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Chief Financial Officer Natwar M. Gandhi
Public briefing on the mayor's fiscal year 2008 proposed budget
March 26, 2007

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PUBLIC BRIEFING ON THE MAYOR’S FISCAL YEAR 2008 PROPOSED BUDGET

Before the Committee of the Whole, Council of the District of Columbia
The Honorable Vincent C. Gray, Chairman

March 26, 2007, 10:00 a.m.
Council Chamber, John A. Wilson Building

Testimony of Natwar M. Gandhi, Chief Financial Officer, Government of the District of Columbia

Good morning, Chairman Gray and members of the Committee of the Whole. I am Natwar M. Gandhi, Chief Financial Officer of the District of Columbia Government. It is my pleasure to be here today to discuss the Mayor’s fiscal year 2008 proposed budget and multi-year financial plan.

This was a challenging budgeting and planning cycle, the first since Mayor Fenty’s inauguration on January 2. Most of the agencies had to meet budget reduction targets of 10 percent for FY 2008, to largely help fund recurring spending pressures from FY 2007. The Office of the Chief Financial Officer (OCFO) worked closely with the Mayor’s executive leadership team, agency program staff and finance staff to resolve numerous budget issues, to find new ways to finance initiatives given limited resources, and to produce a balanced five-year financial plan. The full five-year plan is attached to my testimony. We will continue to work diligently with everyone in this collaborative process as the Council deliberates on the FY 2008 proposed budget and financial plan.

SUMMARY

I am pleased to report that the proposed FY 2008 budget is balanced, as is the fouryear financial plan covering FY 2008-2011. As such, it should provide assurance to Wall Street that the District will continue to practice sound fiscal management and not jeopardize its hard-earned credibility.

COST DRIVERS

The local fund budget increases 8.8 percent from FY 2007 approved to FY 2008 proposed. While the proposed budget and multi-year plan are balanced, certain activities are “cost drivers,” in that they either drive the increase in the entire budget or contribute to the increase disproportionately:

  • Together, public education and human support services are 50 percent of proposed local fund spending.
  • Within public education, the local funds budget for charter schools is rising $54 million, or 20 percent.
  • Within human support services, a $53 million increase in the cost of the Health Care Safety Net takes up more than half of the $92 million increase in the Department of Health, and the Department of Mental Health increases $37 million (21 percent).
  • Public safety costs represent 17 percent of proposed local spending. With an additional 400 police officers’ salaries costing $30 million, the Metropolitan Police Department’s proposed budget is 12 percent higher.
  • Some dramatic increases in the FY 2008 proposed budget are short-term:
    • The operating costs for information technology capital projects add $26 million, contributing to the 64 percent increase in the Office of the Chief Technology Officer.
    • The District’s operating subsidy to the Washington Metropolitan Area Transit Authority rises 25 million (12.5 percent) in FY 2008 and will rise sharply in FY 2009 and FY 2010, due to the costs of Metro matters, before returning to “normal” levels.
    • FY 2008 reflects a one-time $76 million increase in the District’s cost of other post employment benefits (OPEB) because of the requirement for an actuarially based payment to the irrevocable trust.

CONTEMPLATED BORROWING AND DEBT BURDEN

The FY 2008-2013 Capital Improvements Plan (CIP) contemplates roughly $450 million of borrowing in each of the next three years, as well as the issuance of tax-supported debt for school modernization, government center buildings, traffic initiatives, and a forensics lab – all worthwhile public projects. However, I should point out the District’s already high debt and growing debt burden. Compared to the District’s $9,000 per capita amount for all tax supported debt, New York City’s is less than $6,000, Chicago’s is $1,800, Boston’s is $1,500, and Baltimore’s is $800. The District’s debt service as a percent of expenditures amounts to a manageable 9 percent, but, with the contemplated borrowing, it will rise to more than 13 percent by 2010, which is above Moody’s median for large cities. As I said in my testimony in February for the Comprehensive Annual Financial Report (CAFR), the District has made extraordinary improvements in its fiscal position and should take care not to lose ground, in both its annual fiscal planning and the long-term debt it incurs.

