This week, the Baltimore City Council approved Mayor Brandon Scott’s proposed fiscal 2025 $4.2 billion budget without amendments. The budget, which reflects a slight decrease in overall spending from fiscal year 2024, when city officials approved a $4.4 billion budget, continues progress on critical priorities like violence prevention and vacant housing remediation while funding targeted investments to make the City safer, cleaner, and more equitable.
The fiscal 2025 budget keeps the City’s property tax rate steady while closing a $107 million current services shortfall by trimming agency budgets to minimize the impact on service delivery. The spending plan allocates $3.5 billion for operating expenses and $732 million for capital costs.
“The investments made in this year’s budget — and our ability to overcome our original structural deficit without any cut to services — became all that more important after the tragedy of the Key Bridge collapse, which our City will feel the impacts of for years to come,” said Mayor Scott. “I want to extend my thanks and gratitude for the partnership and collaboration of my team, the Council President, and the City Council, who put the needs of all Baltimoreans first and delivered a budget that we can all be proud of.”
Blueprint Pressures
As part of the State’s new education funding requirements under the Blueprint for Maryland’s Future, the City’s contributions increased by $49.8 million in fiscal 2023 and $79.4 million in fiscal 2024. This unexpected second-year cost spike stems from the City’s declining ranking for education efforts in the new funding formulas.
Although the City’s contribution to City Schools will decrease by $3.2 million in fiscal 2025, annual contributions remain $125.6 million higher than pre-Blueprint levels— an increase of 47.6 percent over three years. To sustain these record investments, the City has had to make cuts in other areas to balance the budget, limiting critical investments in other policy areas.
Prioritizing Youth
The fiscal 2025 budget allocates $623.1 million across all sources. Major investments include:
- City Schools: $477.1 million for operating costs, modernization funds, teacher pensions, retiree health benefits, school health, and crossing guards
- Recreation & Parks: $41 million from ARPA funds for capital improvements, including renovations at Gardenville and Chick Webb centers
Building Public Safety
The fiscal 2025 budget dedicates $1.1 billion to public safety, including:
- MONSE: Additional funding to expand the Group Violence Reduction Strategy (GVRS) to new districts
- Police Department: Converting 55 sworn positions to 66 civilian roles, plus 40 new civilian hires via a state grant, and continuing hiring bonuses for officers, EMTs, and paramedics
- Traffic Safety: Expected revenue decrease due to reduced citations, indicating improved traffic conditions.
Clean and Healthy Communities
The fiscal 2025 budget includes $1.0 billion for community health and safety:
- General Services: $982,000 for upgrading the Building Automation System to enhance energy efficiency
- Health Department: $1 million to sustain programs like B’More for Healthy Babies and mobile clinics for opioid disorder patients
Equitable Neighborhood Development
With $311.2 million allocated, the fiscal 2025 budget focuses on:
- Housing & Community Development: Utilizing $50 million from Project CORE for vacant housing initiatives and adding new positions to expedite property acquisitions
- Parking Authority: Piloting license-plate reader technology with $650,000 for better parking enforcement
- Civic Fund: $1 million for grants to arts, cultural, and civic organizations
Responsible Stewardship of City Resources
The fiscal 2025 budget ensures fiscal responsibility with $208.9 million, including:
- Retiree Health Benefits: A $17.6 million reduction due to the improved funded status of the benefit plan
- Efficiency Measures: Eliminating 89 positions and $20 million in non-personnel spending cuts
- Electric Vehicles: $592,000 for an EV charger hub, moving towards a fully electric administrative fleet by 2030
The Road Ahead
While the City balanced the fiscal 2025 budget thoughtfully and strategically, Mayor Scott says it must continue to seek ways to make more aggressive investments in its budget. Critical areas for focus include:
Wage Pressure: The City faces ongoing challenges from the tight labor market and the impact on wages. Competitive wages are essential for recruiting and retaining employees to provide critical City services. Baltimore City is committed to finding efficiencies that allow it to reinvest savings back into employee wages.
Capital Investment: The City needs additional capital investment to address critical deferred maintenance projects and invest in growth-driving initiatives. Identifying a sustainable, recurring funding source is crucial for maintaining and expanding these investments.
