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Students, ASMSU weigh proposed tax hike

February 10, 2005

Some undergraduates support a new ASMSU tax that will create a scholarship fund, while several student government members oppose the idea.

In a meeting last week, Academic and Student assemblies for MSU's undergraduate student government voted to increase student taxes by $3 to fund a scholarship account. If undergraduate students pass the tax hike in ASMSU's March elections, taxes will rise to $16.75 per student.

ASMSU officials said the increase will last for 10 years, and after that, students will have the opportunity to revote on the issue.

Asian Pacific American Student Organization Representative Bhooma Aravamuthan said student government members decided to increase taxes for the sole purpose of benefiting undergraduate students.

"This scholarship will assist those students who are scrapping together a couple hundred dollars just to buy books," she said. "There are a lot of students who have financial needs that does not show on their FAFSA (Free Application For Student Aid form)."

Despite the reason for the scholarship, some ASMSU representatives refuse to support the increase.

Council for Students with Disabilities Representative Derek Wallbank created a group on Thefacebook - Students Voting Against the Ridiculous ASMSU Tax Increase - for MSU students to join. Thefacebook is a social Web site for college students across the United States.

"This was necessary to start a way for people to campaign against it," he said. "It's important that students understand that the money they give ASMSU is the money they're entrusting us to spend wisely."

Wallbank said it's important that ASMSU officials don't abuse their privilege.

But psychology sophomore Ashley Tomczak disagreed with Wallbank.

"Three dollars really isn't that much," Tomczak said. "It'll make a big difference in the long run."

In 2003, ASMSU increased the student tax by 75 cents, which was approved by 937 votes.

The tax increase is expected to bring in about $233,000. Of that, the assemblies plan to place $200,000 per year into an endowed account, said student government officials. The account will fund the ASMSU scholarship.

The rest of the tax money will be put into an expendable account, along with the interest gained from the $200,000 account. This money, about $45,000, will be used to fund the scholarships.

ASMSU officials estimate the expendable account will increase by $11,500 per year.

Academic Assembly Chairperson Dan Weber said the increase will be "another tool to help students with a financial need."

If the tax is passed, Weber said there would be two types of scholarships for students - a $100-$500 book scholarship and a scholarship worth $1,000 or more for students with an extreme need for assistance.

Both scholarships would be based on the financial need of the applicant.

Weber said ASMSU is working with the Office of Financial Aid. He said the amount of scholarships that will be available for distribution is unknown.

"We've got a good idea of what we want to do," Weber said. "But the final numbers haven't been hammered out yet."

Aravamuthan said most of the scholarships available today require students to have good grade-point averages, which make it hard for students who work almost 40 hours a week to pay for school.

"It's hard for those students to handle a full-time job and maintain a high GPA," she said. "Our scholarship will be based off students' financial needs."

Residence Halls Association Representative Josh Rabinowitz, who voted against the tax increase, said students can stop the increase by voting in upcoming elections.

"Resources for students are already very thin," he said. "It is difficult to ask students to help out someone else when they have their own issues."

But audiology and speech sciences sophomore Mackenzie White, not an ASMSU member said she supports the tax.

"We need more scholarships for students," she said. "And if students really want it, they'll work harder to increase their chances of getting it."

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