The D.C. Council is scheduled to vote today on the District’s $5.7 billion fiscal 2009 budget, which will likely include tax relief for small businesses, though not nearly as much as the council had previously sought.
A statement issued Monday by Council Chairman Vincent Gray’s office promised a budget that supports “sensible” school reforms, fixes school buildings, improves the learning environment, and provides tax relief for small businesses “that gives them early and lasting help.”
“The Council will approve a comprehensive budget despite difficult challenges, particularly the lack of transparency and details, which made its review and deliberations very difficult,” said statement.
The council’s various committees have already adopted their changes to Mayor Adrian Fenty’s proposed spending plan. Gray, however, left the difficult matter of tax relief for today’s meeting.
The chairman wrote legislation last year providing $96 million in real estate tax relief for businesses, cutting the commercial property tax rate across the board. Fenty reduced the amount of relief to $15 million in his proposed spending plan, citing Chief Financial Officer Natwar Gandhi’s reduced revenue estimates.
Gandhi’s last two forecasts, released in February and May, dropped estimated 2009 revenues by $130 million.
Despite less money coming in, Gray is expected today to push the tax relief figure to $21.8 million, using funds from the police budget. Police Chief Cathy Lanier was highly critical of the cuts to her agency’s budget.
The council is also expected to restore $18 million to the D.C. Public Schools using money from reserves and from savings on a building lease.
