Local government is foundational. It needs a solid financial footing.

From the Beacon, November 2025

Over the past few weeks, I’ve had the opportunity to talk with a broad array of MMA members about our recently released report on the fiscal strain facing cities and towns — “A Perfect Storm” — and while the reaction to the findings has been overwhelmingly positive, the most common question I receive is, “Where do we go from here?”.

Before answering that, let’s establish our “why” as it relates to this report, and the policy recommendations that we will be releasing soon.

Quite simply, the work of municipal government is foundational to our society, our economy and our democracy. Just as a house cannot stand without a solid foundation, local government is the bedrock that allows most, if not all, other things to happen in our world. It would be nearly impossible to sustain economic development initiatives, environmental protection programs, or arts and cultural activities if local government wasn’t setting the stage for this type of work. We need ambulances to roll, food establishments to be inspected, roads and bridges to be maintained, along with many other essential municipal services, before we can even begin to think about other aspects of our governmental and societal systems.

Given that local government is foundational to society as we know it, then it stands to reason that we need to pursue policies and funding that will sustain the essential services that all of you provide for the long term. That’s why the MMA, with its Fiscal Policy Committee and Board of Directors, is working to outline a series of recommendations that could alter the dire fiscal outlook outlined in our “Perfect Storm” report.

These detailed recommendations, to be released early next month, will include proposals that tie directly to the report’s findings. As the report suggests, to achieve a sustainable fiscal future, local governments need to be provided with additional support and flexibility by our partners in state government. So our recommendations will focus on three key areas.

First, we need a fresh approach to state aid, particularly Unrestricted General Government Aid. The report makes clear that this source of local funding needs reinvestment when compared with both historical funding levels and rates of inflation. Recommendations in this area will seek to address the need for reinvestment.

Second, our recommendations will look at the mechanics embedded within Proposition 2½ and explore potential flexibilities that would allow the law to operate in a manner that acknowledges the economic realities of the 21st century.

The third area of focus will be the current framework of regulations, mandates, programmatic state funding for local services, local revenue options and legacy costs that drive a significant portion of the fiscal reality of cities and towns in the Commonwealth.

We look forward to releasing these recommendations in their final form in just a few weeks, and, most importantly, we are excited to work with all of you to begin advocating for these policy and funding proposals, all aimed at ensuring that the foundational service provided by municipal government is sustained for decades to come.