It’s local budget season in D.C. But don’t let your eyes glaze over! Mayor Bowser proposed a bunch of controversial cuts to fix a $700 million deficit. We chatted with her budget director, Jenny Reed, to walk us through what happened and what’s on the chopping block.
How Did It Get So Bad?
D.C.’s fiscal management over the last couple of decades has been pretty tight, so seeing this type of deficit is unusual for Washingtonians. Reed says the city is facing the “perfect storm.”
First, D.C. is losing a historic amount of federal stimulus funds from the pandemic. Second, commercial property values have dropped, meaning the city has less tax income and slower revenue growth. Last, D.C. is facing a bunch of cost increases for certain programs.
Bowser at a press conference after testifying before the DC City Council outlining the 2025 budget. (Photo by Craig Hudson for The Washington Post via Getty Images)
Bowser’s Plan To Make Up The Difference?
Bowser has proposed a split approach to making up the deficit – program cuts and taxes.
- Program cuts: Bowser proposed eliminating several city programs including the Early Childhood Educator Pay Equity Fund, which offers stipends to caregivers and day-care teachers. She also wants to change the funding formula for DCPS which could result in layoffs.
- Taxes:
On the flip side, Bowser proposed minor taxes on things like hotel rooms, paid family leave, and, down the line, sales taxes if needed.
The Blowback:
Critics of Bowser’s plan say the budget is being balanced on the backs of D.C.’s most vulnerable. Meanwhile, the city is still funding downtown and Capital One Arena improvements. Budget director Jenny Reed defends this, saying over half D.C.’s resources go to human services and education. “If you want to close a budget gap, you have to touch some of those areas,” says Reed.
What’s Next?
The D.C Council has its own opinions on all these cuts and they haven’t been lining up with Bowser’s. So now, Council committees will review the budget proposal, hold public hearings, and finalize a budget. This final budget then goes back to Bowser for approval.
