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October 13, 2008

Senator Challenges Colleges to Spend Their Endowments

Sen. Charles Grassley, Republican of Iowa, wrote an opinion article in the Los Angeles Times to
urge colleges and universities to justify their federal tax exemptions by spending more from their endowments and providing more tuition assistance to the needy.

He writes that colleges do not pay federal income taxes on their operating income or investment returns from their endowments and that federal tax subsidies for colleges and their students add up to $17-billion per year.

Senator Grassley hopes that colleges will monitor themselves. He writes, “I told the experts I gathered in Washington last month that I’m looking for self-correction. I want to see voluntary action on college affordability before I legislate a mandatory endowment payout. Some of them took that to mean they’re off the hook. They’re not. Legislation is a possibility, either from me or someone else. If universities want to stave that off, they need to offer more ways they can make education more affordable and fewer reasons why they can’t.”

Monday October 13, 2008 | Permalink

Comments

1. I totally agree, another form of greed when families struggle Universities make excuses to help educate our most needy youth.

   — Gary    Oct 13, 02:54 PM    #

2. Does this mean that Ivy League schools will get this message?

   — Jack Eckert    Oct 13, 10:18 PM    #

3. Sen. Grassley is right on; there is no excuse for ‘high end’ universities to get huge subsiddies and Federal tax breaks while holding endowments worth billions of dollars. Boards of Regents need to get this message loud and clear.

   — Dan    Oct 14, 09:18 AM    #

Commenting is closed for this article.

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