Helping towns help themselves
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IF TOWNS and cities are going to maintain public services during the current downturn, they are going to need access to the kind of new revenue that the Legislature has always been unwilling to grant them. This week or next, a special legislative commission on municipal finances is expected to break new ground by calling for local-option taxes on meals and lodging, as well as the elimination of the property-tax exemption for telecommunications gear. But already, House Speaker Robert DeLeo is throwing cold water on some of its better ideas.
DeLeo jumped in even before the commission could make its case, saying on Monday that, though representatives might approve the telecommunications tax, he sensed little support for letting towns and cities piggy-back on the state's meals and lodging taxes. Governor Patrick's budget proposes letting communities add a penny to the two taxes, for an estimated take of $150 million a year. The Massachusetts Municipal Association estimates the telecommunications tax could bring communities as much as $76 million.
Municipalities will need the new funds as they face stagnant or declining state aid and weakened Lottery revenues. In remarks Tuesday to the Greater Boston Chamber of Commerce, DeLeo made it clear he would resist relying on the state's rainy day fund to avoid deep budget cuts. Since the state will be in no position to bail out local communities, the Legislature should at least help them fend for themselves.
Towns and cities need a champion on Beacon Hill who will support local-option taxes, not put his finger to the wind and declare them unpopular. Of course new taxes are unpopular. They are also necessary, and in this case they are fair.
