EXAMINING THE UNIVERSITY OF PENNSYLVANIA’S ARGUMENTS AGAINST PILOTS

1 PSCI 335: Healthy Schools EXAMINING THE UNIVERSITY OF PENNSYLVANIA’S ARGUMENTS AGAINST PILOTS An Analysis of the University of Pennsylvania’s Claims Against Payments in Lieu of Taxes Nopakit Lerthirunvibul, Jocelyn Pickens, Ashley Van, Ling Zhou with Devan Spear and Mary Summers Table of Contents INTRODUCTION……………………………………………………………………………… CLAIM 1: WAGE TAX………………………………………………………………………… CLAIM 2: PENN ALEXANDER……………………………………………………………….11 CLAIM 3: NETTER CENTER…………………………………………………………………16 CLAIM 4: TRANSACTIONAL RELATIONSHIP………………………….………………….26 CONCLUSION……………………………………………………………………………….…36 BIBLIOGRAPHY……………………………………………………………………………….39 Introduction: Philadelphia’s public schools are in crisis A report released in January of 2015 by Pew Charitable Trusts found that Philadelphia spends less per pupil than almost any other education system in the country, including the cash-strapped city of Detroit.1 The history of this funding crisis has its roots in the decades-long struggle between the school district and those responsible for its funding In 2001, Philadelphia’s history of chronic budget difficulties led to a state takeover of the schools and the establishment of the School Reform Commission (SRC) More recently, former governor Corbett reversed former Gov Ed Rendell’s funding formula, which would have put Philadelphia’s funding on an equal footing with the rest of the state.2 As a result of these budget cuts, the School District of Philadelphia (SDP) eliminated 5,000 staff positions and 31 schools in the past two years, 24 of which were shut down just last year This past fall, Governor Tom Corbett had to advance the city $265 million so that schools could open on time.4 Graham, Kristen, “Phila District Spends Less Per Pupil Than Most Other Cities.” Philadelphia Inquirer, Jan 17, 2015 Web May 2015 http://articles.philly.com/2015-01-17/news/58153804_1_palmer-leadership-learningphiladelphia-school-district-formula The Facts,” Fund Philly Schools, Accessed April 24, 2015, http://www.fundphillyschools.org/the-facts Motoko Rich, “Philadelphia Teachers Hit by Latest Cuts,” The New York Times, October 14, 2014, accessed April 24, 2015, http://www.nytimes.com/2014/10/15/us/philadelphia-teachers-hit-by-latest-cuts.html Motoko Rich and Jon Hurdle, “Philadelphia Schools to Open on Time Amid Millions in Budget Cuts,” The New York Times, August 15, 2014, accessed April 24, 2015, http://www.nytimes.com/2014/08/16/us/philadelphiaschools-to-open-on-time-amid-millions-in-budget-cuts.html This paper explores the role played by the University of Pennsylvania, an elite, highly endowed Ivy League institution, in relation to the School District of Philadelphia Because of its nonprofit status, Penn does not pay any property taxes It also chooses not to take the option elected by most other Ivy League institutions: to make “payments in lieu of taxes” (PILOTs) to support the city’s schools and other public institutions In this paper, we argue that, regardless of its decision on PILOTs, Penn could and should be making a more significant, more measurable contribution to the city’s schools Because property taxes make up roughly half of school district funding, the exemption of the city’s wealthy “eds and meds” from paying property taxes has become a much-debated part of the discourse around the school funding crisis The legal definition of a non-profit, or “purely charitable,” institution in Pennsylvania is highly contested and has changed several times In 1985, the Pennsylvania Supreme Court ruled in Hospital Utilization Project v Commonwealth that non-profits are required to meet five criteria to qualify for tax-exempt status This “HUP Test” stipulates that a nonprofit institution must: Advance a charitable purpose Freely donate a substantial portion of its services Benefit a substantial and indefinite class of persons who are legitimate subjects of charity Relieve the government of some of its burden Operate entirely free from private profit motive5 Lisa Petkun, “What is a Purely Public Charity in Pennsylvania?,” Law Firm of Pepper Hamilton, September 12, 2001, accessed May 2015, www.pepperlaw.com/publications/what-is-a-purely-public-charity-inpennsylvania-2001-12-09/ During a severe budget crisis for the city in the late 1980’s, Mayor Ed Rendell used this court ruling (and the potential it offered to contest the nonprofit status of institutions that might not fully meet these criteria) to negotiate Payments in Lieu of Taxes (PILOT) agreements with a number of Philadelphia’s “ed and meds.” During this period, the University of Pennsylvania agreed to make annual contributions of $1.93 million to the city for five years.6 After legislators in Harrisburg passed a law limiting the ability of cities to determine the tax-exempt status of nonprofits, however, the city no longer continued to require institutions like Penn to make PILOT payments Then in 2012, the Supreme Court of Pennsylvania struck down that law; and the option of asking wealthy nonprofits to make PILOTs was once again on the table.7 In the context of the sharply worsening financial crisis for the school district, advocates such as Donna Cooper, Executive Director of Public Citizens for Children and Youth (and a former member of Rendell’s mayoral and gubernatorial staff), argued that these wealthy nonprofits should so.8 The University has put forward several different lines of argument against such proposals, while at the same time quietly supporting