Cities, towns already have fiscal relief tool
RE "HELPING towns help themselves" (Editorial, April 2): The Globe was critical of House Speaker Robert DeLeo for not doing more to help cities and towns deal with their budget problems. While I do not deny some legitimacy in this criticism, several of our state officials, including DeLeo and Senate President Therese Murray, deserve credit for putting in place legislation that can provide cities and towns with tens of millions dollars to help meet their current budget crises.
An analysis of real estate tax delinquencies in Massachusetts indicates that the total may exceed $500 million. When water and sewer and other liened obligations are added, the number may approach $1 billion.
The power to sell these obligations to responsible investors was created in 2005. Selling these delinquencies through competitive bidding has allowed them to generate the cash necessary to head off painful layoffs and other cuts. Tax lien purchasers benefit by earning interest as they wait for redemption, thus giving taxpayers time to pay. If a disagreement should arise over action taken against a taxpayer, the community can reacquire the obligation. Meanwhile, taxpayers who pay their obligations on time are not subjected to additional taxes to subsidize those who do not.
Lieutenant Governor Tim Murray was the first mayor in the Commonwealth to authorize the sale of delinquent taxes. This has generated several million dollars for Worcester over the past four years. Lawrence, Methuen, Hopkinton, and Haverhill are following this example.
It is a shame that this tool is not better understood, for it has the power to meaningfully relieve pressure on our local communities.
Steve Morison
Marblehead 