Press Release: Chairman Mendelson Statement on Revenue Estimates

News Release — DC Council Chairman Phil Mendelson

FOR IMMEDIATE RELEASE:

Wednesday December 30, 2020

CONTACT: Lindsey Walton

CHAIRMAN MENDELSON STATEMENT ON REVENUE ESTIMATES

WASHINGTON, DC — Chairman Phil Mendelson released the following statement about the December 2020 revenue estimates:

“The revised revenue estimates released today are a relief.  While we know that a great many of our businesses – small businesses, restaurants, hotels, and sport venues – are struggling to keep alive, the city’s economy is actually stronger than expected.

“If we are able to hold the line on spending, we would be able to use the accumulated surplus from last year (the year ended September 30^th) to cover shortfalls in both this and next years’ budgets and would have to make only minimal cuts in the out years of the District’s four-year financial plan.

“The challenge, of course, is whether the Council and Mayor will be willing to hold the line on spending when we start, in three months, on next year’s budget.

“Meanwhile, it is clear from the Chief Financial Officer’s analysis, that the hospitality sector is really struggling – evidenced by the 45% drop in sales tax collections.  This sector tends to employ the lowest wage workers; people least able to weather a financial recession.  This brings a second challenge: how we can better focus our relief programs (financial assistance, eviction protection, etc.) to these workers who most need help.  The better we can focus the relief, the more relief that will be available to each worker.”

A copy of the December 30^th CFO revenue estimate will be available at www.cfo.dc.gov.