To the editor:
As Marblehead approaches another budget override, the Massachusetts Municipal Association’s recent report, A Perfect Storm, reminds us that all town budget deficits are alike (but strong town budgets are strong in their own way for the Tolstoy fans out there).
Across Eastern Massachusetts, costs are outrunning revenues. Proposition 2 ½ limits property tax increases to 2.5 percent a year. But since 2021, prices in the Greater Boston area rose by 6.9%, according to the U.S. Bureau of Labor Statistics. That gap is just not sustainable in perpetuity.
The question is what to do about it? Underneath the numbers and spreadsheet complexity, there are three variables that drive Marblehead’s budget: The breadth of the tax base, the property tax rate and service delivery levels. That is it.
Marblehead does not want to broaden the tax base and grow its way out of the problem, so that leaves us with a zero-sum pie carving exercise between tax increases vs. service cuts.
Expect wishful thinking. Blame the state? Marblehead already gets over $1 million in unrestricted state aid, and Beacon Hill is squeezed as high housing costs push workers out of state.
Make the town find “efficiencies?” With spending power trailing prices, we’ve been trimming for years. If you see real savings, the 1,100+ line budget is online — bring your ideas! But remember that nickels and dimes won’t replace dollars.
And, of course, there will be pressure on the school budget. Paul Craney, executive director of the anti-government Massachusetts Fiscal Alliance, recently described school funding as the biggest “budget buster” in municipal finances. Not, for example, “a crucial contribution to our children’s future” or “a covenant we owe to the young.” But rather he said school funding is a “budget buster.” I’m sure we’ll hear some of that too between now and Town Meeting.
Make sure you practice your pie carving this Thanksgiving folks.
Nick Ward
Rolleston Court
