Money doesn’t grow on trees

Anyone charting the recession and its effect on state and local governments probably isn’t surprised by the fact that D.C. Chief Financial Officer Natwar Gandhi adjusted downward his revenue estimates for the city. The signs of decline were all around: High unemployment, increase in office vacancy rates, drop in property values, steep stock market losses, and the arrival of penny-pinching consumers, reluctant to use cash or credit.

So, the announcement that the District is short $190 million for this fiscal year and perhaps as much as $245 million for 2010 isn’t earth-shattering. The city has money in its rainy day fund to address the immediate problem.