EXPENDITURES
Local Funds

The Mayor’s FY 2008 proposed budget includes $5.570 billion in spending supported by $5.571 billion of resources, with an operating margin of $1.6 million, as seen on table 1.

Table 1

Proposed FY 2008 Budget Summary – Local Funds
($ in thousands)

Total Taxes $4,808,763
Non-tax Revenue 328,372
Miscellaneous Revenues 160,460
Appropriated Fund Balance 273,858

Total Local Fund Resources

$5,571,453
Operating Expenditures $5,352,927
PAYGO Capital and Transfer to OPEB for FY 2008 costs 216,907

Total Expenditures

$5,569,833
Projected FY 2008 Operating Margin $1,620

(Totals do not add due to rounding)
Combined with the spending supported by dedicated taxes, displayed in a new Dedicated Taxes Fund, proposed FY 2008 spending will be $5.726 billion.

The Mayor’s proposed total local funds expenditures for FY 2008 are $5.570 billion. Comparing FY 2007 and FY 2008 on the same basis, this is an increase of $450.0 million, or 8.8 percent, over the $5.120 billion FY 2007 approved local budget. (Both years reflect the spending for school modernization PAYGO, at $100 million in FY 2007 and $106 million in FY 2008.)

The $273.9 million of fund balance supporting the proposed FY 2008 budget includes $65.4 million from the FY 2005 fund balance, which was approved for use last year as part of the FY 2007-2010 budget plan (to replace the sales taxes dedicated to school modernization), plus an additional $208.5 million from the FY 2006 fund balance. Of this latter amount $29.9 million is reserved for OPEB and is appropriated for the transfer to an irrevocable trust, and $178.6 million is for various one-time expenditures in the baseline budget. The $178.6 million in expenditures is financed by: (a) $11.6 million of funds also designated for OPEB in the FY 2006 CAFR, but which will be redesignated for general operating purposes; (b) $138 million of the unreserved and undesignated fund balance contained in the FY 2006 CAFR; (c) $20 million reflecting a projected operating surplus at the end of FY 2007, which will fall into fund balance; and (d) $9 million reflecting a conversion of O-type funds in fund balance to local. The specific Otype accounts in fund balance to be converted to local will be identified by the Mayor late in the fiscal year. I will discuss the use of fund balance later in this testimony, but let me just say that prudent, planned drawdowns of fund balance are reasonable.

This overall budget increase provides funding for various services, including the “cost drivers” I mentioned earlier, as well as program enhancements such as the new Department on Disability Services (formerly MRDDA). It provides for the substantial rebuilding of the District’s capital infrastructure by including $673.1 million in new debt in FY 2008, requiring additional funding for the related debt service. The proposed FY 2008 Budget Support Act would also allocate for various purposes $56 million of additional revenue that may be certified through a revised quarterly revenue estimate for FY 2008. The Mayor’s proposal also includes lowering the Class 1 real property tax rate from 88 cents per $100 of assessed value to 86 cents, so long as the certified estimates of revenue from Class 1 real property do not fall below the estimate as of December 15, 2006.

REVENUE OUTLOOK

In FY 2008, non-dedicated tax revenues are projected at $4.809 billion, 9.0 percent above the approved FY 2007 level of $4.413 billion (including $100 million in sales taxes for school modernization) and 6.2 percent above the adjusted FY 2007 level of $4.530 billion (in accordance with the December 2006 certified revenue estimate).

The economic outlook for the District of Columbia for the period covered by the FY 2008-2011 proposed budget and financial plan is similar to that generally forecast for the nation as a whole – no major disruptions and steady growth in employment, wages and income, but at rates slightly below those experienced in FY 2006. The District’s economy should continue to benefit from national economic growth and the stabilizing presence of the federal government.

Rising real estate assessments and sales were major sources of revenue gains in fiscal years 2003 through 2005, but sales slowed in FY 2006. The longer run fundamentals affecting the District’s real estate market are expected to remain strong. The economy is growing, and individuals and businesses both continue to demonstrate a desire to locate in the city. Increases in the assessed value of real property will continue to be a source of increased revenue through FY 2008, but the values of transactions in FY 2007 and FY 2008 are expected to be below the FY 2006 level.

