Providence Mayor Angel Taveras addressed students' concerns about the University's relationship with the city and reminisced about his political ascent yesterday at a meeting of the Brown Democrats.
"It's interesting to lead in these times," Taveras said at the meeting, pointing out that the city's financial crisis forced his administration to decrease the city's former $110 million structural deficit to around $22.5 million.
A collection of measures, including revenue from cuts and additional contributions will be necessary to close the remaining budget deficit, Taveras said. He is seeking revenue from the city's tax-exempt institutions, including Brown, as a significant source of funds to close the budget deficit.
The number one source of revenue for the city is real estate taxes, Taveras said. "But about half of our property in the city is tax exempt."
The University now pays around $4 million of contributions in lieu of taxes to the city due to its tax-exempt status as an educational facility. Taveras pointed out that if the University were taxed fully at the current rate, it would be paying around $40 million in taxes each year. The University is the "largest owner of property in the city," he said, and its landholdings are valued at $1 billion.
"I could do a lot of things with $40 million," Taveras said.
Attendees asked Taveras questions primarily on the issue of increased contributions. While most agreed that the University should be contributing more to the city, many voiced concerns that the University was being unfairly targeted.
"The issue, from my perspective, is really related to the size of the institution. Some institutions are in better shape than others," Taveras said. Those institutions should be contributing more because they can afford to do so, he said.
Some private institutions in the city are helping to ameliorate the budget crisis, he said — Johnson and Wales University recently promised to triple its current contribution. He also said the city's hospitals are looking to begin negotiations with the city, but they already provide an invaluable service to the city's residents.
Taveras also addressed student concerns about the vitality of the University's endowment. "We want to make sure that Brown continues to prosper," he said, adding that he does not expect the University to be paying $40 million because that would be "painful."
But the University should be following the model of other Ivy League schools, Taveras said, instead of using its relatively small endowment — as compared to the other Ivies — as a scapegoat. Were the University contributing the same proportion of its endowment as Yale contributes to New Haven, it would be paying $22 million a year, Taveras said.
Ultimately, Taveras said he was confident that an agreement between the University and the city would be reached soon. He said he spoke with President Ruth Simmons on the phone Monday, in addition to meeting in person twice over the past two weeks and again next week.
Students also questioned whether Taveras has long-term solutions for the city. He responded that there are many initiatives already in place but said he is currently more focused "on dollars and cents."
Taveras said he feels a great responsibility as the first "colored mayor" of the city.
"When you're the first, you can't just be good," he said. "You have to be great."
