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

Congress has injected trillions of dollars in COVID-19 relief into the economy in recent weeks. But what about the city and town governments that pay to pave our roads and educate our kids? 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 MA, 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.

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