THE UNIVERSITY OF TEXAS
Desired Legislation in Its Behalf
A look back at a failed 1893 proposal to fund the University of Texas through a dedicated state tax, modeled on Michigan, Wisconsin, Nebraska, and other states — a reminder of how university financing was once hotly debated in Texas.
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The Austin Weekly Statesman · January 7, 1897 · Page 6
3 min readAmong the measures proposed in the Twenty-third legislature in 1893 was a proposition to divide the public domain of the state between the university and the free public schools not equally, but allowing the former a liberal proportion — say one-third or one-fourth of the land.
The bill was important, not merely as a naked proposition, but in the light of contrast with the provisions made for other state universities, showing the advantages of a university state tax, particularly as in Michigan, whose university is the leading one of the great west, and indeed the first real model of a complete state university in the United States.
That great institution is endowed with an educational state tax, known as the "university tax," by which the income of the university grows proportionately or in some measure correspondingly with the increasing wealth of the state, so that its support is neither a matter of constant controversy, nor recurring legislation, further than the legislature desires of its own motion to act in its behalf. Thus, as educational demands increase with the growth of the state, the university is developed and enabled mainly from its separate resources, to keep up with the general development and educational progress of other states. In this way the tax is not felt to be burdensome, as the increased income from it simply corresponds with the growth of the state in wealth to justify, as well as in population to require improved educational measures and means of every character.
Not only has Michigan, but other states, some of them purposely to profit by her example, have adopted the plan of a state university tax as a sure and the readiest method likely to be acceptable for providing a university fund that would be at once available without waiting for accumulations from interest on bonds or other slow and irregular process of land sales, and because, too, it removes such institutions from uncertain dependence upon special legislation for their maintenance.
The university tax in Wisconsin is one-eighth of a mill on the dollar. In Nebraska it is three-eighths; in California one-tenth, and in Colorado three-fifths, which permanent incomes are generally supplemented by liberal appropriations by the legislature for building and other expenditures for the universities.
Taking Nebraska university as an illustration of the rapid increase by the tax provision, in its income, mainly derived from the tax, increased bi-ennially as follows: For the years 1885-'86 (during which period the Texas university went into operation) the income was for the two years, $107,114; for 1886-'87, $129,874; for 1887-'88, $170,388.
For 1889-'90, when the above figures were given, the income for the two years was estimated at from $215,000 to $250,000, which for one year would be largely in excess of the present annual income of the University of Texas. And so it occurs that with all the great landed provision made for the Texas university, its income falls far short in availability of the tax plan for producing the early revenue which would probably have put the university into operation before the war, or at least long before there was any practical attempt made for its organization.
A university tax, even at the rate of that of California, of one-tenth of a mill on the assessed taxable values of Texas, would produce some seventy or eighty thousand dollars, whereby supplemented with the university revenue from other sources would make an income of over $100,000 for the university.
Why should we hesitate to adopt the tax plan which has so rapidly and satisfactorily promoted the early development of state universities in younger and smaller states than Texas?
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