I know sooooooo Many things were different. Menino had already been mayor for ten years and had built up good relationships with then-Speaker of the House, Tom Finneran, and then-Senate President Bob Travaglini, both of whom were from Boston.

Menino was known to be a supporter of development, and despite protests, developers believed the mayor would do the right thing by the business community—and he ultimately did.

Crucially, the mayor tightened his own belt during the economic crisis by cutting his budget and eliminating hundreds of jobs at City Hall.

None of this is true today. Wu has only been mayor for three years. She took office with the aim of controlling development and increased the budget by 8 percent this year, despite forecasts from falling property tax revenues.

Three quarters of the city’s budget is financed by property taxes. The majority of revenue comes from commercial real estate, which is taxed twice as much as residential real estate.

So what am I trying to say with all this?

It’s time to face reality. The city could see hundreds of millions of dollars in annual commercial property value losses as commercial real estate prices plummet due to work-from-home policies that have led to emptying of office buildings.

Property taxes are based on property value, so if commercial values ​​decline and residential property values ​​rise, homeowners could have to bear a larger share of the burden starting in 2025 if the city wants to maintain its $4.3 billion budget.

Wu’s biggest misstep was publicly arguing with the Senate and creating the impression that everyone agreed with the deal she had negotiated with the House of Representatives.

Admittedly, the matter was complicated: The state legislature would pass the city’s application for self-government as it was, and then Wu would issue an executive order amending the tax plan to limit the scope and duration of the transition to commercial property tax rates to three years.

It would also set aside up to $15 million in the city budget in each of those years to help small businesses that have been harmed by the tax increase. Many rental contracts stipulate that tenants must pay their share of the property tax. Restaurants, hair salons and cafes would feel the burden just as much as large building owners.

This proposal seems more business-friendly than the first, but Wu can do more to allay the Senate’s concerns about hurting development. She can revisit an idea floated last September: tax breaks to spur construction of stalled housing projects.

Property tax revenues rise when new buildings are constructed. High interest rates have slowed the number of new projects, and Wu’s policies have not helped.

“It’s not a tax crisis, it’s a revenue crisis,” noted Bruce Percelay, who owns and manages about 2,000 apartments in Boston. “Instead of spending enormous energy trying to figure out who should bear the tax burden, efforts should be directed toward creating a business- and development-friendly environment that generates revenue for the city.”

It took Menino until December 2003 to pull off his tax deal. He won the support of Travaglini and then-Governor Mitt Romney, and even managed to convince some big-name developers. Finneran held out – until Menino sent citizens estimated tax bills with an average increase of $800 and blamed the legislature.

Wu appears to be following the same pattern. She has already warned on the radio of a double-digit increase in residential taxes. But, as Travaglini recalls, the key to Menino’s success was not the tax law gimmick, but rather the relationships he had built in the state House of Representatives and his willingness to make a deal.

“The possibility of reaching an agreement is always there,” said Travaglini, who is now a lobbyist. “We have tackled health care, same-sex marriage, stem cell research, etc. … We have done things that are far more complicated than a Boston property tax reform.”

Wu can still fix it. Spilka can do it too. Nothing is really dead in Parliament. Where there’s a will, there’s a way.

The fact that Wu and Spilka spoke last week is a good sign. “The Senate President remains open to further discussions with the City of Boston and other stakeholders,” said a spokesman for Spilka.

Wu is running for a second term in 2025, So she and her allies will do everything in their power to ensure that citizens are not left with excessive tax bills in an election year. Spilka wants a soccer stadium in Everett for the New England Revolution. Wu can pave the way for a deal by signaling her support for the project.

Maybe they all have to take a conference call with Revolution owner Robert Kraft.

Wu needs to figure out how to get everyone in the State House, the City Council and the business community on board. To do that, she needs to hit the reset button and The timing may be good this fall as the city receives new property appraisals. This will give the government a better sense of how badly the commercial real estate market has faltered.

Boston’s looming property tax problem is too big to ignore. The clock is ticking for another December miracle.

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Shirley Leung is a business columnist and host of the Globe Opinion podcast “Say More with Shirley Leung.” You can find the podcast on Apple, SpotifyAnd globe.com/saymore. Follow her on Threads @shirley02186

Shirley Leung is a business columnist. You can reach her at [email protected].