Eds, Meds, and the Tax Base

From my summer visit to Providence, RI. A property owner expressing some doubts about the tax exempt status of Brown University.

Most people support some form of  Eds and Meds as an economic development strategy. As they should – hospitals and universities are generally very desirable employers that pay respectable wages.  Yet the strategy has its limits. I took this picture in Providence, RI this past summer – it was taken near the state capitol building, so the owner of that parcel of land was likely trying to make a pretty explicit point to policymakers. I don’t know the politics of the land owner or the nuances of Providence’s fiscal situation, but I thought the image does capture the tension that tax-exempt entities like universities can generate in cities with a narrow tax base. Most cities would love to have a Brown University.  Most cities would also want some needed tax revenue. Since health care and higher education are some of the few current growth industries, that is certain to pose some challenging policy decisions in coming years.