SPECIAL PURPOSE REVENUE FUND

The Mayor proposes a $509.7 million special purpose revenue fund budget for FY 2008, financed with $358.2 million of FY 2008 revenues (2.8 percent lower than FY 2007 approved), $63.0 million of fund balance, and $88.5 million in proposed new special purpose revenues. The proposals include revenue increases of $20.2 million ($16.9 million for increased 911 and 311 assessments and $3.3 million for increased U.S. Marshal’s reimbursements) and revenue transfers of $68.3 million ($37.0 million in right-of-way fees from capital; $30.0 million in parking taxes from capital; and $1.3 million in bus shelter revenue from capital).

FINANCING THE LOCAL BUDGET WITH GENERAL FUND BALANCE 

The Mayor’s proposed local funds budget for FY 2008 utilizes $273.9 million from the general fund balance. We have continually stated that the District government is proud of having developed a healthy accumulated fund balance after going through a period of accumulated deficit more than a decade ago. But it is not the government’s business to amass and hoard fund balance, and prudent use of fund balance is appropriate.

As you saw in the FY 2006 CAFR, the District concluded FY 2006 operations with a $1.435 billion fund balance (i.e., accumulated surplus), consisting of $1.074 billion (74.8 percent) in local funds and $361.0 million (25.2 percent) in special purpose revenue funds. Of the portion in local funds, $262.6 million was reserved in debt service escrow and $293.7 million was held in congressionally-mandated emergency/contingency cash reserves. As a general rule, special purpose revenue funds are designated or reserved for particular uses unless the Mayor and Council want to free them up.

In FY 2007 $311.3 million of fund balance was appropriated or reserved for use: $176.3 million was appropriated in the local fund budget and $108.0 million in the special purpose fund budget, and another $27.0 million in local funds from the Medicaid Reserve Fund was provided for use by the Department of Mental Health for additional client services ($13.0 million) and for use by the District of Columbia Public Schools for special education non-public tuition ($14.0 million).

Based on current revenue and expenditure estimates for local funds in FY 2007, and not considering the potential impact from supplemental appropriations or end-of year CAFR audit adjustments, the local fund operating budget is expected to end FY 2007 with a surplus of $21.9 million. This will increase the local fund balance.

As you can see below in Table 2, the fund balance for local funds is projected to be $901.6 million at the end of FY 2007. Roughly two-thirds of this fund balance would represent ongoing, required commitments such as congressional and bond escrow reserves (assuming that these two commitments, which are the largest, remain relatively steady at the $556.3 million required in FY 2006). The remainder would be available for appropriation.

Table 2

FY 2007 Local Fund Balance Analysis
($ in thousands)

Beginning Fund Balance (October 1, 2006) $1,074,108
   Local Appropriated for FY 2007 (203,330)
   Projected FY 2007 Local Operating Margin 21,865
   Conversion of Special Purpose to Local 9,000
Projected Ending Fund Balance (September 30, 2007) $901,643

Table 3 below demonstrates that the proposed drawdown of fund balance combined with the small projected FY 2008 operating margin will reduce the accumulated surplus for local funds to a projected $629.4 million by the end of FY 2008. The emergency and contingency cash reserves and the bond escrow account, if maintained at the FY 2006 funding level of $556.3 million, would represent approximately 88.4 percent of the projected FY 2008 local fund balance.

Table 3

FY 2008 Local Fund Balance Analysis
($ in thousands)

Projected Beginning Fund Balance (October 1, 2007) $ 901,643
   Appropriated for FY 2008 (273,858)
   Projected FY 2008 Operating Margin 1,620
Projected Ending Fund Balance (September 30, 2008) $629,405

PROPOSED FY 2008 GROSS FUNDS BUDGET

The proposed FY 2008 gross funds operating budget is $8.277 billion, an increase of $520.0 million, or 6.7 percent, over the approved FY 2007 gross funds budget of $7.757 billion. This expenditure increase is primarily due to higher proposed spending for local funds, dedicated taxes and special purpose funds. The increase in local spending has been previously highlighted. The increase in dedicated taxes is due to the break-out of previously netted revenue (baseball dedicated taxes) and the transfer of special purpose funds to dedicated taxes (Quality of Care Nursing Home Fund, Neighborhood Investment Fund, and the Comprehensive Housing Task Force).

