A covey of journalists, yours truly among them, pitched questions at Nat Gandhi Monday afternoon to help them understand whether the District is kind of broke, seriously broke or in need of another federal bail out.
The city’s chief financial officer, or bean counter, had spent the day delivering dire news to the District’s political class. He met with Council Chairman Vincent Gray, which is tantamount to meeting with both the mayor and the chairman, since Gray will almost certainly become mayor in January. He gave the bad news to lame-duck Mayor Adrian Fenty. Then he met with the journos.
“We are more pessimistic than we were in June,” Gandhi said. “But is the sky falling down? No.”
Allow me to translate:
» According to Gandhi and his accountants, the city is about to spend about $170 million that it does not have, because tax revenues are down and the federal government shorted the city on Medicaid reimbursements.
» But the city is not going bankrupt and heading into the financial hole that brought about the Financial Control Board of 1998.
“This is quite manageable,” he said.
Really?
“I never recommend anything,” Gandhi said in response to questions about how to balance the budget. “You either raise revenue or cut the budget. There is no third way.”
More on that later, but first, a word on Gandhi.
Will he stay or will he go? Will presumptive Mayor Gray keep him or seek a new bean counter. Will the city council heed his warnings?
Many Gray supporters will be calling for Gandhi’s head. Some powerful veteran political operatives are still furious that Gandhi fired their friends immediately after he discovered the $50 million embezzlement scam by Harriette Walters. Many Washingtonians hold him responsible for the scam. So Gray will face pressure to fire him or not reappoint Gandhi when his term is up in 2012.
But Gandhi and Gray are compatriots. Both are in their late 60s. They respect one another. They adore the granular nature of budget numbers and debates.
At a time when the city is changing its political guard and facing budget problems, it’s both comforting and essential that Gandhi remain in place. He’s been the “adult in the room,” balancing budgets since 2000. He needs to stay.
And the city council needs to cut programs — big ones.
“We are in a very tenuous area,” said Jack Evans, chair of the finance and revenue committee. “If we make cuts — real substantial cuts of $150 million — we can restore fiscal health. If not, we will be teetering on the brink. There is no choice.”
Yes, there is. The council can try to raise taxes. Or it can hope that the federal government forks over more money. Or it can try to raise fees for parking and such.
“They are waiting for Superman,” Evans says. “Superman doesn’t exist.”
But we do have Nat Gandhi.
Harry Jaffe’s column appears on Tuesday and Friday. He can be contacted at [email protected].
