How will a new bill in the NYS Legislature benefit CUNY and CSI
by Micheal Levitas
The Repair Act is a bill currently in the New York State legislature. Its primary goal is to remove the property tax exemption for NYU and Columbia University. At present, NYU and Columbia avoid paying $321 million annually in property taxes which would deprive the state’s tax base of critical revenue.
NYU and Columbia are the largest property holders in New York City. Columbia owns more than 321 properties, and now both universities pay very little in property taxes. According to sources, they control 14 million square feet of property and employ professional staff to manage their portfolios. These universities have essentially become massive real estate operators.
This has significant consequences for New York communities. NYU and Columbia’s aggressive expansion, renovations, and acquisition of property in the city contribute to gentrification. Long-term residents in Brooklyn and Manhattan are being priced out due to the unaffordability of housing caused by the influx of wealthier students, changing the character and culture of NYC. The tax exemptions create a market advantage while bidding on and purchasing properties across New York City.
The uncollected taxes due to the exemptions create problems for CUNY. Unlike Columbia and NYU, CUNY is a group of public universities. Over time, CUNY has suffered from austerity. Chronic underfunding has led to poor infrastructure, a dismal student-faculty ratio, lower wages for staff, abrupt class cancellations, and an overreliance on adjunct professors compared to full-time tenured professors. Despite years of underfunding, CUNY remains as a major contributor to social mobility. Low-income students see their opportunities increase significantly through investment in education.
The Repair Act can address the problem of uncollected taxes and help increase state funding for CUNY. It’s not a silver bullet, of course, but it could allow us to reverse the problems that have occurred under austerity and remove the favoritism shown to private universities.
