Providence, R.I.--Providence College President Rev. Brian J. Shanley, O.P. '80 told a group of business leaders that he continues to strenuously oppose two bills before the Rhode Island General Assembly that would allow the City of Providence to implement a student impact fee and collect taxes on up to 25 percent of large, tax-exempt nonprofits' assessed property values.
Father's Shanley's comments came during a meeting of the College's Providence President's Council on Wednesday, June 10. The council is a leadership group, comprised of senior executives from many of Rhode Island's most prominent employers, who serve in an advisory capacity to the College president.
During the meeting, Father Shanley said the proposal by Providence Mayor David. N. Cicilline to charge all out-of-state college students in the city a $300 fee would be an added burden to families already struggling during the current economic recession. He added that because many students are fighting to stay in school due to financial reasons, the College has reallocated $450,000 in operating funds to meet the dramatic increase in financial aid appeals.
In recent letters to the Rhode Island Senate and House of Representatives, Father Shanley noted that the College's investment in financial aid now exceeds $44 million, or more than 30 percent of its operating budget.
"Given the breadth and depth of the economic crisis, students from all socio-economic backgrounds are asking for and benefiting from this financial aid," he wrote. "Currently, more than two-thirds of PC students receive PC-funded financial aid, and we anticipate that the significant increase in aid appeals received this year will not subside anytime soon."
In response to Mayor Cicilline's assertion that PC and other local universities and hospitals must do "their fair share" during unprecedented economic times, Father Shanley said in his letters that PC students are already contributing to the city's coffers when they pay their tuition bills.
PC continues PILOT payments
Furthermore, Father Shanley pointed to a 2003 agreement between the city and four local higher-education institutions, PC included, which allowed the schools to make annual PILOT (payment in lieu of taxes) payments totaling $48 million over a 20-year period.
He said the agreement recognized the services the city provides to students and the 9.6 percent of city property that is owned by the institutions.
"This historic agreement appropriately recognized the services provided to our students," Father Shanley said. "As a tuition-dependent institution, Providence College's PILOT payments are made from tuition revenue."
He also pointed to the College-funded police substation on the corners of Eaton Street and Camden Avenue and the refurbishment of the living quarters at the Admiral Street fire station as examples of the College's various contributions to the city's public services. In addition, PC has paid more than $180,000 for police details over the last three years and more than $80,000 for fire alarm dispatches to the campus, he noted.
In addition, Father Shanley cited the thousands of hours of community service preformed by students in the city, and said the local economy also sees a boon when thousands of parents, family members, alumni, and fans converge on the city for sporting events, commencement, and homecoming and reunion weekends.
Father Shanley said he will continue to oppose the bills and noted that the story has become national and could be painting the city's reputation as student-unfriendly. He is scheduled to testify at hearings at the General Assembly later this week.
"I think this is a phenomenally bad idea, not just for Providence College, but for colleges, nonprofits, and the state of Rhode Island in general," Father Shanley said of the proposed property tax bill. "An agreement is an agreement. What's changed is the city is revenue strapped, but so are we."
--30--