This was a big news day for higher education in Erie. Mercyhurst College announced the receipt of $150,000 in state aid for its nursing program at its North East campus. Down in Edinboro, EUP leadership rolled out a $115 million comprehensive plan to build new student housing and a dining hall. When you look at the kind of money that gets thrown around by our institutions of learning, you get a better understanding of the importance these organizations have on our local economy.
Let me say upfront that I’m an ardent admirer of the academy. I was fortunate to spend four years as a student and five years as a professional adviser/adjunct at Gannon University. I like the whole context of expanding a young person’s mind, challenging them to find answers to new questions, the older imparting wisdom and lessons learned to the younger, the whole “beret wearing and pontificating†deal (JK). Our area colleges and universities are incubators of idealism and forward-thinking; there’s just a higher-density of smart people hanging around.
Our community has greatly benefited both directly and indirectly by the strength of Gannon, Mercyhurst, Penn State-Behrend, Edinboro, and LECOM. Those who lead our educational institutions are also board members of our organizations, researchers and advisors to government officials, and of course, taxpayers of an upper-income who, in regards to Gannon and Mercyhurst faculty and staff, are more likely to live in the city enjoying the classic housing stock in the Glenwood and Frontier neighborhoods.
Then of course we must consider the students. Close to 20,000 of them are enrolled, equivalent to 7% of our metro population (that would be quite a voting block!). Each one student could represent as much as $30,000 of direct impact into our economy, just for tuition and fees. When you add the trips to Wal-Mart, Wegmans, and multiple other establishments, you are talking many, many millions invested in our community. Indeed, these kids are customers that we want to keep happy!
With the city’s financial predicament causing tension between City Hall and Old Main, there needs to be mutual understanding toward shared goals. For example, it seems reasonable to me to have student housing taxed at normal rates, at minimum, upperclassmen’s apartments, since they have the option to live off-campus. The city should acknowledge the great lengths the colleges have gone to increasing security in their neighborhoods, greatly benefiting those areas.
Finally, I think we should continue to lean on our learned professors and administrators to help provide answers to our regions’ problems. Use their great data collecting and processing capabilities to conduct research and project outcomes. Encourage them in their health and growth. As they educate our young brains, we must work on plugging up the “drain.â€


September 11th, 2007 at 8:22 am
I can see where you’re going with your posts, about how the non-profits impact our city. However, I don’t agree with putting Penn State and Edinboro in the same caliber as Mercyhurst and Gannon. Penn State and Edinboro are state universities, and as such Pennsylvania residents get lower tuition by going to one of these colleges. As such, I benefit from them as I could go back to school and get another degree or my children could one day go there for a reduced tuition cost.
However, Mercyhurst and Gannon provide me nothing but higher property taxes and decreased and/or higher cost city services when they obtain more property and take it off of the tax rolls. Mercyhurst made a nice gesture with their PILOT, but they’re under no obligation to make that payment.
I’m not saying that paying taxes makes everything OK, but I fail to see how an entity can be classified as Non Profit when they are purchasing properties valued in the millions of dollars, the size of a city block, all the while enjoying city services like fire and police for free (And Gannon’s police are not as well equipped or trained as the EPD, I’m sorry).
Just my $0.02 (after taxes it’d probably be $0.005 though).
September 11th, 2007 at 10:21 am
Great few posts on Erie non-profits. Your presentation is sound and much more balanced than many other bloggers out there. It’s becoming ridiculous the finger pointing going on, that somehow these organizations aren’t carrying their weight. If I can draw an analogy, it’s similar to how we’re accusing immigrants of stealing jobs even though many, many Americans refuse to work those same jobs and even though those immigrants actually help prop up our economy. Honestly, this hostile attitude against non-profits in Erie county smacks of the same thinking that got us into trouble in the first place (and maybe even some unfounded bias in some).
My question to many who feel non-profits are sucking the city/county dry, if these organizations weren’t there, then who would be and would the character of the city be better off? And if that’s not the argument, why should these non-profits be taxed the same as a corporation that is out to make a buck and which do not contribute to the community to the extent that a hospital or university does? Finally, how can we in good conscious pull the rug out from underneath these organizations and now say they need to pay under a new structure.
I know the city is going through difficult times but demanding more money from these excellent organizations is antithetical to the effort of getting more businesses to invest in our local economy. Taxing non-profits is backward thinking and clearly a red flag to businesses thinking of setting up in Erie.
And one other point, if a non-profit is operating outside of an agreeable “boundary” giving it it’s special status, then call them on it. Don’t make blanket accusations just because of speculations or even a few isolated situations. However I’ve seen no proof that any non-profit in Erie is acting in a manner which is violative of the “mutual understanding” as to why they get preferential tax treatment.
There are way too many reactionaries out there and not enough proactive thinkers. Your last few entries seem to capture the proactive stance that we need more of. Thanks. You now have a new reader.