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Home > Implementation Strategies > Strengthen Municipal Finance > B. Control municipalities’ fixed costs

B. Control municipalities’ fixed costs: health care, pensions, debt

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Fixed costs are the most rapidly increasing component of municipal budgets.  According to the Municipal Finance Task Force, in Massachusetts municipalities “the [combined] spending areas of education, fixed costs and debt service have consumed approximately 80% of annual budget growth since 1987, with education alone taking up 52% of new budget growth.” 

6)    Control municipal health care costs through participation in group plans and Medicare

7)    Safeguard and restore basic personnel management powers


8)    Reform underperforming municipal pension programs


9)    Reform public employee pension system to eliminate exceptions, loopholes, and unfunded liabilities  

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