Why Municipal Fiscal Stability Matters for Massachusetts

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Massachusetts municipalities are navigating what the MMA has rightly called a “Perfect Storm.” Rising costs, rigid revenue limits under Proposition 2½, and decades of eroding state aid have placed cities and towns under significant financial pressure. Despite growing service demands, municipal spending growth in the Commonwealth continues to lag behind national averages, forcing local governments to do more with less. As the MMA’s report makes clear, the fiscal health of our communities is not just a local concern. It directly impacts the Commonwealth’s competitiveness, affordability, and long term success.

The report outlines a clear path forward that includes restoring adequate and reliable state aid, providing municipalities with greater property tax flexibility, expanding local revenue options, and modernizing municipal practices. These recommendations are rooted in data and designed to stabilize budgets while preserving essential public services. With these pressures mounting, it is more important than ever for residents to stay informed and hold elected officials accountable for how public dollars are allocated. Strong municipalities mean a stronger Massachusetts.