Common Council discussed nine expenditures to potentially include in the roughly $80 million 2021 budget, approving the hire of a part time staff member for Greater Ithaca Community Center, increased funding for Community Outreach Center and the purchase of a new fire pumper.
Common Council members felt reluctant to drastically reduce funding many of the city’s important resources. But as the city faces a 20 percent reduction in state aid, the council is forced to work within a tightened budget.
In response to The Sun’s Oct. 29 article, “Cornell Bleeds Red Ink in Latest Financial Report with Operating Losses of $104 Million,” as an alum, parent and long-time volunteer for the University I was not surprised by the bad news. While student tuition and alumni contributions continue to rise, once again University expenses outpaced revenues. In the world of finance, most businesses and not-for-profits lose money by either not generating enough revenue or they pile on too much administrative overhead. Many iconic brands like Eastman Kodak, Lehman Brothers and Enron filed for bankruptcy or closed because executives rewarded themselves with fat salaries and happily ran to the bank while taking their eye off the true meaning of their business.
“In college, I think this is one of the first times where you have a little bit of freedom in managing your own finances and budgeting … and so starting early kind of leads you to develop very good habits that I think are very important long-term,” said Bogan.
Mayor Svante Myrick ’09 blasted the University in an interview with The Sun on Thursday for not contributing enough to its home city after he unveiled a new budget plan for the city of Ithaca in which Cornell’s contribution increased by only a little less than $30,000.