02-04-2025
What's in Baltimore City's fiscal 2026 budget?
Mayor Brandon Scott has announced Baltimore City's fiscal 2026 budget, which is expected to address an $85 million shortfall while making several investments.
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.
