Baltimore is blessed with strong anchor institutions that are the envy of other cities. Centers of health and learning like Johns Hopkins University and Johns Hopkins Medicine and the University of Maryland Medical System (UMMS) employ tens of thousands of our neighbors and are vital economic, social and cultural engines for our city.
Tragically, these institutions, and our city itself, are under an unprecedented assault from Washington, D.C. Steep cuts to research and haphazard layoffs of federal employees have already eliminated thousands of jobs. And unfortunately, it seems likely there is still more to come, with recent federal legislation including reductions to Medicaid and Medicare and further slashing research investment, which threatens Baltimore’s residents and economic future.
Against this backdrop, it is heartening to see Mayor Brandon Scott join with the leaders of Johns Hopkins, UMMS, MedStar Health, Loyola University, LifeBridge Health, Mercy Medical Center, Ascension Saint Agnes Hospital, MICA and Notre Dame of Maryland University to sign a five-year agreement that provides critical funding to our city government and safeguards our leading anchor institutions.
In short, the mayor’s leadership in renewing the voluntary nonprofit payment in lieu of taxes (PILOT) has produced a plan that protects Baltimore.
This is a balanced agreement. It recognizes the contributions of our “eds and meds” institutions to our city:
Providing nearly one-quarter of our city’s private sector jobs; investing billions of dollars in capital projects that benefit companies and neighborhoods throughout the city; offering more than $100 million in scholarships to Baltimore students and in partnership with the city’s public schools; providing more than $1 billion in community health benefits, such as health professional education, free medical services and other economic benefits; and paying millions of dollars in energy, telecom and parking taxes, as well as property taxes on non-exempt and leased properties — plus employee income taxes.
Additionally, many of these institutions do not rely on public services, providing their own street and lighting maintenance, snow removal, public safety and trash removal, while paying millions of dollars in city sewer and water fees.
At the same time, Baltimore is one of only five of the top 50 cities — and the only place in Maryland — where nonprofit institutions have voluntarily agreed to a formal PILOT, generating millions of dollars not available to other jurisdictions to invest in priorities like education and public safety.
This new PILOT agreement will double the annual contribution from these institutions from $6 million to $12 million over five years, resulting in a total $48 million in revenue for city government.
Nonprofits have always been tax-exempt in America, for good reason. I led one such institution for many years, Union Baptist Church, and now lead another, the Justice Thurgood Marshall Amenity Center, honoring the legacy of Supreme Court Justice Thurgood Marshall and serving our community into the future. Our mission is not to generate private profit but to provide public benefit, saving government significant costs that it would otherwise have to bear.
Mayor Scott and the leaders of our anchor institutions deserve credit for crafting an agreement that serves the public good on all fronts. They are standing together to stand up for Baltimore in the face of Washington’s attacks. And they are building the foundation for Baltimore’s future economic growth, which will make our high aspirations for our city more attainable.
Rev. Alvin C. Hathaway Sr. is the founder of the Justice Thurgood Marshall Amenity Center. He was pastor of Union Baptist Church from 2007 through 2021.
