Thursday, September 6, 2012

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daily herald the Brown

vol. cxxii, no. 61

INSIDE

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thursday, september 6, 2012

Paxson urges ‘constructive irreverence’

’Til you drop

By Caroline Saine senior staff Writer

First day of shopping commences in the rain

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Chafee at DNC Touting his independence, governor supports Obama

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Fake the vote

Rep. Cicilline ’83 denies opponent’s fraud allegations today

tomorrow Tom Sullivan / Herald

81 / 65

83 / 67

since 1891

First-year students listen to President Christina Paxson’s Convocation address, which was held in the Pizzitola Center due to rain.

Though yesterday’s weather was damp and dispiriting, President Christina Paxson’s Convocation address roused the class of 2016 as she welcomed them to Brown’s 249th academic year. The weather forced the address from the Main Green to the Pizzitola Center, and the traditional first-year walk through the Van Wickle Gates was postponed until today. “Even though I’ve only been here for a few months, I’ve found that Brown already has a very special place in my heart — for its people, its history and its values,” Paxson said in her opening remarks. Paxson encouraged the 1,541 members of the incoming class to approach their first year with “constructive irreverence,” which she praised as Brown’s “distinctive approach to learning and to life.” This irreverence is defined by

an ability to think independently but also to give established ideas and people “the respect that they are entitled to,” Paxson said. “We give our undergraduates unparalleled independence, but we don’t confuse liberty with license,” Paxson said. “Our belief is that a combination of freedom and responsibility will let you cultivate the habits of mind that lead to a lifetime of intellectual development and social engagement.” Paxson stressed that students must be open to new people and especially to new opinions in order to enrich their educational experience and exploit opportunities for personal growth. Paxson said she hopes that after four years at Brown, the incoming class will be prepared to “change a world that too often resists change and too often tolerates the intolerable.” As first-years take on the chal/ / Convocation page 3

Despite restructuring, city unable to close budget deficit Corporation In response, many of the city’s declared Providence “back from and tax increases. The city slashed the brink.” spending in nearly every depart- tax-exempt institutions — which fellow’s firm The deal has not yet been formally ment, closing several schools, include universities, health care Providence Mayor Angel Taveras approved by the firefighter and cutting 200 employees from the providers and places of worship — investigated shocked the city in February with police unions, but the announce- city payroll and raising taxes by increased their payments in lieu of his revelation that the state capital ment seems to mark the end of a 11 percent — an increase signifi- taxes. The city’s tax-exempt instiwould be forced to file for Chap- heated period that at times pitted cant enough to require state ap- tutions own around 40 percent of for tax fraud By Adam toobin

senior staff writer

ter 9 bankruptcy if its nonprofit i ns t itut i ons and municipal unions refused to agree to cost-saving measures. After negotiations, a number of health care providers and colleges — including Brown — increased their contribution commitments to the city in the spring. And May 30, the city announced a tentative agreement with retirees and police and firefighters unions, and Taveras

city & state

the city against the University and other nonprofits, targeted nearly everyone in Providence for painful sacrifices and required a restructuring of Providence’s pension system. Austere times

When Taveras entered office in January 2011, he faced an annual structural deficit of $110 million for an operating budget of about $630 million. The crisis encouraged a round of significant budget cuts

Laundry revamp includes new machines, price hike By Corinne Cathcart Staff Writer

The University’s laundry system underwent a series of drastic changes over the summer, including the introduction of new machines, a price increase, a revamped infrastructure and more efficient energy standards. The changes were implemented after consistent urging by the Admissions and Student Services Committee on the Undergraduate Council of Students and the rest of the student body. Old machines have been replaced with high-efficiency ones, saving approximately 300,000 gallons of water per year, said Scott Thatcher, director of technology for campus life. The new machines will be accompanied by a 25 cent increase in price — now $1.50 per load — as well as a major change

in the payment method. Instead of using vending stripes and quarters to pay for laundry, the new machines only accept Bear Bucks, a system of payment formerly known as “declining balance.” First-years have new Brown ID cards, which do not have a vending stripe and feature a Bear Bucks helpline number on the back. In addition, the eight machines that allow students to add money to their Bear Bucks accounts are now “strategically placed” around campus, Thatcher said, to increase their availability. “There may be limited machines, but the fact that they will actually work outweighs that all,” said Holly Hunt ’13, a member of the Admissions and Student Services Committee, of the card machines. “ We’r e / / Laundry page 3

proval, according to David Ortiz, the mayor’s press secretary. The mayor also voluntarily accepted a salary cut of 10 percent. But the city was still short more than $20 million in April of this year, spurring the mayor to begin negotiating with the city’s pensioners and nonprofit institutions, asking that all parties make concessions to keep the city from going bankrupt at the end of the fiscal year in June.

Providence’s taxable land, a financial burden in a city where property taxes provide a substantial chunk of the annual operating budget. The University agreed to pay an additional $31.5 million over 11 years, a decision to double annual voluntary payments that represented the culmination of contentious negotiations between the city and Brown and protests by some Providence residents who felt / / Budget page 4 the Universi-

C A L M B EFORE T H E STOR M

emily gilbert / herald

Students catch a rare dry moment between classes during a day filled with downpours and shopping.

By sona mkrttchian Senior Staff Writer

Providence Equity Partners, the international private equity firm founded and run by Brown Corporation Fellow Jonathan Nelson ’77, is one of the 12 firms that received subpoenas from New York Attorney General Eric Schneiderman in connection with an investigation into a tax strategy used to evade high income taxes. The strategy — which could save firms like Providence Equity Partners and Bain Capital hundreds of millions of dollars — involves transferring management fees gathered from investors into fund investments, which are taxed at 15 percent. These fees could be taxed at a rate of up to 35 percent if reported as income. Investigations into the firms’ financial records began last month, when the presidential election cast a spotlight on the financial dealings of Bain Capital — the private equity firm that Republican nominee Mitt Romney founded in 1984. Leaked records from Bain show that executives saved more than $200 million in federal income taxes through this evasive tax strategy. While some industry executives claim the practice is legal, the Internal Revenue Service released a statement in 2007 following its investigation into tax evasion and manipulation that suggested these management fee conversions and similar strategies were “areas of possible / / Equity page 2


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