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April 2, 2012

Behind The Sound Bite: Bedroom Community?

A recent report by the Worcester Regional Research Bureau discussed changes in the Worcester economy over the past 30 years. It included the statement "Worcester is a bedroom community."

What do they mean by that?
The research bureau used the phrase in the context of the city's tax base, which is 78 percent residential. That's a sizeable majority, more than in a number of other Central Massachusetts communities. Marlborough's tax base is only 68 percent residential, and Westborough's is 63 percent. Then again, the combined tax base for all communities in the state is 82 percent residential, and even in Boston, a majority of the tax base, 65 percent, is residential.

How has the tax base changed?
According to the report, in fiscal year 1984, Worcester's tax base was 65 percent residential, so it's shifted considerably over the last 28 years. But the report notes that the change is largely due to the fact that homes have risen in value faster than other types of property, not because of new construction.

What about employers who aren't taxed?
Another factor that plays into these figures is how many Worcester employers are not part of the tax base. The report notes that a huge portion of Worcester workers are employed at tax-exempt organizations, including UMass Memorial Medical Center, the University of Massachusetts Medical School and the city itself.

So, is Worcester a suburb?
The most common use of the term "bedroom community" refers to a place where people mostly live but don't work. But figures from the state Executive Office of Labor and Workforce Development suggest Worcester is a net "importer" of labor. The total labor force-workers who live in the city-is about 85,000, and just 78,000 of them are employed. However, there are 96,000 people who work in Worcester.

What can the research bureau report show us?
The report's section on the city's tax base clearly shows that the City of Worcester depends heavily on residential taxes.

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