Mayor Adrian Fenty has ordered dozens of D.C. agencies to slash spending by a total of nearly $100 million in the wake of dire economic news, expectations of department overspending and a budget-busting snowstorm.
An executive order signed Jan. 29 reduces 44 agency budgets by a total of $99 million and threatens employees with suspension or termination if they take any action to exceed lower spending limits. The D.C. Public Schools, Child and Family Services Agency, Metropolitan Police Department, and Fire and Emergency Medical Services were spared, but most other agencies were hit hard.
The property management budget, for example, was pared from $81.5 million to $71.2 million. The office of Deputy Mayor for Education Victor Reinoso was gutted, losing more than half its $778,000 budget. The Department of Transportation was cut by $2.8 million, the Department of Public Works $7.4 million, the Department of Mental Health $5.4 million and the Department of Employment Services $6.2 million.
The District faces a projected $17 million shortfall in fiscal 2010 plus $200 million in “spending pressures” — unanticipated expenses like overtime, higher utilities and winter storm response. D.C. busted its $6.2 million snow removal budget weeks ago.
“The terrible news has been terrible,” said Ward 6 D.C. Councilman Tommy Wells. “I assume everything would be up for a cut.”
The city has little on which to fall back, Chief Financial Officer Natwar Gandhi told the council Friday. There are only 18 days’ worth of working capital in emergency reserves, roughly $284 million, well short of the 30 days considered best practice. Reserves are down from $415.7 million in fiscal 2008.
“Later this month we will release a new revenue estimate and, although some revenue sources are exceeding earlier projections, I am gravely concerned that we may be facing further declines in the overall revenue outlook,” Gandhi said.
Fenty should be held accountable for failing to rein in costs, like fire department overtime, and for loading his fiscal 2010 budget submission with unsuccessful savings initiatives, at-large Councilman Phil Mendelson said Monday.
“I think the council is going to try to do something, because we can’t wait,” Mendelson said. “The longer we wait, the more expensive it becomes.”
A Fenty spokeswoman did not respond to requests for comment.
Among the spending cuts
» Department of the Environment: $9.02 million
» Department of Health: $6.27 million
» Department of Motor Vehicles: $3.35 million
» Department of Consumer and Regulatory Affairs: $3.04 million
» Department of Human Services: $2.83 million
