Trend: State Revenue Source. Private Univeristy Endowments.

To fill a state budget deficit, Connecticut is proposing a tax on profits to Yale’s endowment. 

Will this new CT legislative proposal apply to all university endowments? No, just those over $10 billion

What do policy makers point to for justification?

• the tax doesn’t apply if Yale, the 5th largest employer in the state, reinvests endowment profits into the local economy or higher education 
• the tax would expand education access and create jobs

WallStreet Journal | One New Fix for Connecticut’s Budget Crunch: Yale University