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Newton for Everyone: The impact of housing development on municipal budgets

On May 30, Newton for Everyone presented an event entitled “Can New Development Help School Budgets in Cities Like Newton?at Congregation Dorshei Tzedek in West Newton. The event featured presentations by Elise Rapoza, senior research associate at MassINC, and Luc Shuster, executive director of Boston Indicators. Ms Rapoza has studied the fiscal impact of housing in Massachusetts and described the study.  

Ms Rapoza said that schools account for 47% of municipal budgets statewide and that education has become more expensive, adding further strain to municipal budgets.  The main focus of her presentation was a study by Ms. Rapoza and Michael Goodman on the fiscal impact of new housing in Massachusetts (MassBenchmarks Journal, July 2019, pp. 21-26). The researchers analyzed 2014-2016 and calculated the property and excise tax revenue due to new housing and compared that to the cost of providing additional education in grades K-12.  The study concluded that, on a state-wide average, each unit of housing created a net annual benefit of $1,610 (in 2024 dollars) of revenue, in excess of education costs. She stressed that this was an overall state-wide average figure, noting that housing developments in some cities had a net negative impact on budgets, depending on the demographics and other factors. 

Mr Shuster began by acknowledging some of the reasons that people oppose new housing, including in places with progressive reputations like Newton. He cited expectations of disruptions from construction, along with the nuisance effects of more cars on traffic and parking.  He then shifted to potential benefits he perceived, including the revitalization of business and the environmental benefits of multifamily housing.  Mr. Shuster spoke personally of his desire to live in a diverse community and said that the lack of housing in Massachusetts had led to the departure of younger people and young families.  

The session ended with questions and comments from the in-person and virtual audiences. Among the event’s attendees were City Councilors Susan Albright, Alison Leary, Rick Lipof, Bill Humphrey, Andrea Kelley, Andreae Downs, City Council President Marc Loredo, and School Committee member Emily Prenner.  

(See video recording of the meeting.)

Newton For Everyone is a pro-housing organization, which advocates increased housing opportunities for people of all ages, means, backgrounds, and abilities in Newton.

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