US Plans: The Newark City Council is contemplating a contentious measure that would levy a per-student, per-semester tax of up to $50 on the University of Delaware (UD), aiming to bridge the city’s projected $8M revenue shortfall in 2025.
UD President Dennis Assanis has pinpointed the university’s financial hurdles on soaring employee health-care expenses, prompting a freeze on hiring and contemplation of additional budgetary adjustments.
US Plans New Tax Rules
However, local authorities argue that UD’s exemption from property taxes should be offset by contributions toward the city’s escalating operational expenses.
Opposition to the proposed tax has emerged from students and administrators, asserting UD’s significant economic impact on Newark. They argue that imposing an additional tax would unfairly burden students.
If implemented, the tax is anticipated to yield an annual revenue ranging from $2M to $2.4M. Nevertheless, the proposal necessitates passage through the Delaware General Assembly, gubernatorial approval, and final endorsement by the council to be enacted into law.
While council members have suggested that UD could choose whether to transfer the tax burden to students, concerns linger regarding the funding source. Potential avenues include augmenting student fees or scaling back university expenditures.
Newark’s fiscal dilemmas stem from a competitive labour market, prompting adjustments such as cost-of-living raises for municipal employees, particularly police personnel.
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