For the fiscal year that begins July 1, Dixon has said a reduction in revenues - especially those tied to the real estate market - has made it impossible for the city to continue the 2-cent cut this year. After backing away from the cut, Dixon announced more than $2 million in new spending for after-school programs.
"We're pretty confident in the budget that's been submitted, but there's always negotiating when it goes to the City Council," said Dixon spokesman Sterling Clifford. "I anticipate over the next month or so as they review it, it will go back and forth."
Bucking the mayor's proposed budget could prove to be an uphill battle for the council. While the 15-member body can make cuts, it doesn't have the final say on property tax rates - the mayor has veto power. The budget, introduced Monday, must be approved by June.
Rawlings-Blake and others suggested that they might accept a cut of less than 2 cents per $100 of assessed value - a reduction city finance officials have estimated would cost the city $5.4 million.
"I think it's very realistic," City Councilman James B. Kraft said of the council's ability to trim the tax rate. "We can't add to the budget, but we do have the ability to cut from the budget. What we would like to see is some shift in some of the priorities."
If the tax break goes forward, it would reduce the property tax rate from $2.268 per $100 of assessed value to $2.248 per $100 of assessed value. Baltimore County has the next-highest tax rate in the state at $1.10 per $100 of assessed value, less than half the city's rate.
Council members have vowed to work with the administration, in contrast to much more public budget disputes that took place in the past. When the council attempted to reduce the property tax rate in 1993, Schmoke vetoed the budget and the council passed a new budget that called for the rate to remain the same.
Not all council members are calling for the cut. City Councilman Robert W. Curran said the city should be focused on maintaining services first.
"I would be supportive of their efforts if they're able to designate where the $5 million hole in the budget would be filled," Curran said. "I believe that in the long run the citizens want to maintain the service level that they are used to from all city agencies."
john.fritze@baltsun.com
