CR threatens D.C.'s bonds

Washington, D.C. Mayor Muriel Bowser
"The proposed one billion cut to DC's budget is senseless, reckless and would have devastating consequences for our nation's capital, impacting public safety, education, and essential services," per a statement from Mayor Muriel Bowser's office. "We will continue to fight tirelessly in the Senate to ensure the District can continue to operate under our congressionally approved fiscal 2025 budget."
DC.Gov

The House version of the continuing resolution to keep the government open past the March 14 deadline omitted language that would allow Washington to implement its already approved 2025 budget and revert to 2024 spending levels, which results in a $1.1 billion shortage. 

"The proposed one billion cut to D.C.'s budget is senseless, reckless and would have devastating consequences for our nation's capital, impacting public safety, education, and essential services," per a statement from Mayor Muriel Bowser's office. 

"We will continue to fight tirelessly in the Senate to ensure the District can continue to operate under our congressionally approved fiscal 2025 budget."

The fight includes a five-page letter addressed to Congress laying out the impact of the cut which includes, "D.C. has a statutory debt cap limit of 12% of our general funds budget spent on debt service." 

"If we had to revert to fiscal year 2024 spending levels, it would reduce general funds expenditures by $1.1 billion dollars and immediately require us to cut approximately $600 million in projects before fiscal year 2029 in our approved 6-year capital improvements plan." 

The letter also lays out how the cuts would affect the people in charge of keeping the city safe and operational.

Per the letter, "Many of the most critical agencies in the District have a budget that almost entirely funds people. For example, 90% of the Metropolitan Police Department, 87% of the Fire and Emergency Medical Services, and 84% of DC Public Schools budgets are for people."  

Washington D.C. is required by law to produce balanced four-year budget plans that are subject to Congressional oversite. 

The CR marks a departure from the way the city and its budget have been treated in the past by imposing the same budget restrictions that are dropping on federal agencies. 

City officials are particularly disturbed by the notion that the cut would have no effect on the federal budget deficit. 

"This cut to D.C.'s local budget would not save the federal government any money, because D.C.'s local budget consists entirely of locally raised revenue, such as taxes and fees," said Del. Eleanor Holmes Norton, Washington's non-voting representative in Congress. 

"While I am disappointed and outraged that the House passed a bill that amounts to nothing less than fiscal sabotage of the District, I will use every tool at my disposal to prevent Senate passage." 

For the CR to pass in the Senate it will need help from Democrats who are currently divided on the idea of aiding the President versus taking the blame for a government shutdown. 

The latest fracas between the federal government and the city adds to a growing list of financial challenges that includes a possible credit downgrade from Moody's which currently pegs the city's issuer rating at Aaa.  

Last week, the U.S. Department of Transportation encouraged the city to address street murals which seems to have resulted in the dismantling of Black Lives Matter Plaza.

The city is also reeling from contradictory edicts requiring federal workers to return to their offices as the administration continues with massive cuts to the workforce. 

Earlier this month, the city's chief financial officer alerted the mayor and city council to a $342 million drop in revenue tied to workforce reductions and a glut of vacant office space. 

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