The local and non-local funding components of the proposed FY 2008 gross funds budget and the changes from FY 2007 are summarized in Table 4 below.

Table 4

FY 2008 Gross Funds Budget by Fund Type
($ in millions)

Fund Type FY 2007 FY 2008 Change % Change
1. LocalA $5,120,459 $5,569,833 $449,374 8.8%
2. Dedicated TaxesB 65,738 156,425 90,687 138.0%
3. Subtotal 5,186,197 5,726,258 540,061 10.4%
4. Federal 2,037,922 2,032,768 (5,153) (0.3)%
5. Private Grants 6,850 7,875 1,025 15.0%
6. Special Purpose 525,614 509,712 (15,902) (3.0)%
7. Total Gross Funds $7,756,583 $8,276,613 $520,030 6.7%
A The FY 2007 local funds budget displayed here includes the School Modernization Paygo Transfer of $100.0 million.

B FY 2007 dedicated taxes included only monies for the Housing Production Trust Fund. FY 2008 includes dedicated taxes for three other purposes: baseball, quality of care nursing home fund, neighborhood investment, and comprehensive housing task force. To compare FY 2007 and FY 2008 on the same basis, Line 3 would be adjusted by adding $63.8 million to FY 2007, and the increase from FY 2007 to FY 2008 would be 9.1% instead of 10.4%.

CAPITAL IMPROVEMENTS PLAN

The District faces a wide variety of infrastructure needs, placing great demands on its Capital Improvements Plan (CIP). The total proposed appropriation request for the FY 2008-2013 CIP is $1.171 billion for all sources (excluding the Highway Trust Fund), which consists of $1.410 billion of new budget authority offset by $239 million of rescissions. The increased budget authority will be financed by general obligation (G.O.) bonds, PAYGO transfers from the general fund, the Master Equipment Lease Program, asset sales, federal grants, revenue bonds, and the local streets fund. Excluding certain large financings and the local streets fund, the FY 2008 capital program includes $581 million in planned capital expenditures to be financed by $399 million in new G.O. bond issuance, $106 million of PAYGO transfers for school modernization, $76 million from the Master Equipment Lease Program, asset sales, and federal grants.

REORGANIZATIONS

The Mayor’s FY 2008 proposed operating budget includes a number of agency reorganizations and program and funding shifts. These changes have been made to improve services and accountability and to meet strategic business goals. The organizational changes and funding shifts impact various agencies and programs, including: the Office of Community Affairs (new), Serve DC (new), Deputy Mayor for Education (new), Office of Victim Services (from program to new agency), Office of Justice Grants Administration (from program to new agency), Office of the Tenant Advocate (from program to new agency), Rental Housing Commission (program shift), Rental Accommodations and Conversions (program shift), D.C. Department of Human Resources (formerly the D.C. Office of Personnel – funding shift from local to intra-District), Office of Contracting and Procurement (funding shift from local to intra-District), Customer Service Operations (consolidated into the Office of Unified Communications), Human Resources Development (consolidated into the new Department of Human Resources), and the Department on Disability Services (from program to new agency).

I have certified that the FY 2008-2011 budget and financial plan, as proposed, is balanced. With its many complex agency reorganizations, program shifts and funding shifts, it is the joint product of the determination and efforts of the Mayor’s executive leadership team, agency program directors and staff, and the Office of Budget and Planning. I look forward to continuing to work with the Mayor and the Council during the forthcoming budget deliberations.

This concludes my remarks. I would be pleased to answer any questions you may have.

