Malden voters will be asked this spring to approve a Proposition 2 1/2 override that would raise property taxes beyond the 2.5% limit allowed under Mass. law. Facing a growing budget gap driven by inflation, stagnant state aid and the expiration of federal pandemic relief funds, city officials say the alternative is deep cuts to municipal services.
And Malden is not alone in staring down a structural deficit.
This October, the Massachusetts Municipal Association released a report titled “A Perfect Storm” that painted a picture of cities and towns at the fiscal brink. The MMA calculates that since 2010, revenue constraints have held spending increases by Massachusetts municipalities to 0.6% per year, lagging the U.S. average of 1%. The total cumulative inflation from January 2010 to September 2025 is approximately 48.6% — a basket of goods that cost $100 in 2010 would run about $148.60 today. Yet in inflation-adjusted dollars, a primary source of state funding for municipalities — the unrestricted general government aid, or UGGA, that provides flexible dollars for cities and towns — is 25% lower now than in 2002…