Illinois is losing almost 50 percent of students to other state universities, according to Rep. Robert Pritchard (R-Sycamore).
Sitting with Greek sorority members at the April 19 House Revenue and Finance Committee hearing, Pritchard addressed board members with cost factors that are driving students to other colleges beyond Illinois' borders, saying the lack of investment in higher education since 2011 and numerous mandates posed upon universities have caused higher education costs to go up and student numbers to go down.
“Part of the problem is not just in tuition and fees, it is also in housing cost,” Pritchard said to preface HB4914, which provides nonprofit dormitory or residence halls, including fraternities and sororities, be exempt from certain property tax codes.
Rep. Robert Pritchard (R-Sycamore)
The issue is most prevalent in Champaign County, according to Pritchard, who said the tax assessor raised property levies for Greek housing in just one section of the city by 77 percent. Student Kevin Baldwin, who represents 50 non-profit housing properties for the University of Illinois, testified that he and his peers represent 22 percent of the campus student body whose living costs have risen up to $2,600 annually due to a recent property tax assessment.
“We have families sending children to university, who have their own property tax bill and our now fronting another $2,000 per student, per year to pay a local assessment,” Baldwin said of the university-certified residences.
Average housing costs at the university are approximately $11,000 annually, according to Baldwin, who said the non-profit Greek chapter housing is 15 percent cheaper at only $9,600 a year.
“We are doing a better job than the university, and we are doing that because a lot of our members need that,” Baldwin said.
Interjecting, Pritchard asked Baldwin to explain to board members the property owner’s appeal of the tax assessors’ decision. According to Baldwin, they were suggested not to move forward and when they did, their appeal was rejected.
Rep. Mike Zalewski (D-Riverside) challenged the testimony saying if the assessor were present, he would assumingly say the assessment is based on the high-density construction in Champaign.
“How much of this affected non-fraternity campus living,” Martwick asked.
Baldwin said the assessment did apply to other organizations; however, many of the non-profit residences, specifically religious based, receive tax exemption, where Greek chapters do not qualify.
“In the issue of transparency, the reason Rep. Pritchard is getting a subject matter hearing instead of a full vote is because our concern is what may be good for Champaign on this may not be good for southern, northern, eastern or western areas,” Zalewski said.
Pritchard said the focus is non-profits.
“University housing is already tax-exempt; religious housing is tax-exempt; and we want to expand that to the Greek system and other non-profits that add a lot of educational value to the university,” Pritchard said.
No action was taken on HB4914, which will remain in committee.
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