Guest MINDSETTER™ Donna Nesselbush: Nice to See Brown University Step Up
Friday, May 04, 2012
I am proud to be a 1984 graduate of Brown University and equally proud to be a newly elected state Senator. Brown University has meant much to me, to our community and our state, providing education that is second-to-none in the world. Brown produces graduates who possess the skills to succeed in today’s world and today’s economy. Brown University is an integral part of our state’s economy, in terms of creating new jobs and employing Rhode Islanders as well as investing in our community through the acquisition and revitalization of neighborhoods and buildings. Additionally, Brown students, alumni and faculty have helped to start dozens of Rhode Island businesses.
On Tuesday, May 1, 2012, my University gave me another cause for pride, agreeing to additional payments in lieu of taxes to the City of Providence in the amount of $31.5 million over 11 years. I’m so glad Brown University seized the moment to do the right thing!
In my first year in the Senate, I cast a difficult vote to help fix the state’s unfunded pension liability, a vote which was painfully necessary, but which will undoubtedly hurt many Rhode Islanders. I am proud that the Treasurer, General Assembly and Governor addressed this challenge head-on. Leadership is now needed to avert disaster with regard to municipally-administered pension plans. Our city and town and state leaders are working towards a solution, but the solution needs to involve not only Brown University but also the other large non-profit hospitals, colleges and universities.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTBrown University is an even more attractive Ivy League school if it operates in a thriving city. I would not have come to Brown if it were located in a dying city. In a similar way, the other large tax-exempt institutions have a vested interest in a financially-sound and robust Providence, and many have already stepped up. The police and fire protection these institutions rely upon are not free, nor are the city services required to maintain infrastructure and to make Providence beautiful and vibrant.
Collectively, large hospitals, colleges and universities in Providence own nearly $3 billion in property in the city. If fully taxed, this would provide $105 million in revenue. Recognizing the important and altruistic missions of these institutions, I do not believe that 100 percent taxation is appropriate. However, these institutions are not fledgling, small non-profits. These are large entities whose executive compensation and number of employees bespeak their greatness and grandeur.
While I support as fair and reasonable legislation to tax these large non-profit institutions at a 25 percent rate, I also pause to applaud those institutions, like my alma mater Brown University, who have already stepped up to the plate to be part of Providence’s solution. I urge the other large non-profits to follow suit. Fairness demands it. Providence deserves it.
State Senator Donna Nesselbush represents District 15.
