MMA Exec.Dir. Adam Chapdelaine, with Mayor Ruthanne Fuller, discusses the release “A Perfect Storm: Cities and Towns Face Historic Fiscal Pressures” (photo: Bruce Henderson
The Massachusetts Municipal Association (MMA) joined Mayor Ruthanne Fuller at City Hall on Thursday to announce a new report warning that cities and towns across Massachusetts are nearing a fiscal breaking point.
The report, A Perfect Storm: Cities and Towns Face Historic Fiscal Pressures, was produced in partnership with Tufts University Center for State Policy Analysis. It found that rising costs and inflation are outpacing the limited revenue growth available to Massachusetts cities and towns, leaving many struggling to fund basic services.
MMA Executive Director Adam Chapdelaine said the findings reveal the depth of a long-building crisis, driven by rising costs for schools, public safety, and infrastructure alongside strict limits on how much revenue municipalities can raise under Proposition 2½, the state law that caps annual property tax increases at 2.5% (plus increases due to new development) unless voters approve an override. He emphasized that the stakes extend beyond budgets and balance sheets.
“Local government services are the foundation to the livability of Massachusetts and the quality of life that we all get to enjoy,” Chapdelaine said.
Mayor Fuller on Newton’s finances
Mayor Fuller, who once served as president of the MMA, said the report’s findings reflect what Newton and other municipalities across Massachusetts are already experiencing.
“The walls are stretched thin,” Fuller said. “The headway is facing the edge, and sectors in the Commonwealth are resulting in a storm across this wonderful Massachusetts.”
Newton holds the highest possible bond rating (Aaa) from Moody’s Investors Service — a sign of strong fiscal management. “We’ve been very fiscally responsible,” she told Fig City News. But even with that…