Report: Mass. Cities, Towns Hurting On Finances
The state's 351 cities and towns are limping to the end of the roughest two-year stretch in their books since the passage of the tax-limiting Proposition 2 ½ in 1980, according to the Massachusetts Taxpayers' Foundation (MTF).
The MTF said the state's communities relied increasingly on property taxes as part of their revenue mix. Property taxes made up 56.5 percent of all revenues in 2010, the highest level since the passage of Proposition 2 ½, because of reductions in state aid and other municipal receipts.
Local property tax receipts grew only 3.8 percent in fiscal year 2011, which ended June 30, for the smallest one-year increase in the Proposition 2 ½ era.
The report said cities and towns face a tough financial road ahead. "We are entering a new period in which there will be a permanent squeeze on municipal finances," the report states. "For the foreseeable future, year-to-year revenue growth will be constrained, outpaced by the growth in personnel costs and liabilities."
WBJ Web Partners
Most Recent
Most Recent
0 Comments