COMMONWEALTH OF MASSACHUSETTS

STATE SENATOR
MICHAEL O. MOORE

SECOND WORCESTER DISTRICT
State House, Room 518, Boston, MA  02133 (617) 722-1485

May 19, 2009

Michael O. Moore, Harriette Chandler, Senate Pass Municipal Relief Package

BOSTON —  State Senators Michael O. Moore (D-Millbury) and Harriette Chandler (D-Worcester) announced on Tuesday the 19th that the State Senate passed a Municipal Relief package in an effort to help cities and towns get through one of the worst economies seen in generations.    These options, if adopted by all cities and towns throughout the Commonwealth, could generate up to $218 million in revenue.

The Municipal Relief package, which includes a Local Option Meals Tax, Local Option Rooms Tax, Telecommunications Property Tax, Municipal Health Compromise and a Regionalization incentive, provides the necessary tools for cities and towns to be able to generate revenue and help restore important local services that have been cut due to the current fiscal crisis.

• The Local Option Meals Tax allows municipalities to adopt a local option meals tax of 2 percent and for any municipality with three or fewer restaurants to receive funding from the Small Community Relief Fund. 
• The Local Option Rooms Tax increases the local room occupancy tax by 2 percent. 
• The Telecommunications Tax eliminates the property tax exemption on poles and wires located on public property and public rights-of-way.
• The Municipal Health Compromise gives cities and towns the ability to enact real reforms like a plan design for health care that compels municipalities to either keep their health plan below the Group Insurance Commission benchmark or join the GIC.
• The Regionalization Incentive helps cities and towns develop plans to share resources and save money as well as establish a fund to provide grants and loans that two or more municipalities can apply for jointly to help cover technical, transitional, feasibility and planning costs associated with regionalizing and sharing services.

“The Municipal Relief Package provides options for cities and towns to establish a course of action for generating the necessary revenue needed to restore funding for important local services and preserve jobs,” said Senator Moore.  “I’m happy the Senate was willing to adopt this provision that allows local officials to determine what options would best help them mitigate the impact of the current fiscal crisis.”

“This bill provides our cities and towns with tools they can use to help relieve the financial burdens that are increasingly impacting local budgets, and is another important reform undertaken by the Senate this session,” said Senator Chandler.

“The City of Worcester has been looking for ways to maintain and preserve funds for important services and for the jobs of the people who provide these important services to the city such as the Department of Public Works, the Worcester Fire Department, The Worcester Police Department as well as Educational Services,” said Worcester City Councilor Joe Petty.

"The Municipal Relief Package which the Senate has passed will allow the City of Worcester and other municipalities in the Commonwealth the ability to better control their own destiny and reduce their dependency on state aid by being able to raise revenue locally through the tools provided by the passage of this package", said Worcester City Councilor Kate Toomey. "I am grateful that the Senate adopted this reasonable solution to assist cities and towns during this unprecedented financial decline.”

“This action by the Senate, and especially by our local and engaged Senators Moore and Chandler, provides Worcester government  with vital revenue options to help reduce the devastating budget impacts on our quality of life,” stated Worcester City Councilor Barbara Haller.

 

###

>> Back to Senator Moore's Press Release Page