Last Update: March 21 @ 11:04 PM
education
RISD head responds to call for new taxes
IMAGE COURTESY RISD
IN A VIDEO MEMO, RISD President John Maeda totals the contributions – in cash and time – that the school and its students make to Providence.


PROVIDENCE – Rhode Island School of Design President John Maeda called legislation to allow new taxes on private colleges, university and hospital “a short-sighted economic policy” in a four-minute “video memo” released by the school this week.

“Trying to solve the city’s financial problems by weakening the already hurting colleges and universities does not make much sense,” Maeda said in the video titled “RISD [heart] Providence.”

The video, which was posted to RISD’s blog – our.risd.edu – was intended to “let you all know how much RISD loves Providence,” Maeda said.

It is also a response to legislation submitted in the General Assembly, at the request of Providence Mayor David N. Cicilline, 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, and would allow municipalities to tax universities and hospitals to make up for revenue lost to the tax-exempt status of those institutions.

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.

Following the lead of Brown University President Ruth J. Simmons – who last week issued a more conventional written memo outlining reasons why she believes Brown is paying its “fair share” – Maeda asserted in his memo that RISD has paid the city $7.4 million since the city’s private colleges and universities agreed in 2003 to make voluntary payments to the city over 20 years.

He said that amounts to $535 per student per year.

In addition, he said, the school has paid $500,000 in city fees and $1.8 million in taxes over the last three years.

When a photo of the former Rhode Island Hospital Trust Bank building at 15 Westminster St. – which was converted into a residence hall for RISD students – appears in the video, Maeda cites the school’s efforts to redevelop portions of downtown Providence, saying RISD has spent $100 million in the effort. He notes that the school handles the maintenance of the River Walk that abuts the school campus.

“We’re interest in increasing the vibrancy of Downcity,” he says.

Maeda also references the community service work the students do – he says it’s been 15,600 hours this year – and the estimated $6 million they spend annually.

At the same time, RISD has gone through its own financial struggles, Maeda says, pointing out that the school had to lay off staff member, cut the hours of others, and has decided to close the RISD Museum in August.

“It hasn’t been easy for RISD at all,” he said.

As with Simmons’ memo, the blog entry that accompanies the video provides contact information for House Speaker William J. Murphy and Senate President M. Teresa Paiva Weed.

“As a cultural asset, RISD attracts students and entrepreneurs to the city and the state like no other,” Maeda says in the video. “We’re core and central to building the knowledge economy and putting Rhode Island and Providence on the world map.”

“Higher education is one of the few remaining growth industry left in Rhode Island,” he added. “You don’t want to hurt that.”

The legislation opposed by Simmons and Maeda 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.

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1 comment on this item

Taxes are the bane of our existence. But local taxes are sometimes worse than what the Feds take from us unless our voices are raised. Local governments have major services to provide to their residents, businesses, and, yes, educational institutions. All groups should pay something to receive those services. Having a tax on students at a private college or university is one way to cover the costs inherent to offering services to the college or university. A $150/ year per student charge doesn't seem like much in these times. I don't see it as a major hardship for students going to higher education institutions in Providence where the annual tuitions and room and board are in the 10s of thousands per year. As long as the city demonstrates how they spend the tax revenue to serve the educational institutions, and those institutions have a chance to participate in open reviews before the governing body in the city when spending is decided, I don't see why there should be any issue. Raise your voices on how to tax and spend.

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