Taxes On Taxes On Taxes

I previously wrote two articles advocating that Newton voters should VOTE NO on all three Proposition 2.5 override and debt exclusion ballot questions based on Newton’s structural spending problem due to the lavish compensation and pay raises

it bestows on its unions and bureaucrats. Newton has already passed two override packages in 2002 and 2013 and does not need a third one.

The first override Newton passed was in April 2002, for $12 Million/year, which took effect in Fiscal Year 2003. This override was an operating override and resulted in a permanent increase in Newton’s annual property tax levy limit of $12 Million. Because the levy limit was increased by $12 Million in 2003, Newton taxpayers have had to pay 2.5% annual property tax growth on top of that $12 Million override, which has resulted in the 2002 override tax increase becoming an effective tax increase of $19.7 Million for 2023.

The second override package Newton passed took place in March 2013. Newton passed an $8.4 Million annual operating override tax increase and an estimated $3 Million annual in debt exclusion override tax increases for the Angier and Cabot school buildings. Newton taxpayers have had to pay 2.5% annual property tax growth on top of the $8.4 Million operating override, which resulted in the 2013 override tax increase becoming an effective operating tax increase of $10.5 Million for 2023, $3.2 Million for the debt exclusions and $13.7 Million in total.

If Newton passes all three override ballot questions, Newton taxpayers will be paying up to $49 Million in estimated embedded property tax overrides for 2024 based on the combined amount of the 2002, 2013 and 2023 override packages, plus the 2.5% annual property tax growth compounded on the previous override tax increases. This represents 11.7% of estimated property tax revenues for 2024, and almost $1,600 per taxpaying household.

Newton taxpayers should be disappointed that the Newton City Council voted 21-1 to send the override tax increase package to the voters. While at first glance it was encouraging to see that a majority of Newton City Councilors voted against the 2023 budget, they did so for the wrong reasons (they wanted more money in the budget and in particular the schools). Given that the city councilors have the right under law to vote to reduce appropriation requests from the Mayor, including appropriation requests pertaining to the school department and that the Mayor cannot veto City Council actions on the budget, then Newton City Councilors should use those powers in order to protect the interest of taxpayers ahead of the political class rather than forcing taxpayers to pay taxes upon taxes upon taxes.