Baltimore City has finalized a significant agreement worth $48 million with 14 of its largest nonprofit organizations, including prominent hospitals and universities. This agreement, announced by Mayor Brandon Scott, is designed to enhance the financial contributions of these institutions to the city over the next five years.
The agreement, known as a Payment in Lieu of Taxes (PILOT), will be in effect from Fiscal Year 2027 through Fiscal Year 2031. Under the new terms, the annual contributions from these nonprofits will increase from $6 million in 2027 to $12 million by 2030.
Historically, these institutions have provided between $1.4 million and $6 million annually under prior PILOT agreements spanning the last 16 years. The new deal includes provisions for annual increases, allowing these organizations to gradually enhance their contributions.
Additionally, the agreement takes into account the ongoing challenges posed by federal funding cuts to healthcare and education, which particularly affect smaller nonprofits such as Grace Medical Center and the Maryland Institute College of Art.
The terms of the agreement will be subject to renegotiation in FY 2031. Beyond the new PILOT payments, the 14 nonprofits currently contribute approximately $29 million annually in taxes and fees, along with an additional $28 million in direct community services.
This includes $19 million allocated for community safety, $7 million for waste management, and $2 million for public right-of-way maintenance. Collectively, these institutions employ around 71,000 individuals, representing one in four private sector jobs in Baltimore, and generate $57.6 million in local income taxes.
In 2024 alone, these nonprofits are expected to invest about $652 million into the city, supporting vital areas such as education, economic development, healthcare, and the arts. Over the five-year term of the agreement, assuming stable economic conditions, the city projects that these nonprofits will contribute a total of $481 million to the General Fund when accounting for PILOT payments, taxes, and fees.
Reported by HarborBeat based on WBFF (source).
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