another effort to pass state legislation that would allow the legislature, rather than the courts, to define nonprofit status Prameet Kumar, "Exploring Penn's financial contribution to the city." The Daily Pennsylvanian (Philadelphia, PA), March 27, 2012 Will Bunch, “Eds, Meds, Taxes Fuel Protest,” Philly Daily News, January 21, 2015, accessed May 2015, http://articles.philly.com/2015-01-21/news/58272449_1_local-nonprofits-pennsylvania-supreme-court-pilotpayments Susan Snyder, “A Debate on Raising Funds From City’s Universities and Nonprofits,” Philadelphia Inquirer, September 27, 2013, accessed April 2013, http://articles.philly.com/2013-09-27/news/42430184_1_pennalexander-nonprofits-property-taxes In mounting their case against PILOTs, Penn and several other institutions of higher education in the Philadelphia area commissioned a study and report on their contributions to the city by Econsult Solutions, Inc This report, The City of Philadelphia and its Higher Eds: Shared Goals, Shared Missions, Shared Results, released on October 17, 2013, argued that local universities have already done an excellent job of meeting educational and civic missions without paying PILOTs It concluded that PILOTs would be detrimental to higher education nonprofits and the City of Philadelphia alike.9 In the Spring 2014 semester, a team of three students at the University of Pennsylvania wrote a paper that took an in-depth look at the PILOTs debate and argued in favor of Penn taking the lead in supporting the city and its schools through PILOTs In the present paper, we delve further into Penn’s arguments and examine three major claims that the university upholds in defense of their position against PILOTs We begin by looking into the claim that Penn supports Philadelphia through the wage tax and does not need to provide additional contributions through PILOTs Then, we take a look at the argument that the university already makes adequate contributions to the city and its schools through the support that Penn provides the Sadie Tanner Mossell Alexander University of Pennsylvania Partnership School and the Netter Center for Community Partnerships Lastly, we analyze the idea put forward in the Econsult report that PILOT programs inevitably involve a transactional approach to city/university relations that would turn partners into adversaries, resulting in conflict rather than in mutual service In the following pages, we provide additional background and analysis with regard to these claims While we remain agnostic about whether PILOTs are the best way that the University of Econsult Solutions, Inc., "The City of Philadelphia and its Higher Eds: Shared Goals, Shared Missions, Shared Results," September 18, 2013, http://www.econsultsolutions.com/report/35740/ Pennsylvania could provide support to the School District, we argue that the claims presented by the University as reasons against making PILOTs are unconvincing As a highly endowed, elite institution with a strong commitment to civic engagement, Penn should be making a more significant, measurable contribution to the city’s schools; if not through PILOTs, then by other means CLAIM Since the University of Pennsylvania provides sufficient economic contributions to Philadelphia through the wage tax, it does not need to provide additional contributions through PILOTs The City of Philadelphia and its Higher Eds: Shared Goals, Shared Missions, Shared Results, a study funded by the University of Pennsylvania and other local colleges and universities, argues that these institutions provide significant financial contributions to the city; and thus, that there is no fiscal responsibility to provide additional contributions through PILOTs The report cites the contributions made to the city by these institutions’ capital projects, attraction of visitors, and employment of city residents.10 In addition, it argues that the city of Philadelphia, which collects more revenue from property tax than wage tax, represents a very different fiscal setting than East Coast cities with PILOT programs, such as Boston and Providence, whose budgets are almost entirely dependent on property taxes In Boston, for example, 91% of all tax revenue comes from property taxes, despite the fact that 50% of all property hold tax-exempt status.11 The scarcity of taxable property in Boston left the city’s tax10 Econsult Solutions, Inc., "The City of Philadelphia and its Higher Eds: Shared Goals, Shared Missions, Shared Results," September 18, 2013, 6, http://www.econsultsolutions.com/report/35740/ 11 Yolanda Perez, et al Tax Exempt Property in Boston: Analysis of Types, Uses, and Issues Rep no 562 Boston Redevelopment Authority, Dec 2002, accessed May 3, 2015, http://www.bostonredevelopmentauthority.org/getattachment/e4373a7a-6330-401f-96b4-3de1293ea88a/ base insufficiently supported and its budget in peril.12 In these circumstances, the use of PILOTs became a means for wealthy nonprofits to shore up Boston’s tax base The situation in Philadelphia, however, the Econsult report argues, is very different BACKGROUND: In Philadelphia, the tax structure and the economic impact of nonprofits are indeed different from those of Boston Philadelphia receives tax revenue from at least five different avenues (property, wage, sales, business, and real estate transfer).13 The property tax in Philadelphia represents about 29% of the city’s revenue while the wage tax accounts for about 43% of revenue.14 Higher educators in Philadelphia highlight their contribution to the