BALTIMORE (WBFF) — Baltimore City ended the 2025 budget year with a $3.3 million deficit, which was smaller than expected due to larger income tax revenue than budget leaders predicted.
Members of the Baltimore City Council got the kernel of good news during a budget hearing at City Hall. Laura Larsen, the city’s budget director, said the city brought in $42 million more in income tax revenue than it originally expected, resulting in the city ending up with $66 million more in revenue streams.
“Income tax revenue is collected at the state level and then dispersed to the local level based off of an allocation formula,” she said. “It was sort of very out of the norm and very unexpected.”…