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Tax Snag Predicted 55th Year No.9 GEORGETOWN UNIVERSITY, WASHINGTON, D.C. Friday, November 1, 1974 Tax Snag Predicted Lawyer Cites Corp As Liability Threat by Joe Lacercnza University legal counsel has informed University officials of th« possibility that the Student Corporation may endanger the Universuy's tax-exempt status on the property which the Corporation occupies. The Board of Directors of Students of Georgetown, Inc. have contacted their lawyers at Arnold and Porter to investigate the situation. In a letter to Vice-President for Administrative Services. Daniel Altobello, Vincent J. Fuller of tho problem. Wt' art' confident Williams, Connolly, and Califano, that it canbe resolved," he noted. the University's counsel, expressed Altobello suggt'st('d a number the opinion that leasing space to of options in a memorandum to tho non-profit Student Corpora­ Vice-President for Student De ~tricia tion may make that space liable to velopment, Dr. Patricia Ruec kel , Dr. Rueckel real estate taxes. following receipt of the cortes­ might exclude the Corporation if "It is a serious legal question," pondence from University coun­ it i" considered a purdy corn­ Student Government President sel. "It seems to me Georgetown mercial establishment. Jack Leslie said. "The Board of can do one of several thing" ... A number of areas questioning Student Body President Jack Leslie expressed optimism that the Directors of the Corporation has i.itiate action to bring about th« the attorney's argument are bl'lng current controversy over the Corp's tax status will be resolved "in good agreed to negotiate with the appropiate pro-rata charging of studied. Whilt, the law only faith." University in good faith to resolve taxes, take over tht' activities applies to commercial r-ntr-rpnses. using the questionable space a" it i" questionable whether the auxiliary enterprises of the Stu­ Corporation is a commercial enter­ Inflationary Utilities Costs dent Development Department, or pnse ... 1I1('l' it IS a non-profi t attempt to find thv u-nants orgaiuzation. A ~'('ond arva of suitable space in a building or ('OrH'Crn ,,, whothr-r till' i nr-om« tax buildings which art' not currr-n tlv status of th,' ... t udvnt-run orgamza­ Hinder Break-Even Budget tax-exempt but art' owned b~ th« IIOIl can b« nlau-d to tht­ Umversity ." Altobello wrote. I :nlVl'r"it~ \ property tax -tatus. Other possible option" for thp "EvPr). thlllg I" in a "tatl' of Residence Life staff (RA's) and r-quipment. by Alln Lo l.ordo University could include a ta k«­ flux ," Dr, HUl'chl'1 <aid. "W« "Equipment includes carpeting, lamps. lounge TIll' Budget Guidelines for fiscal year 1976 have over of till' Corporation by Stu­ a... kr-d for um« from till' lJnivor­ furniture. mattresses etc, Our biggest expense is required that the Residence Halls operate on a dent Government. ignoring thl' .... ty to "tudy thv altemauvv-, and bn-ak-even budget. Dean of Residence Life, Ms. equipment and we ve tried to cutback as much a" advice of counsel, or asking t he to deve-lop more positive relation ... Valerie Yokie had proposed a $100 room rate possible, Take for example mattresses: WI' buy Corporation to return tile space to wi th the local nu-n-hanb. I don't increase to meet the demand, but with this year's approximately 100 new mattresses a year when we till' lJniVl'r~it~ and h-avo till' think WI' are gOll1g to affect th« defici], of $142,000 and inflationary costs the should buv 150. Mattresses should be replaced after premises. It is uncertain wh u-h of local l' ... tablishments. W{' haw no proposed increase will not be sufficient in meeting 7-10 years wear. we stretch it to 10·12 years. The these alternatives. If any . an' desrr« to injun' any one\ bU"I' the break-even budget. price of mattresses a few years ago was $27 now its spriollsly bl'ing adwcatt'd at thl" ness." she ('ontlnul'd. At'cording to Yokil', an increase of about $42," Yokie said. timp, Tht' UnivPr,>ity "dl'finitt'ly WIll $700,000 in utilities for the entire University has "Equipmt'nt ('osts a student on thl' avpragp of Sl'ction .J7-HOla of tht' District !>t, charging rpnt to tht' Corpora· causl'd an enormous incrpase in Physical Plant costs. $35. Security costs thp student $:l4-35 and of Columbia Codp grants Gl'orgp­ tlOn and It will haVl' to pur('ha"t' Rl'sidence Halls share a large portion of that, residpncl' staff $38. I know some studpnts who fl'pl town University an t'xt'mption liabilit~ in,>urall\'l'. Thp "tudl·nL... approximately $140,000. that RA's can bl' cut back and in somp instanct'!