wage tax base, the greatest source of income for the city, as a key contribution to the city’s budget According to the Econsult report, higher eds in Philadelphia annually generate an estimated economic impact of $10.9 billion, provide 84,000 jobs, and supply $211 million in city tax revenues.15 Of these institutions of higher education, the University of Pennsylvania has the greatest impact on the City of Philadelphia With roughly 32,000 employees, Penn is the largest private 12 Ibid, 13 Jack Cahn, "Penn's Wage Tax Contributions Fly past PILOT Controversy," The Daily Pennsylvanian, February 19, 2015, accessed April 8, 2015, http://www.thedp.com/article/2015/02/penn-contributes-106-million-tophiladelphia-in-total-tax-revenue 14 Econsult Solutions, Inc., "The City of Philadelphia and its Higher Eds: Shared Goals, Shared Missions, Shared Results," September 18, 2013, http://www.econsultsolutions.com/report/35740/ 15 Ibid, employer in the city.16 In the 2014 fiscal year, Penn employees from the University and Hospital network generated $106 million in tax revenue for the city, and in total, contributed roughly 8% of all wage taxes collected in Philadelphia.17 Clearly, it cannot be disputed the Penn community provides notable economic assets for the city; its employees are responsible for a significant financial contribution to the city’s budget, which is currently relatively stable Although Philadelphia had a negative net position (total assets minus total liabilities) of $86.2 million for the 2014 fiscal year, the actual total revenue for the city increased by $157.5 million, with $41.1 million coming from wage and earning taxes.18 While the city’s deficit is certainly not ideal, through taxpayer contributions, federal and state government aid, and other subsidization programs, the city is able to compensate for its current debt and is capable of sustaining itself.19 Additionally the city’s five-year plan projects a 4.8% increase in wage and earnings tax revenue, a 20% increase in real estate transfer tax (a “sales tax for real estate”) and a 3% growth in 16 Select Greater Philadelphia, “Leading Employers,” Aug 13, 2014, accessed April 7, 2015, http://www.selectgreaterphiladelphia.com/industries/leading-employers/ 17 Cahn, "Penn's Wage Tax Contributions Fly past PILOT Controversy." http://www.thedp.com/article/2015/02/penn-contributes-106-million-to-philadelphia-in-total-tax-revenue 18 Rob Dubow and Josefine Arevalo, Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2014, Rep City of Philadelphia PA, June 30, 2014.15-20, accessed April 8, 2015, http://www.phila.gov/finance/pdfs/2014ComprehensiveAnnualFinancialReportCAFR.pdf 19 Ibid 10 business income and receipts tax.20 For these reasons, overall funding for the Philadelphia economy is fairly secure and stable ANALYSIS: While these numbers make it clear that the city’s budget does benefit from wage taxes, the revenue collected from wage taxes comes from individuals employed by the city’s eds and meds; these are not contributions made to the city by these institutions themselves.21 It is, therefore, inaccurate for the University of Pennsylvania and the city’s other wealthy universities and hospitals to claim their employees’ payments in wage taxes as justification for these institutions not making any payments in lieu of property taxes, which in fact compose almost a third (29%) of the entire city’s tax base Moreover, the heavy reliance on wage taxes as a source of city revenue is an issue that has been highly contested in Philadelphia over the past 20 years The wage tax was first introduced as an “innovative” approach for offsetting the effects of the Great Depression However, the gradual rise from 1.5% to 4.96% provoked policymakers to call for reform.22 Those who see a high wage tax as a hindrance to keeping businesses in the city favor shifting tax 20 Ibid 21 Marietta Catsambas, Debby Chiang, and Leyla Mocan, “The University of Pennsylvania and Payments in Lieu of Taxes: An Examination of the University’s Role in Leading the Way in Philadelphia,” Columbia University Journal of Politics & Society (2015): 13, accessed April 12, 2015, http://www.helvidius.org/2015/04/12/the- university-of-pennsylvania-and-payments-in-lieu-of-taxes/ 22 Christopher Wink, “Philly’s city wage tax just turned 75 Here’s its dubious legacy,” Technical.ly Philly, December 12, 2014, accessed May 7, 2015, http://technical.ly/philly/2014/12/12/philadelphia-city-wage-tax/ 40 spread over 25 years with the fund earmarked towards the Worcester Public Library.111 Since then, Worcester has engaged in several successful PILOT negotiations with its other non-profits In 2009, it was able to reach a PILOTs agreement with the Worcester Polytechnic Institute (WPI) for a payment total of $9.5 million to be spread over 25 years, also going towards the public library and Institution Park.112 In 2010, Clark University agreed to pay a total of $6.7 Million over 20 years, with the fund supporting the Worcester Public Library and Main South neighborhood enhancements.113 New Haven: The city of New Haven has been involved in negotiating PILOT agreements for decades In the mid-1980s, Yale became involved in New Haven’s attempt to enhance its service-sector employment.114 In 1991, the University reached a formal agreement to pay the city $1.2 Million a year in PILOTs based on the number of calls to fire services made by the university Since then, Yale and the City of New Haven have continued to negotiate new mechanisms for calculating 111 Walter Bird Jr., “How Worcester Loses Out on $20 Million in Property Taxes Annually," GoLocalWorcester, April 20, 2012, accessed April 22, 2015, http://www.golocalworcester.com/news/nonprofitstake-bite-out-of-tax-base-in-worcester 112 Bird Jr., “How Worcester Loses Out on $20 Million in Property Taxes Annually." 