Baltimore’s $1,000 newborn benefit heads to voters amid questions over $15 million cost

BALTIMORE (WBFF) — A proposal to provide financial support to parents of newborns in Baltimore is headed to voters this November, but questions remain over how the multimillion-dollar program would work and how the city would pay for it.

Supporters of the Baltimore Baby Fund say they have collected enough valid signatures to place the measure on the November ballot. If approved, the fund would provide new parents with $1,000 in cash, supplies or subsidies following the birth of a city-born child.

The Maryland Child Alliance, which is backing the measure, argues the program could help address child poverty at a time when families are facing rising costs.

“I see how that child poverty impacts our kids, how it impacts our communities, and it’s just so clearly an urgent issue that our legislatures aren’t acting on,” a representative for the Maryland Child Alliance previously told FOX45.

But taxpayer advocates say voters are being asked to approve the program without enough information about how it would operate.

“Right now, this is not something that is ready for prime time, and it needs to be reconsidered,” taxpayer advocate David Williams said.

Among the questions Williams raised are who would qualify for the benefit, what exactly families would receive, and how the money would ultimately be distributed. He is also raising questions about the program’s price tag, and the gap between what families could receive and what the fund could cost taxpayers.

Supporters estimate roughly 7,100 newborns would benefit each year. If each family received the full $1,000 benefit, that would total about $7.1 million annually. Meanwhile, the proposal is estimated to cost about $15 million a year in total.

“If you look at the breakdown of numbers, that means it’s going to cost more to administer the program than actually what the families are getting,” Williams said.

If passed, the costs would ultimately equal 0.03% of Baltimore’s total taxable property value. This as Baltimore City faces continued pressure over its property tax rate, which remains among the highest in Maryland.

Williams argues before investing millions in one-time payouts, Baltimore should first address the long-term financial stresses taxpayers are already facing.

“There are just not enough details, and really not enough empirical data to show that this program will actually help the fiscal health of the city,” Williams said, “If the city really is truly concerned about the well-being of children, they need to improve the education system, they need to improve public safety, and they need for it to be a city that people want to come into and not just giving out cash to people because they have a baby.”

Mayor Brandon Scott has thrown his support behind the measure. On Monday, FOX45 sent the following questions to his office concerning the proposal:

• How much of the $15 million is expected to go directly toward benefits for families, versus administrative or other program costs?
• Would funding the Baby Fund require cuts or reductions elsewhere in the city budget, additional revenue, or a change in property taxes?
• What safeguards or oversight does the Mayor believe should be included to ensure the program is a financially responsible use of taxpayer dollars?

As of the time this article was written, we have not heard back.