I was startled to see on my new tax bill that my condo had increased in valuation by 15% since last year. Since the actual taxes are a result of how much my property is worth compared to what other properties are worth, my taxes, thank goodness, didn't go up 15%; "only" 9%. For people whose property is worth at least $100,000, there is an additional surcharge (1% of the taxes that are assessed) for the local share of the Community Preservation Act.
In the meantime, condo fees where I live just went up 6.25%.
These increases come at a time when University employees haven't seen a penny of the raise the Commonwealth has owed us since July as part of negotiated contracts. The Governor's office said late last year that if the contracts weren't funded by the end of December, they would be moot and we'd have to go back to the bargaining table. We're all hoping that isn't true, that the legislature won't let it happen, and/or that our lawyers are good enough to keep it from happening. But when we do finally get our raises, they won't be large; in my union, they are for 3%, plus a chance at some money for "merit."
Do I think I'm worse off than everyone else? No; I think my position is somewhat typical for employed people who live in Amherst. Better off, probably, than most retired people (at least I'm owed some increase). And certainly better off than people who've lost their jobs or had their hours cut back. Although I may be speaking prematurely on that, since the University has yet to decide what positions to cut as a result of budgetary shortfalls. There are several programs in place to let people volunteer for early retirement or to reduce their hours while still keeping their benefits (the idea is to give people a way to save money and jobs for each other if people want to do that). But these measures are not expected to save enough money to avoid layoffs altogether.
The University is still the largest employer in Western Massachusetts, so it has a profound effect on the regional economy. Many of the other employers around here are also public institutions (courts, community colleges, etc.) or receive all or much of their funding from public grants or contracts. As the recession cuts into both business and tax receipts, budgets for next year are going to be worse not better. The chorus of groups and agencies pointing out what people are going to be hurt and what services lost due to budget cuts is just beginning.
This will be true at the town level, too; it's just taking longer to happen. Partly that's because of good fiscal management; we did not pass a local tax-cutting measure in misguided euphoria as the state's voters did to the income tax a little over a year ago. Also, local taxes are property taxes, not income taxes, and are much more stable year to year. (They also have significant disadvantages, such as penalizing people whose property increases in value under them but whose income doesn't increase, making it increasingly to pay the taxes.) Never the less, about half our collective local expenses are paid for with state aid of various kinds, and that aid is based on those tax receipts that are going down, not up.
The state's assistance will decrease. Taxpayers will be under financial pressure, whether from being laid off or working fewer hours, having no raises, seeing pensions eliminated, owning fewer or less valuable stocks, or other increased expenses, like health care. Clearly, the town cannot raise local taxes to make up the difference. Something several somethings - will have to give.
I was on the Select Board the last time this happened. That one hit us harder at first, because the state cut local aid after cities and towns had already passed their budgets. Making cuts was very difficult, and the process exposed some less than attractive qualities in some people who were ready to leap to conspiracy theories or character attacks in disagreeing over budgetary priorities. I marvel at the willingness of fellow citizens to run for office or accept appointments to committees to do this hard work, and I empathize with them.