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Fiscal 2021 Preliminary Budget Estimate, and $34.4 Million Lower Than the Fiscal 2020 Adopted Budgetof $2.0 Billion

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Fiscal 2021 Preliminary Budget Estimate, and $34.4 Million Lower Than the Fiscal 2020 Adopted Budgetof $2.0 Billion SUMMARY OF THE ADOPTED BUDGET FISCAL 2021 BERNARD C. “JACK” YOUNG, MAYOR CITY OF BALTIMORE, MARYLAND Board of Estimates: Brandon M. Scott, President City Council Bernard C. “Jack” Young, Mayor Joan M. Pratt, Comptroller Dana P. Moore, Acting City Solicitor Matthew W. Garbark, Acting Director of Public Works City Council: President: Brandon M. Scott Vice President: Sharon Green Middleton First District: Zeke Cohen Second District: Danielle McCray Third District: Ryan Dorsey Fourth District: Bill Henry Fifth District: Isaac “Yitzy” Schleifer Sixth District: Sharon Green Middleton Seventh District: Leon F. Pinkett, III Eighth District: Kristerfer Burnett Ninth District: John T. Bullock Tenth District: Edward L. Reisinger Eleventh District: Eric T. Costello Twelfth District: Robert Stokes, Sr. Thirteenth District: Shannon Sneed Fourteenth District: Mary Pat Clarke Department of Finance: Henry J. Raymond, Director Photo Credit: Baltimore City Recreation and Parks Marketing Communications Division Dave Pope for Mayor’s Office of Children and Family Success Phylicia Ghee for Live Baltimore Table of Contents Government Finance Officers Association Distinguished Budget Award . .iii The Mayor’s Letter . iv Community Guide to the Budget . ix Introduction 1 About Baltimore . 3 Demographic Profile and Trends . .4 Municipal Organization Chart . .6 Budget Process and Related Policies 7 Budget Process . 9 Key Budgetary and Financial Policies . 15 Budgetary and Accounting Basis . 18 Operating and Capital Plan Budgetary Control . 20 Fiscal Environment 23 Economic Outlook . 25 Fixed Costs . 29 Debt Service . 37 Budget Plan 43 Budget Appropriation Levels . 45 City Council Budget Amendments . 48 Operating and Capital Fund Sources . 49 Revenue 51 Major Revenues Forecast . 53 Selected Real Property Tax Expenditures . 71 Revenue Estimates . 76 Budgetary Funds and Projected Revenues . 99 Operating Budget 109 Overview of Operating Budget . 111 Priority Outcomes . 112 Operating Budget Agency Detail . 113 Priority Outcome: Children and Families . 114 Priority Outcome: Public Safety . 123 Priority Outcome: Clean and Healthy Communities . 133 Priority Outcome: Equitable Neighborhood Development . 148 Priority Outcome: Innovative Government . 155 Priority Outcome: Other . 161 Operating Budget by Agency, Service, and Fund . 163 Comparison of Current and Prior Year Operating Budget . 182 Permanent Full‐Time Positions . 183 Past and Projected Budgetary Fund Balances . 189 i Fiscal 2021 TABLE OF CONTENTS Capital Budget 191 Overview of Capital Budget . 193 Capital Budget Fund Sources . 196 Capital Budget Recommendations by Agency . 199 Appendix 205 Glossary . 207 Ordinance of Estimates . 212 Annual Property Tax Ordinance . 251 Supplemental Appropriations and Transfers . 253 Budgetary Authority and Process . 255 ii Government Finance Officers Association Distinguished Budget Award GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation A w ard PRESENTED TO City of Baltimore Maryland For the Fiscal Year Beginning July 1, 2019 Executive Director iii BERNARD C. YOUNG MAYOR 100 Holliday Street, Room 250, City Hall Baltimore, Maryland 21202 The Honorable Members of the City Council May 4, 2020 The Honorable Members of the City Council City Hall,City Room Hall, 400Room 400 Baltimore,Baltimore, Maryland Maryland 21202 20212 Re: Fiscal 2021 Proposed Ordinance of Estimates The Fiscal 2021 budget that we present today has been shaped by one of the most unique challenges The Fiscalin our 2021 City’s budget history that. Over we presented the course has of 2020, been shapedwe saw the by oneCOCID of- the19 virus most spread unique rapidly challenges and reach in our City’s history.nearly Since Novemberevery corner 2019, of the we globe. have seenThe thevirus COVID‐19has upended virus our spread daily rapidly life in andways reach that few nearly of us every could corner of the globe.have The imagined. virus hasOur upended schools our are daily closed, life most in ways of our that businesses few of us could have havebeen imagined.shuttered, and Our some schools of our are closed, most offellow our businesses citizens are have facing been new shuttered, health challenges and someand economic of our fellow pressures. residents are facing new health challenges and economic pressures. During this emergency, I have remained laser-focused on guiding our city through these uncertain During thistimes. emergency, We have Iworked have remainedclosely with laser‐focused our State and on guidingregional our partners city through to aggressively these uncertain contain times.the We have workedspread closely of the withvirus, our