Schenectady Needs Union College to Step Up

In Schenectady, property taxes keep climbing. City Hall is cutting overtime, reducing services, and even slashing youth programs. Families are asked to pay more and get less. Meanwhile, Union College continues to grow, taking more property off the tax rolls while contributing only a fraction of what is fair.

Union, like other large nonprofits, does not pay property taxes on its campus buildings. Instead, it makes voluntary PILOT payments, which means Payment in Lieu of Taxes. The idea is that when an institution removes property from the tax rolls, it pays something back to the city to offset the loss. In practice, these payments do not come close to what the city loses in revenue.

The result is simple. Every time Union expands, residents pick up the tab. Homeowners and small businesses are left carrying a heavier load while a wealthy institution avoids paying its fair share. This is not only a Schenectady problem. Across the country, universities and hospitals are using their tax exempt status to grow without limit, driving up property taxes in the communities around them.

Union College is a proud part of Schenectady’s history. It attracts students, faculty, and culture. But being a good neighbor means more than celebrating tradition. It means paying your fair share and supporting the community that supports you.

Schenectady cannot keep balancing its budget on the backs of working families while institutions with deep pockets get a pass. It is time for Union College to contribute much more through a stronger and fairer PILOT program. Until that happens, residents will continue to see higher taxes, fewer services, and fewer opportunities, all while watching their city’s wealthiest institutions grow tax free.