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D.C. Council Seeks to Cut $50 Million For Reserve
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In September, Chief Financial Officer Natwar M. Gandhi announced the $131 million revenue shortfall. In response, Fenty proposed eliminating hundreds of vacant jobs and taking money from special funds in bank accounts controlled by city agencies.
But council members warned that the revenue projections could get worse in December, when Gandhi is scheduled to release his figures.
David A. Catania (I-At Large) has developed a plan to create a $15 million reserve fund for health care, in part by delaying implementation of Healthy D.C., which he created to provide health insurance to low-income residents.
The council's plan to find an additional $50 million appears to be in addition to Catania's proposal.
Ed Lazere, executive director of the D.C. Fiscal Policy Institute, which studies city budget issues, said he understands the council's concerns. But he added that critical services will be scaled back if the council follows through when it votes on the budget plan at a special legislative meeting Monday. Lazere sent a letter to Gray urging him to delay a vote until Nov. 18 so another public hearing can be held.
"When times are tough, you should be trying to protect services and do the least painful things as possible," Lazere said in an interview.
"You can address the problems as they come up."
Staff writer Nikita Stewart contributed to this report.
