Pittsburgh Mayor Luke Ravenstahl’s proposed Fair Share Tax Act would levy a tax on all Pittsburgh students equal to 1 percent of their tuition. The Pittsburgh Council on Higher Education, a coalition of all 10 Pittsburgh colleges and universities, claims the tax is illegal and is threatening to sue. The expected $16.2 million in revenue would be used to fill a budget gap for city worker pensions and the city library system.
At Carnegie Mellon University the tax would amount to $400 a year; it would be $135 a year at the University of Pittsburgh’s School of Arts and Sciences.
“This is a fair way to share the burden of paying for public services,” Ravenstahl said.
City Councilman Bill Peduto said that the city can assess fees, but might not have the authority to create its own taxes without new state-level legislation. Ravenstahl claims that the tax’s legality has been thoroughly researched, and would stand up against a court challenge.
Carnegie Mellon Student Body President Rotimi Abimbola said, “The state of the city’s finances is not our fault. We are the life of the city. We will continue to make great contributions to the city, but I don’t think we are giving less than we should be.”
Student and administrative response to the proposal echoes Abimbola, protesting the tax while emphasizing the contributions they already make to Pittsburgh.
Teresa Thomas, Carnegie Mellon’s vice president of media relations, claimed that the proposal is unfair because it ignores the 117,000 hours of community service Carnegie Mellon students did in Pittsburgh last year, the money they spend in the Pittsburgh economy and the extensive income and real estate taxes they pay.
The Student Senate at Carnegie Mellon has already passed a resolution against the tax and Senators have mentioned a boycott of Pittsburgh businesses for a day to show the city how much Carnegie Mellon’s students impact the local economy.
Other students think the implication that students can easily afford another $400 is ignorant of the precarious financial situation of some Carnegie Mellon students. “To be honest, [my initial reaction was] that it was absolutely preposterous,” said Carnegie Mellon Senior and Student Body President Rotimi Abimbola. “I am shocked that the mayor thinks that $400 is just spare change to us.”
Providence Mayor David Cicillene proposed a similar tax in Rhode Island that will likely be voted on this January. The proposal would allow Rhode Island municipalities to tax private institutions $300 for every out-of-state student.
Cicillene’s proposal has highlighted and added to existing tensions between Brown University and the City of Providence, earning the vigorous protest of students and administrators alike. Much like the response at Carnegie Mellon, Brown students and administrators are also claiming that Brown already constitutes a large portion of the Providence economy.
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Issue: Student Governance and Campus Administration