Important note: Information in this article was accurate in 2008. The state of the art may have changed since the publication date.
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San Francisco Examiner - February 4, 2008
Michael Neibauer, mneibauer@dcexaminer.com
Though he anticipates an $80 million surplus at the close of the current fiscal year - fiscal 2007 closed with $248 million in unanticipated revenues - Chief Financial Officer Natwar Gandhi has warned the mayor and council repeatedly that 2009 is when the slowdown will hit home.
The District, unlike its neighbors, has remained generally shielded from the housing and credit crisis.
"Even though the city is still doing well, weÆre going to be vigilant and careful," said Ward 6 Councilman Tommy Wells. "We must assume the downturn in property values will impact our revenue collections as it has surrounding jurisdictions."
Mayor Adrian FentyÆs proposed budget is expected to come in shy of a 9 percent increase over the $5.6 billion 2008 spending plan.
As for controlling spending, "The answer is, we have to," said one Fenty aide.
In early drafts of the baseline budget - the minimum amount each agency expects to need based on the previous yearÆs spending - most department heads have asked for very slight adjustments to their 2008 spending plans. But toss in hundreds of "program enhancements" and thereÆs an additional $1 billion in requests to wade through before the final proposal is written.
"The council and the mayor are going to come up with a balanced budget, and I believe the council will weed out any gimmicks that would purport to balance the budget," said at-large Councilman Phil Mendelson. "But if the revenues come in lower, it will be tough to make the cuts."
Council Chairman Vincent Gray, who will guide the councilÆs budget deliberations, did not respond to repeated requests for comment.
What D.C. agencies want
Examples of requests for fiscal year 2009:
* Deputy Mayor for Economic Development and Planning: $5 million to sell D.C. as a "destination"
* Chief Technology Officer: $5 million to relocate data center at least 100 miles away
* Commission on Arts and Humanities: $550,000 for a New YearÆs Eve/First Night celebration
* Department of Corrections: $500,000 to provide HIV/AIDS testing for inmates
* D.C. Public Library: $2.2 million to restore previous cut to book collection
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