ATTACHMENT 1

Table 3-1
FY 2008 - 2011 Proposed Budget and Financial Plan: GENERAL FUND
($ thousands)

    FY 2006
Actual
FY 2007
Approved
FY 2007
Adjusted
FY 2008
Proposed
FY 2009
Projected
FY 2010
Projected
FY 2011
Projected
1 Revenues              
2 Taxes 4,238,950 4,412,599A 4,530,035 4,808,763 5,090,330 5,372,968 5,655,895
3 Dedicated Taxes 0 50,587 57,570 152,246 154,604 157,949 161,883
4 General Purpose Non-Tax Revenues 361,951 317,277 335,251 328,372 335,708 332,604 337,416
5 Special Purpose (O-type) Revenues 375,389 417,657 381,130 358,250 343,049 351,985 345,850
6 Transfer from Lottery 73,800 72,100 72,100 72,100 72,100 72,100 72,100
7 Sub-total General Fund Revenues 5,050,090 5,270,220 5,376,086 5,719,731 5,995,791 6,287,606 6,573,144
8 Effect of Tax Changes 0 (276) 0 0 0 0 0
9 Adjusted General Fund Revenues 5,050,090 5,269,944 5,376,086 5,719,731 5,995,791 6,287,606 6,573,144
10 Bond Proceeds for Issuance Costs 10,494 30,000 30,000 60,000 30,000 30,000 30,000
11 Payment-in-Lieu-of-Taxes from WASA 0 1,551 1,551 0 0 0 0
12 Transfer from Federal and Private Resources 0 6,502 6,502 6,646 6,794 6,958 7,133
13 Transfer from Enterprise Fund (HPTF) for Debt Service 0 6,000 0 12,000 12,000 12,000 12,000
14 Transfer from Capital Funds (Bus Shelter Revenue) for Debt Svc 0 2,091 2,091 9,714 19,312 19,310 19,311
15 Fund Balance Use 528,432 284,287 352,401 342,042 0 0 0
16 Revenue Proposals 0 113,268 0 88,457 85,157 85,157 85,157
17 Total General Fund Resources 5,589,016 5,713,643 5,768,631 6,238,590 6,149,054 6,441,031 6,726,745
18                
19 Expenditures (by Appropriation Title)              
20 Governmental Direction and Support 333,547 433,759 391,448 379,744 350,253 360,739 369,848
21 Economic Development and Regulation 251,762 288,974 313,377 326,926 283,001 289,945 292,624
22 Public Safety and Justice 894,748 943,295 938,138 1,040,187 1,012,186 1,046,078 1,078,735
23 Public Education System 1,170,703 1,223,971 1,246,672 1,276,228 1,280,714 1,323,201 1,352,728
24 Human Support Services 1,389,575 1,423,138 1,494,066 1,579,054 1,592,237 1,659,006 1,727,934
25 Public Works 363,798 405,318 366,836 559,547 557,619 602,306 581,695
26 Financing and Other 432,124 586,296 520,561 660,161 669,823 732,049 778,705
27 Cash Reserve (Budgeted Contingency) 0 50,000 500 50,000 50,000 50,000 50,000
28 Lease Purchase Costs 24,574 43,955 43,955 43,755 48,750 57,612 68,877
29 Sub-total, Operating Expenditures 4,860,831 5,398,706 5,315,554 5,915,602 5,844,582 6,120,936 6,301,145
30 School Modernization Fund 0 100,000 100,000 106,000 112,360 119,102 126,248
31 Paygo Capital 265,023 87,987 87,987 0 0 0 0
32 Transfer to Trust Fund for Post-Employment Benefits 138,000 4,700 4,700 110,907 86,200 91,800 97,700
33 Transfer to Enterprise Funds - HPTF and Baseball Revenue Fund 0 120,418 112,250 103,462 104,586 106,719 109,339
34 Total General Fund Expenditures and Transfers 5,263,855 5,711,811 5,620,491 6,235,971 6,147,728 6,438,557 6,634,432
35 Operating Margin, Budget Basis 325,161 1,832 148,140 2,619 1,326 2,474 92,313
36                
37 Beginning General Fund Balance 1,584,683 1,435,142 1,435,142 1,210,881 851,458 832,784 815,258
38 Operating Margin, Budget Basis 325,161 1,832 148,140 2,619 1,326 2,474 92,313
39 Projected GAAP Adjustments (Net) 53,729 (20,000) (20,000) (20,000) (20,000) (20,000) (20,000)
40 Deposits into Reserve Funds (From Fund Balance) 0 0 0 0 0 0 0
41 Deposits into Reserve Funds (To Cash Reserves) 0 0 0 0 0 0 0
42 Fund Balance Use (528,432) (284,287) (352,401) (342,042) 0 0 0
43 Ending General Fund Balance 1,435,142 1,132,687 1,210,881 851,458 832,784 815,258 887,572
44                
45 Composition of Fund Balance              
46 Emergency Cash Reserve Balance (2%, formerly 4%) 76,952 81,607 81,607 101,902 103,051 115,733 115,733
47 Contingency Cash Reserve Balance (4%, formerly 3%) 216,697 163,458 216,697 216,697 216,697 231,815 231,815
48 Fund Balance not in Emergency & Contingency Reserves 1,141,493 887,622 912,577 532,859 513,036 467,710 540,024
49 Ending General Fund Balance (Line 43) 1,435,142 1,132,687 1,210,881 851,458 832,784 815,258 887,572
A Please note: The deduction for School Modernization Dedicated Taxes is shown in the expenditure section of this Financial Plan in order to reflect the true level of revenue generated from taxes. Also, total revenues and expenditures include $49 million of Tobacco Settlement Funds allocated for the Community Access to Healthcare Program.

