Like other communities across the Commonwealth,(your town)’s ability to deliver essential services is seriously threatened by the current economic crisis.  Recovery from the economic downturn of 2002 is not complete and we are entering into a doldrums that appears could last for several years. Confronted with decreases in both local aid and local receipts, towns and cities will have no choice but to  cut services. The vitality of our communities depends on strong public safety, quality education, well maintained roads and a variety of cultural and recreation programs. These services are what draw jobs to Massachusetts; keeping MA an attractive and competitive state in which to do business is critical.

The revenue piece of the Governor’s economic recovery plan gives towns and cities tools needed to lessen the impact of the economic downturn. We urge immediate passage of the following measures

Increases of 1% in the statewide meals tax and motel/hotel room occupancy taxes as well as the option for communities to levy an additional 1% increase on either or both. The Governor’s proposal strikes a balance. Distributing the penny increase in the meals and occupancy tax on the basis of local aid shares gives an estimated $150 million annually back to the towns and cities, while granting communities the local option of generating additional revenue by a means other than increasing property taxes.

Closing of the loophole that allows telecommunications companies to avoid property taxes on poles, wires and equipment.  Passage of the legislation will take the $50 million annual tax break and put it to work in towns and cities.

Remove the sales tax exemption for candy, soda and alcohol, worth an estimated $120 million and expand the bottle bill to include non-carbonated beverages, generating an additional $20 million.

Timing is critical. Local budgets are being prepared and will be approved within weeks at Town meetings across the Commonwealth. Towns and cities need the assurance that revenue options will be available to bolster local services and forestall drastic cuts.