Press Release: Council Chairman Mendelson Statement on District’s 2023 Comprehensive Financial Report

News Release — DC Council Chair Phil Mendelson

FOR IMMEDIATE RELEASE:                                                          

CONTACT: Lindsey Walton

Wednesday February 1, 2023

WASHINGTON, DC — DC Council Chairman Phil Mendelson made the following statement following today’s release of the District of Columbia’s Annual Comprehensive Financial Report (ACFR).

“FY 2022 revenue growth exceeded projections by almost $835 million. This enables the District to maintain its reserves as well as fund the affordable housing production trust fund and infrastructure improvements in our capital budget,” Mendelson said. “Nonetheless, it is concerning that the CFO’s revenue projections are, once again, so far off the mark. It is also concerning that future revenues may be impacted by the high vacancy rates downtown in both office and retail properties. The CFO has factored the vacancies; will it be enough?

“Some citizens will look at the General Fund Balance – almost $4.9 billion – and argue this money is available for a variety of good causes. And while the causes are good, all of the General Fund Balance is already ‘spent,’” Mendelson added. “Almost a half-billion dollars is set aside for debt service; almost $1.5 billion was budgeted for expenditures through the life of the financial plan; about $440 million is reserved for the Housing Production Trust Fund and our capital budget; $850 million is reserved for other purposes such as special funds for environmental purposes, Medicaid waivers, etc.; and $1.6 billion comprises our rainy-day reserve funds in case of an economic downturn or to help with cash flow.

“In addition, the Council has already committed $160 million over the financial plan for fare-free MetroBus service beginning this summer, and $346 million for the new teachers’ union contract.

“The bottom line is that the District government, as of last September 30^th, was in a healthy financial position.  But there are reasons to be concerned about the financial future and therefore the need still to be careful in our spending.”

The Council will hold a public hearing on the ACFR on Thursday February 2nd at 11 am.

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