That is just 1,662 fewer than in 1996, or a drop of 1 percent per year for one of the largest city bureaucracies in the nation. City leaders yesterday also aimed their remarks at Congress, insisting that more federal help is needed. They argue that the city needs greater budget autonomy and financial assistance because expenses are growing faster than the tax base, which is limited, because 40 percent of the land is owned by the federal government and 64 percent of locally generated income cannot be taxed because it is earned by suburban commuters. Republican congressional committee chairmen expressed cautious optimism. What we have to ensure now is there continues to be the same scrutiny, the same oversight efforts made to bring about what I think can be called a success.
Some financial hurdles remain.
Gandhi said last month's dire warning was intended to set the city on a sound fiscal plan early in the year. The city cannot use its large surplus without approval from Congress, which requires that most of it be kept in reserve. At the time, the city cited new spending pressures caused by outstanding legal liabilities, the financial problems of the Public Benefit Corp. and D.C. General Hospital, and labor costs. The unexpected labor expenses arose partly from a past failure to budget a planned pay increase. Armed with the District's strong balance sheet, city financial officers will ask bond-rating agencies next month to upgrade the city's borrowing status, potentially saving tens of millions of dollars.