jackiedoherty.org

News, schools, and views from a uniquely Lowell perspective
21st June 2007

Governor’s rally for cities and towns

posted in Local Politics, Money Matters |

Today, Margaret and I joined Governor Patrick’s rally to build momentum around his Municipal Partnership Act (MPA). If supported by legislators, MPA will provide options to help cities reduce costs and gain funds. As activists for better schools who have seen how funding services on the backs of property owners does not work, we had to be there. We were joined at the State House by our own Mayor Bill Martin and hundreds of people from organizations such as the Mass. Assoc. of School Committees, Stand for Children, the Suburban Coalition, and the Mass. Public Health Assoc. (For a complete list of endorsements, see here.) 

 

 Somerville Mayor Joseph Curtatone, president of the Mass. Mayors’ Assoc., spoke at the rally, sending this message to legislators: “If you can’t provide more local aid, than give us the tools to shape our own fiscal destiny.” With that, he nailed the gist of the Act: providing options for cities to save money and raise revenue—beyond property taxes. MPA would eliminate a 92-year-old law that gives tax breaks to telecommunications companies, and make them pay their share just like any other business. Despite being the only state that has this tax exemption for phone companies, we have some of the highest rates in the country. Governor Patrick noted in his speech today that from 2003-2005 while property taxes rose all over the state, the phone companies’ tax bills went down by 46% and yet, the costs to consumers went up by 30%. (This change alone would bring about $800K to Lowell.) In addition, MPA allows for cities to adopt an optional sales tax of up to 2% on restaurant meals and 1% on hotel bills. For what amounts to a $1 charge on a $50 meal, it would bring about $2 million to Lowell. Our total meals tax rate of 7% would be the same or lower than New Hampshire (8%), Rhode Island, Vermont and many other states. Also, with MPA, cities could save money by joining the state’s Group Insurance Commission, where the state’s health insurance costs have risen at half the rate of municipal costs. (In Lowell, our health insurance went up 15% this year alone.). Low-performing pension plans would also switch to the state’s high-performing plan—one of the best in the country. As the governor noted, last year 90 communities went for overrides; this year, it is up to 60 so far. Some of us have seen our property taxes double in the last 10 years, and yet as a community, we continue to struggle to be able to fund essential services such as good schools, comprehensive police and fire departments, and infrastructure improvements that directly impact our quality of life. As the governor said today, “We’re not talking about breaking the bank. We’re talking about modernizing our revenue stream.” I’d say it’s about time cities and towns got some relief.     Stand supporters:  a swath of yellow in the crowd; Tim Murray speaks out for cities and towns. 

 

There are currently 3 responses to “Governor’s rally for cities and towns”

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  1. 1 On June 22nd, 2007, Ryan said:

    Thanks Jackie.

    I had been intending to go to this, but something got in the way. I wish I could have been there!

    Glad you had a good time. The MPA is such an important step in getting past the over reliance on Property Taxes. For some cities and towns, it will give them millions and millions of extra funds. For others, there’s still work to do, but we can’t ignore the passage of this bill in getting there.

  2. 2 On June 22nd, 2007, HowieJames said:

    Yup I was there too,they did a great job stating their case,hopefully the delegation is listening and will support the Governor…

  3. 3 On June 22nd, 2007, Margaret said:

    I just want to add that the turnout was great, the Nurses’ Hall at the State House was jammed with people. From my vantage point on one of the staircases, I noted a swath of yellow t-shirts worn by Stand for Children supporters. Another group, called “Neighbor to Neighbor,” had banners, signs and posters (which I couldn’t read without my glasses). The governor needs this kind of grassroots turnout for his initiatives; as he said, it is our ‘willingness to show up’ that fuels his mandate for change. I was really glad we we able to be there.

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