Baltimore: broke again
Baltimore faces a significant budget shortfall for the second consecutive year, necessitating another round of service cuts and tax increases, officials said Wednesday.
Fixed expenses are expected to increase sharply, while revenues are projected to decrease slightly, finance officials said.
Finance officials declined to state publicly the precise amount of the shortfall Wednesday, but said it is considerably less than the $121 million gap last year.
Nonetheless, budget director Andrew W. Kleine warned that closing the current gap could prove more painful, because some taxes are at peak levels and nonessential expenses have already been whittled away.
"This could be just as difficult, if not more, to deal with because of the cuts we have already made and revenue we have already raised," Kleine said.
Officials are slated to brief the City Council on the budget Thursday.
The city's budget gap could grow if state and federal aid are further decreased. Officials anticipate losing at least $5 million in state aid, but that figure could mushroom to as much as $45 million if highway user revenue fees and homeowner's tax credits are cut, Kleine said.
As state officials grapple with a $1.6 billion revenue shortfall, additional costs could be pushed onto local governments, including teacher pension costs.
And it is unclear how the Republican-dominated Congress could affect appropriations to the city.
Mayor Stephanie Rawlings-Blake remains opposed to raising the city's property tax rate, which is nearly twice that of the surrounding counties.
Rawlings-Blake sliced $70 million from the city's budget last year by furloughs, layoffs, consolidating offices and requiring employees to pay a portion of prescription drug costs.
She raised $50 million in revenue by increasing new parking fees and fines, raising taxes on hotel rooms, telecommunications, energy and income, and imposing a new 2-cent bottle tax.
She also pushed through an overhaul of the fire and police pension system, which is expected to save the city $106 million this year but prompted a federal lawsuit from the public safety unions.
The full budget, including proposed cuts to agencies and suggestions for new revenue sources, will be presented to the council in late March, Kleine said.
Comments
"Mayor Stephanie Rawlings-Blake remains opposed to raising the city's property tax rate, which is nearly twice that of the surrounding counties."
Good. It's the wrong approach even within the limits of RE taxes.
Focus on measures to get INCOME taxes increased and property VALUES increased, have those taxes applied to far more of those that presently get a pass on this expense entirely and the City could cut the property tax RATE dramatically.
Anyone down there in City Hall have the nerve to actually do it?
Posted by: MrRational | January 5, 2011 10:33 PM
"Fixed expenses are expected to increase sharply"....apparently these expenses are not fixed.
Posted by: jmm103 | January 6, 2011 8:40 AM
Great more tax increases for the joy of being a Baltimore city resident.
We are already paying through the nose to live in this progressive paradise.
Posted by: john | January 6, 2011 9:45 AM
My taxes are $4400, and next year it will be $5,200. Now, if the house was worth that, and if the city was worth that, I would gladly pay it instead moaning about it here. The fact is, if you work hard and are honest, Baltimore is not the place for you. They let that guy who burned the dog out of jail for some other serious crimes on top of some other serious stuff, and he didn't even get a fine. He and his family (I AM SURE) get Medicaid, free bus passes, libertycard, and free access to the pools- PLUS fre housing, and NO TAXES. But me and many other homeowners get slapped with "NO LID on the trash cans" fines and similar treatment regularly...go figure. I guess homeowners are scum, and criminals, unemployed, drunks, drug dealers, hookers are what's important in the city that reads (bhaaah hahahhahah what a joke), I meant the Greatest City on America (lol) no, no I mean Charm City (yes, an evil spell). There is no justification for the tax rate in this city, none. End more taxation without representation!!!
Posted by: theox | January 11, 2011 4:28 PM