Fenty offers cuts, strategies to bridge $200M gap
By: Michael Neibauer
Examiner Staff Writer
February 19, 2010
Read more at the Washington Examiner: http://www.washingtonexaminer.com/local/Fenty-offers-cuts_-strategies-to-bridge-_200M-gap-84743772.html#ixzz0fyt09RpW
Mayor Adrian Fenty's strategy to close a $200 million-plus shortfall this fiscal year includes releasing inmates from jail early, removing students attending costly private schools outside the District at taxpayers' expense and resuming some Medicaid billing.
In a Feb. 10 letter to D.C. Council Chairman Vincent Gray, Fenty proposed closing to the gap in three parts: a $99 million reduction in agency spending, an $85 million to $100 million redirection of dedicated fund revenues — like the tree or fishing license fund — to the general fund, and an order to department chiefs to "reduce spending pressures significantly." Spending pressures are costs, like overtime, incurred by departments above their approved spending plans.
The Fenty plan would "reduce the number of students in non-public placements" to save $11.4 million. The Department of Corrections would "reduce the number of inmates in the [D.C. Jail] by implementing Good Credits" to save $2.2 million. The Child and Family Services Agency would resume Medicaid billing, generating $2.6 million.
In another case, though the District has agreed to pay $12 million this year to settle with hog-tied World Bank demonstrators, Fenty explains: "Typically, a portion of settlement is not claimed, reducing payment cost."
"This just seems like gimmicks to me," said at-large Councilman Phil Mendelson. "This isn't dealing with the problem. Nobody's home. Nobody's taking responsibility for adhering to the budget."
The administration is scheduled to brief the council Friday, but expectations for the hearing were lopped this week when council members learned only City Administrator Neil Albert would appear on behalf of the executive. Gray had requested the appearance of a dozen agency chiefs.
Putting Albert in the room alone symbolizes Fenty's lack of respect for the council, Gray told The Examiner on Thursday. There is no way, he said, "that the city administrator is going to be able to sit there and talk about the details that an agency director would."
Fenty spokeswoman Mafara Hobson declined comment, except to confirm that Albert "is the only one."
The District faces a projected $200 million to $230 million shortfall this year and a $550 million-plus deficit the next. Chief Financial Officer Natwar Gandhi's February revenue forecast, expected next week, is likely to offer a still darker outlook.
Gray said he lacks confidence in the executive's grasp of the financial crisis.
"I think there's questions whether they've effectively analyzed the nature of these problems," the chairman said.
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