Mayor Adrian Fenty is proposing nearly across-the-board agency cuts, staff reductions and revenue shifts to close a projected $131 million shortfall in fiscal 2009, he told the D.C. Council on Monday.
And the fiscal challenges only get tougher, council members learned: “Spending pressures” in agencies’ 2009 budgets could total between $25 million and $60 million, creating “as much as a $200 million problem,” at-large Councilman David Catania told reporters after the closed-door meeting with the mayor.
“I want us to be very mindful that the sooner we address a budget issue, the better off we will all be,” Catania said. “The numbers could be worse. I simply want to get out front.”
Spending pressures — the need for more money than the budget allows — are a moving target and difficult to project, officials said. They could be caused by rampant inflation, the addition of individuals to the human services rolls and other consequences of a foundering economy.
The mayor’s plan calls for $31 million in cuts to agencies’ budgets, a target that could be met by slashing vacant positions or some other combination of strategies — reducing gross pay or overtime; cutting supplies, equipment and contracts; or shifting costs to federal grants. William Singer, Fenty’s budget chief, told agency directors in a memo Friday that the reduction amount is “not negotiable,” but how each agency reaches the target is a matter for discussion.
Among the cuts: $1.47 million to the Child and Family Services Agency, $3.9 million to the police department — no loss of sworn officers — $1 million to fire and emergency medical services, and $117,049 to the elections board. The D.C. Public Schools, D.C. Public Library and Department of Corrections are among the agencies safe from the ax, for now.
“There is not enough belt-tightening here,” said at-large Councilman Phil Mendelson.
Fenty has also proposed saving $10 million by delaying retirement benefits, taking $17 million from the projected fiscal 2008 surplus, and shifting $14.8 million out of local funds and into other budget lines. Another $48 million would be pulled from so-called “O-type” funds — money collected from the sale of such things as business licenses and permits.
The plan, which does not address a projected $152 million 2010 shortfall, will be the subject of a public hearing before the council votes, Chairman Vincent Gray said.
