Well, we know that Governor Cuomo wants tuition tax credits for wealthy individuals and corporations that subsidize tuition for private and religious schools.
But we did not know–until this article at Bloomberg.com–that private schools were building luxurious faculties with public bonds.
“The New York schools are borrowing through Build NYC Resource Corp., a city agency that allows non-profits to raise money in the municipal-bond market. The schools repay investors, who are willing to accept lower interest rates because the income isn’t taxed. Build NYC receives fees for arranging the sales. It isn’t on the hook if they default….
“With interest rates poised to rise, the Ivy League stepping stones are selling tax-exempt debt at the fastest pace in over a decade to keep their edge. Riverdale Country School in the Bronx, Saint Ann’s School in Brooklyn and La Scuola d’Italia Guglielmo Marconi near Central Park plan to sell almost $150 million of bonds to pay for projects, including a new six-lane pool and musical ensemble rooms.”
The tuition at these elite prep schools averages $46,000 a year, close to the annual income of the average Néw Yorker.
“The schools are popular with Wall Street bankers and hedge-fund managers. At the Ethical Culture Fieldston School, the board includes Laura Jacobs Blankfein, an alumna and wife of Goldman Sachs Group Inc.’s chief executive officer, and Margaret Munzer Loeb, who’s married to billionaire hedge fund manager Daniel Loeb. Bank of America Corp. Chief Operating Officer Thomas Montag is a Riverdale trustee.”