Ithaca City Hall, Green Street
On Wednesday, Oct. 11, the City of Ithaca Common Council approved a 15-year extension of the Memorandum of Understating that governs Cornell’s voluntary payment. By a 9-1 vote, the City cleared the way for increasing the payment from $1.6 million to $4 million per year.
The lone dissenting vote was from First Ward Alderperson Cynthia Brock. She described the situation as Cornell having a “foot on our neck and knows we are in a compromised position with our backs up against the wall” and that “for some strange reason, I am the one person at this table who sees the power when people rise and say ‘no more.’”
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Brock was referring to the New York State law that requires Ithaca to adopt a balanced budget for 2024 no later than December 1, 2023. Mayor Laura Lewis had proposed a budget with the assumption that the agreement would be approved. Otherwise there would be a $4 million hole in the budget that would be addressed by staff cuts or an increase in the Ithaca property tax rate.
Proposed Amendments
The Common Council approved two changes to the agreement. First, President Pollack and Mayor Lewis had agreed to an extension through 2044. Brock claimed that the annual escalation of the payments by the Consumer Price Index did not adequately account for inflation over that 20-year period and suggested a seven-year extension instead. The Council approved a 15-year period with an expiration date set for June 30, 2039. In addition, the agreement can be canceled by either side within six-months notice.
Second, since 1995, the agreement contained a provision that prohibited Ithaca from seeking to change Cornell’s tax exempt status “whether through judicial, legislative, or other means.” The Council voted to delete “legislative” so as to allow Ithaca to lobby in Albany or Washington against Cornell’s tax exempt status in the future. However, Ithaca will not be allowed to file lawsuits regarding Cornell’s tax obligations.
Cornell Impact
Following the vote, Joel Malina, Cornell’s Vice President for University relations, said “Cornell greatly appreciates tonight’s vote by the Common Council approving an amended MOU agreement. The amended agreement will now be considered by the Executive Committee of the Cornell Board of Trustees, and I will notify Mayor Lewis once that has occurred.”
Malina had previously estimated Cornell’s annual contribution for services normally provided by local governments at $30 million per year. His estimate included Cornell’s direct expenditures for the Cornell Police, roads, and drinking water. Cornell also contributes to the TCAT bus system, the Ithaca schools, and local economic development agencies.
Only a part of the Cornell campus is within the Ithaca city limits, with other buildings in Cayuga Heights, Lansing and the Town of Ithaca. Through Cooperative Extension, Cornell operates in every county in New York State.
Malina said that the Cornell Board of Trustees would consider the agreement when it meets in Ithaca on October 20.
