Legislative Update
June 26, 2009
Members of the Brown Community,
Last night, the Rhode Island House Finance Committee voted 11-4 to pass h6205, the student tax bill, which authorizes any city or town to assess a private college or university a student fee of $150 per semester or $100 per trimester for each enrolled full-time student. Students who are Rhode Island residents and who demonstrate payment of real estate taxes by the student or his or her guardian to a Rhode Island municipality during the relevant semester or trimester will be exempt. Each institution will be responsible for the collection and payment of the fee.
As you know, legislation has also been introduced in the General Assembly that would authorize cities and towns to raise revenues through taxes on property owned by a hospital or private university or college of a value greater than $20 million located within the municipality.
The House and Senate Finance Committees held hearings this week. Brown representatives, along with those of other private colleges and universities, testified to convey our opposition to the legislation, making the case that:
- Attracting students to Providence, keeping higher education accessible and affordable, and encouraging students to remain in Rhode Island beyond graduation should be our primary goal;
- Supporting higher education institutions as catalysts for economic growth in an otherwise bleak economy should be of paramount interest to the state as well as to our cities; and,
- Colleges and universities already pay a ‘fair share.’ In addition to the financial contributions that students and institutions already make to cities, as a result of the MOU signed in 2003, the colleges and universities in Providence make voluntary payments, in addition to certain other property tax payments, to the City of Providence. The MOU established a long-term financial contribution to Providence’s budget equaling nearly $50 million over 20 years.
We expect h6205 will be considered by the full House of Representatives today. We continue to make every effort to stop its passage. The steps needed for the legislation to become law include passage by the House, the Senate Finance Committee, and the full Senate before going to the Governor for signature or veto. If you wish to convey your position on this bill with legislative leadership, whose contact information follows, and with your elected officials in the General Assembly, you might do so with some urgency.
Leadership:
Senator M. Teresa Paiva-Weed
Senate President
Rhode Island General Assembly
sen-paivaweed@rilin.state.ri.us
(401) 222-6655
Representative William J. Murphy
Speaker of the House
Rhode Island General Assembly
rep-murphy@rilin.state.ri.us
(401) 222-2466
The economic crisis has not only affected Providence and Rhode Island, it has also affected virtually every sector of our community, including students and their families, as well as schools and colleges. The health of the college and university sector is vital to the economy of our city and state. Therefore, we favor prudent, sustainable solutions that improve the long term outlook for the city and state rather than short term measures that stand in the way of opportunity and growth.
I appreciate your help.
Sincerely,
Ruth J. Simmons