ATTACHMENT 2

Table 3-2
Local Funds Component of the General Fund 
($ thousands)

    FY 2006
Actual
FY 2007
Approved
FY 2007
Adjusted
FY 2008
Proposed
FY 2009
Projected
FY 2010
Projected
FY 2011
Projected
1 Revenues              
2 Taxes 4,238,950 4,412,599A 4,530,035 4,808,763 5,090,330 5,372,968 5,655,895
4 General Purpose Non-Tax Revenues 361,951 317,277 335,251 328,372 335,708 332,604 337,416
6 Transfer from Lottery 73,800 72,100 72,100 72,100 72,100 72,100 72,100
7 Sub-total Local Fund Revenues 4,674,701 4,801,976 4,937,386 5,209,235 5,498,138 5,777,672 6,065,411
8 Effect of Tax Changes 0 (276) 0 0 0 0 0
9 Adjusted Local Fund Revenues 4,674,701 4,801,700 4,937,386 5,209,235 5,498,138 5,777,672 6,065,411
10 Bond proceeds for Issuance Costs 10,494 30,000 30,000 60,000 30,000 30,000 30,000
11 Payment-in-Lieu-of-Taxes from WASA 0 1,551 1,551 0 0 0 0
12 Transfer from Federal and Private Resources 0 6,502 6,502 6,646 6,794 6,958 7,133
13 Transfer from Enterprise Fund (HPTF) for Debt Service 0 6,000 0 12,000 12,000 12,000 12,000
14 Transfer from Capital Funds (Bus Shelter Revenue) for Debt Svc 0 2,091 2,091 9,714 19,312 19,310 19,311
15a Fund Balance Use: To Replace Dedicated Gross Sales Taxes 0 46,477 46,477 65,385 0 0 0
15b Fund Balance Use: Transfers to Capital and Trust Fund 403,023 87,987 87,987 0 0 0 0
15c Fund Balance Use: One-time Expenditures in FY 101,416 41,866 41,866 208,473 0 0 0
15d Fund Balance Use: Other 0 0   0 0 0 0
16a Revenue Proposals- Tax Compliance Initiatives 0 49,000 0 0 0 0 0
16b Revenue Proposals - Council actions incl. deed tax, Care First, etc 0 49,117 0 0 0 0 0
17 Total Local Fund Resources 5,189,634 5,122,291 5,198,543 5,571,453 5,566,244 5,845,940 6,133,855
18                
19 Expenditures (by Appropriation Title)              
20 Governmental Direction and Support 303,103 330,101 336,669 322,067 301,799 311,274 321,077
21 Economic Development and Regulation 118,198 128,468 127,155 133,213 117,339 120,428 123,607
22 Public Safety and Justice 839,975 888,003 911,772 957,050 942,343 974,778 1,008,435
23 Public Education System 1,166,809 1,203,492 1,237,420 1,253,915 1,261,969 1,304,065 1,333,860
24 Human Support Services 1,356,563 1,369,566 1,457,449 1,536,595 1,553,968 1,620,168 1,689,487
25 Public Works 322,272 351,396 349,544 410,051 432,028 474,094 455,283
26 Financing and Other 432,124 562,791 519,527 646,281 658,162 720,145 766,968
27 Cash Reserve (Budgeted Contingency) 0 50,000 500 50,000 50,000 50,000 50,000
28 Lease Purchase Costs 24,574 43,955 43,955 43,755 48,750 57,612 68,877
29 Sub-total, Operating Expenditures 4,563,618 4,927,772 4,983,991 5,352,927 5,366,358 5,632,564 5,817,594
30 Paygo to School Modernization Capital Fund 0 100,000 100,000 106,000 112,360 119,102 126,248
31 Paygo Capital 265,023 87,987 87,987 0 0 0 0
32 Transfer to Trust Fund for Post-Employment Benefits 138,000 4,700 4,700 110,907 86,200 91,800 97,700
34 Total Local Fund Expenditures and Transfers 4,966,641 5,120,459 5,176,678 5,569,833 5,564,918 5,843,466 6,041,542
35 Operating Margin, Budget Basis 222,993 1,832 21,865 1,620 1,326 2,474 92,313
A Please note: The deduction for School Modernization Dedicated Taxes is shown in the expenditure section of this Financial Plan in order to reflect the true level of revenue generated from taxes.

