Fenty Details Budget Cuts
Mayor Fenty briefed the D.C. Council today on his proposal to make up a $131 million budget gap for fiscal 2009, the details of which we brought you in the Post last week. Among the major initiatives is eliminating up to 400 vacant positions, which will save $31 million, and delaying a $10 million increase to the pension benefits of city employees. (Agencies will have the option to cut their budgets in other ways if they want to maintain the positions, sources tell D.C. Wire.)
The administration appears to have made a few changes from what we had been told by sources, including taking more money from the accounts of city agencies that collect revenues by selling products, such as business licenses. The administration had been initially expecting to take about $35 million that had accrued in those accounts, known as "O-type revenues," but now that figure appears to be $48 million. The full list of proposed cuts is here.
Fenty has squeezed as much as he can from the edges of the budget; many of the budget savings are one-time opportunities, such as taking the banked O-type revenues. Because of that, administration officials acknowledge that trimming the fiscal 2010 budget, which CFO Natwar Gandhi projected to have a $152 million revenue gap, will be even more difficult.
The council must approve any budget changes before they take effect, and the legislative body will be able to make amendments if it desires. Chairman Vincent Gray (D) will have a briefing for the media later today, which will provide the first glimpse of how the mayor's proposal will go over.
David A Nakamura
October 6, 2008; 10:39 AM ET
Categories: City Finances
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