In terms of most colleges, the greater threat has been from
by Raoul (2024-04-16 13:32:27)
Edited on 2024-04-16 13:33:53

In reply to: If endowment funds ever get taxed, tuition aid will take a  posted by G.K.Chesterton

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local taxing authorities asking for/demanding voluntary payments to the cities/counties to help pay for local services. The endowment tax hits a few wealthy universities (depending on how designed). But when things were going better many schools did pay up to "help" local cities and counties in lieu of property taxes not paid. But increasingly they cannot afford to do it. Attached is an article about Quinnipiac University not paying $300K to its local cities as it had voluntarily done in the past. No explanation but budget problems are highly likely the issue. You will see more and more of this going forward.

Cities best hope they have a well-funded university in their town. At some point payments in lieu of taxes can stop and worse you end up with an incredibly lifeless eyesore of empty property.

If you live near a university, especially a private U, you should take special interest in their financial health as it could affect you. Cabrini's property can always be sold for beautiful home lots in a desirable town (had it not been sold to Villanova) but that is not always the case. In Hancock MI in the area where my wife is from the failure of Finlandia University last year left many closed, empty husks of old buildings that the city is trying to maintain (and hoping for state grants, etc).



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