A Nov. 4 non-binding ballot question asked Worcester residents if they would like to see a 0.5% tax on private college endowments for a City of Worcester-managed fund to finance needed housing, economic, and community development projects.
New England is known as a center of higher education, with more than 250 colleges and universities, and the Central Massachusetts region hosts a robust 15 institutions. Worcester is the home of seven of those schools, plus the large satellite campus of MCPHS University.
While the benefits of being a college town are extensive, town and gown frictions are never far from the surface. A Nov. 4 non-binding ballot question asked Worcester residents if they would like to see a 0.5% tax on private college endowments for a City of Worcester-managed fund to finance needed housing, economic, and community development projects.
While it's a nice idea on the surface, the proposal is a completely impractical non-starter.
The five private colleges in Worcester would be taxed for a total of $12 million annually, based on the proposed formula and the endowment balances for each school as of the end of their most recent fiscal years. The College of the Holy Cross would be the largest contributor at $5.55 million annually, followed by Worcester Polytechnic Institute at $3.41 million, Clark University at $2.43 million, Assumption University at $540,000, and MCPHS University at $310,000.
However, the impetus of the initiative was the purchases of private properties by several of the schools, which is a different issue, and the one the City and the schools should be focusing on. Worcester has already negotiated a compromise agreement with WPI on its purchase of two hotels, Holy Cross remains in the midst of its planning regarding the former Rotman’s property across from the school, and Clark as well as MCPHS have purchased properties. Negotiating how those properties are used in part for the public good, and arranging some kind of payment-in-lieu-of-taxation deal based on the previous valuation makes sense.
Stepping back from the numbers, Worcester’s colleges and universities make a huge difference in the economy and culture of the region and the city. Clark University, for instance, has a long history of being an essential partner in developing and investing in the neighborhoods surrounding its campus, and all the schools give back in material ways to strengthen the community. Worcester’s urban revitalization, in turn, has been a positive recruitment tool for the colleges.
With many higher ed institutions struggling in a time of reduced college-aged high school grads, now is no time to impose a fee or new tax on the schools. Finding a way to forge new partnerships to create a win-win scenario for the colleges and the community holds great promise. However, that will require open negotiation and compromise, not confrontation.
This editorial is the opinion of the WBJ Editorial Board.
