Highmark gives $35 million for CMU student center - why not pay taxes to pay for the parks instead?? (Pittsburgh: layoffs, universities)

[tyovan4]

Highmark Health is contributing $35 million to help develop a student health, wellness and athletics center at Carnegie Mellon University, the Downtown-based insurer and health system announced Thursday.

https://www.post-gazette.com/busines...s/201911070109

CMU's endowment is approximately $2 billion dollars. (https://www.cmu.edu/news/stories/arc...ent-grows.html)

Highmark just did layoffs.
The glorious Peoples Republic of Pittsburgh just decided to jack up taxes to maintain the Parks.

The idiotic Mayor is more interested in fellating tech companies and trying to take away guns instead of doing his job - and, oh I dont know, fighting against the non-profits (like Highmark) who dont pay taxes and who the Mayor's predecessor began to sue to challenge their tax-exempt status. But Great Progressive Peduto ended the lawsuit (six years ago) so that he could 'negotiate' with the non-profits for 'Payments In Lieu Of Taxes'.

So Highmark doesn't have money to pay all of their workers, so they lay some off. Including a friend of mine.
But they have enough money to give a HUGE grant to a private university that is sitting on billions of its own dollars. This will be for a private recreation center for those who can pay the astronomical price of admission to this world-class university.

Meanwhile, the City doesn't have enough money for its public parks - which are for the public's recreation. So they fleece the taxpayers for more money by jacking up taxes. And they continue to allow 'non-profit' entities like Highmark get away without paying taxes that would benefit the public.

If a place like Highmark, or UPMC, were actually paying their fair share of taxes - then maybe the public wouldn't have to cough up more money to cover the alleged shortfall in Parks funding.

The corruption, nepotism, mismanagement, elitism, and hypocrisy of the local Democratic Party just boggles my mind - as does the mindlessness with which the local residents continue to vote for the same party for the last 90 years, as it continues to fleece the average taxpayer here.

This situation is sickening and is so wrong.

[WhoIsStanwix?]

I am so confused. A deal between two private entities, which presumably is designed to benefit them both, is somehow related to parks and Bill Peduto?

[bradjl2009]

Originally Posted by WhoIsStanwix?

I am so confused. A deal between two private entities, which presumably is designed to benefit them both, is somehow related to parks and Bill Peduto?

Yeah, I wasn't on board with the parks tax for a couple reasons, but this is a bizarre rant even by him.... He doesn't even live in the city so it literally has no impact on his life. I mean, I wouldn't have voted for it, but I don't live in the city now, so at the end of the day it's their choice to bring it in and not my problem, so I'm not going to rant on here about it.

[gladhands]

Originally Posted by bradjl2009

Yeah, I wasn't on board with the parks tax for a couple reasons, but this is a bizarre rant even by him....

A person who will not pay the parks tax, because he does not live in the city.

[bradjl2009]

Originally Posted by gladhands

A person who will not pay the parks tax, because he does not live in the city.

Yep, zero impact on his life. What did conservatives say in 2016 about what to do if election results don't go your way again?

Does he not realize a majority of voters chose this tax too? It wasn't the city's decision to "jack up the taxes"....

[xdv8]

Pretty triggered for a tax that doesn't even impact you in any negative way. In fact you can now enjoy nicer parks in the city without contributing anything yourself. You are welcome, or not.

[WhoIsStanwix?]

Originally Posted by tyovan4

CMU's endowment is approximately $2 billion dollars. (https://www.cmu.edu/news/stories/arc...ent-grows.html)

Highmark just did layoffs.
The glorious Peoples Republic of Pittsburgh just decided to jack up taxes to maintain the Parks.

The idiotic Mayor is more interested in fellating tech companies and trying to take away guns instead of doing his job - and, oh I dont know, fighting against the non-profits (like Highmark) who dont pay taxes and who the Mayor's predecessor began to sue to challenge their tax-exempt status. But Great Progressive Peduto ended the lawsuit (six years ago) so that he could 'negotiate' with the non-profits for 'Payments In Lieu Of Taxes'.

So Highmark doesn't have money to pay all of their workers, so they lay some off. Including a friend of mine.
But they have enough money to give a HUGE grant to a private university that is sitting on billions of its own dollars. This will be for a private recreation center for those who can pay the astronomical price of admission to this world-class university.

Meanwhile, the City doesn't have enough money for its public parks - which are for the public's recreation. So they fleece the taxpayers for more money by jacking up taxes. And they continue to allow 'non-profit' entities like Highmark get away without paying taxes that would benefit the public.

If a place like Highmark, or UPMC, were actually paying their fair share of taxes - then maybe the public wouldn't have to cough up more money to cover the alleged shortfall in Parks funding.

The corruption, nepotism, mismanagement, elitism, and hypocrisy of the local Democratic Party just boggles my mind - as does the mindlessness with which the local residents continue to vote for the same party for the last 90 years, as it continues to fleece the average taxpayer here.

This situation is sickening and is so wrong.

To your bolded statement, my guess is this is not the case. I believe you are talking about layoffs at HM Health Solutions, which is a subsidiary Highmark built to offer IT and other services to other Blues plans. That division hasn't been able to generate as much business as they anticipated, so the business itself probably needed to be restructured and downsized. This subsidiary, which employs over 2000 and maybe even close to 3000 people, has < $1m in annual revenue. In other words, it is bleeding money, but they're still employing a lot of people.

https://www.bizjournals.com/pittsbur...employees.html

[Knepper3]

Yeah you can not compare a companies overall to layoffs in a specific area. It is very common for a large company to have large layoffs while at the same time do mass hirings. Large companies are basically many companies in one with various divisions. One division is lacking the others don't support it, it gets cut. Business not Charity.

[Plink]

Originally Posted by tyovan4

CMU's endowment is approximately $2 billion dollars. (https://www.cmu.edu/news/stories/arc...ent-grows.html)
.

It appears you know neither of two things: from whom endowments are received by universities nor why only a small percentage of universities’ endowments can be spent each year on operations or capital investments.

[WhoIsStanwix?]

Originally Posted by Knepper3

Yeah you can not compare a companies overall to layoffs in a specific area. It is very common for a large company to have large layoffs while at the same time do mass hirings. Large companies are basically many companies in one with various divisions. One division is lacking the others don't support it, it gets cut. Business not Charity.

In fairness, the bolded is why many are livid over the non-profit status of these large corporations. I always thought it made sense to not pay corporate income tax as a non-profit - there aren't technically profits to tax. Not paying property tax, however, is a head scratcher to me.

That said, while the issues I raise are likely of concern to the OP and many others (including me), they don't really explain why it is a problem that two entities operating within the confines of laws they are subject to are chastised for entering a mutually-beneficial agreement.