Raising fines and fees, taxing hospitals and slashing upward of 400 jobs highlight Mayor Adrian Fenty’s 2011 budget proposal, which closes a half-billion-dollar shortfall while boosting spending in politically popular areas such as education and public safety.

The proposed $5.2 billion local funds budget for the fiscal year beginning Oct. 1 represents a 2.7 percent cut from the current, fiscal 2010 budget. Released in a politically charged atmosphere Thursday amid dwindling revenues, the plan struck some D.C. Council members as implausible, because it spares the most costly government services, does not raise key taxes and still closes a $500 million-plus budget gap.