Facing economic uncertainty, city and town officials brace for impact

AARP thanks the Massachusetts House for passing H.4706, An Act to Improve Massachusetts Home Care, creating the state’s first Family Caregiver Commission. During National Family Caregivers Month, we urge the Senate to pass this vital bill and give the state’s 1.4 million caregivers the support they deserve. Learn more: aarp.org/ma

Roughly halfway through the fiscal year that started in July, tax collections are generally in line with projections of slow growth, Gov. Maura Healey’s budget maestro, Matt Gorzkowicz, told city and town officials gathered at the State House.

September’s numbers had been a little bit lower than anticipated, October’s had been a little bit higher, enough to justify the release of $125 million in earmarked spending that the administration initially held back.

 “We’ll see this ebb and flow,” Gorzkowicz said. “We’re not going to panic if it’s a little below, we’re not going to get excited if it’s a little over.”

His even-keeled delivery won over Peabody’s Beverley Griffin Dunne, who has spent more than 20 years on the school committee. “Every time you speak my blood pressure goes down,” Dunne said.

Asterisks and caveats apply, as Gorzkowicz acknowledged “headwinds.” Others indicated some hypertension in the months ahead. Medford Mayor Breanna Lungo-Koehn said she was initially planning to note her 10% increase in health insurance costs, but as she went around the table before the meeting, she heard others have faced 39% and 36% hikes.

Her increase comes as she’ll be dealing with the cost of lead pipe removal, water and sewer infrastructure, and municipal building maintenance, funded by a multimillion dollar bond. “My stress at night is funding the debt that’s going to come in 2027,” she said.

Brendan Sweeney, who was also at the table, brought a unique perspective: He’s a councilor in coastal Beverly, and an assistant town administrator in rural Boxford. Both municipalities are projecting deficits in fiscal year 2027, he said, while maintaining level services. (In Beverly, the projected deficit is $4 million, while Boxford’s stands at several hundred thousand dollars.)

He said the state should be providing more state aid. The Massachusetts Municipal Association noted in a recent report that what’s known as unrestricted general government aid to cities and towns is 25% lower than in 2002, adjusted for inflation.

The same report also took aim at Prop 2 ½, the state law that caps how much local officials can raise through property taxes. The law creates a “revenue crunch,” according to the MMA.

The debate over Prop 2 ½ aside – Sweeney called it the “only real tool we have statewide to keep property taxes in check” – cities and towns are overall pressing for more flexibility. Multiple local officials are supporting the Healey-Driscoll proposal, known as the Municipal Empowerment Act, to allow them to get more tax revenue out of meals and hotel stays.

Jill Hai, whose Lexington select board is facing a $4 million budget gap, said the town raised $500,000 off the meals tax, and it could raise another $170,000 under the legislation.

The bill, which has been broken up and sent to several legislative committees, also includes an auto excise tax increase, which has drawn fire from Healey’s GOP opponents. “While I personally, as a city councilor, probably wouldn't vote for that increase in Beverly, I understand why there is a push to give municipal officials those options,” Sweeney said. “I think at the end of the day, local officials know their communities best.”

Thanks to all who responded to yesterday’s trivia question. Myra Kraft backed Chelsea Rep. Richie Voke for speaker over Mattapan’s Tom Finneran. When Finneran later opposed public funding for Robert Kraft’s football stadium, some viewed it as payback for the speakership battle. Have a trivia item about Finneran? Send it along and I’ll share with the class: [email protected].

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Big Pharma has a new scheme that will make them even more money: undermining patients' bargaining power and blaming anyone who gets in their way. If we want to solve the Rx cost crisis, we need to hold Big Pharma accountable. To find out how, go to saveourbenefitsma.org.

8:00 | Lt. Gov. Kim Driscoll attends the Destination Excellence 2025 Tourism Awards. | Hawthorne Hotel, 18 Washington Square, Salem

10:00 | The Black Economic Council of Massachusetts (BECMA) hosts a gathering on its “next chapter” involving its permanent headquarters in Boston’s Nubian Square.  Attendees include Nicole Obi, CEO and president; Segun Idowu, Mayor Michelle Wu’s chief of economic opportunity; City Council President Ruthzee Louijeune, and Rep. Chynah Tyler, among others. | 257 Roxbury Street, Boston

12:00 | Retailers Association of Massachusetts holds its 107th annual meeting, featuring remarks from Economic Development Secretary Eric Paley. He plans to outline the administration’s economic priorities, followed by a fireside chat with Blue Cross Blue Shield of Mass. President & CEO Sarah Iselin and an awards ceremony. | Conference Center at Bentley University, Waltham

1:00 | Gov. Maura Healey announces state report detailing increased post-college earnings for students who attended a Mass. public college or university. | Grand Staircase, State House, Boston

6:00 | Auditor Diana DiZoglio participates in a town hall for the Cambridge Committee for Transparency and Accountability. | St. James’s Episcopal Church, 1991 Massachusetts Ave, Cambridge

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Findings from the multi-decade analysis show how $147 million in investments resulted in 3,225 units of housing, 756 early childcare slots, $6.95M in home equity for a group of homeowners at the brink of foreclosure — LEARN MORE

SOUTHIE SENATOR’S BROTHER: Andrew Collins, the twin brother of Sen. Nick Collins and a real estate developer, has faced off against upset investors in state and federal court, with a portfolio of warehouses and a self-storage facility in South Boston at the center of the matter. The two brothers say the senator is not involved in his twin’s real estate dealings. – Boston Globe

TAIWAN TRIP: Taiwanese government officials paid for New England lawmakers to visit in trips included a stay at a five-star hotel in Taipei. – WBUR

WORKPLACE VIOLENCE BILL: House lawmakers are advancing legislation meant to tackle violence in health care workplaces. The bill is the result of a collaboration between the Massachusetts Health and Hospital Association, the Mass. Nurses Association and SEIU 1199.  – State House News Service

RENT CONTROL: Appearing on “Boston Public Radio,” Boston Mayor Michelle Wu expressed qualms with the proposed rent control ballot initiative, calling it restrictive and wishing it offered more flexibility to let cities make their own decisions on how to stabilize rents. – GBH News

SPRINGFIELD TAXES: Springfield officials proposed a tax rate that would increase the average home bill by $288. If Mayor Domenic Sarno deploys $2 million, that would lower the increase by just $30. – MassLive

SANDS OF TIME: A $10 million project added sand to Sandwich’s beach to help fight erosion, and was expected to last five to seven years. But roughly half of the sand is already gone. – NBC Boston

NORFOLK DA: Adam Deitch, a former federal prosecutor who handled a federal probe into the state-level prosecution of Karen Read, announced he’s running for Norfolk County district attorney. Michael Morrissey, the incumbent and a former state senator, hasn’t indicated whether he plans to run for reelection. Several other candidates have declared they’re running, Deitch is the first one from Quincy. – Boston Globe

RADIOACTIVE VAPOR: Holtec Decommissioning International would faces new restrictions on venting radioactive vapor at the former Pilgrim nuclear power plan under a bill proposed by Sen. Dylan Fernandes. – Plymouth Independent

POLICE OVERSIGHT: The civilian review board of Boston’s Office of Police Accountability and Transparency criticized police officers and BPD employees for refusing to be interviewed or cooperate with investigations. – MassLive

MICHELIN STAR: The Michelin Guide awarded a star to 311 Omakase, a restaurant in Boston’s South End. Michelin, which also released a list of recommended restaurants in the Boston area, reaches financial agreements with local tourism boards as part of their operation. – Boston Business Journal

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