Cambridge’s Growth Plan
Why is there so much support for development in Cambridge? Much of it stems from a loophole in a 40-year-old ballot initiative. In the 1970s, America was in the midst of an economic downturn. Municipal tax revenues were falling as was personal income. Unemployment was increasing. The inflation rate was nearing an all-time high. Cities and towns struggled to pay for essential municipal services, like teachers, police, fire protection, and trash pickup. Throughout the United States, local governments began to increase taxes to make up for this shortfall. This led to a backlash from cash-strapped homeowners. In California in 1978, a tax revolt took hold, with voters passing a landmark law that severely limited the ability for municipalities to raise taxes. Dubbed “Prop 13”, this passed by a nearly 2-to-1 margin. In Massachusetts, leaders in the anti-tax effort created “Proposition 2½”, modeled on California’s tax-cutting measure. Proposition 2½ was created by the Citizens...