> from property taXl'!>. Howl'vt'r, are taklllg thl' illltiatlVl'. And our "Rl'sidence halls hav{' l1l'ver run on a brpak-l'ven I understand, but all in all, I belit'vP pveryone another st'etlOn of the ('odl' denips job at Student Dl'VPlopml'nt i, to ha"is, the expense is greater than the income. Last should havp an RA," Yokie statl'd. the use of tht' bUilding!> for as"i"t thl'm to .,olV(' thpst' proh. y!'ar. we ran a $142,000 deficit. OVN the summer Thp dt'bt sPrvicp which ineludl's tht' paying off of anything other than tht' rpa· !t·m.... Tht,y havl' ('rt'atl'd job... , w!' lost $32,000 due to the decrease in summl'r New South, Harbin and Darnall building dpbts, costs sons granted in thl' eXl'mption. st'rvicps and educational oppor­ rt'sidents," Ms. Yokie said. the studl'nt approximately $111-115. Thpse rl:'asons havp bet'n dt'fint'd tunitil's. It i" not crassl) ('om· Yokit' attributed the net'd for an increase to the "The last thing I want to do is make residencl' a<; pducational purposes which mer('lal," Rupckl'l said. n ... p of the cost of living. "81.6 per cent of the halls too expensivl' for kids to IiV(' in. But on the Hl'sidencl' Hall budget covers indirpct expl'nses, othPr hand if we run at deficit, thl' money will come I'\p{'nses we don't havl' direct control OVl'r. These out of the tuition dollar. Aftt'r determining how t'xpl'nses include maintenance, housekeeping, pro­ much of a deficit We had, the Residpnce Lifl' staff t"('tive services, rents, utilities and the debt servicl'. tried to limit thl' increasp as much as possible but Thl'se are things we cannot cutback to any grl'at even with only a $75 increa<;e Wl' were still short," l'xtl'nl. Those St:'rvicps covered approximately $600 Yokie said. of a student's room ratc," she said, Summpr housing has not produced its share of The money over which Residence Life dops have the upkeep according to Yokil' and will al<;o bl' dlrpct control includt:'s basi rally the funding for increased. Another constructive way Rl'sidl'ncl' Life plans to incrt'ase their incoml' is to open more residenct:' halls during tilt' summer and to allow an~' SAFA Gt:'orgetown student who is worklllg in thl' . a monthly magazine supplement on Washington area to live there if he or shl' wishes. foreign relations. This month's edition in­ The dorms will also be open to any educational or . cludes an analysis of next week's UN world cultural conft:'rencl's who Iwed housing in the DC area. / - food conference and a description of Pakis­ "I would likl' to stress that thl' increasl' is a ~ tan's efforts to placate rebellious tribesmen proposed inl'rease that has not Yl't been accl'pted. If ., and avert a war with neighboring India and it is, I hopp that it will be thl' last room increast:' and Dean of Residence Life Valerie.........Yokie'- announced that the University Afghanistan. we can rely 011 other sour('t's of incoml'," Yokie conclUded. may be forced to raise dormitory rates due to inflationary costs. Page 2. The HOVA Friday, November 1,1974 • InfoCenter Employee Says She Didn't WanJ to Resign by Richard Racine Director of Public Relations that it be run with the best Mrs. Edythe O'Neill Painter of Mr. Art Ciervo, who is responsible possible service to the public. the Georgetown University Infor­ for the Information Center, de­ Stating that she "dearly loves mation Center issued a statement clined to give specific reasons for the Georgetown student body and this week noting, "my quote Mrs. Painter's termination. He said the truth youth always projects" resignation unquote is now a fait that it is a "personal matter" Mrs. Painter noted, "I must tell it accompli." Mrs. Painter, an em­ which involves the employer­ like it is, 1 was axed!" Mrs. Painter ployee for two years at the employee relationship. However said that she never submitted a Information Center and a profes­ Ciervo noted that Mrs. Painter's letter of resignation. She believes sional journalist, adamantly con­ integrity was never questioned. the Public Relations committee tends that she was fired and in no If she is dissatisfied, Mrs. will contend that she was fired way did she wish to voluntarily Painter can appeal the decision to because of a "sloppy crew" in the resign from the Georgetown Uni­ the grievance committee of the Infonnation Center this past sum­ versity community. University, according to Ciervo. mer in which "individuals came in Replacing Mrs. Painter, effec­ late and left early." She added, "I tive November 19 will be Ms.
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