Council OKs $9 billion budget; ups taxes and adds to police force

The D.C. Council Tuesday adopted the District’s $9 billion fiscal 2007 budget, but not before adding 100 new police officers to mollify crime-weary citizens and raising taxes for thousands of homebuyers to finance a throng of new initiatives.

The most contentious battle concerned the Mental Retardation and Developmental Disabilities Administration.

Mayor Anthony Williams proposed a $20 million increase for the administration, long criticized for poor care by legislators and the mental health community.

Council Member Adrian Fenty, a candidate for mayor, reduced the increase in his human services committee by $15 million.

On Tuesday, Ward 5 Council Member Vincent Orange, another mayoral candidate, proposed restoring the $15 million. But Fenty wouldn’t have it.

The council tabled Orange’s amendment by a 10-3 vote.

“If MRDDA is going to run their agency as badly as they run it, and this council is just going to give them the $15 million, then shame on this council,” Fenty said.

The balanced spending plan includes $1.5 billion for schools, $2.7 billion for human services, $837 million for public safety and $375 for public works.

It funds more than 34,000 full-time-equivalent employees — one for every 14 residents.

Despite strong evidence of a slowing housing market, the council will bank on commercial and residential purchases to finance a slate of priorities, raising both deed recordation and transfer taxes from 1.1 percent to 1.45 percent.

The increase will jack up the closing cost on a $500,000 home by $3,500, though homes bought for $400,000 or less are exempt.

The estimated $80 million in new revenue will fund 100 new police officers, rent supplements, affordable housing programs, homeless initiatives and a slate of nonprofit earmarks.

More on the budget

» Continues tax parity, reducing income taxes for lower income earners

» Fully funds $100 million school modernization program

» Commits $12 million for youth jobs

» Puts nearly $30 million into replacing Oak Hill juvenile detention center

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