What’s In Store For the FY 2013 Budget?

February 29, 2012Elissa Silverman (silverman@dcfpi.org)

DC Fiscal Policy Institute (www.dcfpi.org)

What Happened Last Year: Not a Balanced Approach on Cuts

Human Services Has Taken a Large Hit in the Last Several Years

Source: Office of the Chief Financial Officer, Certification Letter February 2011.

Unemployment Continues to Rise For Many DC Residents

Source: DCFPI Analysis of the FY 2011 Budget and Financial Plan (December 2010). All figures are in thousands .

2006 2007 2008 2009 2010 20110%

5%

10%

15%

20%

25%

30%

Less than a high school diploma High school graduates, no college Bachelor's degree or higher

Unemployment Rate

Child Poverty Has Jumped in DC during the Recession

2007 2008 2009 20100%

5%

10%

15%

20%

25%

30%

35%

22.4%25.7%

29.1% 30.2%

DC Child Poverty Rate

How Should We Think about Solving the FY 2013 Budget Gap?

• More balanced pie chart of budget cuts• Mixture of revenues and cuts:– Forgo “paygo capital” set aside ($50 million)– Deed recordation for commercial refinancing– Require high-income households to combine income– Expand sales tax to more services– Phase out some deductions and exemptions– Raise minimum floor for residential property tax– PILOT for universities and hospitals