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Posted at 12:13 PM ET, 09/27/2010

D.C. faces possible $175M shortfall

By Washington Post editors

Sales tax revenue in the District has fallen dramatically, helping contribute to more bad budget news for the D.C. government, Chief Financial Officer Natwar M. Gandhi told officials Monday morning.

The city's revenues for fiscal year 2011, which begins Friday, are estimated to be off by $100 million, primarily because of a drop in sales and income taxes. Gandhi met with Council Chairman Vincent C. Gray (D) and Council member Jack Evans (D-Ward 2) Monday morning with his estimate.

Other contributors to the projected $175 million deficit include about $25 million in cost overruns by D.C. Public Schools and at least a $33 million shortage in Medicaid funding due to cuts by Congress.

"It's much worse than we thought," said Evans, chairman of the Committee on Finance and Revenue.

Gray, who defeated Mayor Adrian M. Fenty in the Democratic primary, is considered the presumptive mayor in the heavily Democratic city and will probably try to tackle the problem. But Fenty, who remains mayor until January, is responsible for presenting the council with a plan to address the shortfall.

For updates on this story, be sure to check the DC Wire blog.

-- Nikita Stewart and Tim Craig

By Washington Post editors  | September 27, 2010; 12:13 PM ET
Categories:  DC  
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What else should the city expect when it has a taxicab rate of only $1.50 per mile? Do they really think that's going to stimulate the economy?

Posted by: starclimber9 | September 27, 2010 1:19 PM | Report abuse

We left you a little something, presumptive-mayor-elect Gray.

Posted by: krickey7 | September 27, 2010 1:46 PM | Report abuse

Ummm "its worse than we thought"?

Common Jack you can do better than that. As Chairman of the Budget and Finance Committee you have direct oversight of the city's budget.

Ghandi should move on. Money was stolen from his department! Did that account for any shortfall? He also aided Fenty and Rhees distortion of the school budget.

If the Chairman of the Budget and Finance Committee can not protect the citizens from financial deficits then it may be time to re-assign chairmanship (Vince).

Oh, Jack you also endorsed the loser in the mayoral race, not a good decision......

Posted by: dcchamp1 | September 27, 2010 3:49 PM | Report abuse

enjoy, Gray!

Posted by: ObamaisFraud | September 27, 2010 3:57 PM | Report abuse

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