Mayor Kurt L. Schmoke is set to unveil a budget this morning that for the first time in years will reflect the benefits of a healthy Baltimore economy that has meant increased revenues from virtually every major tax the city collects.
But the mayor's $1.8 billion spending plan for the coming fiscal year will not propose a cut in the city's property tax rate, by far the highest in the state.
Neither will it include an increase in the amount of money City Hall is putting into the school system, which has stayed flat since fiscal 1995. Increased school spending in Baltimore since then has come solely through aid from either the state or the federal government.
Schmoke's decision to hold the line on the city's contribution to the school budget sparked outrage from city legislators in Annapolis, who accused the mayor of forcing the state to carry too much of the financial burden of educating Baltimore's children.
"The city's contribution has been stagnant," said state Sen. Barbara A. Hoffman, head of the Senate Budget and Taxation committee. "The state's pouring money in and the state money all has strings attached [for students in poverty, etc.]. It doesn't pay for toilet paper."
Schmoke said through a spokesman that city parents will find it "ironic" that after years of arguing money was not the solution to the city's school problems, legislators are suddenly clamoring for the city to spend more.
Despite the controversy that will no doubt be provoked by the mayor's spending plan, City Hall was relieved that this year will not bring the usual painful choices of higher taxes, cutting services or laying off employees.
"I can say we are in a good position," said Edward J. Gallagher, city budget chief. "This is the first year in my memory we have not made reductions in staff."
He attributed the rosy outlook to a strong economy that has increased revenues from personal income taxes, property taxes, businesses and tourism. The new budget would represent an 8.6 percent increase in directly comparable spending over the current fiscal year.
Gallagher cautioned that the good fortune probably won't last beyond the new budget. The city is on track to spend $29 million more than it takes in by the year 2000, so it will have to cut spending or raise taxes by that amount.
The budget is due to be presented this morning to the Board of Estimates -- the five-member panel that includes the city's top elected and appointed officials. A public hearing on the budget -- commonly called Taxpayers Night -- will follow before the budget goes to the City Council.
School spending is certain to be the most controversial aspect of the proposed spending plan. In a letter to Schmoke yesterday, the city's 10 state senators sharply criticized the mayor for not increasing it.
"The State has made the appropriate commitment to public education; it is time for the City to make a similar commitment," wrote the senators, who clearly want the mayor to spend extra money he has on schools.
The city has contributed the same amount to education -- $195.5 million -- every year since 1995. On the other hand, the state's contribution has increased 21 percent during the same period, rising from $350.8 million in 1995 to $424.9 million this year in an effort to help reform a troubled school system.
The mayor fired back a response criticizing the senators, saying that he has already bailed out the schools on several occasions.
Clinton R. Coleman, the mayor's spokesman, said City Hall gave the schools $5 million more than was budgeted last year and has given another $6 million over budget this year.
But city legislators say one-time funds are not enough, and a commitment from the mayor is needed to increase the city's contribution every year.
Baltimore contributes roughly 32 percent of its budget expenditures to schools. Other large counties contribute more; Baltimore County contributes 43.3 percent, Anne Arundel County percent, Montgomery County 40.8 percent and Prince George's County 43.1 percent.
"It has become clear to us in the last two months that the effort to bring Baltimore schools to parity with surrounding jurisdictions will require an extraordinary effort on everybody's part," said Sen. Nathaniel J. McFadden, head of the city's 10-member Senate delegation. "We've fought very hard to bring state money to the city schools. But again the question arises as to what is being spent on education back home. We're drawing a line."
Instead of schools, the mayor's budget proposes spending more money on the city's infrastructure, equipment and programs.
A large chunk of money would go to pay the city's share of a required $17 million upgrade to BRESCO, the city's incinerator plant. Another $5 million is a loan to the controversial Wyndham Inner Harbor East Hotel and a $3 million expansion to the city's Internet system and human resources center. The mayor also proposes increasing spending by $2 million to the police department and nearly $1 million to the Enoch Pratt Free Library.
Pub Date: 4/01/98
