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Massachusetts cities and towns are facing a long-term financial crunch
caused by increasingly restricted and unpredictable local aid levels,
constraints on ways to raise local revenue, and specific costs that
are growing at rates far higher than the growth in municipal
revenues. Every year, municipalities face corrosive disputes over
Proposition 2 1/2 overrides, which limits how much a municipality can
raise through property taxes. Where the overrides succeed, residents
and businesses are faced with soaring property taxes – over $1,200
over the past seven years in Massachusetts. Where they fail, we
continue to see neglect of our public safety, education and
infrastructure.
Municipalities and the state must work together to solve the
short-term fiscal challenges as well as the long-term structural
issues that are threatening the viability of local government. That
is why I support creative tax policies, including Governor Patrick’s
new Municipal Partnership Act, which will end the almost century-old
telecommunications property tax exemption, diversify municipalities’
tax base, enable municipalities to participate in the states’
cost-saving health care programs and well-performing pension funds,
while easing the property tax burdens on residents and businesses.
The MPA is not a cure-all, but it is a very good first step towards
strengthening the partnership between our cities and towns and the
State House. The MPA will
support families by easing the tax-burden on homeowners, helping to
ensure that families will be able to keep their homes. |