113 Ibid 114 Yolanda Kodrzycki and Ana Patricia Muñoz, “Lessons from Resurgent Cities,” Rep Federal Reserve Bank of Boston, 2009, accessed April 8, 2015, https://www.bostonfed.org/about/ar/ar2009/lessons-from-resurgentcities.pdf 41 PILOT payments.115 In 2009, Yale’s PILOT payments amounted to $7.5 million per year, making it the largest PILOTs paid by a university in the United States.116 In 2014, Yale paid a total of $8.29 million in PILOTs, with $2.7 Million for the fire service and $5.6 million for the voluntary payments component.117 As opposed to the fears that PILOTs will inevitably become a transactional replacement for more mutually beneficial university/community partnerships, Yale also partnered with New Haven to launch the Economic Development Corporation (EDC) in February 2008, a nonprofit organization devoted to attracting, developing and retaining businesses in New Haven.118 Under Yale University President’s Public Service Fellowship, students have an opportunity to work with the organization in a placement for the summer of 2015.119 In contrast to the picture painted by proponents of the Philadelphia Model, successful transactional relationships and fiscal negotiations between cities and their nonprofits take place in Worcester and New Haven as well as Boston in ways that frequently seem to strengthen, rather than undermine broader, mutually beneficial relationships on issues that range from economic 115 Victor Zapana, "Yale to up Payment to City," Yale Daily News, February 27, 2009, accessed May 2, 2015, http://yaledailynews.com/blog/2009/02/27/yale-to-up-payment-to-city/ 116 Adam H Langley and Daphne A Kenyon, Payments in Lieu of Taxes Balancing Municipal and Nonprofit Interests, Rep Lincoln Institute of Land Policy, 2010, accessed April 8, 2015, https://www.lincolninst.edu/pubs/dl/1853_1174_PILOTs%20PFR%20final.pdf 117 Ed Stannard, "Yale’s Tax Exempt New Haven Property worth $2.5 Billion," New Haven Register, January 9, 2014, accessed May 2, 2015, http://www.nhregister.com/general-news/20140901/yales-tax-exempt-new-havenproperty-worth-25-billion 118 Kodrzycki and Muñoz, “Lessons from Resurgent Cities.” 119 Yale University, “Yale University President’s Public Service Fellowship,” 2014, accessed May 6, 2015, http://www.yale.edu/ppsf/documents/EconomicDevelopmentCorporationofNewHaven_000.pdf 42 development to parks to library services and fire safety A significant factor in the resolutions of the impasse in Worcester was the adoption of “a respectful tone rather than resorting to pressure tactics.”120 Worcester’s city manager has underlined that “These agreements were based on a mutual understanding of our mutual benefits.” The agreements demonstrate an understanding that the success of the city depends on its nonprofits and vice versa.121 In Worcester, the city benefitted from negotiating PILOTs that were earmarked towards specific purposes that aligned with the goals of the non-profits Both municipalities and large nonprofits should look at the Yale-New Haven model if they are interested in implementing PILOTs as a means of strengthening cities’ public services and financial health.122 The Yale-New Haven model has shown that PILOTs can be integrated into a university’s goals for civic engagement PILOTs are never enough to be the sole solution for cash-strapped governments, but negotiated properly, they can provide a crucial source of reliable revenue that can alleviate some of the economic pressures on certain municipalities.123 Furthermore, contrary to the fear that PILOTs will inevitably result in less mutually beneficial relationships between universities and their local communities, the Yale-New Haven model suggests that PILOTs can be negotiated in 120 Evelyn Brody, Mayra Marquez, and Katherine Toran, The Charitable Property-Tax Exemption and PILOTs, Rep The Urban Institute, Aug 2012, accessed April 8, 2015, http://www.urban.org/UploadedPDF/412640The-Charitable-Property-Tax-Exemption-and-PILOTs.pdf 121 Bird, “How Worcester Loses Out on $20 Million in Property Taxes Annually." 122 Langley and Kenyon, Payments in Lieu of Taxes Balancing Municipal and Nonprofit Interests 123 Ibid 43 terms that strengthen these relationships.124 It is unjust for Penn to continue to argue that PILOTs and any kind of fiscal negotiations between cities and their nonprofits inevitably turn partners into adversaries, when there are clear cases of cities in which PILOTs are part of mutually collaborative relationships with their nonprofits In The Role of Universities in Advancing Citizenship and Social Justice in the 21 st Century, Dr Harkavy writes that “The goal for universities, I believe, should be to contribute significantly to developing and sustaining democratic schools, communities and societies.” 