Yale has a complicated relationship with its home city; for example, thousands of students volunteer every year in a myriad of community organizations, but city officials, who decry Yale's exemption from local property taxes, have long pressed the university to do more to help. Under President Levin, Yale has financially supported many of New Haven's efforts to reinvigorate the city. Evidence suggests that the town and gown relationships are mutually beneficial. Still, the economic power of the university increased dramatically with its financial success amid a decline in the local economy.

Why do New Haven city officials dislike Yale?