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Although Baltimore City’s Recreation and Parks Department is underfunded to a large degree, the State of Maryland has stepped in to help through Program Open Space.  Program Open Space is a state program that allocates funds for the acquisition and conservation of parkland for state and local governments.[1]  The allocated funds derive from the state real estate transfer tax – a fee generated from the transfer of property in the state.[2]  Although the stated purpose of Program Open Space’s local government program is to encourage the acquisition, development and capital improvement of land for use as parks, Baltimore City has more flexibility with its use of Program Open Space funds.[3]

For instance, while Program Open Space prohibits allocation of funds beyond acquisition and development of parkland, Baltimore City is an exception.[4]  Baltimore City can use local project funds for operations and maintenance of projects requiring “capital renewal.”[5]  Capital renewal means “renewal of a capital project for which an improvement is necessary to ensure the physical integrity of . . . [a] facility . . . [f]ixed equipment . . . or [a]n existing physical improvement.”[6]  Essentially, Baltimore City can use Program Open Space funds to fix or repair park facilities and pay for operations costs for such repairs.

Recent legislative changes to Program Open Space provides further advantages to Baltimore City’s Recreation and Park Department.[7]  These changes require Program Open Space to allocate $6 million of extra revenue to Baltimore yearly starting in 2020.[8]  Like Baltimore City’s typical allocation of Program Open Space funds for local projects, these extra funds can also fund maintenance and operations of parks.[9]

This program is an incredibly important source of funds for Baltimore’s parks.  With a poor maintenance history of building and other structures in Baltimore’s park system, “capital renewal” funds are desperately needed.  This funding allows for Baltimore’s deteriorating park infrastructure to be restored instead of focusing funding on purchasing new parkland.  While Program Open Space does not solve the City’s chronic underfunding of the Recreation and Parks Department, it does help in a significant way.

[1] Md. Code Ann., Nat. Res. § 5-901 et seq

[2] Md. Code Ann., Tax – Prop. §13-101 et seq., 13-209

[3] Md. Code Ann, Nat. Res. § 5-902(a)

[4] Md. Code Ann., Nat. Res. § 5-901(h)

[5] Md. Code Ann., Nat. Res.

[6] Md. Code Ann., Nat. Res. § 5-901(c)(1).

[7] Md. Code Ann., Nat. Res. § 5-903(a)(1)(ii).

[8] Md. Code Ann., Nat. Res. § 5-903(a)(1)(ii)(2)(D).

[9] Md. Code Ann., Nat. Res.  §§ 5-901(h), 5-903(a)(1)(ii).