Favorite    Flag as abusive Posted 03:32 PM on 05/20/2009
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Undergraduate tuition, fees, room & board (cost):

Brown University: $49,128 (2009-2010 school year)
RI School of Design: $46,900 (2008-2009 school year)
Johnson & Wales: $33,600 (2008-2009 school year)
Providence College: $45,200 (2009-2010 school year)

$300 Tax as a percent of cost:

Brown: .0061
RISD: .0063
J &W: .0089
PC: .0066

-OR-

Price of one beer = $2.00
Cost of one beer a day during the fall semester, 9-1 through 12-15 (96 days) = $192
Cost of one beer a day during the spring semester, 1-15 through 5-15 (120 days) = $240

Academic year beer cost: $432.

The kids can afford the tax. Just cut down on the beer. That's all.

    Favorite    Flag as abusive Posted 01:48 AM on 05/14/2009
- Sepulchre I'm a Fan of Sepulchre 102 fans permalink
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You way over simplify the matter. Besides how is the community better served $300 to the government or $300 to the businesses around the school?

I got into a good college. I came from a poor farming family. I had to work to come up with living expenses because my financial aid wasn't enough to cover that, and I had to pay for my own books. I struggled like mad to juggle working and school. I managed but that was hand to mouth, no way I could have coughed up an extra $300 a year and my family certainly didn't have it, the best they could have done was send me canned goods.

I didn't go out and party, I had no spare money to do that with, or to be honest time. If i wasn't in class or at work I was studying. I didn't go to school to party I went to get an education and a future for myself.

    Favorite    Flag as abusive Posted 08:52 AM on 05/14/2009
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I also had to take financial aid and work and I spent 90% of my "free" time studying. I was often chided by my friends about my time in the library and my high grades.

But I did manage to carve out some time for a movie or some other diversion once or twice a week. Including in graduate school.

It's true that many students, especially with the expense of private colleges so high, are squeezed financially. Perhaps the schools could make provisions to pay the tax for the most strapped students. These schools have considerable endowments and they can give up a few beers a day.

Kudos for your accomplishments.

    Favorite    Flag as abusive Posted 01:14 PM on 05/14/2009
- Sara Addis I'm a Fan of Sara Addis 3 fans permalink
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Yeah. They should totally stop patronizing the bars and restaurants.

    Favorite    Flag as abusive Posted 06:38 PM on 05/26/2009

How can any city target only one certain group of people to tax??? If you create a tax it should be to tax all people in that city equally!!!­!!!!!!!!!!­!!!

    Favorite    Flag as abusive Posted 01:02 AM on 05/14/2009
- petphotos I'm a Fan of petphotos 4 fans permalink
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Done all the time. Tax or fee for having a boat. Tax or fee for having a car. ect.

    Favorite    Flag as abusive Posted 10:14 AM on 05/14/2009
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I challenge every student at Brown not to spend one penny off campus until next Wednesday.

    Favorite    Flag as abusive Posted 12:44 AM on 05/14/2009
- jglass54 I'm a Fan of jglass54 4 fans permalink
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Ridiculous. I went to Brown in the '70's and the only city service I ever used was the public library, where I would borrow opera scores so I could play them on the piano back at Brown. Is that worth $150 a semester? I don't think so.

    Favorite    Flag as abusive Posted 12:32 AM on 05/14/2009
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Yeah because time doesn't change. Lets go to a disco dude. Refer to my last posting for my answer to being self-centered. By the way 150$ a semester now isn't the same as your 150$ in the 70'S. Inflation genius

    Favorite    Flag as abusive Posted 03:41 PM on 05/20/2009

Why doesn't he tax his friends in the mob?

    Favorite    Flag as abusive Posted 12:32 AM on 05/14/2009
- Aranxa I'm a Fan of Aranxa 5 fans permalink

Providence is a pit. Rhode Island has the most corrupt government in the Northeast. Without the colleges no one would even go there. I live in the adjoining state and I know. No one ever wants to go to Providence.

    Favorite    Flag as abusive Posted 11:55 PM on 05/13/2009
- petphotos I'm a Fan of petphotos 4 fans permalink
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Went to a dog show in Providence once. Told a co-worker, who was from there, how nice the people were. He said that they had better be, that is a Mafia city.

    Favorite    Flag as abusive Posted 10:16 AM on 05/14/2009
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Yes but the colleges are there and last i checked they can't just pick up and move. Which adjoining state would that be? MA......gr­eat other than Boston it has gems like Worcester, Springfield and Lynn. Or Conn with some of the richest communities in the country. "Brown university, we got one of those back home in Providence" Alec Baldwin Outside Providence

    Favorite    Flag as abusive Posted 03:47 PM on 05/20/2009
- susou I'm a Fan of susou 2 fans permalink

that's one of the stupidest things I've heard proposed.

i hope, for those students sakes, that it doesn't go through.

    Favorite    Flag as abusive Posted 11:32 PM on 05/13/2009
- Sensiblebg I'm a Fan of Sensiblebg 31 fans permalink

Something tells me this guy is a Democrat?

    Favorite    Flag as abusive Posted 11:05 PM on 05/13/2009
- roger37 I'm a Fan of roger37 21 fans permalink

i think he's a Rethug, because he wants to penalize college people--too smart.

    Favorite    Flag as abusive Posted 01:01 AM on 05/14/2009
- hidenout I'm a Fan of hidenout 8 fans permalink

wrong, he's a, a, uh, oh give me a second to think of some ridiculous name I can call him....Dem­ocrat.

http://en.wikipedia.org/wiki/David_Cicilline

    Favorite    Flag as abusive Posted 01:52 AM on 05/14/2009
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Have you ever seen Providence?
They have services?

    Favorite    Flag as abusive Posted 10:57 PM on 05/13/2009
- Epiphany2b I'm a Fan of Epiphany2b 16 fans permalink
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Curious as to what services the students use that residents who rent aren't also using. Renters do not pay property taxes to the city as do home owners, but what other services do they consume without paying for them?

    Favorite    Flag as abusive Posted 10:43 PM on 05/13/2009
- Aranxa I'm a Fan of Aranxa 5 fans permalink

You hit it right on the head.

    Favorite    Flag as abusive Posted 11:52 PM on 05/13/2009
- MountPanic I'm a Fan of MountPanic 28 fans permalink
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Except that any landlord who knows what they're doing has already rolled the property tax into the cost of rent.

    Favorite    Flag as abusive Posted 01:02 AM on 05/14/2009
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the most annoying thing about tuition is seeing people given honorary positions where they make $300,000 / yr and don't actually do anything at the school. meanwhile they start firing professors that make

look at the UMass list:
http://www.bostonherald.com/projects/payroll/massachusetts/annual_rt.DESC/UMS/

what possible reason could a bureaucrat have for making over $600,000 in 2008? the highest paid professor in the chemistry department that runs the entire Botulinum research center funded by the US military and with tons of grad students and post grad researchers working under him got about $220,000.

this country doesn't respect scientists. you have bankers and bureaucrats doing little to nothing positive or actually manipulating currency..­. and they are the ones that get the largest reward.

    Favorite    Flag as abusive Posted 10:32 PM on 05/13/2009
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Why can't anyone on this posting get past themselves. This country doesn't respect scientists? This country doesn't respect so many other classes and professions. Please tell me you're not a scientist.

    Favorite    Flag as abusive Posted 11:17 PM on 05/20/2009
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