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Fiscal 2018 Executive Summary CATHERINE E Fiscal 2018 Executive Summary CATHERINE E. PUGH MAYOR Board of Estimates Recommendations Board of Estimates: Bernard C. “Jack” Young, President Catherine E. Pugh, Mayor Joan M. Pratt, Comptroller David Ralph, Acting Solicitor Rudy Chow, Director of Public Works City Council: President: Bernard C. “Jack” Young Vice President: Sharon Green Middleton First District: Zeke Cohen Second District: Brandon M. Scott 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. CATHERINE E. PUGH Thirteenth District: MAYOR Shannon Sneed Fourteenth District: Mary Pat Clarke Department of Finance: Henry J. Raymond, Director Artwork Credit: Jessie Unterhalter This mural, titled New Day, was sponsored by the Baltimore Office of Promotion & the Arts during its Open Walls Project. The mural is located at 1137 Harford Road. Fiscal 2018 Table of Contents The Mayor’s Letter ........................................................................................................................... iii Explaining the Gap Infographic ....................................................................................................... viii Introduction Municipal Organization Chart............................................................................................................ 3 The Budget Process .......................................................................................................................... 4 Fixed Costs ......................................................................................................................................... 5 Ten-Year Financial Plan ................................................................................................................... 13 Children & Youth Fund .................................................................................................................... 21 Summary of Recommendations Recommended Budget Appropriation Levels.................................................................................. 25 Recommendations by Fund ............................................................................................................. 26 Operating and Capital Budget Fund Distribution ............................................................................ 28 Revenue Economic Outlook .................................................................................................................................. 31 Major Revenues Forecast ...................................................................................................................... 37 Energy Tax Rate Calculation .................................................................................................................. 47 Summary of City Real Property Tax Credit Programs ........................................................................... 48 Property Tax Base and Estimated Property Tax Yield ........................................................................... 49 Selected Real Property Tax Expenditures ............................................................................................. 51 Map: Newly Constructed Tax Credit Applications by Neighborhood FY13-FY17 ................................ 54 Map: Newly Constructed Tax Credits by Neighborhood FY17 YTD ..................................................... 55 Revenue Detail by Fund General Fund (Operating and Capital) ................................................................................................. 59 Parking Management Fund (Operating and Capital) ............................................................................ 65 Parking Enterprise Fund (Operating and Capital) ................................................................................. 66 Convention Center Bond Fund (Operating and Capital) ....................................................................... 67 Water Utility Fund (Operating and Capital) .......................................................................................... 68 Waste Water Utility Fund (Operating and Capital) ............................................................................... 69 Storm Water Utility Fund (Operating and Capital) ............................................................................... 70 Conduit Enterprise Fund (Operating and Capital) ................................................................................ 71 Loan and Guarantee Enterprise Fund (Operating and Capital) ............................................................ 72 Federal Fund (Operating) ....................................................................................................................... 73 State Fund (Operating) .......................................................................................................................... 75 Special Fund (Operating) ....................................................................................................................... 77 i Summary of Operating Budget Recommendations Outcome Budgeting ......................................................................................................................... 81 Thriving Youth & Families ...................................................................................................................... 83 Safe Neighborhoods ............................................................................................................................... 91 Healthy Communities............................................................................................................................. 99 Vibrant Economy .................................................................................................................................. 107 Sustainable Infrastructure .................................................................................................................. 113 High Performing Government ............................................................................................................. 121 Operating Budget by Agency, Service, Fund ........................................................................................ 127 Operating Budget Changes to Funded Positions by Agency, Service, Fund ....................................... 141 Highway User Revenue by Agency ....................................................................................................... 146 Summary of Capital Budget Recommendations Pie Charts: Capital Budget Recommendations .................................................................................. 149 Capital Budget Recommendations ...................................................................................................... 151 Total Capital Budget Recommendations ............................................................................................. 153 Capital Budget Distribution by Agency ............................................................................................... 154 Appendix Outcome Budgeting Results Teams .................................................................................................... 157 Glossary ............................................................................................................................................... 159 ii Wednesday, May 3, 2017 The Honorable Bernard C. “Jack” Young and members of the City Council City Hall, Room 400 Baltimore, Maryland 20212 Re: Fiscal 2018 Proposed Ordinance of Estimates The Fiscal 2018 Board of Estimates budget recommendation shifts the priorities of City government, investing more in education and youth development than police. Making Baltimore safe will take a smart crime-fighting strategy and more money for programs that give residents – especially our youngest ones – opportunities to succeed in life. Fiscal 2018 Youth & Police Funding (figures in millions) $500.0 $24.2 M Schools & Head Start $39.2 M $450.0 $64.5 M Youth Educational & Arts $400.0 Grants $23.5 M $350.0 Youth Health, Wellness & Safety $300.0 $497.1 M Youth Recreation $250.0 Police Funding Police $361.3 M Youth Employment $200.0 Development & Library Programs $150.0 Police Education & Youth Development Funding Development Youth & Education $100.0 $512.7M $497.1M The budget totals $3.9 billion, including $2.8 billion for operating expenses and $1.1 billion for capital investment. The General Fund budget totals $1.83 billion, a 4.1% increase from the Fiscal 2017 Adopted Budget. It is a responsible plan that includes a major new commitment to City Schools, maintains core City services, continues Property Tax reduction for homeowners, and targets investments to make the City cleaner and safer. iii A Plan that Puts Children First The chart on the first page of this letter shows something extraordinary – probably unprecedented in the City’s modern history. In Fiscal 2018, the City will spend more money on education and youth development than policing. This is no accident. I have pledged $90.2 million over three years to help Baltimore City Public Schools (BCPS) avoid mass layoffs and stabilize its finances until the Governor and General Assembly can consider changes to school funding formulas recommended by the Kirwan Commission. The Fiscal 2018
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