Category: Bureau Updates

The City of Boston’s payment-in-lieu-of-taxes (PILOT) program for large private tax-exempt institutions resulted in total payments of $27.9M in FY15, an increase of $12.8M or 84.4% over the actual receipts in FY11, the last year of the previous program. The FY15 total is also $1.9M over the prior year’s payments. However, receipts as a percent of requests have fallen from 90.7% in FY12 to 68.6% in FY15. Separate from this program is the Massport PILOT payment of $17.9M in FY15. (continued . . .)

Mayor Walsh’s housing plan envisions increasing the amount of City-controlled affordable housing resources by $20M annually. Legislative modification to the current Linkage Program was one general suggestion offered. Also being discussed is change to the City’s Inclusionary Development Program (IDP). Any modification to the Linkage or IDP programs should be part of a more comprehensive plan to support affordable and middle income housing and should not be addressed separately. (continued . . .)

The recently released final Cherry Sheet state aid estimates project an additional $1.2M in net state aid revenue for the City’s $2.9B FY16 operational budget. That will help the City, but the state budget continues a pattern of local aid growth for Boston being outpaced by growing state assessments, which reduces available revenue for the City. Over the past ten years, Boston’s state aid, net of teacher pension payments, has decreased by $41.4M or 8.9%, while state assessments increased by $120.6M or 105.4%. The result has been a decline of net state aid (revenue less assessments) available for operations of $161.9M or 46.2%. (continued . . .)

The state Department of Elementary and Secondary Education has announced that an additional 668 Commonwealth charter school seats will be available for Boston students. These seats will bring the number of charter school seats approved for Boston to 11,544 by allowing expansion in existing charter schools and the potential creation of an additional charter school for Boston resident students. Much debate has focused on the effect charter expansion has on the BPS budget. However, while the increased charter tuition assessment has reduced the City’s available operational revenues, the BPS budget has maintained a constant percentage of the City’s overall budget. Reason…(continued . . .)