Baltimore's Board of Estimates on Oct. 15 approved a set of fiscal‑year‑end supplemental appropriations that would transfer $112.9 million from the city's surplus to cover deficits in several general fund agencies.

The action, presented by Laura Larson, the city's budget director in the Bureau of the Budget and Management Research (BBMR), was framed as part of the closeout of fiscal 2025. "The general fund ended the year with a $66,600,000 overall surplus," Larson said, adding that the city now requests appropriations to resolve year‑end agency shortfalls.

BBMR told the board the city recorded stronger‑than‑expected income tax receipts and slightly better property‑tax collections, driving an overall surplus. At the same time, Larson said, the city faces large agency deficits in part because police and fire union contracts were finalized after the FY25 budget was adopted and exceeded the assumptions built into that budget.

The supplemental request would appropriate $112,900,000 to cover deficits at multiple agencies. BBMR identified the main items it expects these appropriations to cover as: Fire Department $38,500,000 (union contract costs, overtime, contracted EMS); Police Department $47,500,000 (union contract costs and overtime); City Schools $12,900,000 (a contribution linked to the City Springs redevelopment); Recreation & Parks $5,600,000 (overtime, urban forestry, park maintenance); Transportation $4,500,000 (snow‑removal overages); Sheriff's Office $3,400,000 (fleet and overtime); Liquor License Board $454,000 (rental, leased cars, overtime); and Law Department $81,000 (unbudgeted contractual services). Larson said the requested supplementals will be funded from the year‑end surpluses BBMR identified.

Larson also described internal controls BBMR is using in FY26 to limit future overages: tighter pre‑procurement budget checks, agency internal budget amendments to document offsets for unplanned purchases, and stricter requirements for hiring actions to identify recurring offsets. "As part of this process we are requiring agencies to prepare internal budget amendments that we can handle administratively in order to fund any unplanned purchasing activity," she said.

Board members asked for clarifications about that reconciliation and longer‑term controls. Comptroller Bill Henry asked whether the $4.5 million for snow removal was to cover last year's overspend; Larson confirmed it was. Several members pressed on police and fire deficits and were told roughly $20 million of the combined $86 million shown for those two departments is attributable to the new union contract costs; the remainder represents overtime and other overages.

BBMR also said preliminary unaudited work shows a $13.1 million net ending surplus after adjustments; Larson emphasized the numbers are preliminary while the Bureau of Accounting and Payroll Services completes the annual closeout and the comprehensive annual financial report. BBMR said it will present carry‑forward recommendations to the board on Nov. 5 to preserve balances for agencies with legitimate multi‑year obligations.

Motion and vote: A motion to approve the supplemental appropriations was moved and seconded and approved by voice vote. The clerk had previously noted that Board President Z. Cohen would abstain on SB2513719; that abstention was recorded in the proceeding and the supplemental was adopted.

Why it matters: The supplemental resolves immediate FY25 deficits and updates the city's FY26 starting point; board members signaled they will continue to monitor overtime, union contract costs and procurement oversight to limit recurring deficits.

What's next: BBMR will present carry‑forward recommendations at the board's Nov. 5 meeting. The supplemental appropriations will also be introduced to City Council for referral and consideration per the charter.