Overtime spending, Trump economy prompts spending freeze at Baltimore agencies

Carson Swick

The Baltimore Sun

April 9, 2025

Widespread overtime spending, driven by staffing shortages among Baltimore’s first responders, and the economic uncertainty caused by President Donald Trump’s policies have prompted officials to enact a spending freeze across multiple city agencies.

The freeze, announced during a City Council hearing Tuesday, was put in place two weeks ago as Baltimore Mayor Brandon Scott drafted his proposed budget for the upcoming 2026 fiscal year, which begins July 1. Scott’s proposal accounts for considerably less assistance from the federal and state governments, which officials say could be further impacted by the Trump administration’s trade policies.

“There’s just a lot of uncertainty now when it comes to the current economic climate and the things that we’re seeing at the federal level, and so given what we are projecting from city agencies we thought it would be fiscally responsible,” Chief Administrative Officer Faith Leach said of the freeze, noting it is first of its kind during Scott’s time as mayor.

The freeze will primarily impact the city’s fire and police departments, but also several other city agencies projected to finish fiscal 2026 in the red.

“Agencies that are impacted by the spending freeze are seeing a pause on personnel actions that are related to re-classification and actions on their positions,” said Baltimore Budget Director Laura Larsen. “There’s also increased review and approval of discretionary overtime.”

According to a presentation by Larsen Tuesday, the city has racked up a projected $8.3 million dollar deficit for fiscal year 2025 through the second quarter — the period between Oct. 1 and Dec. 31, 2024. This projection is an improvement from the $14.4 million deficit projected through the year’s first quarter, as Larsen said the city’s $19.65 million income tax surplus — assumed tax revenue on local wages was 1.4% higher than expected in the second quarter — helped to right the ship.

Fire, police overtime

Despite this progress, overtime spending within the police and fire departments has overshadowed smaller surpluses and less severe projected deficits so far this fiscal year.

According to Larsen’s presentation, the Baltimore City Fire Department is projected to incur a $35.8 million deficit for fiscal 2025 overall, while the Baltimore Police Department is projected to incur a $25.2 million deficit. Both figures represent an increase from the roughly $33 million and $3 million deficits in fiscal 2024, respectively.

Larsen said the large increase in the police department’s projected overtime expenditures is driven by high initial estimates for snow removal costs in the third quarter of fiscal 2025 — the period from Jan. 1 to March 31, 2025.

“We were projecting that the final overtime costs for fiscal 2025 will be higher than last year, but that was mainly related to how we were forecasting for seasonal overtime costs,” Larsen said. “And so, that number will change as we update our third quarter projections.”

Working excessive overtime hours has pushed many first responders to top the list of Baltimore’s highest-paid city employees, as well as led to widespread feelings of burnout. The city’s highest-paid paramedic in fiscal year 2024, David Lunsford, took home $358,586 — of which 68% came from overtime hours worked beyond his $113,158 salary.

City leaders say little can be done to address the overtime issues without filling vacancies. The city has made some progress in this area — the number of vacant positions decreased 19% through the second quarter compared to fiscal 2024 — but the technical nature and demanding workload of first responder roles makes finding new employees difficult.

According to City Council President Zeke Cohen, an overtime oversight hearing is scheduled for May 22, during which Larsen and Department of Human Resources Director Quinton Herbert will brief the council on “overtime spending and vacant positions.”

The big picture

Larsen’s presentation shows that overall spending on civilian overtime, sworn overtime and non-personnel spending is also expected to increase considerably in fiscal 2025.

While civilian overtime spending across all city agencies decreased 5% through the second quarter compared to fiscal 2024 levels — from $18.7 million to $17.8 million — it is projected to increase nearly 20% in fiscal 2025 overall, from $35.1 million to $42.1 million.

Sworn overtime for firefighters, police officers and other first responders increased 9% from fiscal 2024 levels through the second quarter, from $50 million to $54.4 million. Larsen’s presentation forecasts a nearly 8% increase in fiscal 2025, from $99 million to $106.8 million.

Non-personnel spending saw a 16% increase upon fiscal 2024 levels through the second quarter, from $220.2 million to $254.8 million. This category is expected to see a nearly 13% increase for fiscal 2025 overall, from $475.1 million to $536.6 million.