Critics warn new fines and fees could push residents out of Baltimore

BALTIMORE (WBFF) — A looming $1 billion budget deficit sparked a pointed debate at City Hall over whether Baltimore should lean on higher taxes and fees to stabilize its finances while investing in long-term improvements.

City administrators presented a 10-year financial plan focused on improving the city’s infrastructure and its workforce.

“Our goal here is to have a smaller, higher paid, more nimble workforce,” city administrator Faith Leach said.

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To help pay for the plan, administrators want to raise city fines and fees. The city has already increased EMS fees and landfill tipping fees, and administrators said there are dozens more fees they want to increase.

“When you compare us to Baltimore County and P.G. County our fees greatly lag,” Leach said.

However, City Councilman Yitzy Schleifer pushed back.

“At the end of the day when you raise these items it comes back to the residents of the city to pay for,” Schleifer said.

Schleifer told administrators that the tax burden on city residents is already too great.

In a social media post, Schleifer wrote: “Baltimore City is already the most heavily taxed jurisdiction in the state. Until our property tax rate is competitive with our surrounding counties we should not even be discussing new taxes or fees.”

Economist Anirban Basu predicted fee increases could drive people out of the city.

A lot of people are going to move out of the city and we need the city to grow,” Basu said.

Basu also questioned why the city is facing such dire financial conditions after receiving $641 million in COVID relief funds from the federal government.

“Yet look at our government’s state government has a fiscal short fall, city government has a fiscal shortfall. The city should be looking to cut property tax rates and reduce fees,” Basu said.

At a city hall budget hearing, Schleifer pressed administrators on whether property tax reductions could happen without shifting the burden elsewhere.

“Do you see any pathway in 10 years to reduce property taxes without raising fees on other things to cover these property tax reductions?” Schleifer asked.

“So yes actually,” Leach responded.

Administrators said their plan includes a reduction in property taxes over the next decade, though Schleifer remained skeptical.

“Thank you for prioritizing reducing them I look forward to seeing the reductions,” Schleifer said.