FY 2010 BudgetOn March 20, 2009, the Mayor proposed a balanced budget for Fiscal Year 2010 with a reduction inLocal Funds expenditures of 3.9 percent. That proposal included the elimination of approximately 1,631positions across the government, including about 458 vacant positions and 1176 filled positions. TheCouncil approved the budget with amendments on May 12, 2009, maintaining a balanced budget andincreasing revenues through enhanced parking enforcement. The approved FY 2010 budget is a $10.4billion spending plan, including $5.4 billion in Local funds.One month later, on June 22, 2009, the Office of the Chief Financial Officer released revised quarterlyrevenue estimates that projected a decline of $150 million in FY 2010. Under the District Charter, thebudget must be balanced before submission to Congress.The use of the Contingency Reserve Fund (or Rainy Day Fund) to address the revenue shortfall in FY2009 exacerbates the shortfall in FY 2010 due to the fund replenishment requirements. Unlike any otherstate, the District must repay 50 percent of the Contingency Reserve Fund in the fiscal year after awithdrawal from the fund, and the remaining 50 percent by the end of the next year. In FY 2010, theDistrict has to repay $62.5 million to the Contingency Reserve Fund even though the District economy isexpected to continue to experience recession conditions throughout the year.To submit a balanced budget, and repay the Contingency Reserve Fund, the Mayor has proposed anamended FY 2010 budget that includes $110 million in agency gap closing initiatives, including theelimination about 250 positions, and an additional $35.8 million of stimulus funding. The following tablesummarizes the major elements of the Mayor’s FY 2010 gap-closing proposal:
FY 2011 and long term outlook
. Although the District presently has a detailed budget only for FY 2010,the District develops a multiyear financial plan to estimate resources and projected expenditures atinflationary growth rates over a 4-year period. The FY 2011 budget development process will begin inthe fall, with submission to Council anticipated in late March 2010. However, agencies will begin toidentify additional savings this summer to prepare for the FY 2011 budget.