and State to communicate and regional partnersclearly and to openly aggressively to our contain citizens the about spread how of to the keep virus, and to communicatethemselves clearly and their and openlyfamilies to safe. our residentsWe have aboutcontinued how to to deliver keep themselves the essential and services their families that our safe. We have continuedcitizens rely to on,deliver such asthe police essential protection, services emergency that medicalour residents services, andrely trash on, collection,such as police among protection, emergency medicalmany services, others. and And, trash we collection, have been connecting among many with ourothers. fellow And,citizens weand have businesses been connectingthat are most with in our fellow resi‐ dents andneed businesses to help them that accessare most the in myriad need to of help relief them available access through the myriad local, of State, relief Federal, available and through non-profit local, State, federal,partners. and non‐profit partners. Like manyLik othere many State other and State local and governments, local governments, Baltimore’s Baltimore’s financial financial position position is isalso also under underheavy heavy strain strain duetothe COVID‐19due pandemic. to the COVID In March,-19 pandemic. as the economic In March, impact as the economic of the pandemic impact of became the pandemic clearer, became I asked theclearer Department, I of Financeasked to quicklymy Finance re‐assess Department our Fiscal to quickly 2021 outlook. re-assess The our result Fisca ofl 2021 this analysisoutlook. wasThe sobering. result of this Finance analysis projected was sobering. Finance projected sharp declines in key revenue sources such as Highway User sharp declines in key revenue sources such as Highway User Revenue, Income Tax, Hotel Tax, parking‐related Revenue, Income Tax, Hotel Tax, parking-related revenues, and many others. Overall, we project revenues,General and manyFund revenues others. Overall, in Fiscal we 2021 project to be General$103 million Fund less revenues than originally in Fiscal anticipated. 2021 to be $103 million less than originally anticipated. To addressTo address this challenge, this challenge, we had we to had rewrite to rewrite this budget this budget quickly quickly and makeand make some some tough tough choices. choices. This Th isis not the is not the budget that I expected to present to you today, and there is not much room for extras. But budget that I expected to present to you, However, I believe that this Fiscal 2021 budget is a realistic and respon‐ I believe that this Fiscal 2021 budget is a realistic and responsible plan that focuses on the basics and sible planensures that focuses that the on most the fundamentalscrucial City services and ensures can still that be the delivered. most crucial And, City it continues services are to stilltarget delivered. Moreover,investments it continues towards to target my top investments priorities, schools towards and mypublic top safety.priorities, schools and public safety. iv TABLE OF CONTENTS Fiscal 2021 On June 15, 2020, the City Council passed several budget amendments that reduced the Baltimore Police Depart‐ ment and State’s Attorney’s Office budgets by a total of $22.4 million. I signed this amended budget intolawon June 22, 2020. All numbers in this document, unless otherwise specified, reflect this amended amount. Budget Plan The Fiscal 2021 budget totals $3.85 billion, including $3.02 billion for operating expenses and $823.2M for capital investments. The General Fund budget totals $1.92 billion, a 2.2% decrease from the Fiscal 2020 Adopted Budget. The Fiscal 2021 budget is organized around my five key priorities: Children and Families, Public Safety, Clean and Healthy Communities, Equitable Neighborhood Development, and Innovative Government. Detailed descriptions of how the Budget Plan aligns with each of these priorities begins on page 108. A preview for each priority is summarized below: Children and Families The plan includes $481.3 million across all funding sources. Key highlights: • $30 million of new funding is included as a down payment on the State’s “Built to Learn” school construction legislation. Per the legislation, every $1 of City contributions will be matched by approximately $9ofState funds, which will be leveraged to provide $420 million of additional funding for City schools. • Total City support for City Schools exceeds $400 million, a record‐high investment. City funding supports Maintenance of Effort payments, the 21st Century Schools Fund, teacher pension costs, retiree health benefits, school health, and crossing guard services. • The budget consolidates a variety of functions, including Head Start, Community Action Partnership, and African‐American Male Engagement, under a newly‐constituted Mayor’s Office of Children and Family Suc‐ cess. The goal is to better
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