D.C. Council members are likely to protect the city’s reserve funds by cutting deep into programs like public education and human services that have long been considered untouchable “sacred cows.”
In addition to job cuts, limited service reductions and capital project delays, Mayor Adrian Fenty’s revised fiscal 2010 budget plan relies heavily on the city’s “general fund balance” — every dollar not currently committed to a specific expense, like the balance in a checking account — to close a $340 million gap in 2009 and 2010. The fund balance includes the rainy day fund.
“We tried not to impact services,” City Administrator Neil Albert told the council last week.
But Council Chairman Vincent Gray said Monday that Fenty’s proposal would reduce what was a $1.25 billion fund balance to between $400 million and $500 million, much of which the city is barred by Congress from spending.
Emptying every pot, the chairman said, is only a short term fix as the city would still face serious budget gaps in 2011 and 2012. And it would leave D.C. “with very few options, and I think that’s a very precarious position to be in.”
“I’m arguing to not put it off until tomorrow,” Gray said. “Deal with it now.”
All council members have been asked to slash 6 percent from their office’s personnel services budgets. Each member with a committee also has suggested cuts to the agencies under his or her purview, which the body spent Tuesday discussing behind closed doors.
Public safety, human services and public education account for 69.7 percent of the city’s $5.4 billion annual budget. Despite some efforts to protect welfare, those meaty areas remain the council’s focus.
“If you’re going to cut $10 million out of the school system you’re going to catch hell,” said Ward 2 Councilman Jack Evans. “So you might as well cut 50.”
The council talks have left low-income advocates cold.
“Why should we be cutting more than we have to while leaving money in the bank?” asked Ed Lazere, executive director of the D.C. Fiscal Policy Institute.
