Baltimore, MD (November 14, 2008) – Mayor Sheila Dixon announced the proactive steps being taken by the city to address a projected shortfall in the budget for Fiscal Year (FY) 2010. The Mayor has asked department and agency directors to review their budgets to identify all available cost-savings measures.
“The bottom line, as we see it today, is a $65 million gap between revenues and the costs of maintaining current services for the fiscal year starting next July,” said Mayor Dixon. “I am committed to crafting a responsible budget plan that mitigates impacts on essential City services and on my priorities for a cleaner, greener, safer and healthier Baltimore.”
The Mayor is not scheduled to present her proposed budget to the Board of Estimates until March. She has charged the heads of city departments and agencies to complete a thorough review of their proposed budget, and to submit plans to close the gap in the budget.
The $65 million deficit in FY 2010 is a result of the country’s current economic crisis, and the continuing problems in the housing market. As a result, collection from recordation taxes is steeply declines. At the same time, the cost of maintaining city service, such as pension contributions and health care, continues to rise.
Last month, the city announced a series of actions taken to reduce spending by $36 million, which will help ensure a balanced FY 2009 budget. These actions included extending the city’s hiring freeze, restraining the use of overtime, and deferring pay increases for managers.
“Times are tough, but tough times bring out the best in people,” added Mayor Dixon. “I can assure the citizens of Baltimore that my administration will be creative, strategic, and resourceful in delivering results for every available dollar.”
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