Baltimore, Maryland, December 29, 2025
Baltimore’s city and county officials are discussing potential tax increases and budget cuts as economic growth slows. Mayor Scott’s 10-year financial plan aims to enhance city services, while Baltimore County maintains current tax rates amidst fiscal caution. State lawmakers have also enacted spending cuts and new revenue measures to address a significant budget deficit. These fiscal strategies will significantly impact the economic landscape of Baltimore and the well-being of its residents.
Baltimore Officials Consider Tax Increases and Budget Cuts
Baltimore, Maryland – As economic growth slows, Baltimore’s city and county officials are beginning to debate potential tax hikes and budget cuts to address fiscal challenges.
City’s 10-Year Financial Plan
In early December 2025, Mayor Brandon M. Scott unveiled a comprehensive 10-year financial plan aimed at enhancing city services, investing in infrastructure, and improving tax competitiveness. Key components include:
- City & State Investment: Accelerating infrastructure spending and planning for sustained investment.
- Rightsizing: Optimizing resource allocation and infrastructure to focus on critical assets.
- Economic Development & Vacant Property Remediation: Utilizing creative financing to modernize the convention center and address vacant properties.
- Tax Competitiveness: Gradually reducing property tax rates and broadening the tax base to make Baltimore more affordable and attractive for investment.
These initiatives aim to position Baltimore for future development and vitality.
County Budget Decisions
In contrast, Baltimore County has opted to maintain its current tax rates. In May 2025, the Baltimore County Council approved a $5.2 billion budget without raising taxes. The council did, however, reduce funding for certain projects, such as a $6.6 million allocation for renovating the Rocky Point Golf Course clubhouse. This decision reflects a cautious approach to fiscal management amid economic uncertainties.
State-Level Fiscal Measures
At the state level, Maryland lawmakers have also been addressing budgetary concerns. In April 2025, the Maryland General Assembly passed a budget that included approximately $2 billion in spending cuts and $1.6 billion in new revenue. This revenue was generated through income tax changes affecting high earners, a 3% tax on technology services, and increased taxes on sports betting and cannabis. These measures were implemented to close a projected $3 billion budget deficit for fiscal year 2026.
Background Context
The discussions in Baltimore are part of a broader trend of fiscal adjustments in Maryland. The state’s budget challenges stem from a combination of factors, including increased spending and economic downturns. Both city and county officials are exploring various strategies to balance budgets while maintaining essential services for residents. The outcomes of these debates will significantly impact Baltimore’s economic landscape and the well-being of its citizens in the coming years.
Frequently Asked Questions (FAQ)
What is Baltimore’s 10-year financial plan?
In December 2025, Mayor Brandon M. Scott unveiled a comprehensive 10-year financial plan aimed at enhancing city services, investing in infrastructure, and improving tax competitiveness. Key components include accelerating infrastructure spending, optimizing resource allocation, addressing vacant properties, and gradually reducing property tax rates.
Did Baltimore County raise taxes in its latest budget?
No, in May 2025, the Baltimore County Council approved a $5.2 billion budget without raising taxes. The council did reduce funding for certain projects, such as a $6.6 million allocation for renovating the Rocky Point Golf Course clubhouse.
What fiscal measures has Maryland implemented at the state level?
In April 2025, the Maryland General Assembly passed a budget that included approximately $2 billion in spending cuts and $1.6 billion in new revenue. This revenue was generated through income tax changes affecting high earners, a 3% tax on technology services, and increased taxes on sports betting and cannabis. These measures were implemented to close a projected $3 billion budget deficit for fiscal year 2026.
Key Features of Baltimore’s Fiscal Strategies
| Feature | Description |
|---|---|
| City’s 10-Year Financial Plan | A comprehensive strategy focusing on enhancing city services, investing in infrastructure, and improving tax competitiveness over the next decade. |
| County Budget Decisions | Baltimore County’s decision to approve a $5.2 billion budget without raising taxes, reflecting a cautious approach to fiscal management amid economic uncertainties. |
| State-Level Fiscal Measures | Maryland’s implementation of approximately $2 billion in spending cuts and $1.6 billion in new revenue through tax changes and increased taxes on certain services to address a projected $3 billion budget deficit for fiscal year 2026. |
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Author: STAFF HERE BALTIMORE WRITER
The BALTIMORE STAFF WRITER represents the experienced team at HEREBaltimore.com, your go-to source for actionable local news and information in Baltimore, Baltimore County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Baltimore Book Festival, Preakness Stakes, and Artscape. Our coverage extends to key organizations like the Baltimore Chamber of Commerce and Visit Baltimore, plus leading businesses in shipping and healthcare that power the local economy such as the Port of Baltimore and Johns Hopkins Medicine. As part of the broader HERE network, we provide comprehensive, credible insights into Maryland's dynamic landscape.
