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UNIVERSITY DAILY KANSAN
Friday, November 3,1967
Lawrence dilemma how to 'pay' for KU
By Janet Snyder
By Janet Snyder and Steve Morgan Kansan Staff Reporters
When the University was conceived more than a century ago, the Lawrence citizeneny paid to watch it give birth.
They donated $20,000 for the construction of the first campus building, North College Hall.
North College Hall has since succumbed to time's erosion. But to hear the people of Lawrence tell it, they've been paying for the University ever since—in terms of police and fire protection and street maintenance.
Painfully aware that KU itself is exempt from the city's tax rolls — Lawrence officials are now searching for some way to get their money back, or at least find enough funds to keep on "paying" for the University.
In town meetings this fall, where city officials and Lawrence residents have discussed this problem, possible solutions have been proposed.
Car Tax
The main proposals include a vehicle tax, an allocation from the Kansas Legislature to KU to be paid to Lawrence for the public services, and a possible city-university agreement.
Tax Considered
The vehicle tax, voted down by a 3 to 1 margin in an Aug. 8 election, would have imposed a $10 tax on all vehicles except those owned by the state, engaged in interstate commerce and used by commuters.
The tax included motorcycles and scooters.
If passed, the ordinance would have cost KU students and faculty about $150,000, based on the 15,000 vehicles registered at KU this fall.
The money, gained from the tax, would have been applied directly to Lawrence street maintenance and apparently would have lowered city property taxes. Now Lawrence property owners alone pay for all street repairs.
"The tax would have shifted the burden to all the street users." Ray Wells, Lawrence City Manager, said.
Voters Uninformed
City officials believe the tax proposal was defeated because local voters had not been properly informed about the issue. There are, however, no plans to bring it to another vote.
Perhaps the most feasible suggestion rests with a special ini-bug-of-tax allocation from the Kansas Legislature. This probably would involve a recommendation by the Kansas Board of Regents to the Legislature.
Using other states as examples, the city commissioners found in a survey conducted by the Management Information Service in 1964, that 111 of the 185 cities surveyed had some type of inleu-of-tax payment, service charges or reimbursed expenses.
These cities, all with state supported educational institutions, paid remunerations ranging from $5.00 for police and five service by the University of Maryland to College Park, Md., to $212,000, by the University of Michigan to Ann Arbor, Mich.
If Lawrence officials should decide to employ this method, he problem would be switched from city-state, the present contention, to city-university.
The city is feeling the pinch on
public services and would like to alleviate the problem with monetary subsidizing. But officials say they do not want to burden the University by shifting the expense.
Won't Strain KU Budget
"We are not asking for money from the KU budget," Wells sa.d. "I think the people of Kansas have an investment to protect. Why should Lawrence carry the burden for the state?"
Francis Keller, acting provost,
agreed.
"As the University now is operated, it cannot turn around and pay the city of Lawrence unless the Legislature allocates the necessary money," he said.
Mayor Richard Raney said he appreciates the University's p-sition and realizes that KU officials are unable to help financially under present budgetary restrictions.
The budget allows the University to pay for water and sewer expenses at the same rate as Lawrence residents, but no provision is made for other public services such as police and fire protection.
James Gunn, administrative assistant to the Chancellor, said that although Lawrence receives no tax payments from KU, it does receive tax payments from secretaries and fraternities, located off-campus.
"These are the only living groups connected with KU that pay taxes to the city," Gunn said. "This is the way it has always been, but with the tremendous growth of the University in recent years the problem has become more apparent."
Heller, agreeing with Gunn, said KU has grown into a massive industry whose problems have created a sense of helplessness when faced by one community.
"We can spend only the money allocated to us by our board of directors which, in this case, is the Legislature," Heller explained. "The pattern of student living imposes a demand on the city services, and I think it is appropriate for the city to go to the Legislature because of the students."
Plan Eventual Move
City officials plan to approach either the Legislature or the Regents in an effort to reach some kind of solution. But they don't know when.
Mayor Raney said, "However, we have yet to make the decision as to which is the appropriate body—it may be both."
City Manager Wells cited another problem: the system of rebates on state gasoline, cigarette, liquor and sales taxes.
"The city does not receive per capita returns on these taxes, because the students, who purchase taxable goods, are not counted in the city's population, which is the sole determinant for tax rebates." Wells said.
Wells termed this fact a 'gross inequity."
He explained that although students live at the University for at least nine months of the year, they are not counted by state census in the city's population for tax purposes.
Hopes Rebate System Changed
By 1970, Wells hopes the Kansas Legislature will pass a bill to change the rebate system, making the distribution of tax returns equal. The bill is still in the planning stages.
Another inequity concerns the burden placed on Lawrence property owners. The University, evaluated at $150,000,000, is non-taxable, and is about one-half of
See Lawrence, page 15
For what the Lawrence citizens think about the hill people see the story on page 13
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