ATTACHMENT 3

Table 3-3
Dedicated Taxes Component of the General Fund 
($ thousands)

    FY 2006
Actual
FY 2007
Approved
FY 2007
Adjusted
FY 2008
Proposed
FY 2009
Projected
FY 2010
Projected
FY 2011
Projected
1 Revenues              
3a Dedicated Taxes for the Neighborhood Investment Trust 0 0 0 9,875 10,000 10,000 10,000
3b Dedicated Taxes for the Comprehensive Housing Trust Fund 0 0 0 27,909 29,018 30,230 31,544
3c Dedicated Taxes for the Housing Production Trust Fund 0 50,587 57,570 57,065 59,279 61,707 64,327
3d Dedicated Taxes for the Nursing Facility Quality of Care Fund 0 0 0 11,000 11,000 11,000 11,000
3e Dedicated Taxes for the Ballpark Fund 0 0 0 46,397 45,307 45,012 45,012
Sub-total Dedicated Taxes 0 50,587 57,570 152,246 154,604 157,949 161,883
15 Fund Balance Use: Other 0 0 0 5,179 0 0 0
16 Revenue Policy Proposals 0 15,151 0 0 0 0 0
17  Total Dedicated Taxes 0 65,738 57,570 157,425 154,604 157,949 161,883
18                
19 Expenditures (by Appropriation Title)              
20 Governmental Direction and Support 0 0 0 0 0 0 0
21 Economic Development and Regulation 0 0 0 42,963 39,018 40,230 41,544
22 Public Safety and Justice 0 0 0 0 0 0 0
23 Public Education System 0 0 0 0 0 0 0
24 Human Support Services 0 0 0 10,000 11,000 11,000 11,000
25 Public Works 0 0 0 0 0 0 0
26 Financing and Other 0 0 0 0 0 0 0
29 Sub-total, Operating Expenditures 0 0 0 52,963 50,018 51,230 52,544
33a Transfer to HPTF Special Revenue Fund (Enterprise Fund) 0 65,738 57,570 57,065 59,279 61,707 64,327
33b Transfer to Baseball Revenue Fund (Enterprise Fund) 0 0 0 46,397 45,307 45,012 45,012
34 Total Dedicated Taxes Expenditures and Transfers 0 65,738 57,570 156,425 154,604 157,949 161,883
35 Operating Margin, Budget Basis 0 0 0 1,000 0 0 0

ATTACHMENT 4

Table 3-4
Special Purpose Revenue Component of the General Fund
(Dollars in Thousands)

