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> Special Sections > Special Features > INCOME TAX REFERENDUM MAY SLASH LOCAL AID
INCOME TAX REFERENDUM MAY SLASH LOCAL AIDBy Katelyn Gendron
Reminder Assistant Editor
In 2002, 45 percent of voters elected to eliminate the Massachusetts state income tax.
Although the effort was defeated, the Committee for Small Government is aiming to have their initiative to End the Income Tax in Massachusetts on the ballot again this November. This organization claims that by eliminating the state's income tax, Massachusetts residents will maintain $3,600 of their take-home paychecks each year, according to their Web site, www.smallgovernmentact.org.
While a bump in each resident's paycheck may seem like a good idea, the Western Massachusetts Mayors' Association is asking residents to fully understand the ramifications of such a decision on the local level.
Easthampton Mayor Michael Tautznik, the facilitator of the Western Massachusetts Mayors' Association, explained that the elimination of the state's income tax would also mean a drastic reduction in state aid to municipalities.
He said that based on each municipalities total receipts from fiscal year 2008 information obtained from the Massachusetts Department of Revenue Municipal Data Bank communities would see a 40 percent reduction in state aid. Such a reduction would mean municipalities would be forced to cut between 10.6 and 23.4 percent of services or raise the property tax levy between 18.6 and 85.8 percent.
"Since 2003, we have seen very, very tight [fiscal] times," Tautznik said. "In every other community in the [Pioneer] Valley municipal leaders have gone to look for more bang for their buck and to be burdened with this loss [of state aid] is unimaginable!"
According to the figures Tautznik presented to the Western Massachusetts Mayors' Association last month, Agawam will lose $8.2 million in state aid and be forced to reduce services by 10.6 percent or increase the property tax levy by 19.6 percent.
Chicopee will lose $24.5 million in aid and be forced to cut services by 16.5 percent or increase the property tax levy by 44.2 percent.
Holyoke will lose $33.2 million in aid and be forced to reduce services by 22.9 percent or raise the property tax levy by 77.9 percent.
Springfield is projected to lose $131.6 million and will have to reduce services by 23.4 percent or raise the property tax levy by 85.8 percent.
West Springfield will experience a loss of $9.2 million and be forced to cut services by 10.7 percent or raise the property tax levy by 18.6 percent.
Westfield is projected to lose $18.1 million in aid and be forced to reduce services by 14.8 percent or raise the property tax levy by 36.3 percent.
Springfield Mayor Domenic Sarno said the impact on his city would be "devastating."
"It is no exaggeration when I say city life as we know it would cease to exist," he said. "If people believe they can eliminate state income tax without feeling the devastating effects it would have on their quality of life they are sadly mistaken. These dollars pay for road repairs, libraries, infrastructure upgrades, fire and police services, parks and every other aspect of basic services."
He noted that an override of Proposition 2 1/2 would be a necessity in order to recoup the loss in state aid, which comprises approximately 62 percent of the city's total fiscal budget.
Holyoke Mayor Michael Sullivan called the initiative to Eliminate the Income Tax "fool's gold." He added that cutting the income tax would mean that residents would be forced to absorb the costs of services in other ways such as paying increased fees.
Sullivan said that despite 45 percent of voters voting in favor of eliminating the income tax in 2002, he believes this time around voters will truly understand the ramifications of their vote.
"Voters are getting much more savvy with these harebrain proposals," Sullivan said. "When you make these dramatic cuts you'll make government smaller but won't make communities better."
Agawam Mayor Susan Dawson said if the initiative is passed, residents in her town will be forced to "go without" certain services until government officials can find a means to recoup the lost aid.
She noted that the most important task for the Western Massachusetts Mayors' Association right now is to raise awareness so that voters go to the polls in November fully knowledgeable about the consequences of their vote.
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