The District faces a $1 billion deficit due largely to the Trump administration’s cuts to the federal workforce, a stark indication of the impact firing thousands of federal workers has on D.C.
D.C.'s chief financial officer released his latest economic forecast for the city Friday, and the numbers are a huge blow to the District as Mayor Muriel Bowser prepares to present next year’s budget.
According to the numbers, D.C. could be facing an average shortfall of $342 million each of the next three years and a $21 million shortfall for the current year.
D.C. already was bracing for a budget shortfall, but the CFO now says because of the Department of Government Efficiency and cuts to the federal workforce, D.C. should brace for a major economic impact.
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The CFO also forecasts a loss of about 40,000 federal jobs over the next four years.
The city’s revenues are down in every category: sales tax, property tax and income tax.
It means major cuts in District services that the mayor and D.C. Council will have work out.
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In a statement, Bowser acknowledged it will have a significant financial impact.
Council Chairman Phil Mendelson put out a statement saying D.C. will have to cut programs and services and make tough choices.
It will be much harder for Bowser to convince the public and Council to spend hundreds of millions of dollars on an NFL stadium for the Washington Commanders at the RFK Stadium site when services are being cut and it will be harder to borrow money.
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