Copyright 2009
| Generating revenue at the local level
In these difficult economic times, tough budget decisions are unavoidable, but the Senate last week took a positive first step toward providing municipalities with options to help withstand fiscal uncertainty. For years, I have advocated that cities and towns in Massachusetts need the ability to generate revenue at a local level because municipalities are overly dependent on property tax revenue and state local aid. By adopting a local option meals tax, increasing the local option hotel tax, and closing the telecom tax loophole that prevents poles and wires on the public way from being fairly taxed, the Senate budget provides the room that local leaders need to determine the destiny of their cities and towns. Based on fiscal year 2009 numbers, a 2% local option meals tax would generate an estimated $256 million annually statewide, if all municipalities adopted the measure. Boston alone would benefit from an additional $47 million annually. A 2% local option is a modest increase to the current 5% statewide meals tax, which ranks Boston among the lowest when compared to other comparable major cities around the country. While a local option meals tax is an undeniable benefit for municipal budgets, the burden on families and businesses is minimal. You’ll still be able to enjoy a meal out at a reasonable price. In fact, consider this: for a $50 meal, you would only pay an additional $1 on the total bill. Together with a reasonable increase in the local option hotel tax and the closing of the telecom tax loophole, these tools would not only provide substantial revenue for Boston and others cities around the Commonwealth they would allow cities to diversify their revenue base. While the economy will eventually pull out of the current downturn, local option revenue streams represent a long-term solution, not just a temporary bandage, for municipalities. Over the coming weeks, the House of Representatives and the Senate will hold a conference committee to resolve the budget, but I’m hopeful that the House will follow the lead of their colleagues in the Senate and adopt these sensible steps to help municipalities both now and in future years. In crafting the budget, the House and Senate also took action to prioritize funding for two critical areas: youth employment and public safety. A summer job, often a teen’s first job experience, is priceless, and my administration continues to fund thousands of these jobs every year from the city’s budget regardless of overall economic conditions. I commend the Legislature for showing a renewed commitment to opportunities for young people by restoring funding for the YouthWorks summer jobs program and including language that would allow the program to operate year-round. This program will strengthen our current investments and help many more teens in the coming year. Just as YouthWorks has a positive impact on our teens, restored funding to the Shannon Grant program will give police the necessary tools to combat gangs and keep criminals off of our streets. The grants are a crucial source of flexible funding that we can use strategically to improve successful community policing efforts in Boston’s neighborhoods. Yet, violence is a public health issue, not just a public safety issue. That’s why it’s also noteworthy that legislators have continued funding the Department of Public Health’s Youth Violence Prevention program. In recent weeks, lawmakers have provided important reassurances for Boston and other cities by adopting essential local option revenue tools and restoring funding for critical programs. The economy has limited everyone’s resources, but I’m committed to working with our partners at the state level to invest in areas where it matters most for the people of Boston. |
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