Initiated Ordinance 300, proposed by the Denver College Affordability Fund, is a tax increase that the organization aims to raise approximately an extra $14 million annually towards a scholarship fund for college students in Denver. In order to garner these funds, it would mean that sales taxes would have to rise an extra .08 percent. Comparatively, it would mean on a $100 purchase, there would be an extra .08 cents in taxes. This ordinance would make it more affordable for Denver residents to go to college in state.
300 is a great step in making college more affordable for students. According to Student Loan Hero, amongst 44 million student loan borrowers in America, collectively they owe over $1.48 trillion in student loan debt. To put that into perspective, that’s roughly $620 billion more than the credit card debt in the U.S.
Clearly students could use a little help. This measure would supplement current government scholarships—not replace them. The scholarships and Federal Aid offered are prevalent in many families’ financial situations, but sometimes it isn’t enough.
Drawing from national averages, according to the College Board, in America, the average cost of tuition for out-of-state residents attending public universities is $25,620, for state residents at public colleges it is $9,970, and for private colleges it was $34,740 in the school year 2017-2018.
Taking it even further, Business Insider revealed that the average income of the American household in 2016 was about $58,000 annually. That was a high point for the middle class. Even at its peak, with a yearly salary of $58,000 how can a household feasibly take out, say, $10,000 for their child? That is without taking into account if the family has multiple children, and other expenses. It’s simply not feasible.
Granted, these statistics are on a national level, they are still relevant to Denver. This ordinance should, arguably, be implemented in many other parts of the country.
It is worth acknowledging the oppositions side of the argument. Their main point is that college scholarships aren’t the responsibility of the city’s government and its tax base. Yet, a community cannot prosper unless the citizens of that area work communally. In following through with this ordinance, it will propel the future by increasing the likelihood that its youth will pursue higher level degrees. This will, in turn, work to benefit the cities economy as the students give back through their advanced jobs they were able to attain due to their degrees.
