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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.

By David A Nakamura  |  October 6, 2008; 10:39 AM ET
Categories:  City Finances  
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Mayor Fenty can easily save over 100 million dollars each fiscal year by paring down that extravagant school renovation project. DC schools can settle for a few touch ups here and there until tax revenue becomes robust again. Eliminate paying students to say "Present" during homeroom and get rid of that dangone summer employment program.

Posted by: forgetthis | October 6, 2008 3:06 PM | Report abuse

100 million dollars is "pared" down.

Give these kids a comfortable environment to learn in so they'll turn out to be more than just statistics!

Posted by: Martin | October 6, 2008 3:38 PM | Report abuse

Fire all the chiefs throughout the district and let the underdogs run the Administration for couple years and Mayor Fenty Can save more than 100 million easily

Posted by: Hired | October 6, 2008 3:41 PM | Report abuse

Now that's a plan. You can start with Kelly Valentine. Those trips her office takes to Hawaii for "training" excersises are bogus. Especially when you have hard working disabled DC workers being kicked from the system just so they can catch some sun.

Posted by: Martin | October 6, 2008 3:47 PM | Report abuse

Immediately recall Fenty and terminate the employment contracts of Michelle Rhee and the rest of his cabinet of fools. It is obvious that they do not know what they are doing.

We've had more issues and drama in every aspect of our city government and our city has been sued so much more since this regime has been in office.

Posted by: Don Peuon | October 6, 2008 4:04 PM | Report abuse

How about firing his CFO who let allow embezzelment in office of tax? Speaking of which, how much money was recovered?

Posted by: DC Resident | October 6, 2008 4:18 PM | Report abuse

Fire everyone in the Office of Tax & Revnue and I bet revenues will at least double. The employees are over there stealing all of the money.

Posted by: dcisajoke | October 6, 2008 4:26 PM | Report abuse

I have to agree. It's hard to take Natwar seriously on anything he proposes since he clearly does not know how to manage anything. Too bad he lost $50,000,000 of our money. That would have made up for over a third of this shortfall!

Posted by: JeffB | October 6, 2008 4:38 PM | Report abuse

Examine each dc agency and remove all of the "Special Assistants" and multiple program managers and deputy director positions MS-salary grades 14 and above ($100,000 +). Most residents and workers don't know the purpose and function of these positions, other than that they are favors to friends and supporters of agency heads and the executive. The positions are a misuse of tax payer dollars......

Posted by: JDUB | October 6, 2008 4:52 PM | Report abuse

I am very disturbed with the Fenty administration and the tone that he has set. Everyday hardworking individuals feel intimidated and threatened for their jobs especially with the bullying tone that this administration has set. Get rid of a lot of top official and listen to the little guys. We have plenty of ideas on how to make our departments run more smoothly and effieciently.

Posted by: Saddened | October 6, 2008 4:55 PM | Report abuse

Kill the summer jobs program immediately. It was an embarrassment back when we had the money to throw at it. Now that we are broke it's continued existence is inexusable.

Posted by: Hillman | October 6, 2008 5:03 PM | Report abuse

Sarcasm- use the money from the NEW STADIUM to balance the budget.

Posted by: Baffled | October 7, 2008 10:33 AM | Report abuse

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