125 His premise suggests that it is in Penn’s best interest to align its goals with those of Philadelphia’s when they concern the education system and the community that surrounds Penn Over the last thirty years many city governments have faced a combination of steep decline in federal aid and an erosion of the property tax base.126 In Philadelphia, it is no different The initial PILOTs report presented a dire situation in which the School District of Philadelphia faced a $304 million budget shortfall in the 2013-2014 school year, and had to lay off almost 4,000 workers.127 Not much improvement has occurred since then, as the school district forecasts a deficit of around 124 Ibid 125 Ira Harkavy, "The Role of Universities in Advancing Citizenship and Social Justice in the 21st Century." Education, Citizenship and Social Justice 1.1 (2006): 5-37, accessed April 8, 2015, http://socowasow.pbworks.com/f/harkavy06.pdf 126 Adam H Langley and Daphne A Kenyon, The Property Tax Exemption for Nonprofits and Revenue Implications for Cities, The Lincoln Institute of Land Policy, November 2011, accessed April 8, 2015, http://www.taxpolicycenter.org/UploadedPDF/412460-Property-Tax-Exemption-Nonprofits.pdf 127 Catsambas, Chiang, and Mocan, "The University of Pennsylvania and Payments in Lieu of Taxes.” 44 $80 Million for the upcoming 2015-2016 school year.128 Penn, like any other nonprofit, has the right to negotiate with the city about PILOT payments Likewise, it is also a democratic right for the government to ask for aid in times of need, especially since by definition non-profits earn their tax exempt status by serving as “public charities,” addressing problems within their communities, as well as the wider world Seen in this light, PILOTs represent support for, rather than the commodification of, the university’s most basic values and commitments Conclusion: As students at an institution that is dedicated to upholding democratic values, we expect the University of Pennsylvania to provide compelling and concrete reasons for their refusal to participate in a PILOTs program to support the public school system of Philadelphia, especially at a time when the city’s schools are facing such a grave financial crisis Penn’s arguments against PILOTs disappoint us First, Penn as an institution cannot accurately claim that the fact that its employees pay wage taxes represents a contribution from Penn itself to the city Even considering the significant contribution by these employees to the city, the wage tax is not a source of funding for the School District of Philadelphia, which is directly affected by Penn’s property tax exemption Second, Penn Alexander clearly represents a great investment for Penn, its neighborhood and all the children who attend it, many of whom are the children of Penn faculty, students and staff This success, however, underlines the need for more stable financial support for schools throughout the district, as opposed to representing a good argument against 128 Kristen Graham, "Phila School's Latest Budget Forecasts $80 Million Deficit," Philadelphia Inquirer, February 11, 2015, accessed April 22, 2015, http://articles.philly.com/2015-02-11/news/59010283_1_charterschools-houstoun-district-run-schools 45 PILOTs Penn Alexander is a living embodiment of how much difference big non-profits can make in improving the city’s schools if they make a commitment to so The success of Penn Alexander stands in sharp contrast to the rest of Penn’s neighborhood schools The work of Penn’s Netter Center for Community Partnerships, for all its high ideals and good intentions, cannot be taken as a significant argument against PILOTs There is evidence from the surveys of Penn undergraduates who have taken the academically based community service courses that the Netter Center supports, that these students have benefitted from this experience There is also some evidence that individual children have benefitted from participating in Netter Center sponsored programs There is, however, little or no hard evidence (of the sort that is so readily abundant at Penn Alexander) that the Netter Center’s school partners and the children who attend them have benefitted from their “university assisted community school” status These schools have not shown the improvements in their test scores, attendance, and graduation rates that scholars look for in seeking evidence of successful approaches to improving public education, or that parents look for in choosing schools for their children Over the two years that the School Reform Commission closed 31 schools (a staggering number, but still less than 10% of the District’s total), three of those schools (Drew, Wilson, and University City High School) were among the seven with which Netter has partnered most closely The fact that all the Netter Center’s efforts were unable to make the kind of difference in these schools that would have led the SRC to keep them open makes it clear that good-willed programming, supported primarily with undergraduates and grant writing, is simply not the path towards developing stable, successful neighborhood schools, much less the type of transformative, democratic community partnerships that the Netter Center seeks to achieve 46 Finally, it seems willfully blind for Penn and the higher ed partners who co-sponsored the Econsult report, to claim that “the Philadelphia Model” (of not paying PILOTs) represents the only means towards achieving mutually beneficial relationships between desperately underfinanced municipalities and school districts and their wealthy nonprofit “eds and meds.” As the extensive research of the Cambridge Land Institute on different PILOTs arrangements demonstrates, there are certainly a few cases where antagonistic relationships that served neither cities nor their nonprofits well have developed in fights over PILOTs There are also, however, a significant number of cities and towns that have worked out PILOTs arrangements in the