The District is projected to rake in nearly $80 million more next fiscal year in taxes and fees than previously predicted, but the dollars fall short of expectations and could cause the D.C. Council to reopen budget debates that concluded just last week. The problem for the council is that the budget it passed included a list of priorities for spending dollars expected to come from the revenue projection released Wednesday by Chief Financial Office Natwar Gandhi. The list included putting half the cash in the city’s savings account after $21.6 million is used to move certain government jobs funded in the capital budget to the operating budget. What’s left isn’t enough to cover a request from Mayor Vince Gray to spend $32 million toward a rate hike for Medicaid providers.
“There’s a $6 million shortfall for the [Medicaid providers],” said Ward 2 Councilman Jack Evans, who heads the finance and revenue committee. “We can always move to reconsider the budget… this reopens the books.”
As the council considered the $5.6 billion operating budget, Evans and others pushed to have as the top priorities for spending new revenue: $13 million for nixing a new tax on out-of-state municipal bonds and another $11 million for hiring new police officers. Evans voted against the budget when those priorities weren’t met. At-large Councilman Phil Mendelson joined Evans in voting against the budget, a decision he made because under the existing plan the police force will likely shrink to below 3,700 by July 2012. Police Chief Cathy Lanier has said dropping below 3,800 sworn officers would mean “trouble.”
“A number of members regret the compilation of decisions made last week in the [budget],” Mendelson said Wednesday. Given the new complications, he said, “the right thing to would be to reopen the budget discussion.”
