Analysis: U.S. cities wrestle with universities for cash

http://www.reuters.com/article/2012/05/18/us-municipals-cities-nonprofits-idUSBRE84H0HE20120518

In 1978, after New York City had barely escaped bankruptcy, Mayor Ed Koch went looking for cash from an unlikely source: the city's colleges and other nonprofits, which do not pay taxes on their valuable land.

At least 154 municipalities in 27 states have persuaded universities and other nonprofits to make voluntary payments in lieu of taxes in order to help close budget gaps and keep municipal services afloat.