What's in Baltimore City's fiscal 2026 budget?
The budget balances the deficit through $26.6 million in new revenue from updated fee structures, $43.7 million in citywide cost optimizations, and $14.7 million in agency-specific reductions. The proposal does not include increases in property or income taxes.
"These decisions look to avoid mistakes of the past, which balanced the budget on the backs of core services and investments in our communities," Scott said in a statement accompanying the budget proposal.
The spending plan includes $624.8 million for youth initiatives, including $6.9 million to expand the YouthWorks summer jobs program to 8,500 participants at $15 per hour and funding for two new recreation centers.
Public safety receives $1.2 billion, with full funding for the citywide expansion of the Group Violence Reduction Strategy and continued efforts to transition administrative police tasks to civilian roles. These efforts are expected to save $1.1 million annually in overtime costs.
The budget allocates $1.1 billion for neighborhood services, including $5 million to enhance trash and recycling collection with 15 additional crews and $36.7 million from the Opioid Restitution Fund to combat the opioid epidemic.
Scott's plan also includes $346.4 million for neighborhood development, featuring an additional $1.5 million for the mayor's $3 billion vacant housing initiative. That funding
will also cover Bmore FAST
, a new program to improve the city's property permitting process.
$2 million to establish a new Office of Art, Culture, and Entertainment.
The capital budget marks the largest investment in 20 years, with $125 million in borrowing for capital projects 56% increase from previous levels-targeting affordable housing, school construction, and city parks.
The budget now moves to the City Council for review before the start of the fiscal year on July 1.
According to The Baltimore Banner
, the plan relies on $200 million in federal funding and does not account for any cuts to income tax revenue as a result of Baltimoreans laid off by the federal government.
The Trump administration's recent cuts to federal funding and ongoing efforts to shrink the size of the federal workforce have created an air of uncertainty. As many of Maryland's federal workers who were laid off search for
new career opportunities
, agencies, and organizations are assessing the impact of federal funding cuts.
On Monday, state education leaders said they were shocked after the federal government
rescinded a reimbursement of $360 million
in funding that was previously committed to state schools.
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This April, the city's Planning Commission approved the project, marking a major milestone. Two weeks later, 11 residents and business owners filed an appeal. They argued that the development, which includes three buildings, exceeds the city's limit of 10,000 square feet. Each building is smaller than that. But the opponents said that since two buildings are connected by a second-story exterior walkway they should be considered a single structure — one bigger than 10,000 square feet. They also argued that the site would not have enough parking and that planned rooftop gardens would not meet the city's landscaping requirements because they would not be on the ground floor. "The plans that were submitted and approved in April are still outside of the guidelines and the rules of the city's codes," Courtney Kramer, one of the appellants, said during a City Council meeting Aug. 4. She said it was frustrating to residents who have "been through excruciating renovation projects and followed the rules" to see certain projects get a pass. City codes, she said, "need to be applied consistently in order to preserve this village in the forest." During the six-hour meeting, the City Council delayed making a decision on the appeal, putting everything on hold again. Ian Martin, one of the appellants, said in an interview Friday that the push-back against Pastor's projects is "absolutely nothing personal at all" and that longtime locals also go through the same long process. "Of course, Clint Eastwood was so frustrated with the planning process that he ran for mayor," Martin said. "Pastor is not being singled out." Eastwood, who was mayor in the 1980s, ran for office after fighting with the City Council over what he said were unreasonable restrictions on the design of an office building he wanted to erect. Pastor now owns that building. Martin said that of the 11 appellants, two are former City Council members and three, including himself, are former planning commissioners. They are "very well versed in the general plan and the municipal code and the design guidelines," he added. The group, he added, is "not opposed to the project." They just believe it has to play by the rules. Chris Mitchell, managing director of Esperanza Carmel LLC, the local branch of Pastor's international real estate company, said in a statement that "this process has made a mockery of the city's own rules." "Our project was reviewed for six years, redesigned five times, and approved by the Planning Commission and City staff," he wrote. He called the appeal a "last-minute" political maneuver and stall tactic. "The message from City Council is clear: it doesn't matter how much you follow the rules, if your business is not wanted here, you won't be treated fairly,' Mitchell wrote. The city administrator, city clerk and members of the City Council did not respond to requests for comment. Read more: There are no street addresses in Carmel-by-the-Sea. Some say it's time to change Karyl Hall, co-chair of the Carmel Preservation Assn., said Pastor has bent over backward to listen to the community and to design — and redesign — his projects with the town's traditional architectural styles in mind. Hall, a retired research psychologist, is an adamant supporter, albeit a surprising one. Hall believes modern architecture — which she describes as "Anywhere, USA" buildings with sterile facades and box-like structures — poses an existential threat to Carmel-by-the-Sea. She co-founded the preservation association in response to the first proposal for The Pit: a contemporary design approved by the Planning Commission for the previous owners that she called "the ice box." Hall said she was heartened by Pastor, who proposed more traditional buildings. In an interview Thursday, she said some in town believe "that one person who owns so many properties is kind of scary." But the billionaire, she said, has been treated unfairly. 'The one thing we can always count on with him, which is why I've been supportive, is he's done quality work and he's done work that reflects Carmel's character," Hall said. "You can't say that about most of the developers who move in here. They just want to make big bucks." It remains unclear what Pastor means by "leave" Carmel. Will he halt his ongoing projects? Or sell his properties? Tim Allen, a real estate agent who has handled most of the billionaire's local purchases, said Thursday that Pastor is weighing his options. 'We need new infrastructure. We need new housing — it's mandated by the state. He's building these things," Allen said. "I hope this town rallies around Patrice, or he's gone." Sign up for Essential California for news, features and recommendations from the L.A. 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