Because Boston’s huge population of college students does not pay income taxes and their schools do not pay property taxes, the city is constantly looking to profit from its academic reputation. While the city currently negotiates payments in lieu of taxes with schools, City Councilor Stephen Murphy has proposed using a per student rate to boost revenue. This plan certainly has its advantages, which include bringing in about $9 million and evening out the universities’ per student contributions; Boston University gives $112.92 per student while Northeastern University only gives $5.24 per student. However, changing the tax scheme to only rely on per student rates overlooks factors like how much property schools own and their individual impact on the city. A combination of Murphy’s plan and the current negotiation system makes the most sense. Having colleges pay a reasonable amount per non-resident student will bring in revenue and make schools contributions more uniform. This part of the system will also ensure that small schools contribute as well and prevent contributions from being left to whims of good will. Murphy’s suggested $100 per student contribution is too high because schools would probably only give that amount, which would save BU about $366,000. A low amount will send the message that schools still are expected to negotiate further agreements and make sure city officials work hard to get them. While they have succeeded with BU, they need to push for success with other schools by showing them how giving can improve the schools’ relationships with the community and the city. Universities employ thousands of workers and help train even more future ones. While schools do give Boston prestige and bring in tons of students (and their disposable incomes), the city also misses out on tax revenues from out of state students and academic buildings. Combining Murphy’s plan with the current system will provide a balanced solution to the problem.