Myths and Facts About CPA
Myth #1 - We can't count on the millions of dollars in state matching funds.
Myth #2 - Adopting CPA will be bad for our schools.
Myth #3 - Adopting CPA will make it harder to pass another tax increase to maintain basic town and school services.
Myth #4 - The CPA property tax surcharge of 3% will cause people to leave Brookline because they can't afford living here.
Myth #5 - Elected town officials will not have control over the revenues raised by the CPA.
Myth #6 - Once Brookline adopts the CPA, we can never get rid of it.
Myth #1 - We can't count on the millions of dollars in state matching funds.
FACT: CPA state matching funds are one of the most secure types of state funding available. Over the last 5 years, cities and towns experienced significant cuts in virtually every type of state aid. A notable exception is matching funds paid to communities that have adopted CPA. CPA funds are not subject to annual appropriation-- certain registry of deeds filing fees are deposited directly into a state CPA trust fund, reserved by law for CPA communities.
Every community that has adopted CPA has received a 100% match of the amount raised locally ever since the CPA was enacted 6 years ago. If Brookline had adopted CPA at the 3% surcharge level in 2002 when we first considered it, we would have received close to $15,000,000 in state matching funds by now. Instead, Brookline residents have paid over $2,000,000 in registry of deeds filing fees to fund CPA projects in 111 other cities and towns, and we have received $0.
The amount of state matching funds each CPA community receives is expected to decrease in the coming years because of projected decreases in registry of deeds filing fee revenues and increases in the number of CPA communities sharing in the state matching funds available. Using very conservative projections, Brookline's CPA Study Committee estimated that the Town would still receive over $12 million in state matching funds over the first 6 years, or 55% of the amount raised during the same period of time-- an excellent return on investment.
Furthermore the 111 cities and towns that have already adopted the CPA are putting pressure on the legislature to increase the amount of state revenues dedicated to the CPA trust fund. If this effort is successful and/or the projections are too conservative, Brookline could receive significantly more than the $12 million in state matching funds projected by the Committee.
Myth #2 - Adopting CPA will be bad for our schools.
FACT: CPA will provide direct and indirect benefits to our schools and to our children.
First, a number of our school buildings are historic and therefore eligible for CPA funding. For example, the Devotion School is desperately in need of repair. A less generous state school building assistance program and significant cost pressures on the town and school operating budgets threaten delays. CPA funds for the historic portion of the Devotion project will enable the Town to make the building safe and functional for our children more quickly. Moreover, the state CPA matching funds could cover roughly one third of the costs, a significant bonus over a standard Proposition 2 ½ tax increase.
Second, CPA will enable us to increase and improve our supply of playing fields and playgrounds to give our school-aged kids the outdoor resources they need and deserve. Our supply of playing fields and playgrounds is woefully inadequate. A recent Town study showed Brookline needs 6 more athletic fields to meet current demand. The soccer season this past spring was basically ruined because heavy rains soaked our low-lying fields.
Third, CPA will enable us to make needed improvements to our public housing supply and to create new affordable housing units. State and Federal cuts in this area have been particularly severe. Brookline's lack of affordable housing threatens the diversity of our student population and the unique learning experience that diversity provides. In addition, the Town's public housing is in disrepair, which endangers the health and safety of our low-income school kids. Furthermore we will have a stronger, more connected community if our teachers can live here and participate in our community outside of school.
Finally, CPA will fund CPA-eligible capital improvement projects the Town is already planning. As a result, Town funds will be available for other school operating and capital needs. In the face of severe cost pressures and relatively stagnant revenues, many in Brookline feel that we'll need a Proposition 2 1/2 override tax increase in the next few years just to maintain basic services. Although it will not totally replace any such tax increase, CPA will reduce the need, and will do so in a way that is more progressive and that does not burden the taxpayers with the full cost of the services.
Myth #3 - Adopting CPA will make it harder to pass another tax increase to maintain basic town and school services.
FACT: In those Massachusetts communities with a tax override question on the ballot both before and after adopting CPA, more passed their overrides after adopting CPA than before-- evidence that voters are willing to approve tax increases for demonstrated needs.
The opposition to CPA point to Lexington as a community that did not pass an override tax increase for schools after adopting CPA. They are deceiving Brookline voters, however, by not telling the whole story. Unlike Brookline, Lexington has passed a number of tax increases for schools and other town services in recent years. This year voters were not willing to pass a tax increase for the schools because they were upset about apparent mismanagement of the schools after learning of a budgetary shortfall of approximately $500,000. Also, although this year's tax increase for the schools did not pass in Lexington, they did actually pass two other tax overrides for various municipal purposes (including schools!) after adopting CPA earlier this year.
Myth #4 - The CPA property tax surcharge of 3% will cause people to leave Brookline because they can't afford living here.
FACT: The CPA surcharge tax will cost the median Brookline homeowner only $104 per year, or the cost of a cup of coffee a week. Common sense tells us that for virtually all Brookline taxpayers the cost of one cup of coffee a week is not going to pose a financial hardship.
There are some in our community, however, for whom every dollar counts. Under the proposal before Brookline's voters, these taxpayers will be totally exempt from the CPA surcharge. Unlike any other property tax the Town is able to impose, CPA has generous exemptions from the surcharge tax for low-income individuals and families and for moderate-income seniors aged 60 or over. For example, a family of 4 with income of less than $66,150 is totally exempt and a senior couple with income of less than $67,280 is also totally exempt.
Even Brookline taxpayers who are not exempt receive an additional $100,000 exemption from their assessed value before calculating their CPA surcharge. The 3% surcharge is not a surcharge on assessed value; it is a surcharge on the tax bill. To find out what the CPA will cost you, click the calculator on this website.
Myth #5 - Elected town officials will not have control over the revenues raised by the CPA.
FACT: Brookline's elected Town Meeting Members must approve the expenditure of every single dollar of both state and local CPA revenues. Town Meeting will vote individually on projects recommended by a special CPA committee composed of a representative of each of the following: Board of Selectmen; School Committee; Advisory Committee; Conservation Commission, Parks and Recreation Commission; Housing Authority; Housing Advisory Board; Preservation Commission; and Planning Board. The members of these boards and committees are either elected directly by Brookline voters or appointed by elected officials.
The CPA committee's recommendations of projects will undergo a thorough review involving significant input from citizens and town government. The committee is also required to integrate its work with the Town's regular operating and capital budget-making process.
Myth #6 - Once Brookline adopts the CPA, we can never get rid of it.
FACT: The Town may revoke its adoption of CPA any time following the 5-year anniversary of its adoption. Revocation requires the same steps as adoption-- a majority vote of Town Meeting, then a majority vote of Brookline's voters at an election. If CPA is revoked, the 3% CPA surcharge tax will cease to be levied. If, however, the Town has any CPA bonds outstanding at the time, the surcharge tax would remain in place only to the extent necessary to pay the outstanding CPA bonds.
It should also be noted that the Town can take the same steps to amend the amount of the CPA surcharge tax any time. If state matching funds are less than expected, or if the Town for any other reason decides it no longer wants to participate in CPA, we could effectively revoke it by simply amending the surcharge tax to an infinitesimal amount (e.g., 0.0000000001%).