The cost of maintaining the District of Columbia government’s presence throughout the city could cost millions of dollars more than anticipated next year, in large part due to skyrocketing utility costs.
Between August and December 2006, fiscal 2008 estimates for “fixed costs” — electricity, natural gas, rent, fleet, telephone, security and janitorial — soared by $28.7 million. The new figures, prepared by the Office of Budget and Planning as part of the 2008 budget process, were released to D.C. agencies late last year, after they had finished their 2008 budget proposals.
“Electricity is the bulk,” CFO spokeswoman Maryann Young said. “It’s a market thing.”
Mayor Adrian Fenty is slated to unveil his fiscal 2008 budget proposal Friday. It is unknown how the hikes might impact various departments’ spending plans, which must go through the D.C. Council and Congress before final approval.
The fixed cost increases vary greatly depending on the agency, staff size and location.
Electricity costs for the Office of Personnel could be as much as $41,299 higher than expected, according to OBP, while the Office of the Attorney General could pay as much as $102,853 more than projected for the same utility. The estimated price tag for all fixed costs for the Metropolitan Police Department total $2.27 million more than anticipated, including $498,530 more for electricity, $996,620 for phone and $602,616 for fleet.
Young said the $28.7 million figure will probably come down by about $10 million when all is said and done.
