BOSTON – Boston Mayor Michelle Wu reached an agreement with business leaders last week on a temporary tax increase on commercial real estate. But those same business leaders expressed frustration that Wu was unwilling to cut the city’s spending instead.
“We have been very clear that we are entering times of economic challenge,” Wu said in an interview on WBZ-TV’s Sunday morning edition of “Keller At Large.”
Temporary tax increase on commercial real estate
Just last week, key Boston business leaders reluctantly agreed to back a proposal from Wu for a temporary increase in the tax rate on commercial real estate to address the decline in values of many of those properties caused by the rise of pandemic-era work to make amends. work-from-home phenomenon, which continues and is taking a heavy toll on the valuation of downtown office buildings.
Wu calls it “a short-term solution to a very specific problem.”
Even as they agreed to support her plan, business leaders publicly complained about the mayor’s unwillingness to cut city spending, with this year’s budget including a 7% increase (nearly double that of the state budget) and hundreds of new measures. rents.
Post-pandemic economy
While suggesting that future budget growth could be smaller, Wu defended the city’s spending as a necessary response to post-pandemic economic realities.
“Many cities around even the Commonwealth and certainly across the country have had major shortages when it comes to bus drivers or 911 calls, food workers in the schools,” Wu said. “These are positions that are becoming increasingly difficult to fill, including as a lifeguard. We’ve been able to close workforce gaps because we’ve adapted to the marketplace and ensured our city workers can put food on the table for their own families. , and that is why we can provide the highest quality services to residents.”
Wu said she understands the risks of raising operating costs to a level where we are not competitive with other cities in the global economy.
“There is no comparison to Boston when it comes to healthcare, life sciences and technology, and we are committed to working with the state to make climate technology truly the next frontier where Boston will claim that mantle,” Wu said. “There are so many companies now in data, AI and the next wave of innovation, where, with our universities, with the workforce and the talent that we have here, we are well positioned.”
Massachusetts Ballot Question 2
Voting question no. 2which would eliminate the passage of the MCAS test as a high school graduation requirement statewide, Wu expressed concern about the measure’s potential passage, even as she declined to endorse a specific vote.
“We need high standards. That’s what sets Massachusetts apart is that employers, residents and communities know they can trust the accuracy, quality and education in our school system, and we must continue to close gaps in it. to revolve around specific types of testing as high-stakes testing,” Wu said. “The challenge here with this ballot question is that while the MCAS does not capture the specific needs of every student, and there are challenges to having that as the only standard, no alternative has been proposed as part of this.”
