Washington D.C. Mayor Muriel Bowser's budget proposal for the general fund in fiscal year 2027 totals out at $12.7 billion, which includes $469 million in program reductions.
"Nobody is saying that the programs that have had to take a cut aren't worthwhile programs, what we're saying is our level of growth right now doesn't support them, said Bowser."
The comments came during the mayor's press conference Friday where she rolled out numbers reflecting a 3.3% decrease in the 2027 operating budget as compared to 2026.
The savings will come from pay freezes affecting city employees, scaling back universal paid leave, and cutting a pay equity fund that supplements childcare workers.
The city has been wrestling with a $1.1 billion budget gap due to slower revenue growth, a reduction in the federal workforce, rising costs associated with Medicaid and Supplemental Nutrition Assistance Programs, along with overtime expense, higher retirement costs, utilities and rent.
The loss of federal jobs since the start of the Trump administration is estimated to be about 20,000.
The gap is being closed with help from an improved $75 million revenue estimate in
Washington is required by law to maintain a balanced budget and submit 5-year budget plans.
The city's reserve fund as measured for 2025 is currently sitting at $2.24 billion, enough for 66 days, up from $1.57 billion and 52 days in 2024.
The city is also engaged in a legal tussle over $180 million in tax revenue as they decoupled the local tax code from the effects of the One Big Beautiful Bill Act.
Congress, which retains financial oversight over the city passed a resolution denying the decouple.
The city's Chief Financial Officer Glen Lee reacted by not counting the $180 million as revenue.
He was then overruled by Washington D.C.'s Attorney General Brian Schwalb who maintains that Congress has
City residents filed taxes under pre-OBBBA rules while the $180 million appears to still be in limbo.
The budget proposal will move on to the D.C. Council which will hold votes on the numbers in June.
The Mayor, who has announced she will not be seeking reelection in November, is pushing for an economic future that's less dependent on federal government employment numbers.
The city maintains overall strong credit ratings after suffering a
The bulk of the city's revenue comes from individual income tax and property tax, neither of which are raised in the current proposal.
