The average single family homeowner in 10 of the state’s most economically vulnerable cities would need to pay an astonishing $13,685 today or absorb a crippling 20 percent property tax hike over the next 30 years to subsidize billions in unfunded retiree health care liabilities, according to a new report by the Massachusetts Taxpayers Foundation.
Fiscal 2013 tax revenues will grow by $822 million, or 3.9 percent, to $22 billion, less than half the rate of expansion in fiscal 2011, according to a new forecast released today by the Massachusetts Taxpayers Foundation.
“The small growth in tax revenues will put great strains on the fiscal 2013 budget with increases in nondiscretionary spending outpacing the additional revenues available,” Widmer said.
Massachusetts cities and towns endured the most difficult two-year period in the Proposition 2 ½ era in fiscal 2010 and 2011 with property taxes rising to their highest share of local spending in 30 years, according to the Massachusetts Taxpayers Foundation’s 41st annual Municipal Financial Data report.
In their zeal to control health care costs, state lawmakers run the risk of causing serious damage to the health care sector, arguably the most important segment of the Massachusetts economy and certainly the most notable exception to the state’s dreadful job record over the past decade.
Dozens of communities across the state would lose the benefits of municipal health care reform under the Senate’s provision requiring that municipal contributions for retirees be the same as for active employees, according to a preliminary analysis by the Massachusetts Taxpayers Foundation. The Foundation has identified 50 municipalities and regional school districts that would be impacted, with that number likely to be as high as 100 when all communities have been analyzed.
Backed by a broad coalition of business, civic, and education organizations, on April 26 the House took bold action to provide desperately needed fiscal relief to cities and towns by giving municipal leaders the same flexibility as the state to control their soaring health care costs and preserve vital municipal jobs.
On April 25, MTF President Michael Widmer presented the MBTA’s financial status at a meeting organized by A Better City. With a growing operating deficit, massive debt, and faltering infrastructure, the T faces major fiscal challenges in the upcoming years.
Links:
[1] http://www.masstaxpayers.org/publications/health_care/20120113/crushing_burden_municipal_retiree_health_care_liabilities
[2] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/NewsRelease_RetireeHealthCareLiabilities.pdf
[3] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/OPEB Report-10 Cities.pdf
[4] http://www.masstaxpayers.org/publications/public_finance/revenue/20111212/mtf_forecast_weakening_jobs_picture_slows_revenue_growt
[5] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/2013 Revenue Forecast.pdf
[6] http://www.masstaxpayers.org/publications/public_finance/municipal/20111207/municipal_financial_data_41st_edition
[7] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/MFD 41 News Release.pdf
[8] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/mfd_41.pdf
[9] http://www.masstaxpayers.org/publications/pensions/20110914/foundation_urges_passage_meaningful_pension_reforms
[10] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/Pension Letter on Senate Proposal.pdf
[11] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/PERAC Pension Forum_Sept 2011_v1.pdf
[12] http://www.masstaxpayers.org/publications/health_care/20110723/boston_globe_oped_dont_overreach_health_cuts
[13] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/OPED.pdf
[14] http://www.masstaxpayers.org/publications/education/20110718/revenues_undocumented_immigrants_paying_instate_rates_update_2006_re
[15] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/In-state tuition.pdf
[16] http://www.masstaxpayers.org/publications/health_care/20110614/mtf_analysis_enhanced_retiree_benefits_would_undercut_municipal_he
[17] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/MTF_analysis_retiree_costs.pdf
[18] http://www.masstaxpayers.org/publications/health_care/20110510/mtf_analysis_shows_huge_savings_cities_and_towns_under_health_plan
[19] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/MTF Municipal Health Spreadsheet_Press Release.pdf
[20] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/Municipal Health Costs by Community.xls
[21] http://www.masstaxpayers.org/publications/health_care/20110503/broad_coalition_commends_house_leadership_passage_municipal_health
[22] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/support_for_muni_health_reform.pdf
[23] http://www.masstaxpayers.org/publications/transportation/20110425/mbtas_debt_trap
[24] http://www.masstaxpayers.org/sites/masstaxpayers.org/files/mbta_rev1.pdf
[25] http://www.masstaxpayers.org/publications?page=1
[26] http://www.masstaxpayers.org/publications?page=2
[27] http://www.masstaxpayers.org/publications?page=3
[28] http://www.masstaxpayers.org/publications?page=4
[29] http://www.masstaxpayers.org/publications?page=5
[30] http://www.masstaxpayers.org/publications?page=6
[31] http://www.masstaxpayers.org/publications?page=7
[32] http://www.masstaxpayers.org/publications?page=8
[33] http://www.masstaxpayers.org/publications?page=16
