About 15 town employees in Freetown, including five teachers and two patrolmen, are looking for new jobs after the resounding defeat of a Proposition 2 1/2 override this week.

Voters rejected all eight ballot questions - set out "menu" style and totaling $740,000 - in the July 21 special election. The effects of the cuts will be felt across the small town.

"There is no denying that this is really a struggling economy and Freetown is caught dead in the middle of it," said Board of Selectmen chairwoman Lisa Pacheco. "Everybody's waiting for the pot of gold at the end of the rainbow. There is no pot of gold and there is no rainbow."

Freetown Elementary School will lose 12 employees and class sizes will rise to about 28 students in a room, according to principal Robert L. Frizelle. A recently built library, computer, and science lab will remain locked when school reopens this fall, he said.

"The quality of education will not be what we've experienced in the past. The children are the ones who will experience it from the spike in class sizes," he said.

Public safety services will be diminished with two fewer patrolmen, and ambulance transport will be reduced, Pacheco said.

It's been 30 years since California passed Proposition 13 to cap property tax assessments, sparking a nationwide trend. A local think tank has taken a look at what's happened since, and concludes that Prop 13-style laws aren't a good idea.

The Lincoln Institute of Land Policy says Prop 13-style laws are "deeply flawed" and can actually result in property tax increases for some homeowners.

Here's how: if the tax rate increases, even while the assessment is capped, or if the market value of homes is reset when homeowners move, the bill can go up.

The report by the Lincoln Institute of Land Policy notes that the Prop 13-style limits can mean similar homes wind up with starkly different property tax bills. A copy of the report can be found here.

In a press release, the Lincoln Institute said: "An assessment limit benefits homeowners in neighborhoods with fast-growing values, but does little for those where values are stagnant or declining. Reduced assessments are no guarantee of lower bills if rates increase to make up for the diminished tax base."

“Severing the connection between property values and property taxes creates a new set of problems,” said Joan Youngman, senior fellow and chair of the Department of Valuation and Taxation at the Lincoln Institute. “It can result in different tax bills for identical homes. Families may be reluctant to move – even if they need more space or would like to be closer to work – if a tax based on acquisition value will rise dramatically with a change of ownership. And it undermines the transparency and accountability of the property tax system as a whole.”

The authors recommended other tax relief measures, including "circuit breaker programs" that tie taxes to the homeowner's ability to pay.

The recent rejection of a Dedham senior center brings to mind our coverage last year of the new centers popping up in the western suburbs.

Last year, Megan Woolhouse reported that: "Communities across Boston's western suburbs are building new senior centers or expanding existing ones, spending millions in taxpayer dollars to create havens for a fast-growing 60-plus population. Framingham, Franklin, and Medfield are among the communities building or expanding centers. Natick, Needham, and Northborough are preparing to hire architects to draw up designs.''

Here is the rest of the story.

Last weekend's solid vote in Dedham against funding an $8.65 million senior center sent a resounding message to officials that they have to revise the plan and try again - at their own risk.

"It's clear that a need has been identified for a senior center," said Town Administrator William Keegan. "Now the issue is whether we can create a proposal that will garner the majority's support."

The proposed facility, which would have served the town's 5,000-plus residents age 60 and older, has been a subject of discussion for two decades, with at least five locations considered, and rejected.

Obviously, the economy is not the best, Keegan said, but "the cost of building a facility will increase the longer we delay. It will just cost more in the long run."

At the same time, he said, "the need for the facility will not go away."

Read more here.

Rather than scrap a new teachers contract that took 18 months to hammer out, Weymouth school officials have a different strategy for addressing the budget crisis: Ask voters to approve Proposition 2 1/2 tax increases for the first time.

The only other attempt, 20 years ago, was soundly defeated.

Despite the history, the School Committee is asking the Town Council to approve putting three funding options requiring overrides before voters:

$4.58 million to restore the school budget to the original request the committee made at the start of the budget process on Feb. 14;

$2.97 million to restore both the 2 percent budget reduction voted in earlier by the committee and the 3.4 percent additional cut requested by Mayor Sue Kay to cover the schools' share of the health insurance deficit;

Or $1.857 million, which would cover just the 3.4 percent in additional cuts sought by Kay.

Read more here.

In the suburbs west of Boston, voters in 13 communities approved property-tax increases this spring, while those in nine other communities said no to requests to override Proposition 2 1/2.

