By
Stephanie Miceli - June 30, 2010
Fiscal Year 2011, to commence on July 1, totals $2.3
billion, an increase of $59.4 million or 2.5 percent from the FY10 budget. The
increase is attributed to continuing growth in property taxes, Boston's largest
source of revenue.
Reuters reported a city task force is constructing a plan
requiring colleges and other nonprofit organizations to make annual payments
equivalent to 25 percent of what they would owe if they paid property taxes.
Also contributing to the overall growth is the increase
in the hotel excise tax and the .75 percent local option meals tax. However, the
City's second largest source of revenue, state aid, is projected to decline by
more than $20 million from the FY10 figures, totaling about $250.6 million. All
other revenue categories combined, including pension, interest on investments,
and payments in lieu of taxes are expected to increase by $16.2 million.
The state legislature warned against the expected four
percent reductions to government aid and educational funding in January,
allowing the City to accordingly budget--and protect itself against the possible
repercussions.
This has entailed changes such as shutting down several
of Boston's printing businesses. As a result, the city must outsource items
from business cards to parking signage--a move that will save the city an
estimated $800,000 in FY11 and $1 million annually in years to come, say city
officials. The budget as it stands proposes increasing permit fees and parking
fines to prevent the lay-off of up to 42 school custodians, which will bring an
extra $1.6 million to the city.
Citing job creation and youth and neighborhood
development as its top priorities, the FY11 budget is supported by $2.41
billion in recurring revenue and $6.0 million in non-recurring revenue.
Boston will spend about $300 million in health insurance
premiums for city employees and retirees, accounting for over 12 percent of the
total City budget. The City will also allocate $35 million to the Other Post
Employment Benefits Liability Trust Fund, a fraction of the required $373
million annual allocation.
City council is set to vote on Mayor Menino's recommended budget today.
(Photo Courtesy: AP Images)
