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Boston Chamber
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        • ...
          Limited Series
          Transportation First | State of the Airport

          The Transportation First Series offers a platform to discuss the challenges faced by our region, with the input of experts and changemakers.

          06/12/2025

          2:45pm - 4:30pm

          Hybrid | Greater Boston Chamber of Commerce

          arrow-go
          Read More
        • ...
          Public Policy
          2025 Government Affairs Forum | Senator Edward J. Markey

          Hear from Senator Edward J. Markey, a consumer champion and leader on energy, environmental protection, and telecommunications policy.

          06/16/2025

          9:45am - 11:00am

          Boston Marriott Long Wharf

          arrow-go
          Read More
        • ...
          Women's Network
          A Fireside Chat with Dr. Melissa Gilliam, Boston University

          This Women's Network event will offer an insightful conversation with Dr. Melissa Gilliam, the 11th President of Boston University and both the first woman and the first Black woman to lead the institution since its founding in 1869.

          06/18/2025

          11:30am - 1:00pm

          Fairmont Copley Plaza

          arrow-go
          Read More
  • Learning & Development
        • Learning & Development

          • Overview
          • Call for Nominations
          • Insights
        • Transformational DEI Certificate

          This program is in redevelopment. Click this page for DEI resources.

          Read More
          Women’s Leadership Program

          Our Women’s Leadership Program enables you to take your leadership to the next level by arming you with the most in-demand leadership toolkit.

          Read More
          Boston’s Future Leaders

          Our Boston’s Future Leaders (BFL) program provides emerging leaders with a socially conscious and civically engaged leadership toolkit, as well as the opportunity to apply their knowledge through experiential assignments.

          Read More
          Authentic Professionalism for Early Career Professionals

          Join us on June 12 for a highly interactive virtual workshop with Strategic Career & Leadership Coach Carole-Ann Penney.

          Read More
  • Economic Inclusion
        • Economic Inclusion

          • Overview
          • Pacesetters
          • Resources
        • ...
          Economic Inclusion
          City Awake

          City Awake empowers young professionals in a variety of ways that encourages these rising leaders to stay invested in the region’s future success.

          arrow-go
          Read More
        • ...
          Economic Inclusion
          Pacesetters

          We are developing an ecosystem of corporations and partners with the influence and buying power to transform economic inclusion for minority business enterprises (MBEs).

          arrow-go
          Read More
        • ...
          Small Business
          Small Business

          Small businesses are the backbone of the Boston economy. Learn more about the resources available through the Chamber.

          arrow-go
          Read More
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          Read More
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          Read More
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          Read More
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          Small Business

          Small businesses are the backbone of the Boston economy. Learn more about the resources available through the Chamber.

          Read More
          City Awake

          City Awake empowers young professionals in a variety of ways that encourages these rising leaders to stay invested in the region’s future success.

          Read More
          BIMA

          BIMA (the Boston Interactive Media Association) serves a vibrant community of like-minded professionals from agencies, brands, publishers, and ad-tech companies with business interests in the New England market.

          Read More
          Women’s Network

          For over 30 years, the Chamber’s Women’s Network has connected female professionals of all background and career levels. Today, our Women’s Network is the largest in New England, strengthening the professional networks of women each year.

          Read More
          Massachusetts Apprentice Network

          The Massachusetts Apprentice Network convenes employers, training providers, and talent sources interested in developing and implementing apprenticeship programs in occupations across industries and statewide in fields such as tech, advanced manufacturing, healthcare, financial services, and more.

          Read More
          Pacesetters

          We are developing an ecosystem of corporations and partners with the influence and buying power to transform economic inclusion for minority business enterprises (MBEs).

          Read More
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Chamber’s Testimony on FY26 City Budget Approach

February 18, 2025

 

Councilor Brian Worrell, Chair
City Council Committee on Ways and Means
1 City Hall Square Room 550
Boston, MA 02201
617-635-3040

 

Councilor Enrique Pepén, Vice Chair
City Council Committee on Ways and Means
1 City Hall Square Room 550
Boston, MA 02201
617-635-3040

 

Dear Chair Worrell and Vice Chair Pepén,

On behalf of the Greater Boston Chamber of Commerce and our 1,200 members, I write to offer an employer perspective on the city’s FY26 budget approach. The Chamber appreciates that the City Council is having early public conversations about spending priorities and the vital delivery of city services, including supporting our public safety and education professionals.

That said, fundamental changes to city revenues, the uncertain availability of federal resources, and lack of new commercial sector growth will add constraints to Boston’s fiscal climate this year. Given these circumstances, I again urge the city to prioritize fiscal responsibility and restraint by limiting budget growth to inflationary adjustments, no more than a 3-4% increase in FY26.

The recent trend of significant city budget growth is unsustainable. In the last 3 fiscal years, spending grew by 8%1, 6.8%2, and 5.9% respectfully.3 Decisions made to support these increases have direct impacts on the city’s residents and businesses, resulting in higher property taxes than necessary and placing pressure on the city to raise new revenues to support spending that cannot be supported under current state law. As you know, these local decisions have led to the city seeking state assistance to navigate the tax impacts on residents – something the city could avoid on its own, should it choose to do so, by limiting spending growth or deploying its own resources to support new spending initiatives.

In the past 20 years, budgeted revenue from property tax collections has increased from 55.9% in FY06 to 71.1% in FY25.4 In many years over that period, new property tax growth fueled by commercial development helped offset the impacts of this reliance on property taxes on residents. However, recent trends show that our commercial development market growth has slowed, while commercial property values have overall decreased. The downtown office vacancy rate sits at 20.2% in the Financial District, reflecting changes in office demand due to remote work options and new workforce preferences. 5 New commercial development has also slowed significantly because of these new working patterns, high interest rates, and an increasingly burdensome regulatory process.

In evaluating its budget options, the city can choose to focus on how its revenue collection and spending decisions impact its residents. Restraining spending is one clear choice. Property tax increases for businesses and residents could also be less than the maximum allowed under Proposition 2½ this year, easing residential property tax increases next year. The city can deploy city reserves for target and strategic priorities. And it can refocus on encouraging commercial development and downtown vitality to boost city revenues through new growth.

These efforts will require some adjustments to the usual approach to city budgeting – but reflect the city’s changing fiscal circumstances.

Budgeting involves tough decisions and tradeoffs, but such decisions are an inevitable part of effective and responsible governance – just as they are a part of running a business or a household. And the Chamber is not advocating for budget cuts, simply responsible, moderate growth reflecting inflation this year.

As you evaluate the needs of your constituents and the city services necessary to provide a safe and high quality of life for Boston residents, it is critical to balance these needs with the city’s available resources and the fiscal discipline necessary to ensure the city’s sustainable and long-term success.

Thank you for your attention and please reach out with any questions.

Sincerely,

James E. Rooney President & CEO

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