‘Significant’ budget shortfall projected in Baltimore City
With Baltimore County attempting to cut 200 positions in hopes of saving $15 million for next budget year, city officials say they’re also eying a dire budget year.
Ryan O’Doherty, spokesman for Baltimore Mayor Stephanie Rawlings-Blake, said city budget analysts are predicting a “significant” shortfall this budget cycle – which will cause the mayor to make “difficult reductions” to city government when the budget process begins next spring.
“We expect to have budget projections that show a significant shortfall,” he said. “Without getting into specifics, there will be very difficult reductions in this budget.”
The city has frequently faced structural deficits in recent years. Last year’s shortfall was $65 million; the year before, the deficit was $121 million, O’Doherty said.
“Again, it’s largely as a result of declining revenues and rising fixed costs,” he said of the projected shortfall.
O’Doherty said low income and property tax revenue, combined with the “ever-increasing” cost of employee benefits and prescription drug costs have created the deficit.
“Every year it gets more difficult because the year before you already cut everything you thought you could cut,” he said.
He said he expected the city’s budget office to have specific projections within a month.








Comments
"Declining revenue and rising fixed costs?" According to the city's budget, revenue increased by 2% in fiscal 2012 from fiscal 2011 and by a little over 1% the prior year. If costs are fixed, how can they be rising?
http://www.baltimorecity.gov/LinkClick.aspx?fileticket=0rHthGXwaHw%3d&tabid=215&mid=3186
Posted by: monty burns | September 21, 2011 8:19 PM
Funny, this coming out right AFTER the election... A real kawinkydink.
Posted by: Baltimoron | September 21, 2011 9:49 PM
There's a simple solution here. Tax church and non-profit owned property. Right now, buildings owned by religious and nonprofit organizations is not taxed. That's millions upon millions of dollars going uncollected. Considering that the people who use churches and synagogues and other non-profit properties all contribute wear and tear to our roads and supporting infrastructure, I cannot see why these properties should not be producing tax revenue for the city.
Posted by: Rick | September 22, 2011 12:25 AM
Here we go! Crying broke after the City hires outside legal services,outside verification firms,dumps money into old movie theater. Mayor and City Council salary,benefits and pension benefit INCREASES.I have yet to hear the Mayor say that the Mayor and City Council salaries, benefits, pension benefit will be greatly reduced by half. A lead by example type of thing. They cut EVERYONE elses pay and benefits but not their's. It's time to CUT at the top this time.Not a little here and there but actually CUT in MEANINGFUL WAY.
Posted by: Adam | September 22, 2011 7:25 AM
Not to worry. The counties will dump even more welfare dollars into the pot to keep The City That Reads...But Its Lips Move going.
Posted by: Bawlamer Merlin | September 22, 2011 7:33 AM
TIME TO CUT AT THE TOP THIS TIME. City Hall staff cut in half. Appointed positions cut in half.Deputy Mayors, what a joke. The positions should be eleminated.Spokespersons eleminated. All remaining elected,appointed positions PAY CUTS, HealthCare premiums increased{ no more free HealthCare} We pay for it. you pay for it. Pension Benefits CUT IN HALF. Do something MEANINGFUL this time.The Mayor and City Council can dish out pain to everyone else. Now it's their turn.Citizens should and can demand this. Lead for a change and stop this taking from us day in and day out.
Posted by: AAWAJW | September 22, 2011 7:40 AM
With three city government employees doing the job of an ordinary private sector employee, cutting the work force should not be too difficult.
Posted by: Anonymous | September 22, 2011 9:17 AM
DEMAND A CUT AT THE TOP THIS TIME. All financial compensation, benefits, pension benefits need to be cut in HALF for ALL elected and appointed officials. The elected officials of this town think they are immune from any cuts. That is evident from their actions to date. They cut everything and everybody up to now. It's their turn. They give themselves raises, enhance their pensions all the while they are furloughing employees and raising taxes and fee's on everyone else. If the City Charter says they can do this. Then change the City Charter. WE DESERVE BETTER THAN THIS
Posted by: Adam | September 22, 2011 10:29 AM
This can't be happening! The Sun told me the Mayor was "steady" leadership we needed! Steady, straight down, apparently.
Posted by: Baltimorefirst | September 22, 2011 11:15 AM
ANY AND ALL CUTS ARE AT THE TOP THIS TIME. All financial compensation and benefits for elected and appointed positions cut in half. Pension benefits for the same, cut in half. They impossed these cuts on us and now it's their turn
Posted by: Adam | September 22, 2011 11:20 AM
Why should tax payers suffer fewer services while these wind bangs get pensions???????????? This city is a wreck and has been for years. The only thing that will change is we'll replace Detroit as the worst city in the US.
Posted by: ironhide196 | September 22, 2011 11:52 AM
Based on the math used by the City to justify the expense for the Grand Prix if the Orioles were drawing over 3 million fans like they used to the City would be in the black. I say send Pete Angelos a bill for about $100 million per year to make up for what he has cost the City by having terrible teams.
Posted by: mark56 | September 22, 2011 12:13 PM
How can the City have a budget shortfall at the same time maryland is projected to have 195M surplus? Maybe redistribute?
Posted by: mbmcanton | September 22, 2011 1:10 PM
"O’Doherty said low income and property tax revenue, combined with the 'ever-increasing' cost of employee benefits and prescription drug costs have created the deficit."
I'm sorry, but I have problems with that statement from the Mayor's office. Do you think fiscal mismanagement had anything to do with this? This city has been a model for wasteful spending and neglect. It's why, and among other things, the tax base has been depleted.
Furthermore, don't tell us the income tax is depleted when people who work in the city and live in the county, like myself, get a city income tax deduction each pay period. How about you list some of the reasons why there are low income and property tax revenues. And yeah, stupid employees. They cost this city too dang much. Especially the ones that get busted for overtime abuse.
Posted by: Zack W. | September 22, 2011 1:14 PM
I have an idea on how to increase income and property tax revenue. How about increasing the in income tax rate so that it's the highest in the state? How about increasing the property tax rate so that it's double that of every other jurisdiction?
How, that's right... The geniuses running Baltimore City have already done that. With all that revenue, you'd think Baltimore City would be in the black.
Posted by: fhr | September 22, 2011 1:28 PM
Significant budget shortfalls? How could that be with all the FREE healthcare, FREE housing, FREE bus service, elected official pensions, take home cars. Didn't they just make millions off the Grand Prix?
Posted by: Bill | September 23, 2011 11:31 AM