Cities seek more money from tax-exempt colleges

Cities seek more money from tax-exempt colleges

PROVIDENCE, R.I. (AP) — As cities around the country grapple with budget deficits, some are looking to wring more money out of tax-exempt universities and hospitals.

These institutions say they already make essential contributions to communities. But city leaders say the taxpayers end up bearing the cost of police and fire protection and other services.

Providence, R.I., and Brown University recently struck a deal under which the Ivy League school will contribute an additional $31.5 million to the struggling city over the next 11 years.

Brown already gives $4 million a year to Providence. But city leaders and state lawmakers turned up the pressure on the school to contribute more to help Providence close a $22.5 million deficit.

Baltimore, Boston and other cities have negotiated similar deals with institutions.