Mayor Rawlings-Blake Announces PILOT Agreement with City Nonprofit Hospitals and Universities
Today, Mayor Stephanie Rawlings-Blake officially announced a “Payment in lieu of taxes” (PILOT) agreement to prevent the enactment of a new $350 annual bed fee on Baltimore City nonprofit hospitals, colleges and universities. In accordance with the PILOT agreement, the nonprofit institutions have agreed to voluntarily provide more than $20.4 million in direct payments to City Government over 6 years to help Baltimore taxpayers weather the worst fiscal crisis in the City’s modern history. The agreement will help the City fund public safety and essential City services.
“Nonprofit hospitals, colleges and universities are an important part of Baltimore’s economy; they provide tens of thousands of good jobs, educational opportunities, and top notch healthcare to many City residents,” Rawlings-Blake said. “On behalf of the people of Baltimore, I am deeply grateful that these committed City institutions have agreed to assist City government in this tough economic environment. Their voluntary sacrifice and continued philanthropic support of our City and its communities is very much appreciated.”
The $20.4 million in direct payments to the City are “front end loaded” according to the 6-year agreement and are scheduled as follows: Fiscal Year 2011, $5.4 million; Fiscal Year 2012, $5.4 million; Fiscal Year 2013, $3.4 million; Fiscal Year 2014, $2.4 million; Fiscal Year 2015, $2.4 million; and Fiscal Year 2016, $1.4 million. In accordance to the agreement, nonprofit institutions will be subject to a fixed 8% energy tax for the life of the agreement, a 33 1/3% increase over the current rate. And, the nonprofit institutions will also be subject to a fixed 14.28% increase in the telecommunications tax.
Members of the Maryland Hospital Association (MHA) and the Maryland Independent College and University Association (MICUA) will participate in the 6-year agreement.
"The recession has hit everyone, including Baltimore's hospitals, who are and always will be a part of the city,” said Carmela Coyle, President & CEO of the Maryland Hospital Association. “Working with the Mayor and the City Council, this agreement helps the city address its fiscal challenges, provides budget predictability for hospitals who are also working their way out of financial difficulties similar to those the city faces, and retains hospitals' critical tax-exempt status. We appreciate the Mayor's willingness to work with us on this agreement."
MHA is the advocate for Maryland's hospitals, health systems, communities, and patients before legislative and regulatory bodies. MHA's membership is comprised of community and teaching hospitals, health systems, specialty hospitals, veterans hospitals, and long-term care facilities. For more information about MHA visit: http://www.mdhospitals.org
“The 16 participating colleges, universities, and hospitals are deeply rooted in Baltimore, some for more than 150 years,” said Tina Bjarekull, President if MICUA. “During this time, they have contributed to the City's economic vitality and quality of life for Baltimore's residents. They are committed to working with the Mayor and City Council in continuing that partnership. We are grateful to Mayor Rawlings Blake and her staff for their leadership on this issue.”
MICUA is a voluntary association that provides public policy leadership in support of independent higher education, fosters cooperative efforts among member institutions and Maryland's public colleges and universities, and informs the citizens about the significance of its 17 member institutions. For more information about MICUA visit: http://www.micua.org
In keeping with Mayor Rawlings-Blake’s commitment to transparency in City government, signed copies of the PILOT agreement are available online at:
http://www.baltimorecity.gov/LinkClick.aspx?fileticket=U1RnANfyLKQ%3d&tabid=1003&mid=1770
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