Issue 7

Page 1

Observer the

DECEMBER 7, 2017 VOLUME XXXVIII, ISSUE 14

www.fordhamobserver.com

By STEPHAN KOZUB AND COLIN SHEELEY News Editors

Like the climate-conscious polar bear, the university budget is making careful preparations for an uncertain spring. At that point, the finance team will report their proposal for the annual budget to the Board of Trustees, synthesizing months of research and ideas into one final presentation. That is still a ways off. The team is now engaged with what Chief Financial Officer and Treasurer, Martha K. Hirst, describes as the season of adjustment—a time when long-term financial blueprints are redrawn, tuition is tabulated and budget gaps are evaluated. Several areas are factored into these negotiations, such as sources of revenue like tuition and fundraising, and expenses such as faculty salaries and financial aid. At times, the university may consider cutting or readjusting certain expenses in order to ensure the institution’s financial health. “These are not draconian measures,” Hirst said in a press conference with The Observer on Dec. 4 regarding adjustments being considered. She said that the university is looking at all different areas of the university’s finances in order to diversify sources of revenue and ensure that the university has ample amounts of funds to comfortably handle its expenses. This year, however, Fordham’s finances are under additional strain. They teeter on the brink of considerable harm as a consequence of the impending Republican tax bill and its many provisions which threaten to upend the steady budget that the university has maintained so far. Having passed in the House and the Senate, the two variations of the bill are being hastily marshalled to the negotiating table, where lawmakers will stitch together the sections of both plans that they can agree on. Meanwhile, a storm is brewing at university campuses across the country. Upon the tax plan’s completion, endowments will be sapped, graduate students will be hit with massive tax increases and thousands of students could find themselves struggling even more to afford higher education. Though Fordham is unlikely to qualify for the 1.4 percent excise tax on private college endowments (the requisite endowment ratio of $250,000 or $500,000 per student towers over its approximate $47,600), the university’s future un-

McShane Will Discuss Rose’s Degree By STEPHAN KOZUB News Editor

GOP Tax Plan Threatens Fordham COLIN SHEELEY/THE OBSERVER

Fordham Chief Financial Officer and Treasurer, Martha K. Hirst, is in charge of coordinating the university’s finances.

der the tax plan is anything but certain at the moment. The plan’s effects have the potential to be myriad and far reaching, according to Fordham business professor, Stanley Veliotis. Listed below are some of possible provisions that stand to undermine the university’s finances:

Tuition-Unfriendly Provisions

One of the benefits that Fordham grants to its professors and their families is allowing their children to attend the university tuition-free. While it comes at little to no expense for the institution itself, the discount can be an extremely valuable perk of the job for faculty members with undergraduate children, especially because those benefits are excluded from their taxable income. That all stands to disappear with the ushering in of the new bill. Currently, the Senate’s version does not repeal the exemption, but the House plan opts for taxing the free-tuition benefit. “This was giving me a heart attack,” Veliotis said of what it might cost him. “All of a sudden, I’m look-

ing at a $20,000 tax bill.” Along the same lines, the House bill is threatening to eliminate a section of the existing tax code that allows graduate students to receive tuition waivers from their universities without being taxed as income. Consequently, the estimated 145,000 students who receive this kind of aid will see their tax bill swell by approximately 400 percent according to a report by CNBC. The combination of these provisions spell the future of college becoming less and less affordable for students, who will take out fewer loans and subsequently force universities to lower tuition. Fordham, who depends upon the $647 million it receives in graduate and undergraduate tuition every year could suffer greatly at the hands of this bill.

Disincentivizing Donors

Fordham’s

Despite the fact that Fordham and institutions like it cover most of their yearly expenses with student tuition, the university also draws

on a percentage of their endowment to cover the costs. Their ability to maintain endowment spending stems from their ability to accumulate donations, which taxpayers can deduct from their final bill. “The more you tax something, the less you get of it,” Veliotis said. When governments tax things they find to be undesirable, such as cigarettes, they discourage whatever industry produces them. Charitable contributions have the opposite effect. If the government offers larger tax deductions for donating more to charity, people are more likely to contribute larger volumes of money. Some of Fordham’s top individual donors are also the same taxpayers that would see their taxes decrease in a cut to the marginal tax rates under the new plan. Consequently, the value of pursuing deductions from taxable income could wane, and with less of an incentive to seek out larger deductions, donors could potentially scale back their contributions to the university or scrap

Following multiple accusations of sexual misconduct, broadcast journalist Charlie Rose was fired from CBS, PBS and Bloomberg. Now, Rev. Joseph M. McShane, S.J., president of Fordham University, is set to discuss the future of Rose’s honorary doctorate with the Board of Trustees. Fordham awarded Rose an honorary doctorate in humane letters in 2008, when he was the university’s commencement speaker. McShane intends to discuss Rose and his honorary degree with the Board of Trustees at their Dec. 14 meeting, according to Bob Howe, assistant vice president for communications and special adviser to the president. Accusations against Rose went public on Nov. 20 when eight women came forward in the Washington Post. In their accounts, they said Rose had made “unwanted sexual advances toward them, including lewd phone calls, walking around naked in their presence, or groping their breasts, buttocks or genital areas.” “It is essential that these women know I hear them and that I deeply apologize for my inappropriate behavior,” Rose said in a statement to the Washington Post. “I am greatly embarrassed. I have behaved insensitively at times, and I accept responsibility for that, though I do not believe that all of these allegations are accurate. I always felt that I was pursuing shared feelings, even though I now realize I was mistaken.” “I have learned a great deal as a result of these events, and I hope others will too,” his statement continues. “All of us, including me, are coming to a newer and deeper recognition of the pain caused by conduct in the past, and have come to a profound new respect for women and their lives.”

see TAXES pg. 2

see ROSE pg. 2

Inside

FEATURES

Socks in the City Student starts her own charity.

PAGE 20

OPINIONS

ARTS

Literary

NEWS

A better look at a bad bill.

Asian-American students fight for visibility.

The newest collection of creative student works.

University team looks into the causes of student departure.

GOP Tax Plan PAGE 5

Equality in Theatre PAGE 15

The Comma PAGES 7-14

THE STUDENT VOICE OF FORDHAM COLLEGE AT LINCOLN CENTER

Retention Task Force PAGE 3


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