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Regional Economic Indicators 2006: Government Finances

Government Finances

Local Government Revenues (Current Dollars)

For FY 2004, the total revenues of local governments in the region reached $8.8 billion. Revenues grew by 18.5 percent ($1.4 billion) from FY 2000 to FY 2004. During this period, Harford County registered the highest rate of revenue growth, 36.5 percent. Howard and Baltimore Counties followed with 26.8 percent and 24.8 percent respectively. Baltimore City registered the smallest rate of revenue growth, 6.6 percent. City revenues were down $56 million from FY 2003.

Within the region Baltimore City accounted for the largest share of the regional total, about 31 percent or $2.7 billion. Carroll County had the smallest share, about 5 percent or $451 million.

Local Revenue by Source (Current Dollars)

In FY 2004, jurisdictions in the region collected about 46 percent of their revenues from local sources (property, income and other taxes). Federal, state and other government sources provided 35 percent. Service charges, fines and other miscellaneous sources provided the remaining 19 percent.

From FY 2000 to FY 2004, revenue from local sources grew by 22.4 percent. Property tax revenue grew by 16 percent but income tax revenue and other taxes climbed by 24.4 percent and 45.3 percent respectively. Inter-government revenues increased by only 9.7 percent. State funding increased by 10.9 percent while federal funding grew by 2.9 percent. Revenues from service charges, fines and miscellaneous sources grew by 27.9 percent. This $365 million gain was $92 million greater than the increase of inter-government revenues.

Local Government Expenditures

In FY 2004, nearly 51 percent of local government expenditures in the region ($4.4 billion) supported education and recreation. Spending on education and recreation was up $708 million above FY 2000 levels. Expenditures for public works garnered 12.7 percent ($1.1 billion) of the total, up $199 million above FY 2000. Public safety held 12.4 percent of the total ($1 billion), up $220 million above FY 2000. While housing and development snagged only a 5.2 percent share ($453 million), expenditures were $193 million above FY 2000 totals. Health and welfare was the only category where spending was less in FY 2004 than in FY 2000. Expenditures dropped $29 million.

For most jurisdictions, the percentage distribution of local government expenditures by category in FY 2004 was within 1 percent of its FY 2000 counterpart. The exceptions, health and welfare and housing and development were within a 2 percent range.

Local Government Expenditures by Jurisdiction

In FY 2004, government expenditures by Baltimore City ($2.8 billion) were the highest in the region. The City ranked first in all major expenditure categories except education and recreation where Baltimore County outspent the City by $198 million. Among suburban counties, government expenditures by Baltimore County ($2.2 billion) were the highest. Moreover, Baltimore County, the most populous county, led suburban jurisdictions in all major categories of spending.

Comparing FY 2000 and FY 2004, Baltimore City had the highest increase in local government spending ($308 million) but the lowest rate of growth (12.8 percent). Local government spending grew fastest in Howard County, growing by 40.6 percent. Additionally, Howard County led the region in three other categories. Public safety expenditures increased by 37.7 percent. Police expenditures included in public safety spending was up 60.5 percent. Health and welfare expenditures increased by 40.5 percent. And spending for education and recreation jumped up 44.4 percent.

In 2004, for general government, housing and development and debt service expenditures, Harford County far exceeded FY 2000 spending levels. The rate of expenditures for general government doubled. Housing and development expenditures were up 158 percent. Debt service payments rose 79.7 percent

The remaining jurisdictions led their neighbors in a few significant categories. Carroll County increased expenditures for public works by 34.4 percent. Baltimore City added $40 million for education and recreation but this 3.9 percent increase was both the lowest absolute and lowest rate of increase of any jurisdiction in the region. The $35 million increase for housing and development in the City was both the largest absolute increase and the smallest rate of increase in this category.

Corporate Income Tax Revenues (2000 Dollars)

In 2004, Maryland netted $407.9 million from corporate income tax revenues. This represents a 2.7 percent decrease from 2000 to 2004; in this same period per capita net revenues from corporate income tax fell by 7.3 percent.

Federal Government Outlays (2000 dollars)

In 2003, Baltimore City captured the largest share of federal government outlays in the region with $8.8 billion, 42.1 percent of the regional total. Baltimore County led the suburban jurisdictions with $4.5 billion, 21.6 percent of the regional total.

From 2000 to 2003, the total of federal outlays directed to the region grew by 12.7 percent lagging behind the state, which rose by 18.9 percent and the nation, which posted a 16.8 percent increase.

In 2003, the region saw its federal outlays per capita reach $8,164. This total was higher than the nation ($6,632), but lower than the state ($9,789). Within the region, Baltimore City ranked highest in federal outlays per capita at $14,057, followed by Anne Arundel County, which led the suburban jurisdictions at $8,634.

From 2000 to 2003, the total of federal outlays per capita directed to the region rose by 10 percent, lagging behind both the state (14.2 percent) and the nation (13 percent). Anne Arundel County experienced the most substantial rate of growth at 22.8 percent, followed by Baltimore City’s 11.4 percent increase.

Federal Research & Development Obligations

Capturing $975 million in FY 2002, Johns Hopkins University maintained its rank as the leading recipient of federal R&D obligations among institutions of higher education for the 14th consecutive year. The FY 2002 total represents a 22.6 percent increase above the FY 2000 award.


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