COVID-19 will likely lead to a recession. Can Massachusetts municipal budgets handle one?

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Congress has injected trillions of dollars in COVID-19 relief into the economy in recent weeks. But small city and town governments may need even more help to balance budgets during the coming recession. Using municipalities’ experiences during the Great Recession, a new policy brief examines the likely impact of COVID-19 on local property taxes, as well as political implications for state aid. We list the municipal revenues by category among the least tax-reliant communities in Massachusetts, show the trajectory of tax revenue growth rate in Massachusetts state and local governments, and rank stabilization fund assets per capita among Massachusetts Gateway Cities. For more about municipal finance in a post-COVID-19 world, read the policy brief.

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