A Globe review of election results in the 22 communities found voters more likely to approve raising taxes for capital improvement projects and equipment purchases - through debt-exclusion overrides - than they were to OK permanent tax increases to close gaps in municipal or school operating budgets.

In all nine of the communities that turned down override proposals, the extra tax money would have been used to bolster budgets. Such general, or operational, overrides passed in five of the 13 communities that approved tax increases. In eight of these communities, the overrides called for bringing in additional revenue only for capital improvements or new equipment.

Read the full story here and the results here.

East Bridgewater voters will consider a $1.25 million permanent tax increase, or override, when they cast their ballots during this November’s Presidential Election.

If it passes, a Capital Stabilization Fund would be established and used to cover the cost of capital projects. Selectmen say voters will pay less under such an arrangement, in the long run, than they will by funding separate debt exclusions for each project.

The calculated impact of the override on the owner of an average home in town is about $260. The voters would ultimately control use of the Capital Stabilization money, since no project would be paid for through that account unless it was first approved by Town Meeting. Last year, voters considered this same question and defeated it.

Christine Legere

After 20 years of discussions, and at least four potential locations, Dedham residents soundly rejected a proposal Saturday to fund an $8.65 million senior center.

It's the first failed debt exclusion override in at least 12 years, said Town Clerk Paul Munchbach. The 1,928 to 1,572 vote drew 22.1 percent of the town's registered voters. Approval of the facility planned for Bridge Street would have raised the average tax bill by $61 a year.

Dedham's Council on Aging will continue to offer programs and services in rented space in Traditions of Dedham, a senior housing complex on Washington Street, said Selectman Chairman James MacDonald.

After two decades of discussions, and at least four potential locations, a vote Saturday determines if residents here want to raise property taxes for a new $8.65 million senior center, or continue serving the elderly in three rented rooms in a senior housing complex.

"We are one of the few towns that does not have a senior center,'' said Town Clerk Paul Munchbach, predicting at least 20 percent of Dedham voters will turn out. "I was a Selectman 10 years ago and it was a top issue then."

As of a noon deadline, about 325 absentee ballots had come in, he said.

A majority of Town Meeting voters agreed in May to put the proposed plan to a vote.

The debt-exclusion override would pay to build a 19,600-square-foot facility near the Dexter School on Route 109. Average tax bills would rise about $61 a year, but plateau down the road as other debt is retired, said Selectmen Chairman James MacDonald. Polls are open from 7 a.m. to 8 p.m.

"Like everything else, we have two sides, but the debate has been healthy,'' MacDonald said."This is the first time that the voters have a chance to weigh in. I think people are going to get out and make an informed decision."

Dedham's Council on Aging currently serves at least 5,000 residents age 60 and older in 2,400-square-feet (cq) of space at Traditions of Dedham on Washington Street.

There are 12 parking spaces, and no bathroom or kitchen, officials said.

Information from the Executive Office of Elder Affairs shows there are more than 300 senior and drop-in centers around the Commonwealth -- ranging from a room or meal site in a town hall to stand-alone multipurpose facilities – for the state's 1.1 million senior citizens.

Among towns near Dedham, Randolph and Milton have free-standing senior facilities, Canton and Needham share space in senior housing facilities and Walpole's Senior Center is attached to the town's municipal building, officials said.

Anyone who needs more information, or a ride to the polls, is urged to call the COA at 781-326-1650.

-- Michele Morgan Bolton

In Ipswich, voters approved a property tax increase to provide more money for the schools by a solid margin. In Beverly, a similar request drew a decisive thumbs down from residents.

In towns and cities north of Boston, proposed property tax hikes drew a mixed reception at the ballot box this spring. Eighteen ballot proposals were considered in 10 communities, with 10 passing and eight failing. The successful votes included five overrides and five debt exclusions. Rejected were three overrides and five debt exclusions.

A state law, Proposition 2 1/2 caps the annual increase in a community's property taxes at 2.5 percent plus revenue from new growth. An override permanently raises the tax cap; a debt exclusion raises the cap temporarily to repay debt; a capital exclusion raises the cap for one year to pay for capital projects.

Read more here.

A sharp increase in property taxes along with public employee layoffs and reduced services appear to be coming in Quincy.

The City Council on Monday night approved a $3 million cut in Mayor Thomas P. Koch's original $233.9 million spending plan for the fiscal year that starts July 1.

