Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
MMA President and Franklin Town Administrator Jamie Hellen and members of the MMA staff meet with U.S. Rep. Katherine Clark last month in Washington, D.C., while attending the National League of Cities Congressional Cities Conference there. Hellen provided testimony to Massachusetts’ legislative delegation related to federal funding and policy impacts at the municipal level. Pictured here, left to right, are Hellen, MMA Legislative Director Dave Koffman, MMA Legislative Analyst Ali DiMatteo, Clark, MMA Deputy Legislative Director Jackie Lavender Bird, and legislative analysts Josie Ahlberg and Adrienne Núñez.
An MMA delegation visited Capitol Hill in Washington in March and focused its advocacy efforts on an issue of importance to all cities and towns nationwide: continuation of the tax-exempt status for municipal bonds.
Tax-exempt bonds are the primary mechanism used by state and local governments to raise capital to finance a wide range of important public projects. The interest earned by investors is exempt from federal income taxes, which makes them an appealing investment and serves to constrain the interest rates paid by borrowers — in this case, cities and towns.
Tax-exempt municipal bonds have existed since 1913, but are being eyed by some in Congress as a potential “pay-for” item for the Trump administration’s tax cut agenda. The National League of Cities has identified the issue as a top advocacy priority for the current Congress.
The cost savings of eliminating the tax exemption for municipal bonds is estimated to be $250 billion over 10 years, but the cost impact for cities and towns would be an estimated $820 billion. Since this cost would be passed onto local taxpayers, the average household could see an increase of $6,550 over that same 10-year period, according to the Government Finance Officers Association.
The MMA will continue to monitor developments at the federal level related to municipal bonds, and is working with the NLC’s federal advocacy team to highlight the importance of maintaining their tax-exempt status.
The MMA delegation, including MMA President and Franklin Town Administrator Jamie Hellen, visited Washington for the NLC’s Congressional City Conference, held March 10 through 12.