Cornell University has agreed to give the town of Ithaca $425,000 a year for the next decade, following prior agreements with the city of Ithaca, TCAT bus services and the city school district.
Cornell’s Ithaca campus takes up 2,300 acres of land and, according to the university, around 40% of that is in the town of Ithaca. Cornell University has an over $10 billion endowment. The estimated cost of one year of tuition for an undergraduate student ranges from $43,888 to $68,380, according to Cornell’s website.
The ivy league institution is also tax exempt. That means, like most colleges, Cornell University doesn't pay taxes on most of the property that it occupies. On campus it maintains some, but not all, of the public services traditionally funded by property taxes. For example, the university has its own police department but relies on municipal fire departments.
University representatives said most of the money from the agreement will be used for general town operations. The remaining $125,000 will be used for infrastructure projects pulled from a list created by the town and Cornell.
“This first-ever voluntary contribution agreement is a major accomplishment for the town and Cornell and further strengthens our important relationship,” Cornell’s vice president for university relations Joel Malina said in a statement.
Malina stated that the agreement acknowledges the complementary relationship between the town of Ithaca and Cornell.
Although this was the first financial agreement between the town and Cornell, the city of Ithaca also has an arrangement with the school.
Cornell University currently pays $4 million dollars a year to the city of Ithaca, a figure that was renegotiated last year amid protests from local advocacy groups calling for Cornell to pay more. Negotiations ended in a $2.4 million increase in funds to the city.
The Ithaca City School District is also looking to get more financial support from Cornell.
Earlier this month, the school board voted to create an advisory board that will try to negotiate $10 million in annual funding from the university.
Currently, Cornell has agreed to give $650,000 to the district each year.
