Cambridge Day does not endorse candidates or positions. Views expressed in this column are those of the writer.
The article on the impending possible shutoff for SNAP benefits should be a wake-up call. The national economy is facing uncertainty and serious challenges, and even if the shutdown ends, Cambridge is not immune to a serious financial upheaval. Our city’s residents deserve an honest assessment of just how challenging the situation is. All campaign season candidates have been promoting new ideas, expansions of programs, and many ways to spend more money. And often a blithe response to the funding question is just raise taxes or get more money in PILOT (Payments in Lieu of Taxes) from Harvard or MIT.
The reality is the city already had a tough budget year this year – with the city operating budget growth about half its average of the past ten years. And still the real estate tax bills collectively rose 8%, including a very large 22% hike in commercial tax rates, to cover the 8% increase in tax revenues needed to balance the budget. Next year’s budget promises to be even more challenging. Growth will be even slower, valuations will continue to decline for some commercial properties, and costs will continue to increase far beyond past increases.
Meanwhile, Harvard, Cambridge’s largest employer, has had layoffs, cut the graduate student admission dramatically, and faces an estimated $300 million additional endowment tax bill. MIT has also taken drastic steps and faces $150 million more in endowment tax. Biotech is on edge with the cuts to basic research and scientific discovery that has fueled the economies of our state and turbo-charged our city’s finances.
Many residents struggle with higher prices and lost jobs and cannot easily absorb tax increases. There are of course many who can, but raising taxes must be done for all, not just some. And increased property taxes might raise rents, especially in the hundreds of naturally occurring affordable housing properties scattered throughout the city.
The city just announced plans to review all consultant contracts, out of state travel, and city operations for possible savings. At this time, let’s make sure we are aware of the financial headwinds, and be sensitive to the need for fiscal restraint. That will allow us to continue to serve our residents, including the most vulnerable.
The writer is a Cambridge city councillor.
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The Cambridge economy is threatened by national issues
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Cambridge Day does not endorse candidates or positions. Views expressed in this column are those of the writer.
The article on the impending possible shutoff for SNAP benefits should be a wake-up call. The national economy is facing uncertainty and serious challenges, and even if the shutdown ends, Cambridge is not immune to a serious financial upheaval. Our city’s residents deserve an honest assessment of just how challenging the situation is. All campaign season candidates have been promoting new ideas, expansions of programs, and many ways to spend more money. And often a blithe response to the funding question is just raise taxes or get more money in PILOT (Payments in Lieu of Taxes) from Harvard or MIT.
The reality is the city already had a tough budget year this year – with the city operating budget growth about half its average of the past ten years. And still the real estate tax bills collectively rose 8%, including a very large 22% hike in commercial tax rates, to cover the 8% increase in tax revenues needed to balance the budget. Next year’s budget promises to be even more challenging. Growth will be even slower, valuations will continue to decline for some commercial properties, and costs will continue to increase far beyond past increases.
Meanwhile, Harvard, Cambridge’s largest employer, has had layoffs, cut the graduate student admission dramatically, and faces an estimated $300 million additional endowment tax bill. MIT has also taken drastic steps and faces $150 million more in endowment tax. Biotech is on edge with the cuts to basic research and scientific discovery that has fueled the economies of our state and turbo-charged our city’s finances.
Many residents struggle with higher prices and lost jobs and cannot easily absorb tax increases. There are of course many who can, but raising taxes must be done for all, not just some. And increased property taxes might raise rents, especially in the hundreds of naturally occurring affordable housing properties scattered throughout the city.
The city just announced plans to review all consultant contracts, out of state travel, and city operations for possible savings. At this time, let’s make sure we are aware of the financial headwinds, and be sensitive to the need for fiscal restraint. That will allow us to continue to serve our residents, including the most vulnerable.
The writer is a Cambridge city councillor.
Like this:
Related Stories
A stronger
Please consider making a financial contribution to maintain, expand and improve Cambridge Day.
We are now a 501(c)3 nonprofit and all donations are tax deductible.
Please consider a recurring contribution.