Mayor Adrian M. Fenty (D) will issue a freeze on hiring and promotions in city government Monday and restrict discretionary spending within the agencies, his staff said.
Fenty's efforts come as the administration and D.C. Council prepare to tackle an estimated $175 million budget shortfall in the budget for fiscal 2011, which began Friday.
Last week, D.C. Council Chairman Vincent C. Gray (D) suggested the hiring and spending freeze as a way of starting expected deliberations over how to close the shortfall. Earlier today, Gray said he and administration officials have been discussing the details of the mayor's order for several days.
"This will be an initial effort to put the brakes on spending," Gray said.
According to administration officials, Fenty's order will probably prevent agencies from spending any money on non-essential items or travel. It could also halt employee pay raises.
Chief Financial Officer Natwar M. Gandhi said the sluggish national economy and overspending has led to the latest shortfall.