1 Revenues FY2006
Actual
FY 2007
Approved
FY 2007
Adjusted
FY 2008
Proposed
FY 2009
Projected
FY 2010
Projected
FY 2011
Projected
5 Special Purpose (O-type) Revenues 375,389 417,657A 381,130 358,250 343,049 351,985 345,850
9 Sub-total Special Purpose Revenue Funds 375,389 417,657 381,130 358,250 343,049 351,985 345,850
15a Fund Balance Use 23,993 109,875 131,388 63,005 0 0 0
15b Fund Balance Certified but not used 0 (1,918) 0 0 0 0 0
16 Revenue Proposals/Policy Proposals 0 0 0 88,457 85,157 85,157 85,157
17 Total Special Purpose Revenue Funds 399,382 525,614 512,518 509,712 428,206 437,142 431,007
18              
19 Expenditures (by Appropriation Title)              
20 Governmental Direction and Support 30,444 103,658 54,779 57,677 48,454 49,465 48,771
21 Economic Development and Regulation 133,564 160,506 186,222 150,750 126,644 129,287 127,473
22 Public Safety and Justice 54,773 55,292 26,366 83,137 69,843 71,300 70,300
23 Public Education System 3,894 20,479 9,252 22,313 18,745 19,136 18,868
24 Human Support Services 33,012 53,572 36,617 32,459 27,269 27,838 27,447
25 Public Works 41,526 53,922 17,292 149,496 125,591 128,212 126,412
26 Financing and Other 0 23,505 1,034 13,880 11,661 11,904 11,737
29 Subtotal, Operating Expenditures 297,213 470,934 331,563 509,712 428,206 437,142 431,007
33 Transfer to Enterprise Funds - HPTF 0 54,680 54,680 0 0 0 0
34 Total Special Purpose Revenue Funds component of General Funds 297,213 525,614 386,243 509,712 428,206 437,142 431,007
35 Operating Margin, Budget Basis 102,169 0 126,275 0 0 0 0
A Please note: Total revenues and expenditures include $49 million of Tobacco Settlement Funds allocated for the Community Access to Healthcare Program.

ATTACHMENT 5

Table 3-5
Federal and Private Resources Financial Plan
($ thousands)

  Revenues FY 2006
Actual
FY 2007
Approved
FY 2007
Adjusted
FY 2008
Proposed
FY 2009
Projected
FY 2010
Projected
FY 2011
Projected
F1 Federal Grants 1,694,725 2,008,024 2,057,906 2,002,327 2,105,475 2,216,789 2,335,131
F2 Federal Payment/Contribution 70,421 36,400 62,617 36,400 37,258 38,099 38,960
F3 Private Grants 21,147 6,850 11,191 8,562 8,799 9,076 9,363
F4 Federal & Private Resources 1,786,293 2,051,274 2,131,714 2,047,289 2,151,532 2,263,964 2,383,454
F5 Fund Balance Use 0 0 0 0 0 0 0
F6 Transfer to General Fund 0 (6,502) (6,502) (6,646) (6,794) (6,958) (7,133)
F7 Total Federal & Private Resources 1,786,293 2,044,772 2,125,212 2,040,643 2,144,738 2,257,006 2,376,321
F8                
F9 Expenditures (by Appropriation Title)              
F10 Governmental Direction and Support 107,977 157,746 152,927 123,150 125,995 129,025 132,131
F11 Economic Development and Regulation 130,444 133,742 135,061 139,959 143,054 146,695 150,436
F12 Public Safety and Justice 11,668 7,398 13,697 7,514 7,727 7,973 8,228
F13 Public Education System 201,650 226,462 286,697 249,467 255,490 262,046 268,785
F14 Human Support Services 1,321,035 1,500,033 1,519,130 1,499,911 1,591,300 1,689,500 1,794,361
F15 Public Works 7,068 19,391 17,700 20,642 21,172 21,767 22,380
F16 Financing and Other 4,196 0 0 0 0 0 0
F17 Total Federal & Private Expenditures 1,784,038 2,044,772 2,125,212 2,040,643 2,144,738 2,257,006 2,376,321
F18 Operating Margin, Budget Basis 2,255 0 0 0 0 0 0
F19                
F20 Beginning Federal & Private Fund Balance 117,947 161,310 161,310 161,310 161,310 161,310 161,310
F21 Operating Margin, Budget Basis 2,255 0 0 0 0 0 0
F22 Projected GAAP Adjustments (Net) 41,108 0 0 0 0 0 0
F23 Fund Balance Use 0 0 0 0 0 0 0
F24 Ending Federal & Private Fund Balance 161,310 161,310 161,310 161,310 161,310 161,310 161,310

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