The Fenty administration has struggled to implement ambitious cost-saving and revenue-bulking strategies included in the current budget — delays that have played a major role in a projected $200 million-plus revenue shortfall.
“There were promised initiatives that were going to save millions of dollars, and halfway through the fiscal year they haven’t done squat,” said at-large Councilman Phil Mendelson, chairman of the public safety committee.
The District government faces a $225 million gap in fiscal 2010, much of which is blamed on overspending, unrealized cost savings and pains generating new revenues.
In the case of traffic fines, for example, the timetable to expand automated traffic enforcement has been delayed to the end of the fiscal year, according to Chief Financial Officer Natwar Gandhi. In the adopted $5.4 billion fiscal 2010 budget, traffic fines were projected to generate $108 million, but Gandhi revised that figure down by $18 million.
“We based our estimates on the information provided by [the Metropolitan Police Department],” said David Umansky, Gandhi’s spokesman. “That’s how much they thought they could collect.”
City Administrator Neil Albert told the D.C. Council Feb. 19 that the D.C. Healthcare Alliance, the District’s health care safety net, would realize $24 million in savings this fiscal year. But Albert also acknowledged the “delay of some savings initiatives,” and reported that Alliance enrollment was 55,818 — about 1,600 members more than last July.
Also in the adopted budget, the contract for inmate health care at the D.C. Jail was to be restructured to better reflect a lower average daily population, saving $2.1 million. But no changes were made and the Department of Corrections now expects to spend $29.7 million on inmate care, roughly $10 million more than its budget.
Budget pressures
» Increased youth rehab commitments: $12.6 million
» Child and Family Services Medicaid billing: $23.1 million
» Citywide fixed costs: $17 to $23.3 million
