Baltimore’s 14 largest tax-exempt institutions will pay the city more to cover the cost of services they receive under a new “Payment in Lieu of Taxes” (PILOT) agreement announced on Wednesday by Mayor Brandon Scott for fiscal years 2027 to 2031.
Under previous PILOT agreements over the last 16 years, the 14 non-profit organizations have contributed between $1.4 million and $6 million annually to the city. The new assessment agreement will double the institutions’ current annual investment within three years, from $6 million in 2027 to $12 million in 2030. Over five years, the city is expected to receive more than $48 million.
The 14 institutions are: Grace Medical Center (formerly Bon Secours Hospital); Johns Hopkins Hospital; Johns Hopkins Bayview Medical Center; Good Samaritan Hospital; MedStar Harbor Hospital; MedStar Union Memorial Hospital; MedStar Mercy Medical Center; Sinai Hospital; Ascension St. Agnes Hospital; University of Maryland Medical Center Downtown Campus; University of Maryland Medical Center Midtown Campus; Johns Hopkins University; Loyola University Maryland; Maryland Institute College of Art; and Notre Dame of Maryland University.
The new five-year assessment agreement supplants the city’s current 10-year agreement with the institutions, which expires in mid-2026. Under the new agreement, officials say, annual rate increases will allow the institutions to adjust to the financial realities of higher obligations to the city. The agreement also takes into account the ongoing impacts of federal funding cuts to health care and educational institutions, especially to smaller institutions such as Grace Medical Center and Maryland Institute College of Art. It will be renegotiated in fiscal year 2031.
“Baltimore’s economy is powered by ‘meds and eds,’ the institutions that employ, train, educate, and treat so many of our residents,” Scott said in a statement. “This agreement increases their shared investments in our city, while taking into account the financial strain that they are experiencing as this federal administration continues to target colleges, universities and hospitals. As always, we are grateful for their significant contributions to our city and our residents, and look forward to continuing to build on our partnership in the years to come.”
“The largest nonprofit institutions in Baltimore deliver billions of dollars in community impact each year and are deeply invested in the success of the city,” said Matthew Power, president of the Maryland Independent College and University Association (MICUA), in a statement. “We are pleased to have a new agreement with Mayor Brandon Scott to increase the annual contribution this group makes to the city. These institutions are proud to be a part of the positive transformation taking place in communities across our city, and they remain committed to working every day to support Baltimore’s residents.”
“We are proud of the deep commitment our nonprofit hospitals have for the City of Baltimore,” the Maryland Hospital Association said in a statement. “They continuously invest in and support a wide array of programs and services including charity medical care, support for local schools, and community health services throughout the city that help improve the health and well-being of Baltimore residents.”
In addition to payments under the nonprofit assessment agreement program, the 14 institutions contribute $29 million in taxes and fees annually, in addition to $19 million for community safety, $7 million for waste management and $2 million for public right-of-way maintenance.
Collectively, these institutions employ 71,000 people, or one out of four private sector positions in the city, generating $57.6 million in local income taxes. In 2024, they invested approximately $652 million in Baltimore, which includes investments in public schools, economic development, arts and culture, and community health services.
Over five years, if economic conditions remain consistent, the institutions will contribute a total of $481 million to the city’s General Fund from annual contributions, taxes and fees, officials say. This includes local income taxes, parking, energy and utilities taxes, and other miscellaneous fees — which peer institutions with PILOT agreements in other cities are not required to pay.
How about some accuracy in reporting, rather than regurgitating the press release from the nonprofits and the mayor? They’ll pay a little more, which will in no way “cover” the cost of the city services they use.
Going forward, please use your first and last name. https://baltimorefishbowl.com/community-standards/