Flynn: Boston needs compromise, not blame game

Although the calendar says December, residents may feel as though they’re watching the movie “Groundhog Day” with Bill Murray and reliving the same day over and over again. For the third time, the City Administration is looking to push their legislation at the Massachusetts State House to raise commercial property taxes beyond the state limit.

In my view, raising property taxes significantly on homeowners and businesses is not the answer. It’s time to demonstrate fiscal discipline, accountability, transparency, and positive leadership. In December of 2025, with tax bills sent out shortly, blaming the Massachusetts State Senate, or pitting residents against businesses, may be good politics – but it’s not in the long-term best interest of the city or going to help residents. Boston works best when we work together.

In October of 2024, and in the months before, I wrote about my opposition to the City Administration’s property tax shift proposal. I believe the city did not consider a number of other alternative options recommended by fiscal watchdogs and concerned residents. With falling commercial property values, over 70% dependence on property taxes, and over 50% of our land absorbed by large, nonprofit organizations in the PILOT program — we have long-term fiscal challenges to address. For these reasons, for over a year and a half, I called for cutting spending due to an 8% increase in FY25, implementing a hiring freeze, and tapping budget surplus revenue over $1 billion.

My resolution on establishing a Blue Ribbon Commission on Downtown office vacancies and our heavy reliance on property taxes unanimously passed the Boston City Council twice. We are only now starting to discuss budget cuts and hiring freezes. Moreover, despite several financial experts calling attention to the heart of the issue being our tax structure — that Boston is more reliant on property taxes than any other city in the country — we have spent the last 20 months avoiding that long-term issue while focused solely on the administration’s proposal.

For years, I discussed the lasting impacts of work from home policies and the lack of foot traffic on small businesses. As the District 2 Councilor who also represents parts of Downtown Boston and the South Boston Waterfront, I studied this issue and our struggling Downtown office market — when 20.1% of offices became vacant with post-pandemic challenges and shifts to remote work. At that time, as Council president, I advocated to shift back toward in-person city business and hearings, with a hybrid option for persons with disabilities in mind. In 2023, I held a hearing at the Council where panelist after panelist from the administration testified that despite concerning reports on downtown office vacancies and foot traffic, there was no cause for alarm when it came to this new normal.

In February 2024, a joint study authored by the Boston Policy Institute and the Center for State Policy Analysis at Tufts University indicated that Downtown Boston’s vacant office buildings could decrease in value 30% by 2029, and lead to the City of Boston collecting $1.5 billion less in revenue over the next five years, or annual tax revenues $500 million below our current levels. Our heavy dependence on property taxes may have allowed us to weather previous storms like the Great Recession; but work from home and falling commercial property values has made it unsustainable. The city administration initially downplayed that report and attacked its credibility, even after filing a home rule petition, as “false information” and that, “the city is not facing a billion dollar shortfall.” Today, they report we are on track for their revised worst case scenarios.

I continue to believe that the administration’s plan is not the right solution, and exacerbating current issues in an already struggling industry would make Boston a less desirable place to live and conduct business, and further drive down property values and our tax base. Cities are growing or they are dying. It’s a fine line, and we need to proceed with caution.

For years, I called for the establishment of a Blue-Ribbon Commission made up of business leaders, labor leaders, government officials, relevant experts and neighborhood organizations to address this issue of Downtown Boston office vacancies and our revenue concerns. I also called for a review of the Payment In Lieu of Taxes (PILOT) Program with large nonprofits in the City of Boston. Our colleges, universities, and hospitals are crown jewels for the city in terms of the employment, research, care and services they provide; however, they now absorb over 50% of our city and continue to expand. This was simply an unsustainable formula even prior to our recent revenue concerns.

During the budget process in May 2024, the Greater Boston Chamber of Commerce noted that when Mayor Menino’s administration implemented their tax shift, which the current legislation is based on, they exercised restraint with a modest budget increase of 0.55%, while being forced to eliminate hundreds of positions, along with a hiring freeze. At that time, the Chamber of Commerce cautioned that 8% budget growth, while also increasing the commercial tax burden, would exacerbate these issues for already struggling downtown businesses. The Boston Municipal Research Bureau offered their own recommendations, including tapping the city’s reserve funds, controlling the budget and school spending, reviewing employee levels, revenue diversification, surplus property, and increasing the residential exemption.

In the final analysis, it’s not too late to listen to them, reverse course, and collaborate over coffee with State House colleagues on measures that could provide tax relief for residents. It’s important to note the critical leadership of the Massachusetts State Senate, who should not be blamed for the financial challenges of the city. Boston works best when we work together.

Ed Flynn is a Boston City Councilor representing District 2

 

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