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City councils

Baltimore Mayor Faces Daunting Budget Task Amidst Fiscal Crisis

Strategic Insights

— 1 min read

Baltimore Mayor Stephanie Rawlings-Blake, in her first state of the city address, outlined the city's dire budget situation, citing a $120 million deficit for fiscal 2011. The mayor emphasized the need for immediate and drastic measures to address the city's financial woes, while also assuring business leaders that the city's property tax rate would not rise. With the Great Recession having created the most difficult budget environment in memory, Rawlings-Blake faces a daunting task in presenting a plan for preliminary budget cuts by late March, with a final budget approval deadline of June 30.

Key Takeaways:

  • The city of Baltimore faces a $120 million budget deficit for fiscal 2011, which is equal to a 36-cent hike in the property tax rate.
  • The city's entire budget deficit is equal to nearly 60% of the city's general fund, which comes from real property tax revenues.
  • Mayor Stephanie Rawlings-Blake has pledged to balance the budget without raising property taxes, which is a major issue for real estate developers and investors in the city.
  • The city's property tax rate is $2.268 per $100 of assessed value, more than twice the rate of any other jurisdiction in Maryland.
  • The mayor emphasized the need for immediate and drastic measures to address the city's financial woes, citing the devastating impact of the Great Recession on the city's budget.
  • A final budget must be approved by the City Council by midnight, June 30.
  • The city's $64 million in police and firefighters pension liabilities is a significant concern, with a study being done by the Greater Baltimore Committee to assess the city's pension liabilities.

Statistics:

  • The city of Baltimore faces a $120 million budget deficit for fiscal 2011.
  • The city's entire budget deficit is equal to nearly 60% of the city's general fund.
  • The city's property tax rate is $2.268 per $100 of assessed value.
  • The city's police and firefighters pension liabilities total $64 million.
  • The city's final budget approval deadline is June 30.

Sources:

  • [Baltimore Sun, "Rawlings-Blake addresses city leaders in first state of the city address", Robbie Whelan, February 15, 2010]
  • [Baltimore Sun, "Baltimore mayor faces daunting budget task as blizzard aftermath continues", Robbie Whelan, February 15, 2010]
  • [Greater Baltimore Committee, "Assessing the City's Pension Liabilities"]

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