At a packed board meeting of the City of Muskogee Foundation, Mayor Ryan Lowe urged trustees to approve a grant that would draw only half of the foundation’s annual investment return – leaving the principal untouched – to help the city meet a $29 million legal judgment. The settlement, he noted, equates to roughly $800 for every resident of Muskogee.
Board Votes Down the Request
The foundation’s board voted decisively against the mayor’s proposal, recording ten “no” votes and only three “yes” votes. “I’m disappointed, I’m frustrated, I’m baffled,” Lowe said after the vote, emphasizing the urgency of the city’s fiscal challenge.
Mayor’s Rationale
Lowe explained that the request would not tap the foundation’s principal, which generated $19 million in interest last year. “We’re asking for only half of its annual return on investment, not one dollar of the original investment,” he said, framing the ask as a responsible use of existing earnings to protect taxpayers from a steep property‑tax hike or a sales‑tax increase.
Foundation’s Perspective
Executive Director Kari Blakley defended the board’s decision, stressing the foundation’s duty to preserve its resources for long‑term community needs. “It’s important that we steward those resources carefully so they can continue supporting essential services, local non‑profits and community priorities over the long term,” Blakley said.
Blakley also pointed out that the board had recently approved a separate $10 million request on a different agenda item, which will help offset city expenses. “We received the request today and it was approved. I think that’s the focus,” she said, suggesting the board was willing to assist but within its fiscal guidelines.
Community Concerns
Board member Mummolo questioned the inconsistency, asking why the board would support a partial request but reject the full $30 million ask. “Right, and then I would defer to my answer that we just went through,” Blakley responded, noting that even the approved proposal still places a significant burden on taxpayers.
Lowe pressed further, asking if the board was out of touch with Muskogee’s economic reality. “Absolutely. Half of this board doesn’t even live in our community,” he replied, underscoring his belief that local representation matters in financial decisions that affect residents.
What’s Next for Muskogee?
With the grant denied, city officials must explore alternative ways to fund the judgment without imposing a massive tax increase. Options under discussion include reallocating budget items, seeking state assistance, or identifying additional private‑sector partnerships.
The foundation’s stance reflects a broader trend among community endowments to protect principal assets while providing modest annual support. As Muskogee’s leaders navigate this fiscal crossroads, the debate highlights the balance between immediate financial relief and long‑term stewardship of community resources.
Original reporting: KTUL 8 (Sinclair) – local — read the source article.
