Beruflich Dokumente
Kultur Dokumente
CITY ADMINISTRATOR
10:00 a.m.
Good morning, Chairman Gray, and members of the Council. I am Neil O.
As you know, the Mayor proposed, and the Council approved, a balanced
budget for FY 2010 on September 23, 2009. This budget closed a previous
revenue gap through targeted savings and the use of federal stimulus funds.
On December 16, 2009, the Chief Financial Officer issued revised revenue
Along with this estimated decline in revenue, the Chief Financial Officer has
including the revenue shortfall. The range of this forecast indicates that
there is some uncertainty regarding potential cost drivers and their fiscal
impact. Costs may turn out to be lower than anticipated after one quarter of
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This forecast may change within the week, when the OCFO issues new
On February 10, 2010, the Mayor submitted a plan to the Council to resolve
the FY 2010 budget shortfall. The plan proposes to reduce agency spending
result in $99 million of savings. The FY 2010 plan will be adjusted based
Education
In the education cluster, the OCFO projects spending pressures of about $31
budget was based on the data available at the time of budget development.
The FY 2010 budget assumed 4.9 percent inflation and enrollment of 2,219
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students in non-public placements. The revised assumptions for non-public
placements are 8.8 percent cost increases and enrollment of 2,750 students.
The OCFO and OSSE have implemented improved data and billing systems
and now have access to information that the District never had before,
including the services billed for, the number of invoices received each
completeness of these data systems are a key step forward in tracking and
OSSE and the agencies who serve children in the non-public school system
year.
between $12 million to $15 million. The FY 2010 budgeted amount is $77
motion to the court for additional funds to increase the FY 2010 budget to
$88.6M. The agency will achieve savings and a reduction in the spending
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that reduction in the number of students which will impact the number bus
Public Safety
positions in the department and budget for overtime savings that would
result from filling those positions. The Council later reduced the FEMS
budget by $2.9 million for FY 2010, stating that the reduction represented
pressure and instituted a hiring freeze for FEMS. As a result, the hiring
freeze increased the operational vacancy rate, and related overtime spending
followed.
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The Department of Corrections projects a spending pressure as a result of
the U.S. Marshals moving parolees out of DOC more quickly. The U.S.
Marshals Service reimburses DOC for the costs it incurs to house and
transport inmates at the D.C. Jail who are the responsibility of the U.S.
addition, DOC’s Unity health care contract has gone to a month to month
rate that is higher than what was budgeted for it in FY 2010. The FY 2010
line item budget for the healthcare contract was budgeted at $20.3 million.
The current rate of the contract is $2.5 million per month or $29.8 million
per year.
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some savings initiatives in these programs. States across the country are
of Health Care Finance has taken significant steps to achieve cost savings in
$24 million in Local fund savings, and the Medicaid program is projected to
achieve about $11 million in Local fund savings this fiscal year.
report audits. The FY2010 budget was built on the assumption that
based on analysis that additional cost savings for the planned Medicaid
That is, any gains from Medicaid claiming would offset any gains from Title
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Other
$17 million gap, about $4 million was reduced by the Council from the
represented about 95% of the water, electricity, and natural gas budget for
reductions to rent from multiple agencies, which are related to active leases
that require funding, and a $1.6 million reduction to electricity and security
for the Office of Unified Communications. The DC Public Schools also are
utility costs.
Thank you for the opportunity to testify today. At this time, I am prepared