Repository: UIHistories Project: Board of Trustees Minutes - 1954 [PAGE 441]

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43§

BOARD OF TRUSTEES

[October 24

Section I I I . Methods of Determining Rates of Compensation I. A. Permanent and continuous employees [and those employed in positions or in work which the University contemplates continuing for at least six months, but who have not yet completed six months' service in any classification or classifications of nonacademic employment], in prevailing rate groups paid at hourly rates, will be paid a monthly rate determined by multiplying the number of hours of the work year, which shall be uniform in all years, by the hourly rate and dividing by 12, as follows: . . . Section V I . Holidays I. (Sub-paragraph) Permanent and continuous employees [and those employed in positions or in work which the University contemplates continuing for at least six months, but who have not yet completed six months' service in any classification or classifications of nonacademic employment] not in a prevailing rate group will be excused with full pay. I concur.

On motion of Mr. Fornof, these amendments were adopted.

REPORT OF COMMITTEE ON GENERAL POLICY ON TAX STATUS OF STUDENT-STAFF APARTMENTS

Mr. Johnston, for the Committee on General Policy, presented the following recommendation from the President of the University.

On October 31, 1951, the Board of Trustees received a request from the Urbana Board of Education that the University make payments "in lieu of taxes" on the Student-Staff Apartments at Green Street and Goodwin Avenue, Urbana. The request was referred to the Committee on General Policy. On December 17, 1951, the Committee recommended, and the Board approved, ( a ) that the Legal Counsel be directed to take any and all steps that he considers necessary or desirable to establish and maintain the tax exempt status of the Student-Staff Apartments and (b) that University officers be instructed to continue their study to ascertain what services are rendered to the University by local taxing bodies and what would constitute proper compensation for such services and make recommendations thereon to the President of the University. The University asserts, but local taxing bodies deny, that the Student-Staff Apartments are exempt from local property taxation. To establish the University's contention beyond dispute would require litigation and eventually a Supreme Court decision. While the Legal Counsel is of the opinion that the Supreme Court would uphold the University's contention, the possibility of an adverse decision can not be wholly ignored because the Student-Staff Apartments are occupied in part by full-time staff members who are not students and thus may not be considered by the courts as being in the same category as student dormitories which are tax exempt. In any event the expense of such litigation should be avoided if some other satisfactory solution can be found. A Supreme Court decision favorable to the University would not wholly dispose of the controversy because local taxing bodies would continue to urge the University to make payments for municipal services to the Student-Staff Apartments as authorized by an existing statute under which the University has been making such payments on other residence properties which are leased to staff members. A comprehensive study of the occupancy of the apartments since they have been in use has established that they have been and are occupied to a considerable extent by full-time staff members, although they are also occupied to an equal, if not greater, extent by graduate students. In a case decided several years ago the Supreme Court ruled that student residence halls are exempt from local taxation and the University has consistently adhered to the policy of not paying taxes and not making payments for services rendered by local taxing bodies with respect to properties occupied by students. On the other hand, the University has made, and is now making, payments for such services under the statute with respect to properties of a permanent nature which are either owned by it or the title to which is held by the University of Illinois Foundation and which are leased to and occupied by full-time staff