For the time being, the budget conundrum in Washington, D.C., has been solved by some belt tightening even as plans to build a $3.2 billion stadium move forward.
"We think we have a sound budget, and we think it invests in the district's future," said Mayor Muriel Bowser. "What we heard today is questions about programs and services that mean a lot to members of the council. Well, if you have fewer revenues, then you have to make some tough decisions."
The tough decisions include a hiring freeze, cutting a baby bonds program and a child tax credit, putting off plans to build a new jail and shifting fiscal year 2025 costs into 2026.
The mayor's unveiling which was eight weeks behind schedule, included a $21.8 billion budget for fiscal year 2026 and the financial machinations that brings the 2025 supplemental budget under control along with a plan to expand economic growth.
The city is required by law to adhere to Congressional oversight, and strict financial control monitored by an independent Chief Financial Officer.
"As Chief Financial Officer of the District of Columbia, I am pleased to report that the Proposed Fiscal Year 2026–2029 Budget and Financial Plan submitted by the mayor is balanced," said CFO Glen Lee. "Specifically, expenditures in each year of the plan do not exceed projected revenues and other available resources, in accordance with District law."
The city's finances have been constrained by a triple whammy of reductions in the federal workforce under the Trump administration, a glut of underused office space, and a continuing resolution
"With this budget, we're not waiting for change to happen – we're making change happen," said Mayor Muriel Bowser. "This budget acknowledges the challenges we are facing, but also includes bold, forward-thinking solutions to change our economic trajectory."
The mayor is pushing forward with the $3.7 billion
Turning the crumbling stadium site into 180-acre mixed use development would require an estimated $1 billion of public financing, half or which would go for infrastructure improvements.
The mayor defended the decision to move forward with the stadium plan by citing the city's
"We've had a ballpark tax for many years, related to the development of Nats (Washington Nationals) Park, which we think has knocked it out of the park," said Bowser.
"We've developed a neighborhood. We've attracted more residents, and we're able to pay off the bond early, which makes that funding stream available for another sports investment."
The turmoil attributed to reductions in the federal workforce resulted in a financial hit for the city in
The city bounced back with a successful and oversubscribed $1.5 billion sale of Income Tax Revenue bonds in early
The same turmoil over the loss of federal jobs and budget shortage has also spilled over into Maryland leading to a downgrade and
The D.C. City Council still must approve the budget within a 70-day time windows to make things official, with their work expected to start this week.
