Mayor Fenty announced a major part of his agenda for the upcoming year with the release last Thursday of his proposed Fiscal Year 2011 budget. Education is a clear priority, but other crucial programs and services that help residents took big hits. The mayor also maintained his no-new-taxes pledge, but proposed raising a large range of rates and fees on residents and businesses.
Certainly it’s a budget of tough choices. The coming year represents the third in a row that the District has faced a budget crisis as a result of the Great Recession, which has reduced the city’s fiscal resources at a time when a record number of residents are out of work and in need of assistance.
Overall, the mayor’s proposal spends $6.14 billion of local dollars, a 2.3 percent boost over FY 2010.
Isn’t that an increase? Not really. Much of this local spending is a replacement of federal stimulus dollars that were available for 2010, but will not be for 2011. Also there are certain parts of the budget that expanded, either due to the recession or otherwise, such as special education. When these areas are taken into account, funding for most services in the FY 2011 budget is less than the amount available for FY 2010. And it’s far smaller than the budget only three years ago.
So who benefits?
Local funding for education is $84 million higher in FY 2011, even after taking into account the federal stimulus money cliff. This includes a modest increase in local funds for DC Public Schools (this is offset by a loss of federal funds). Other increases are in charter schools and special education. Outside education, funding for Medicaid and related health care programs would grow in FY 2011 as a result of an increase in eligible residents due to the economic downturn.
So who doesn’t?
First, it’s important to note that the city’s budget has been cut in many areas for several years now. This year’s proposal maintains many of the cuts that have been made to programs since 2008. Additionally, rising expenditures in certain areas (such as special education tuition and transportation, Medicaid, and schools) have led to proposed additional cuts in other areas for FY 2011.
To address revenue shortfalls and increased expenditures, the Mayor’s proposed budget makes significant new cuts in a number of areas, including programs for low-income residents:
“¢ Adult education and training would be reduced by nearly $7 million.
“¢ Proposed child care vouchers for low-income working families are cut by $4 million, and a program to support grandparents caring for their grandchildren would be reduced by $2 million.
“¢ The Department of Mental Health’s proposed budget represents a 12 percent decrease, including the elimination of 29 direct care positions.
“¢ The Mayor’s budget also proposes to reduce funding for the Metropolitan Police Department, corrections, public works, and transportation.
Homeless services funding remains below FY 2009 levels, even as the number of homeless families has increased dramatically over the past year. Funding for programs to help low-income renters, such as the Local Rent Supplement Program and the Housing Production Trust Fund, remains down. Despite increasing demand for public benefits, staffing at the Department of Human Services’ service centers is not proposed to increase from FY 2010 levels.
Stay tuned tomorrow, when we discuss the mayor’s revenue proposals.
