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Budget Woes: Are Tax Breaks for D.C. Small Businesses in Jeopardy?

The D.C. Council delayed a vote last week on Mayor Adrian M. Fenty's plan to close a $130 million budget gap because Chief Financial Officer Natwar Gandhi said he could give only conditional certification to about $20 million of revenues the mayor hopes to use. Most of that comes from $17 million the city expects to have left over from fiscal 2008, once the Comprehensive Annual Financial Review is finished in the spring. Until the CAFR is certified, Gandhi has said the mayor can't count on the $17 million.

Late yesterday, the mayor submitted a modification aimed at addressing those concerns. In letter to Gandhi and council Chairman Vincent Gray, Fenty proposed that the city still hope for the $17 million but, as a backup, delay about $18.8 million in commerical property tax breaks for small businesses that was supposed to go into effect this year. Administration officials stress that they fully expect to reinstate the tax break once the CAFR is complete.

Here are copies of the mayor's letters.

By David A Nakamura  |  October 22, 2008; 1:08 PM ET
Categories:  City Finances  
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