A sharp drop in tax revenues and ballooning overtime spending have Baltimore City officials scrambling to close a $37 million gap in the city’s fiscal 2009 budget.

With transfer and recordation tax receipts running $15 million bellow projections due to a faltering real estate market, and rising spending on fire and police overtime, city officials are being forced to cut back on staffing for emergency medic units, salary increases for some city employees, and the police department’s community relations programs.