BALTIMORE — Baltimore Mayor Brandon Scott unveiled Wednesday his $4.6 billion budget plan to close the city’s $85 million deficit for the upcoming 2026 fiscal year.

The mayor’s proposal seeks to fill the gap between revenues and expenditures by increasing fees on landfill use, emergency medical services transports and ride-sharing/taxi trips while cutting costs across city agencies. The proposal does not increase property taxes, which the mayor has sought to alleviate for homeowners by enacting a 2% city sales tax on top of Maryland’s 6% sales tax.

Specific changes

Scott’s largest projected money generator will come from doubling the city’s landfill tipping fee from $67.50 to $135 per ton of waste, a move expected to produce nearly $9 million in revenue. The move comes as city officials also seek to increase fines for littering, illegal dumping and other waste-related delivery charges by about 15% this fall, which could draw $6.5 million in additional revenue.

In the wake of widespread criticism and the death of two workers last year, Scott’s budget calls for an additional $5.2 million to be allocated to the Baltimore Department of Public Works’ solid waste division to pay for contracted trash collectors this summer and hire 15 new trash crews by next spring.

Scott also expects his plan to raise the cost of ambulance rides by 20% for non-Medicaid recipients to generate $5.5 million, as well as his proposed 52% increase of the city’s taxi tax — from $0.25 to $0.38 per ride — to generate nearly $2 million.

And to deal with the issue of widespread overtime pay driving seven-figure deficits at multiple city agencies in fiscal 2024, Scott’s budget would add more non-sworn officers to the Baltimore Police Department as it faces a shortage of patrol officers. The proposal calls for nine new civilian positions, which could save about $1.1 million.

Funding assistance impacts

Scott’s proposed budget accounts for much less assistance from the federal and Maryland state governments — a shift the mayor attributes to the efforts of President Donald Trump and his allies to consolidate federal funding and $3 billion deficit in Annapolis, respectively.

“This year’s budget outlook is filled with both opportunities and challenges, exacerbated by uncertainty at the federal level and a significant state deficit being addressed in Annapolis,” Scott said in a statement. “Even in the face of challenging economic circumstances, my Administration is committed to investing in our young people and older adults, improving our core service delivery, and continuing the historic progress we have made on public safety.

The mayor’s proposal assumes the city will receive about $200 million in federal funding but does not consider potential lost income tax revenue from city residents who were laid off from their jobs with the federal government. City officials said about 12,000 federal employees live and work in Baltimore — though many more commute to other locations or work from home in the city — meaning about $3 million to $5 million worth of income tax revenue could be in jeopardy should the Trump administration pursue further cuts.

Additional federal funding is expected to go toward transportation and highway projects in accordance with the city’s long-term capital budget, though officials say it’s far from certain

At the state level, Scott’s budget follows for about $16.6 million in state costs to be passed onto the city. The move parallels similar measures taken by multiple counties as the state’s deficit has led to a shortage of resources being allocated locally.

Next steps

Scott’s proposal will be reviewed by the Baltimore Board of Estimates and the Baltimore City Council, the latter of which must pass a budget by June 26 as required by the city charter. Fiscal year 2026 begins July 1.

Residents are invited to weigh in on the budget proposal at two “taxpayer’s nights.” The first such event will be held April 23, and the council will begin holding a series of budget hearings in May.

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