Koch had called his initial proposal a level-services budget that would have boosted taxes $600 a year for the average homeowner. Administration officials said the budget approved by the council is a reasonable compromise.

"It's certainly going to mean a reduction in manpower for the city, but we are hopeful we can maintain a level of services the citizens expect and deserve," Chris Walker, spokesman for Koch, said after the council vote. "But make no mistake. It's going to be difficult."

Read more here.

The rural town of Pepperell on the edge of the New Hampshire border has never had a Proposition 2 1/2 override vote since the state law limiting property tax increases went into effect in 1982. But with the town facing a bleak financial situation this season, the years of respite are over.

Residents are preparing to vote next Monday on a $1 million override that has some seniors "terrified" about being forced out of town, said Sharon Mercurio, the local Council on Aging director. On top of that, officials are already projecting a $1.8 million deficit the following year - an even worse financial predicament than the current budget cycle - if the proposal to raise the local tax does not pass next week.

The town has passed numerous debt-exclusion measures in the past for capital projects that don't permanently raise the levy ceiling, but Monday's override vote has longer-term implications. Under the Proposition 2 1/2 statute, towns cannot raise property taxes by more than 2.5 percent annually, factoring in new growth, unless voters sanction an override at a Town Meeting and at the polls. The proposal before voters seeks to increase the town's levy limit by $1 million.

Pepperell's predicament is a familiar one across the state this year, as some 40 communities seek overrides to increase their levy ceilings amid hard times, said Geoff Beckwith, director of the Massachusetts Municipal Association. Of the 34 or so communities that have acted on overrides so far this year, about half of them have passed, he said.

The difficult fiscal situations have pushed a number of communities like Pepperell into override mode for the first time, illustrating an unhealthy economic movement across the state, added Beckwith. "Reliance on overrides and increasing reliance on property taxes is not a good trend for communities," he said.

Read more here.

The message from Bridgewater taxpayers could not have been more clear: The answer is no.

For the third time in a year, voters last Saturday rejected a tax increase as a way out of their town's financial woes.

"I think the community has spoken clearly," said regional School Committee member Joseph Gillis. "It's the fourth override to fail in five years."

The $1.36 million request to override Proposition 2 1/2, the state property tax cap, was soundly defeated, 3,529 to 2,024, with just over 37 percent of the town's registered voters casting ballots on Saturday. Two previous requests, in June and September of last year, lost by much smaller margins.

Read more here.

The Swampscott Board of Selectmen has decided not to schedule a special election on two proposed capital exclusions.

The annual Town Meeting in May appropriated $300,000 for a new fire truck and $150,000 for road improvements, subject to passage of capital exclusions - one-year tax increases - at a special election to be held prior to Sept. 15. But according to Selectman Adam Forman, the Fire Department said $300,000 would not be enough to buy a fire truck.

On the recommendation of the town's Capital Improvements Committee, selectmen opted not to seek a townwide vote for the truck, and Forman said selectmen decided against scheduling a special election on the capital exclusion for the road improvements only because it was not clear if Town Meeting would have approved.

Forman said the funding requests will likely come before a special Town Meeting this fall with a revised figure for the fire truck, followed by a special election for the capital exclusions.

-- John Laidler

As expected, both debt exclusions for school projects sailed through in a special election held Tuesday in Marblehead.

Residents voted 2,464-1,213 for the $21.8 million exclusion to refurbish the Village School. The count was 2,365-1,311 for $395,000 to study options for the Glover School, including the district's proposal to build a new school replacing the Glover and Eveleth schools.

The exclusion for the Village School, a 20-year bond, will add $100 and the Glover exclusion, a five-year-bond, will add $5.54 to the annual tax bill for a median home valued at $541,190.

The state's School Building Authority has agreed to pay 40 percent of the costs of both projects.

The Marblehead vote brings to a close override season in the northern suburbs. Five other communities - Hamilton, Ipswich, Rockport, Rowley, and Wenham - passed tax increases. Georgetown passed an override for the fire department, but voted down debt exclusions for other town projects.

Overrides in Beverly, Groveland, and Winthrop failed.

For a recap of the votes, see Sunday's Globe North.

Plainville voters Monday night approved a $650,000 Proposition 2 1/2 override, 724 to 714. The override will add about $209 to the average single-family home property tax bill.

