Initiatives in both Pittsburgh (PA) and Providence (RI) by local government, to get assistance with their budget deficits by "taxing" tuition (Pittsburgh) or imposing an annual $300 fee (Providence) were harbingers of a trend. The idea that in these economic times educational institutions which do not pay taxes should help more is a popular one. Ron Schachter has written an article in University Business magazine that will bring you completely up to date with the trend and what has happened since the proposals were first made. Did you know about Boston?

Boston institutions also are taking stock of and quantifying their contributions to the surrounding community, since they can deduct a portion from the newly increased amount they will owe this year under the new PILOT agreement. In the case of Wentworth Institute of Technology, those off-campus contributions range from providing volunteer activities to clean up the surrounding streets to more involved service learning projects.

“For one project,” points out Wentworth President Zorica Pantic, “our students designed a Wi-Fi network for a local depressed neighborhood and helped them get the funding to run it.” Payments in Lieu of Taxes in the Future Interest in collecting payments in lieu of taxes (PILOTs) from higher ed institutions and other nonprofits is likely to grow as cash-strapped municipalities seek additional revenue. How can cities and towns collaborate with colleges about the payments to ensure greater consistency and transparency? Read here.

Pantic is hoping that those services will count against the $700,000 annual PILOT bill Wentworth is scheduled to pay, an order of magnitude greater than the $40,000 the school gave the city in 2010. “We can live with it,” she says of the increased contribution, “although it’s helpful that it’s going to be phased in over five years. We’ve already put it in our five-year budget plan.”