context of stable, mutually beneficial relationships The example of Yale-New Haven demonstrates especially well that a commitment to PILOTs can result in peaceful collaboration rather than adversarial conflict Clearly a commitment to PILOTs, as a financial transaction, is nowhere near what is needed to address the catastrophic budget cuts that the Philadelphia school district has endured over the last two years, or the high rates of childhood poverty and low performance of its schools that the Philadelphia School District has faced for so many decades Nonetheless, this exploration of the University's arguments against PILOTs suggests that, instead of putting resources into arguing against PILOTs, the University should develop a relationship with the School District of Philadelphia based on mutual commitments to improving the basic infrastructure of the city’s schools (including their finances) and furthering this university’s commitment to excellence and civic engagement with its own community and the wider world PILOTs may or may not be part of that much-needed agenda; but simply maintaining that enough is being done now is not 47 Bibliography Bauder, Bob "Peduto Says City Dropped UPMC Lawsuit to Help Nonprofit Payment Talks." TribLIVE, July 29, 2014 Accessed April 8, 2015 http://triblive.com/news/allegheny/6524239-74/upmcnonprofits-peduto#axzz3SpGG1iSM Barrientos, Tanya "How Much Retail Is Actually Owned by Penn?" Penn Current University of Pennsylvania, December 13, 2012, accessed April 8, 2015 http://www.upenn.edu/pennnews/current/2012-12-13/ask-benny/how-much-retail-actuallyowned-penn Bird, Walter, Jr " How Worcester Loses Out on $20 Million in Property Taxes Annually." GoLocalWorcester, 20 Apr 2012 Accessed 22 Apr 2015 http://www.golocalworcester.com/news/nonprofits-take-bite-out-of-tax-base-in-worcester Brody, Evelyn, Marquez, Mayra and Toran, Katherine The Charitable Property-Tax Exemption and PILOTs Rep The Urban Institute, August 2012 Accessed April 8, 2015 http://www.urban.org/UploadedPDF/412640-The-Charitable-Property-Tax-Exemption-andPILOTs.pdf Bunch,Will “Eds, Meds, Taxes Fuel Protest.” Philly Daily News, January 21, 2015 Accessed May 2015 http://articles.philly.com/2013-09-27/news/42430184_1_penn-alexander-nonprofits-propertytaxes Cahn, Jack "Penn's Wage Tax Contributions Fly past PILOT Controversy." The Daily Pennsylvanian, February 19, 2015 Accessed April 8, 2015 http://www.thedp.com/article/2015/02/penn-contributes-106-million-to-philadelphia-in-total-taxrevenue Catsambas, Marietta, Chiang, Debby and Mocan, Leyla "The University of Pennsylvania and Payments in Lieu of Taxes." Journal of Politics & Society (2015): n pag Helvidius Group Accessed 08 Apr 2015 http://www.helvidius.org/2015/04/12/the-university-of-pennsylvania-and-paymentsin-lieu-of-taxes/ Cohen, Claire “Four Reasons Why Penn Alexander is Important.” The Daily Pennsylvanian, February 27, 2014 Accessed April 2, 2015 http://www.thedp.com/article/2014/02/four-things-penn-alexander Cohen, Rick "Consortium of Pittsburgh Nonprofits Offers Financial Aid to City." Nonprofit Quarterly, 22 May 2012 Accessed April 8, 2015 https://nonprofitquarterly.org/author/2-uncategorised/20389consortium-of-pittsburgh-nonprofits-offers-financial-aid-to-city.html Cohen, Rick “Pittsburgh Mayor: City Will Challenge Hospital's Tax-Exempt Status.” Nonprofit Quarterly, March 27, 2013 Accessed April 8, 2015 https://nonprofitquarterly.org/policysocialcontext/22024-pittsburgh-mayor-city-will-challenge-hospital-s-tax-exempt-status.html Cucchiara, Maia “New Goals, Familiar Challenges?: A Brief History of University-Run Schools.” Perspectives on Urban Education (Summer 2010): 96-108 48 Denvir, Daniel "How Big Business Helps Starve Philly Schools." Philadelphia Citypaper, June 26, 2013 Accessed April 8, 2015 http://citypaper.net/how-big-business-helps-starve-philly-schools/ Dubow, Rob, and Arevalo, Josefine Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2014 Rep City of Philadelphia, 30 June 2014 Accessed April 2015 www.phila.gov/investor/pdfs/2014CAFR.pdf Econsult Solutions, Inc “The City of Philadelphia and its Higher Eds: Shared Goals, Shared Missions, Shared Results.” Report submitted to The Philadelphia Higher Education Government Relations Officers Group, Philadelphia, Pennsylvania, September 18, 2013 http://www.econsultsolutions.com/report/35740/ Fund Philly Schools “The Facts.” Accessed April 24, 2015 http://www.fundphillyschools.org/the-facts Graham, Kristen “Phila District Spends Less Per Pupil Than Most Other Cities.” Philadelphia Inquirer, Jan 17, 2015 Accessed May 2015 http://articles.philly.com/2015-0117/news/58153804_1_palmer-leadership-learning-philadelphia-school-district-formula Graham, Kristen "Phila School's Latest Budget Forecasts $80 Million Deficit." Philadelphia Inquirer, February 11, 2015 Accessed May 5, 2015 http://articles.philly.com/2015-0211/news/59010283_1_charter-schools-houstoun-district-run-schools Green, Bill “Investing in Philadelphia’s Future: The Case for Comprehensive Education Reform.” Paper presented to Philadelphia City Council, Philadelphia, Pennsylvania, May 2010 Harkavy, Ira "The Role of Universities in Advancing Citizenship and Social Justice in the 21st Century." Education, Citizenship and Social Justice 1.1 (2006): 5-37 Web Apr 2015 http://socowasow.pbworks.com/f/harkavy06.pdf Harkavy, Ira, Hartley, Matthew, Hodges, Rita, and Weeks, Joann “The Promise of University-Assisted Community Schools to Transform American Schooling: A Report from the Field, 19852012.” Peabody Journal of Education 88:5 (2013): 525-540 doi:10.1080/0161956X.2013.834789 https://www.nettercenter.upenn.edu/sites/netter_internal/files/Harkavy_Hartley_Hodges_Weeks_ Peabody_Journal.pdf Kodrzycki, Yolanda, and Ana Patricia Muñoz Lessons from Resurgent Cities Rep Federal Reserve Bank of Boston, 2009 Web 08 Apr 2015 https://www.bostonfed.org/about/ar/ar2009/lessons-fromresurgent-cities.pdf Krawczeniuk, Borys "Tax-exempt Burden Hangs Heavy on Region's Cities." Scranton Times-Tribune, June 22, 2014 Accessed May 6, 2015 http://m.thetimes-tribune.com/news/tax-exempt-burdenhangs-heavy-on-region-s-cities-1.1707214 Kromer, John and Kerman, Lucy “West Philadelphia Initiatives: A Case Study in Urban Revitalization.” 