Taxing students

Pittsburgh is home to seven universities and 100,000 students whom the mayor sees as sources of revenue to close the city's budget deficit.

A shortsighted plan by Mayor Luke Ravenstahl would raise the cost of a college education to Pittsburgh students by asking them to pay a 1 percent tax on their tuition to raise $16 million for the city.

Students already paying tens of thousands of dollars a year in tuition and other expenses would have anywhere from $20 to $400 added to their bills.

Mayor Ravenstahl argues that the students are not "paying a dime for any city services they might receive." Students may not pay directly, but Pittsburgh's tax-exempt institutions contributed $14 million in lieu of taxes from 2004 to 2006, and they've offered an additional $5.6 million over the next three years, according to USA Today.

"He calls it a fair share tax. We call it an unfair tax," said Mary Hines, president of Carlow College and the Pittsburgh Council on Higher Education.

The city is not collecting property taxes on the colleges, but they are reaping other benefits that add to the city's economic well-being. The institutions account for millions of dollars in payroll to hundreds of staff who might not otherwise be employed, own homes or live in Pittsburgh.

The colleges draw in outside sources of revenue and support local businesses that might not survive or flourish without the colleges, staff and students patronizing them.

Less tangible are the cultural rewards that come with the colleges. Staff improve the quality of life and are valued members of the community. Students remain to take up careers and raise families.

Pittsburgh is not alone with its plan. The mayor of Providence, R.I., earlier this year proposed a $150 per semester tax on students attending the four colleges there.

Officials would be wise to appreciate the invaluable contributions from colleges and universities rather than drive another wedge between them.