State Association Questions Fairness of Mayor Ravenstahl's Proposal

HARRISBURG, Pa., Nov. 9 /PRNewswire/ -- The president of the Association of
Independent Colleges and Universities of Pennsylvania (AICUP) today responded
to Pittsburgh Mayor Luke Ravenstahl's announced plan to impose a
"Post-Secondary Education Privilege Tax" on the students attending his city's
colleges and universities.

AICUP President Dr. Don Francis said: "If enacted, this proposed tax on
students would be very damaging to students, the institutions they attend, and
the economy of Pittsburgh. The mayor talked about 'fairness' in his remarks
introducing this tax, but is it fair to ask students who have been hit hard by
these tough economic times and who already take out loans to pay for their
education to assume even more debt in order to pay his tax on their tuition?
Eighty-seven percent of the students attending private colleges and
universities in Pennsylvania receive financial aid. They rely on grants from
the state and federal governments, gifts from donors, alumni, and other
institutional aid and still need loans to pay their bills. In other words,
they don't have the money. Yet Mayor Ravenstahl wants to solve his budget
problems by taxing this financially stressed group of students. I can't find
fairness in this proposal."

"Institutions of higher education in Pittsburgh would also be damaged by this
proposal. Pittsburgh has developed an excellent reputation as a college town
and attracts students from around the nation and the world to its excellent
colleges and universities. The quickest way to ruin Pittsburgh's emerging
reputation as a college town is to become the first city in the nation to tax
its students. This will do real damage to one of Pittsburgh's 'growth
industries.' For over 250 years, tax exemption has been accepted as a fair
and reasonable contribution for local governments to make in Pennsylvania and
throughout the country. If we now remove the contribution of local government
by allowing them to impose taxes on students, then the other contributors will
have to pick up the burden. This is neither fair nor appropriate."

"Based on an analysis our Association performed in 2003, the private colleges
and universities in the Pittsburgh area had an economic impact of $2.6 billion
in the metropolitan Pittsburgh area alone. This does not count the large
economic benefit provided by the Community College of Allegheny County or the
University of Pittsburgh. One distressing aspect of Mayor Ravenstahl's
proposal is that it would jeopardize the enrollment of these institutions and
the economic benefits they currently provide."

About AICUP:
The Association of Independent Colleges & Universities of Pennsylvania
(AICUP), the only statewide organization that serves exclusively the interests
of private higher education within the Commonwealth, exists to complement and
support the work of campus leaders. With a membership of 87 private colleges
and universities within Pennsylvania, the Association provides a variety of
services and programs tailored specifically to the needs and situation of
independent higher education. A list of AICUP's member colleges and
universities is included on its website at www.aicup.org.

For Details, Contact:
Don L. Francis
President
Phone: 717-232-8649
Fax: 717-233-8574
Email: francis@aicup.org
Website: www.aicup.org

SOURCE Association of Independent Colleges and Universities of Pennsylvania

Don L. Francis, President of Association of Independent Colleges &
Universities of Pennsylvania, +1-717-232-8649, Fax: +1-717-233-8574,
francis@aicup.org