Last Update: March 17 @ 5:23 PM
government
Simmons says Brown pays city enough
President decries Providence call for taxes, new student fees
COURTESY BROWN UNIVERSITY
BROWN UNIVERSITY PRESIDENT RUTH J. SIMMONS defended the school against calls for an increase in the amount it pays to Providence for public services it consumes.


PROVIDENCE – Brown University President Ruth J. Simmons today called on students, alumni and faculty to voice their opposition to legislation that would allow new taxes on private colleges, universities and hospitals.

In a statement to “members of the Brown community,” Simmons outlined reasons why she believes Brown already is paying its “fair share” for city services, and noted that the university is going through fiscal woes of its own.

“We understand the city’s need to make tough decisions to balance its budget,” Simmons wrote. “We at Brown have also had to make sacrifices and difficult choices to meet budget shortfalls resulting from the impact of the economic downtown… Considering past and anticipated budget reductions, we would be loathe to ask the University community to shoulder even greater sacrifices – particularly not our students and their families, who work hard to plan and save for higher education.”

Simmons’ statement concluded with contact information for House Speaker William J. Murphy and Senate President M. Teresa Paiva Weed.

“I therefore encourage students, alumni faculty and staff to express their opinions on these matters to the leadership of the General Assembly,” Simmons said.

Last month, at the request of Mayor David N. Cicilline, House Majority Leader Gordon Fox (D-Providence) and Sen. Maryellen Goodwin (D-Providence) submitted bills that would allow two new fees on nonprofit institutions as a way of easing the burden on residential taxpayers for the cost of city services provided to the nonprofits.

Providence is grappling with a $17 million deficit this fiscal year and is projecting a $50 million shortfall in fiscal 2010, which begins July 1.

The legislation would authorize cities and towns to charge private colleges and universities $150 per semester – or $100 per trimester – for every full-time student. And it also would clear the way for municipalities to tax nonprofit institutions with real estate assessed at more than $20 million. Those institutions would have to pay as much as 25 percent of the amount of commercial property tax that they would owe if they were not exempt.

But Simmons said Brown and the city’s other private schools already agreed in 2003 to make voluntary payments to the city totaling $48 million over 20 years.

In addition, she said, Brown pays property taxes on real estate it owns in the Jewelry District, on South Main Street and on its leased property. Those taxes and voluntary payments totaled $3.34 million this year, she said.

“This legislation undermines the partnership established between the city and our institutions of higher education,” Simmons said.

And the contributions go beyond tax payments, Simmons insisted. Brown maintains its own police force and ambulance service, and provides space for a community policing station on Brook Street at no cost to the city, according to Simmons.

Also, the university pays the city about $75,000 each year for police details at events such as graduation, she said.

Previously, Cicilline had said nonprofits need to do more. Nonprofits own property that accounts for 40 percent of the total value of assessed real estate in Providence, but they contribute less than 1 percent of the city’s revenue, according to the mayor’s office. But, Simmons said, private colleges and universities account for 9.6 percent of the tax-exempt property.

Simmons also cited a study by independent consulting firm Appleseed Inc. that examined Brown’s economic and social impact.

Among the findings:

• In fiscal 2005, Brown spent more than $243 million on purchases of goods and services and on construction, $64.3 million of which was paid to Rhode Island companies; 72 percent of those dollars were paid to Providence companies.

• Brown spent $52.7 million in 2005 on construction and renovation, of which $39.5 million was paid to Rhode Island-based contractors.

• Spending by Brown students totaled more than $40 million in 2004-2005 academic year.

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1 comment on this item

$2 Billion endowment, you can do more.

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