Maryland Sen. Mary Washington, a Baltimore Democrat, is warning taxpayers against creating another nonprofit grantmaking fund as is being proposed in a city ballot measure.

Question G, if approved, would amend the Baltimore City Charter to establish a Community Reinvestment and Reparations Fund, which would be responsible for administering state money generated from cannabis sales.

The city is not required to amend the charter to administer the state funds, but it is choosing to do so against the advice of its own agencies. The money could be distributed through the existing Equity Assistance Fund, which former Chief Equity Officer Dana P. Moore told lawmakers in a letter last year.

“Rather than establishing new funds unnecessarily, it is more prudent to utilize existing unfunded funds. Doing so reflects responsible fiscal stewardship,” Moore wrote.

The Baltimore City Department of Law shared a similar sentiment, telling lawmakers the proposed charter amendment is “not necessary.” The Baltimore City Department of Finance said the measure “restricts the City’s ability to allocate or direct funding.”

In response to an email from FOX45 News, Washington said the fund, if approved, should not be stood up as a nonprofit organization. Washington was the only politician to respond to the email, which went to all city lawmakers.

“If the voters approve the measure, the Fund should be located in the Office of the Comptroller for fiscal transparency and accountability,” Washington wrote. “It should never become a separate 501(c)(3) like the Baltimore Civic Fund nor managed by an outside operative like the Baltimore Children and Youth Fund.”

The Baltimore Civic Fund, which was established in the 1980s, is heavily supported by government grants despite sitting outside city government as a separate, nonprofit organization. The fund’s most recent annual tax filing shows most of its revenue, $14 million, came from government coffers.

City Hall holds deep ties to the Baltimore Civic Fund. Marvin James, the chief of staff for Mayor Brandon Scott, sits on the fund’s board of directors. Two other Scott administration employees, Michael Mocksten and Alexandra Smith, also serve on the board.

The Baltimore Children & Youth Fund was established via a ballot measure in 2016. The fund, which the city is now required to provide millions of dollars every year with no sunset date, is not subject to routine performance auditing as city agencies are. The lack of oversight for a fund entirely supported by city taxpayers has become a point of concern for transparency advocates.

“Seeing the funding structure for [the Baltimore Children & Youth Fund] really sent a chill down my spine,” David Williams, president of the nonpartisan Taxpayer Protection Alliance, told FOX45 last month. “You have a funding mechanism that is going on in perpetuity — is that, this is never going to end. So when you have an entity that’s receiving an annual appropriation, an annual payment, you can do a lot more oversight, a lot more accountability.”

Associated Black Charities used to be responsible for administering the Baltimore Children & Youth Fund, but the fund was reorganized after a 2019 audit raised red flags about its grantmaking and performance tracking. The fund has existed as its own nonprofit ever since.

Baltimore City Comptroller Bill Henry and Councilman Yitzy Schleifer, both Democrats, previously expressed support for auditing the Children & Youth Fund on a regular basis.

“This fund should be audited every two years like every other taxpayer-funded entity,” Schleifer told FOX45 last month.

Despite Washington’s comments and concerns from city agencies, Baltimore politicians have been largely silent about Question G.

City lawmakers, the Baltimore Civic Fund nor the Baltimore Children & Youth responded to requests for comment regarding Washington’s sentiment.

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