A new report from Syracuse’s city auditor says Syracuse University should pay far more to the city. An increase could be part of an agreement being renegotiated between the city and the tax-exempt private university.
City Auditor Alexander Marion points out SU sits on land valued at $2 billion and has a $2 billion endowment.
“The 146,000 people in one of the poorest cities in the United States deserve to know that the wealthiest landowner isn't paying their fair share and that they should be rightfully asked to do so," he said.
SU's current shared-services agreement pays the city $2 million a year. Marion's report shows if the university’s land were fully taxed, it would generate $36 million a year for the city’s coffers. He said he’s troubled by the fact that SU is giving the city what amounts to a gift.
“That's not how democracy works," he said. "People pay taxes and the proceeds of those taxes are spent and the decisions made by duly elected representatives. I am deeply uncomfortable with institutions deciding what they are willing and not willing to contribute and what they would like to see that go to.”
That's what's being hammered out in negotiations.
Marion added that SU has been shifting its business model away from traditionally tax-exempt education services toward professional sports, real estate, and secondary services. One example he said is the hefty parking fees paid by employees who are then told to vacate them during special events.
“Like the Monster Truck Jam or when Pink or Billy Joel come for a concert," he said. "So they're making not only money from their employees on those parking spaces, but then they're telling those employees to go elsewhere so those spaces can be resold at $35 a pop to members of the public coming to events here.”
In a statement, University spokesperson Sarah Scalese said SU was not consulted for the auditor’s report.
"As a result, much of its content is misrepresentative of the strength and depth of the University's relationship with the City of Syracuse," she said.
"Syracuse University has long been the only nonprofit with a voluntary services agreement with the City of Syracuse reflecting both direct cash payments from the University to the City and substantial in-kind contributions," Scalese continued. "The auditor’s report ignores the full scope of what the University contributes to our community.
"These include educational, cultural, financial, athletic, and clinical benefits and services, which well beyond commitments contemplated in any single agreement," she said. "The University values its deep and broad partnerships and contributions to the City, its residents and community organizations. A recent economic analysis found that the University contributes $1.8 billion annually to the Central New York economy, supports one in every 13 regional jobs, and generates $743.9 million in tax revenue and public savings for New York taxpayers.
"The University remains committed to a mutually beneficial, long-term relationship with the City. Our educational mission and the City's well-being are not in tension. They are interdependent," Scalese concluded.
*Editor's note: WAER's Chris Bolt contributed to this story.
