Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
Increasing the overall fiscal capacity of cities and towns is central to economic success and prosperity in Massachusetts, according to a major economic study on the connection between revenue sharing and the future of the Massachusetts economy.
The report, authored by economists at Northeastern University’s Center for Urban and Regional Policy and released today by the MMA, concludes that communities must be provided with major local aid increases to deliver the services and amenities that workers want for their families, and to relieve the exploding property tax burden in the state.
• “Revenue Sharing and the Future of the Massachusetts Economy” (PDF file, 4.5M)
Mayors, selectmen, administrators, councillors and key local officials from across the state, meeting at the MMA’s 27th Annual Meeting and Trade Show, received a detailed briefing by Barry Bluestone, a noted Northeastern University economist and director of the Center for Urban and Regional Policy.
Bluestone presented the findings of “Revenue Sharing and the Future of the Massachusetts Economy.” The study concludes that increased local aid is essential for Massachusetts to attract businesses and economic development, compete for jobs, and retain young workers in the state.
“Massachusetts needs to renew and rebuild a state-local economic partnership,” Bluestone said, “and it is clear that local aid is essential for our economic success.”
“Intuitively, we know that cities and towns are vitally important to our prosperity and economic future,” said MMA Executive Director Geoff Beckwith. “It is imperative that state leaders address these vital issues today, otherwise our communities will continue to struggle, property taxes will be too high, and our economy will suffer.”
The MMA engaged Bluestone and his colleagues Alan Clayton-Matthews and David Soule at Northeastern University to conduct an independent, comprehensive study of key economic trends and principles regarding attracting and retaining jobs and people, as well as a detailed look at the treatment of local aid over the past 25 years and the tax shift that has caused today’s record over-reliance on the property tax.
The report concludes that:
• The state must renew its fiscal partnership with cities and towns, which is now at its lowest ebb in decades.
• Businesses decide to locate, expand and invest based on the level of local services in cities and towns and on the reputation of the quality of life in the community.
• Current local aid is insufficient to ensure the level of vital local services necessary to attract businesses and people to Massachusetts.
• Local property taxes are too high, because local aid is too low, and this is hurting our economy.
• Massachusetts is falling further behind as young talented workers leave for other states.
• The state needs to invest in all aspects of municipal services, including education, public safety, culture and recreation, and infrastructure in order to attract and retain jobs.
• The state should commit to revenue sharing by dedicating a fixed share of state tax revenues to local aid.
• The state should allow cities and towns to reduce reliance on property taxes by diversifying local revenues by allowing local-option meals taxes and eliminating state-set telecommunications tax loopholes.
• The state should loosen its imposition of unfunded mandates, and give cities and towns greater local management authority in key areas such as employee benefits and regionalization efforts.