Revenues and Expenditures
- What does my town spend money on and where does the funding come from?
- Does the town balance its budget or run a surplus/deficit?
- How have spending patterns and revenue sources evolved over time?
- How does my town compare to neighboring communities?
This page explores municipal finances by examining how Massachusetts cities and towns generate revenue and allocate spending through their general funds. The general fund represents the primary operating budget that covers most day-to-day municipal services and is controlled through the normal town meeting or city council appropriation process.
Money Flows
The diagram below visualizes how money flows through a municipality's general fund. Revenue sources (like taxes, state aid, and fees) flow into the total revenue pool, which then funds various expenditure categories (such as education, public safety, and infrastructure). When revenues exceed expenditures, the municipality runs a budget surplus; when expenditures exceed revenues, it runs a deficit.
Time Trends
Track how municipal finances have changed over time by exploring trends in specific revenue sources or expenditure categories. This analysis helps identify patterns such as growing education costs, changes in state funding, or the impact of economic cycles on local budgets. You can compare multiple municipalities to see how similar communities manage their finances differently.
About the Data
All financial data presented here comes from the Massachusetts Department of Revenue's Division of Local Services through their General Fund Report. This report provides standardized financial information for all Massachusetts municipalities, ensuring consistent and comparable data across communities.
Understanding General Fund Finances
The general fund represents a municipality's primary operating budget and accounts for most financial resources and activities governed by the normal town meeting or city council appropriation process. This includes:
Common Revenue Sources:
- Property taxes (typically the largest source)
- State aid and grants
- Local receipts (fees, permits, fines)
- Motor vehicle excise taxes
- Investment income
Major Expenditure Categories:
- Education
- Public safety (police, fire, emergency services)
- Public works (roads, maintenance, utilities)
- General government (administration, town clerk, assessor)
- Health and human services
- Culture and recreation
- Debt service
Data Limitations
The general fund data excludes some municipal activities that are tracked in separate funds, such as water and sewer enterprises, capital projects, and certain grant-funded programs. For a complete picture of municipal finances, these other funds would need to be considered alongside general fund data. See the broader category of Schedule A Reports.