2004: http://www.fels.upenn.edu/news/new-report-urban-revitalization-1 Kumar, Prameet "Exploring Penn's financial contribution to the city." The Daily Pennsylvanian (Philadelphia, PA), March 27, 2012 49 Langley, Adam H., and Kenyon, Daphne A Payments in Lieu of Taxes Balancing Municipal and Nonprofit Interests Rep Lincoln Institute of Land Policy, 2010 Accessed April 8, 2015 https://www.lincolninst.edu/pubs/dl/1853_1174_PILOTs%20PFR%20final.pdf Langley, Adam H., and Kenyon, Daphne A Payments in Lieu of Taxes By Nonprofits: Case Studies Rep Tax Analyst, 2011 Web Apr 2015 Langley, Adam H., and Daphne A Kenyon The Property Tax Exemption for Nonprofits and Revenue Implications for Cities Rep The Lincoln Institute of Land Policy, Nov 2011 Accessed April 8, 2015 http://www.taxpolicycenter.org/UploadedPDF/412460-Property-Tax-ExemptionNonprofits.pdf Langley, Adam H., Kenyon, Daphne A., and Bailin, Patricia C Payments in Lieu of Taxes by Nonprofits: Which Nonprofits Make PILOTs and Which Localities Receive Them Rep Lincoln Institute of Land Policy, 2012 Accessed April 8, 2015 https://www.lincolninst.edu/pubs/dl/2143_1469_Langley_WP12AL1.pdf Learning First Alliance “Designing an Exemplar: University of Pennsylvania and the Penn Alexander School.” February 25, 2014 http://www.learningfirst.org/designing-exemplar-universitypennsylvania-and-penn-alexander-school Legere, Laura "Why Do Cities Solicit PILOTs and Why Do Nonprofits Dislike the Idea?" Keystone Crossroads, January 12, 2015 Accessed April 7, 2015 http://crossroads.newsworks.org/index.php/local/keystone-crossroads/77173-why-do-citiessolicit-pilots-and-why-do-nonprofits-dislike-the-idea Lockwood, Jim "Nonprofit Organization Warily Eyeing Scranton's Feud with Tax-exempt Institutions." Scranton Times-Tribune, October 4, 2012 Accessed April 8, 2015 http://thetimestribune.com/news/nonprofit-organization-warily-eyeing-scranton-s-feud-with-tax-exemptinstitutions-1.1382714 Lombardo, Clare “Taking Attendance: Examining Penn’s Role in West Philly Schools.” 34th Street Magazine, October 16, 2014 Accessed April 22, 2015 http://www.34st.com/article/2014/10/taking-attendance-public-schools Marble, Will “Penn to extend its programming at Henry C Lea School.” The Daily Pennsylvanian, July 2, 2013 Accessed April 22, 2015 http://www.thedp.com/article/2013/07/more-aid-to-leaelementary Matheson, Kathy “4 Philadelphia Schools Saved, 23 Closing After SRC Vote.” ABC Action News, March 7, 2013 http://6abc.com/archive/9018966/ Mathis, Joel “How Did Candidate’s Kids Get Into Penn Alexander?” Philadelphia Daily News, January 27, 2014 Accessed April 9, 2015 http://www.phillymag.com/news/2014/01/27/candidates-kidsget-penn-alexander/ Mayor's PILOT Task Force Mayor’s PILOT Task Force: Final Report & Recommendations, 17 Dec 2010 Accessed April 8, 2015 http://www.cityofboston.gov/images_documents/PILOT_%20Task %20Force%20Final%20Report_WEB%20_tcm3-21904.pdf 50 Mezzacappa, Dale “Admission to coveted Penn Alexander now by lottery.” The Philadelphia Public School Notebook, January18, 2013 Accessed April 12, 2015 http://thenotebook.org/blog/135527/admission-penn-alexander-now-by-lottery Mezzacappa, Dale “Philadelphia’s NAEP Scores are Below Average for Big-city Districts.” The Philadelphia Public School Notebook, December 18, 2013 http://thenotebook.org/blog/136758/philadelphia-naep-scores-lag-behind-other-urbandistricts The Netter Center for Community Partnerships “Course History.” Accessed April 24, 2015 https://www.nettercenter.upenn.edu/abcs-courses-course-history The Netter Center for Community Partnerships “Financial Report,” in Annual Report 2010-2012 Netter Center for Community Partnerships Accessed April 24, 2015 https://www.nettercenter.upenn.edu/publications-resources/annual-reports The Netter Center for Community Partnerships “University-Assisted Community Schools.” Accessed May 5, 2015 https://www.nettercenter.upenn.edu/programs/university-assisted-communityschools Otterbein, Holly "Nonprofits Flagged by IRS Still Get Property-tax Pass in Philly." Newsworks WHYY, January 9, 2013 Accessed April 7, 2015 http://www.newsworks.org/index.php/local/thelatest/49253-philadelphia-gives-flagged-nonprofits-a-pass-on-property-taxes Otterbein, Holly “Tom Wolf’s Incredible Plan to Overhaul Philly Taxes.” Citified, March 4, 2015 Accessed May 7, 2015 http://www.phillymag.com/citified/2015/03/04/tom-wolf-philadelphia-tax-plan/ Payne, Charles So Much Reform, So Little Change: The Persistence of Failure in Urban Schools Cambridge: Harvard Education Press, 2008 "Penn Facts." University of Pennsylvania The Trustees of the University of Pennsylvania Accessed April 8, 2015 http://www.upenn.edu/about/facts Perez, Yolanda, Vrabel, Jim, and Avault, John “Tax Exempt Property in Boston: Analysis of Types, Uses, and Issues.” Boston Redevelopment