~ OP-ED ~ The Voters Have Spoken – Now What?

Over the last few months, I have had many conversations with residents about the challenges facing our community and the override. During each and every one of these conversations, I have made it clear that there are a number of reasons why Malden is in the situation it is in. I am going to start by saying that – YES – it is possible to want to increase local revenues – FOR MALDEN – while also aiming to KEEP MALDEN AFFORDABLE. These are not mutually exclusive propositions which is why I proposed the less expensive and temporary debt exclusions to raise capital funds for the construction of the Northeast Voke and other public infrastructure which drain our operating funds. This measured approach – which would have saved city operations well over $1M a year – was rejected by the City Council without a meaningful opportunity to engage and debate the debt exclusion.

The haphazard manner in which the override proposal was introduced – an election in the middle of winter with historic snow totals – brought a level of distrust, vilification and division that cannot be understated. Extremist rhetoric aimed at our neighbors has torn at the fabric of our community. It is not as simple as being for or against Malden. Those asserting so are either disingenuous themselves or are placing their trust in others who are. What is clear now is that the residents of Malden do not trust the city to provide reliable data and information on important matters of public concern. This was a missed opportunity to make a positive change for Malden – instead it was used as a campaign organizing tool fueled by public resources. The volunteers who helped get the word out deserve praise but the city leaders who put their personal political interests above the best interests of the City of Malden need to take a hard look in the mirror. I truly LOVE Malden. Do you?

Here are my thoughts on how we got here and what we can do to avoid this situation in the future.

The Commonwealth Underfunds Education

Problem #1: It is no secret that the Chapter 70 foundation formula, which funds education in the Commonwealth, is completely broken. Virtually everyone has accepted this for a long time, except for our state legislators. To his credit, Malden’s Chief Innovation Officer Ron Hogan, has done the yeoman’s work educating state and municipal leaders on the Chapter 70 foundation formula. The cliff notes version is that there is no direct correlation between local revenues (what Malden brings in) and what the state says we should spend on education. As such, Malden is disparately impacted by shrinking state aid which leaves Malden with less resources to run all other city services.

Solution #1: The Chapter 70 foundation formula needs to be refocused on actual local revenues (NB: the Department of Revenue knows this number already for every municipality) and the actual cost to meet student needs. For instance, transportation costs for out of district placement need to count toward net-school spending and municipalities should not lose a disproportionate amount of education aid funding based on arbitrary metrics. Without a correction, Malden will continue to face unfunded state mandates that degrade local services. We all must do what we can to support students and teachers by increasing the pressure on the state to fix the foundation formula.

The Impact of Anti-Development

Problem #2: Malden has long faced an anti-development trend which has stifled high-quality new growth. It wasn’t long ago, when Malden Square was close to having – not one – but two class A steel office buildings with lab space. Both of these projects would have been located across the street from each other at the old CVS and behind the old Granada theater at the intersection on Pleasant, Dartmouth, and Middlesex Streets. These buildings could have brought hundreds of construction and permanent jobs to Malden Center. They would have generated hundreds of thousands in building permit fees and property taxes. The increased daytime density of employees would have helped generate lunch revenues for our restaurants and meals taxes. Many obstacles were thrown in front of these projects which delayed their timelines and pushed them into the pandemic. Now the projects are no longer viable because no one is building office and lab space in the current real estate market.

Solution #2: As someone who has worked in real estate, I can tell you the real estate market is cyclical – it goes up and then it goes down. When the market is up, we should help – HIGH QUALITY – projects get publicly vetted and permitted. This does not mean every project should be greenlighted, but it does mean that streamlining public vetting can help expedite the process of filtering out projects that are not the right fit and can help make high quality projects better and realized. Encouraging new growth also helps raise property tax revenue above and beyond the Prop 2 ½ cap. New jobs and new revenue is a win-win in my book. To ensure Malden does not miss the next real estate upswing, we should prioritize completing a new comprehensive plan (formerly “master plan”), encourage economic development through public art and the creative economy, and reduce permitting barriers to new growth.

The Disincentive to Make Hard Decisions 

Problem #3: It is a privilege to serve the public in an elected, appointed, or other public role. That said, serving in a public capacity is not easy. This is especially true when one tries their best to serve in a principled manner. As I am sure you know, I have taken many hard votes and am not unfamiliar with being on the losing side of a 10-1 vote. What I have observed during my time in office is that there is often a disincentive to make the hard but correct decision. It’s not easy to go against the grain but as many are now learning “dissent is patriotic.” This is especially true when dissent isn’t popular.

When I first joined the City Council, Former Ward 6 Councillor Neil Kinnon was the chair of the Finance Committee. It is no secret that Neil and I disagree on virtually all public policy and we have vastly different visions for the future of Malden. That said, I always appreciated Neil’s role in Finance because he truly understood the role. Neil questioned almost everything and it required the Mayor, the administration, and his fellow councillors to be on our toes. The City Council, as the legislative branch, is a check and balance on the Mayor, as the executive branch. The Finance committee is the body that is responsible for vetting the financial requests made by the Mayor (where all financial requests originate). I can definitely state that the Finance committee has failed in its role since Neil left in 2017. Dissent isn’t easy in the moment, but we are now learning that being a rubber stamp can lead to much more difficult conversations.

Solution #3: Voters should demand and encourage their elected officials to make the hard decisions even when – especially when – it involves matters that are politically perilous. Doing the right thing is always worth the risk of losing. Whether it is losing a 10-1 vote or the Council Presidency, maintaining one’s integrity and being able to fall asleep easily is so worth taking an L from time to time. Over the next few months, hard decisions will need to be made to course correct after a long time without meaningful financial oversight.

The Next Steps

The Mayor will propose a budget which will likely include some use of our $22M in reserves (Malden’s savings account) and some amount of cuts. I would like to state that these cuts should not be made in a vindictive manner that would maximize pain for our community. We should not turn our backs on rank-and-file workers, economic development initiatives including public art, and climate resilience. Front line workers, art, and environmental investments pay off in dividends by making our community safer and more livable.

In order to preserve jobs, I suggest we reduce or eliminate overtime because it is unfair to pay overtime when others could lose a job. Terminate frivolous and vindictive litigation against lawful businesses and families. Reduce/eliminate part-time consulting agreements. Re-bid or re-quote services provided to the city by longtime vendors to ensure compliance with public procurement rules. These are just a few ways we can try to minimize the impact without decimating staff and derailing economic growth.

If we can come together, then it is possible to reform education funding, encourage high-quality economic development, and correct the course of our local finances.

Earnestly,

Ryan O’Malley

City Councillor Ward Four