The legal bills could come as the city struggles to close a $36.5 million budget shortfall by June. Next year's shortfall is projected to be nearly twice as large. Police commanders have closed down specialized units to save money, and fire officials are considering rotating firehouse closings. Dixon has also said that city workers could face layoffs or furloughs.
Nilson is circulating his draft policy among city leaders, though not the mayor, and expects to bring it to the city's Board of Estimates - which the mayor controls - for approval within a month. If a policy is adopted, any bill over $5,000 would need separate Board of Estimates approval.
Estimates board member Joan M. Pratt, the city comptroller, was briefed yesterday on the new policy and said it is in the "deliberative stages."
"I think there should be some policy, as opposed to operating by a case-by-case basis or by the seat of your pants," Pratt said. "There should be some guidelines."
City Council President Stephanie C. Rawlings-Blake, another board member, said through a spokesman that she would review "best practices in other jurisdictions before making a decision."
"She thinks it should be fair to the parties involved while also protecting the taxpayers," spokesman Ryan O'Doherty said.
The new policy could also affect Councilwoman Helen L. Holton, who was charged this month in a separate indictment with bribery, perjury and misuse of office. Holton, who makes $58,425, is represented by Joshua R. Treem. Neither she nor her attorney returned phone calls.
A former city housing chief also pleaded guilty to theft this month, though since he has admitted guilt he would not qualify for reimbursement as the policy is currently drafted.
At least a dozen current and former city employees have been interviewed by the state prosecutor as part of the investigation, and some of them have retained private attorneys. Some City Hall employees "were clearly mere witnesses," Nilson said. "In those cases, the law department would perform a hand-holding function. Sometimes accompanying them to be interviewed by the state prosecutor."
So far, nobody has submitted their legal bills to the city, but at least one lawyer has informed the city that he will. Another attorney is offering service pro bono, Nilson said. He would not say who.
The Maryland code allows for reimbursement of "reasonable legal fees" if a state official is investigated for a crime connected to his or her official duties and if he or she is cleared of the charges.
There is a catch: The attorney general and the Board of Public Works are allowed to question witnesses and review the criminal investigation before approving payment of fees. That can be a problem, Nilson said, because the public works board "can go off in a political direction."
Dixon supporters explored creating a legal defense fund for the mayor last summer, but that plan was never enacted, said one source close to Dixon.