Authority, Dec 2002 Accessed May 3, 2015 http://www.bostonredevelopmentauthority.org/getattachment/e4373a7a-6330-401f-96b43de1293ea88a/ Petkun, Lisa “What is a Purely Public Charity in Pennsylvania?” Law Firm of Pepper Hamilton December 9, 2001 Accessed May 2015 www.pepperlaw.com/publications/what-is-a-purelypublic-charity-in-pennsylvania-2001-12-09/ Philadelphia Coalition Advocating for Public Schools, “Short­Changing Philadelphia Students: How the 10­ Year Tax Abatement Underwrites Luxury Developments And Starves Schools,” Oct 2013 Accessed April 2015 https://wearepcaps.files.wordpress.com/2013/10/pcaps-paper-abatementsfinal.pdf The Philadelphia Public School Notebook “School-by-School graduation rates.” Last modified February 3, 2012 Accessed April 2015 http://thenotebook.org/february-2012/124484/school-schoolgraduation-rates 51 Russ, Hillary “Philadelphia Teachers to Pay for Health Benefits as Contract Axed.” The New York Times, October 6, 2014 Accessed April 24, 2015 http://www.nytimes.com/reuters/2014/10/06/us/06reuters-pennsylvania-philadelphiaeducation.html Rich, Motoko “Philadelphia Teachers Hit by Latest Cuts.” The New York Times, October 14, 2014 Accessed April 24, 205 http://www.nytimes.com/2014/10/15/us/philadelphia-teachers-hit-bylatest-cuts.html Rich, Motoko and Hurdle, Jon “Philadelphia Schools to Open on Time Amid Millions in Budget Cuts.” The New York Times, August 15, 2014 Accessed April 24, 2015 http://www.nytimes.com/2014/08/16/us/philadelphia-schools-to-open-on-time-amid-millions-inbudget-cuts.html Rodin, Judith “Investing in Public Education.” In The University & Urban Revival, edited by Eugenie L Birch and Susan M Wachter, 139-166 Philadelphia: University of Pennsylvania Press, 2007 The School District of Philadelphia “School Profile: B B Comegys School.” Accessed May 5, 2015 https://webapps.philasd.org/school_profile/view/1260 The School District of Philadelphia “School Profile: Henry C Lea School.” Accessed May 5, 2015 https://.webapps.philasd.org/school_profile/view/1340 The School District of Philadelphia “School Profile: Samuel B Huey School.” Accessed May 5, 2015 https://webapps.philasd.org/school_profile/view/1330 The School District of Philadelphia “SY 2013-2014 School Progress Report.” Accessed May 6, 2015 http://webgui.phila.k12.pa.us/offices/s/strategic-analytics/annual-reports/school-progressreports/sy2013-2014-reports Socolar, Paul “2013 On-time Graduation Rates for District and Renaissance High Schools.” Last modified January 28, 2014 http://thenotebook.org/blog/146857/on-time-graduation-rates-2013philadelphia-high-schools Select Greater Philadelphia “Leading Employers,” August 13, 2014 Accessed April 7, 2015 http://www.selectgreaterphiladelphia.com/industries/leading-employers/ Snyder, Susan “A Debate on Raising Funds From City’s Universities and Nonprofits.” Philadelphia Inquirer, September 27, 2013 Accessed April 2013 http://articles.philly.com/2013-0927/news/42430184_1_penn-alexander-nonprofits-property-taxes Stannard, Ed "Yale’s Tax Exempt New Haven Property worth $2.5 Billion." New Haven Register, January 9, 2014 Accessed May 2, 2015 http://www.nhregister.com/generalnews/20140901/yales-tax-exempt-new-haven-property-worth-25-billion Steif, Ken “Can the success of Penn Alexander be replicated?” The Philadelphia Public School Notebook, April 8, 2013 Accessed April 2, 2015 http://thenotebook.org/blog/135769/schoolimprovement-districts-can-success-penn-alexander-school-be-replicated 52 Superville, Denisa R “School Budget Problems Have Deep Roots in Philadelphia.” Education Week, May 6, 2014 Accessed April 2015 http://www.edweek.org/ew/articles/2014/05/07/30philly.h33.html Wink, Christopher “Philly’s city wage tax just turned 75 Here’s its dubious legacy.” Technically Philly, December 12, 2014 Accessed May 7, 2015 http://technical.ly/philly/2014/12/12/philadelphiacity-wage-tax/ Wright, Jennifer “Protesters take over Gutmann’s holiday party.” The Daily Pennsylvanian, December 9, 2014 Accessed April 2, 2015 http://www.thedp.com/article/2014/12/protesters-take-overgutmanns-holiday-party Yale University Yale University President’s Public Service Fellowship 2014 Accessed May 6, 2015 http://www.yale.edu/ppsf/documents/EconomicDevelopmentCorporationofNewHaven_000.pdf Zapana, Victor "Yale to Up Payment to City." Yale Daily News, February 27, 2009 Accessed May 2, 2015 http://yaledailynews.com/blog/2009/02/27/yale-to-up-payment-to-city/ Zullo, Robert "City Negotiating New Pact on Nonprofits' Contributions." Pittsburgh Post-Gazette, September 26, 2014 Accessed April 8, 2015 http://www.postgazette.com/local/city/2014/09/26/Mayor-says-nonprofit-negotiationsprogressing/stories/201409260181 Zullo, Robert "UPMC, City Drop Legal Fight over Taxes." Pittsburgh Post-Gazette Pittsburgh PostGazette, July 29, 2015 Accessed April 8, 2015 http://www.postgazette.com/local/city/2014/07/29/UPMC-city-drop-legal-fight-over-taxes/stories/201407290183 ... One of the University of Pennsylvania’s primary arguments against paying PILOTs is that the university already provides the School District of Philadelphia with substantial support through the. .. by the city’s eds and meds; these are not contributions made to the city by these institutions themselves.21 It is, therefore, inaccurate for the University of Pennsylvania and the city’s other... Court of Pennsylvania struck down that law; and the option of asking wealthy nonprofits to make PILOTs was once again on the table.7 In the context of the sharply worsening financial crisis for the