Fiscal 2015 Executive Summary
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Fiscal 2015 Executive Summary Board Of Estimates Recommendations Stephanie Rawlings-Blake, Mayor City of Baltimore, Maryland Better Safer Stronger Growing Innovative Cleaner & Healthier Schools Streets Neighborhoods Economy Government City BOARD OF ESTIMATES Bernard C. “Jack” Young, President Stephanie Rawlings-Blake, Mayor Joan M. Pratt, Comptroller George A. Nilson, City Solicitor Rudy Chow, Director of Public Works CITY COUNCIL President, Bernard C. “Jack” Young Vice President, Edward L. Reisinger FIRST DISTRICT James B. Kraft SECOND DISTRICT Brandon M. Scott THIRD DISTRICT Robert W. Curran FOURTH DISTRICT Bill Henry FIFTH DISTRICT Rochelle Spector SIXTH DISTRICT Sharon Green Middleton SEVENTH DISTRICT Nick Mosby EIGHTH DISTRICT Helen L. Holton NINTH DISTRICT William Welch TENTH DISTRICT Edward L. Reisinger ELEVENTH DISTRICT William H. Cole, IV TWELFTH DISTRICT Carl Stokes THIRTEENTH DISTRICT Warren Branch FOURTEENTH DISTRICT Mary Pat Clarke DEPARTMENT OF FINANCE Harry E. Black Director of Finance PHOTO CREDIT: MARK DENNIS Fiscal 2015 Table of Contents The Mayor’s Message ........................................................................................................................ iii Introduction Municipal Organization Chart ......................................................................................................... 2 The Budget-Making Process .................................................................................................................... 3 Fixed Costs ................................................................................................................................................. 4 Grow Baltimore ....................................................................................................................................... 10 Ten Year Financial Plan ........................................................................................................................... 12 Summary of Recommendations Recommended Budget Appropriation Levels ................................................................................... 23 Recommendations by Fund .................................................................................................................. 24 Operating and Capital Budget Fund Distribution ............................................................................ 26 Revenue Economic Outlook ................................................................................................................................... 29 Revenue Forecast – Major Revenues ................................................................................................... 35 Energy Tax Rate Calculation ................................................................................................................. 45 Summary of City Real Property Tax Credit Programs ..................................................................... 46 Property Tax Base and Estimated Property Tax Yield ..................................................................... 47 Selected Real Property Tax Expenditures ........................................................................................... 48 General Fund (Operating and Capital Budgets) .......................................................................... 53 Parking Management Fund (Operating and Capital Budgets) .................................................. 59 Parking Enterprise Fund (Operating and Capital Budgets) ....................................................... 60 Convention Center Bond Fund (Operating and Capital Budgets) ............................................ 61 Water Utility Fund (Operating and Capital Budgets) ................................................................. 62 Waste Water Utility Fund (Operating and Capital Budgets) ..................................................... 63 Stormwater Utility Fund (Operating and Capital Budgets) ....................................................... 64 Conduit Enterprise Fund (Operating and Capital Budgets) ...................................................... 65 Loan and Guarantee Enterprise Fund (Operating and Capital Budgets) ................................. 66 Federal Grants (Operating Budget) ............................................................................................... 67 State Grants (Operating Budget) .................................................................................................... 69 Special Grants (Operating Budget) ................................................................................................ 71 i Operating Budget Pie Charts: Where the Money Comes From and How the Money is Used .................................. 74 Pie Charts: Operating Budget by Function, Expenditure Type ...................................................... 75 Better Schools ........................................................................................................................................... 77 Safer Streets .............................................................................................................................................. 85 Stronger Neighborhoods ..................................................................................................................... 103 A Growing Economy ............................................................................................................................ 119 Innovative Government ....................................................................................................................... 135 A Cleaner & Healthier City ................................................................................................................. 155 Operating Budget by Outcome, Service and Fund ......................................................................... 172 Operating Budget by Agency, Service and Fund ............................................................................ 184 Operating Budget Changes to Funded Positions by Agency, Service, and Fund ..................... 200 Highway User Revenue by Agency Detail ....................................................................................... 203 Capital Budget Capital Budget Recommendations .................................................................................................... 206 Total Capital Recommendations ........................................................................................................ 209 Fund Distribution by Agency Detail ................................................................................................. 210 Appendix Glossary .................................................................................................................................................. 213 ii STEPHANIE RAWLINGS-BLAKE MAYOR 100 Holliday Street, Room 250 Baltimore, Maryland 21202 iii • Streamlines the workforce and reforms leave and worker's compensation policies to reduce long-term costs and liabilities. More detail about the Ten-Year Plan can be found starting on page 12. The budget plan supports my vision to grow Baltimore's population by 10,000 families and is built around six Priority Outcomes: Better Schools Safer Streets Stronger Neighborhoods A Growing Economy Innovative Government A Cleaner and Healthier City Below are highlights of what the budget plan includes for each Priority Outcome. Funding details for city services are provided in the Summary of Recommendations section of this book. Better Schools Funding for Better Schools represents an investment in Baltimore's greatest asset: our youth. This priority aims to promote lifelong learning, community engagement and partnerships, and reduce duplication of services for youth. Over the past three years, kindergarten readiness and the graduation rate have improved, but third grade reading scores have fallen and other key indicators are stuck, including attendance and the dropout rate. This budget maintains funding for services that provide enriching Out of School Time for Baltimore's children. • Fully funds the city's Maintenance of Effort (MOE) payment to the Baltimore City Public School System (BCPS) at $207 million. The City and BCPS have jointly requested a waiver from the Maryland State Department of Education to correct the effect of an enrollment error in the Fiscal 2013 MOE calculation. Correcting this error would save the City $2 million. The city's teacher pension contribution is $14.8 million, $1.6 million below the Fiscal 2014 leveL This contribution will increase to $17.9 million in Fiscal 2016. • Provides $38 million for the Mayor's Better Schools Initiative to modernize city school buildings. Funding sources include proceeds from the beverage container tax and casino lease revenues, State formula aid leveraged by the city, and a general obligation bond allocation. • Keeps all library branches open to improve third-grade reading and support life-long learning. iv • Maintains funding of $5.9 million for Out of School Time (OST) programs administered by the Family League of Baltimore City. Funding for these programs has grown by $1.2 million over the past four years, even as the City has struggled to close large budget deficits. In Fiscal 2015, 6,000 children will participate in (OST) programs that are shown to increase school attendance and 21,000 children will be served in Community Resource Schools. • Transitions the City's two daycare centers to year-round Head Start centers. Once complete, this transition