Marblehead voters today will decide whether the town should temporarily raise taxes for two school building projects.

At a special election, residents will consider debt exclusions for $21.8 million to overhaul the Village School, and $395,000 to study options for the Glover School, including the district's proposal to build a new school replacing the Glover and Eveleth schools.

Read more here.

Bridgewater has a dismal record on overrides - three defeats in the last five years - but town officials hope the outcome of the ballot vote on a $1.36 million proposal this Saturday will be different.

The tax increase would supply $100,000 to the Fire Department for civilian dispatchers, $40,000 to restore the Town Planner position, $275,000 to the School Department to address class sizes and maintain educational assistants, and $326,000 to the public library to allow the operation to be open 63 hours per week. The final $600,000 would go into cash reserves.

Both the selectmen and the Advisory Board support the override. Advisory Board Chairman Michael Berolini has assured voters the increase would place the town in a solid financial position until 2015. Officials have characterized the increase as a "fiscally responsible override" since it is accompanied by a longterm plan.

Opponents have been vocal."As far as I'm concerned, 'a fiscally responsible override' is an oxymoron," said Mildred Hasson, president of the Citizens for Fiscal Responsibility. The polls, located at the old high school building on Mt. Prospect Street, will be open from 7 a.m. to 8 p.m.

-- Chris Legere

As town by town fights over Prop 2 1/2 continue in Massachusetts, some states are cutting taxes or resorting to strategies that cut some taxes but raise others, the Wall Street Journal reports.

According to this story, New York Gov. David Paterson last week launched a bid to make New York the latest state to roll back property taxes. Already this year, statehouses in Indiana and Florida have passed new property-tax curbs.

The Journal continues:

But many of these property-tax initiatives, while politically popular, mask a hidden truth: They are likely to lead to increases in other kinds of taxes.

So-called "swaps," under which property taxes are cut and made up for by levies elsewhere, have been popular in statehouses. Idaho, South Carolina and Texas passed their own versions in 2006. But even when states don't make such deals outright, they may in the long run resort to tax increases to plug revenue holes.

The national movement against property taxes dates to the 1970s. But the most recent real-estate bubble has given it more potency in certain regions of the country, like the New York City suburbs. Median property taxes paid in New York's Westchester, Nassau, and Rockland counties all ranked in the top 10 nationally for 2006, according to the nonprofit Tax Foundation.

This March, Republican Indiana Gov. Mitch Daniels signed legislation to cut property taxes by an average of 30% and, starting in 2010, to cap the taxes at 1% of assessed value. The state will assume some program costs formerly borne by localities and pay for them by boosting its sales tax to 7% from 6%.

But growth in state sales-tax revenue has slowed to a virtual standstill as consumers adjust to the pain of the housing and credit crunch, according to Nicholas Johnson, director of the State Fiscal Project at the Center on Budget and Policy Priorities. That could lead states to look to tax increases elsewhere to pick up the slack -- for instance, by broadening the sales-tax base to tax services like health-club memberships or spa services, he said.

That is exactly what critics of new property-tax curbs in Florida are afraid of. Politicians "did not fully appreciate the $11 billion bill left to state governments, which is going to require unprecedented tax increases or cuts in services," says Dominic M. Calabro, president and CEO of Florida TaxWatch, a nonprofit taxpayer group representing businesses and individual taxpayers.

Overrides were defeated in Winthrop and Franklin Tuesday night, while three tax hikes passed in Holbrook.

In Winthrop, a special election on a $1.55 million override went down by a 3,027-1,594 vote. The funds would have been used for schools, the police and fire departments, public works, and planning and community development.

In the school department, 14.6 full-time teaching positions, as well as custodial and secretarial jobs, are likely to be cut. Two jobs in the Police Department and 2.5 in the Department of Public Works also are likely to go. Read more here.
The tally was closer in Franklin, where votes turned down a $2.8 million override by a 4,290-3,402 margin. According to town officials, 43.5 teaching positions may now be eliminated.

Holbrook voters said yes to $395,128 for schools by a 1,442-909 margin; yes to the Council on Aging for $61,892 (1,442-909); and yes to the library for $356,989 (1,456-888).

In April, Holbrook voters rejected a $2.8 million override request that would have added $595 in property taxes for the owner of a $302,000 house. The $814,009 approved Tuesday night is expected to cost the average taxpayer an additional $172. Read more here.

-- John Laidler