Kalamazoo, Mich., is getting a little help from some wealthy friends to solve a growing financial crisis. Two local philanthropists have pledged $70 million to help the city end chronic budget deficits and cut property taxes. While private donors have rescued programs governments can no longer afford, such as public art and parks, rarely do people give millions directly to a city’s general fund with no strings attached. But some question the donors’ motivations and fear the arrangement could fundamentally change how government functions.
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AARON DORFMAN: Seen a lot of interesting philanthropic gifts but none quite like this.
TONER: Dorfman says there are plenty of examples of private donors rescuing civic interests, much like the grand bargain in Detroit, which saved that city’s art collection. But Dorfman says he’s never heard of people handing over millions directly to a city’s general fund with no strings attached. He’s concerned the deal could fundamentally change government here.
DORFMAN: Are we going to tax ourselves at rates that we can pay for the goods and services that we want from government, or are we going to rely on wealthy individuals to pay for those public goods?
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