D.C. Council Passes Budget, Hints to New Battles

The D.C. Council approved its 2027 budget Tuesday, pushing through a version that avoided some of the severe reductions to social services initially proposed by Mayor Muriel Bowser.

The Early Childhood Educator Pay Equity Program, which had been targeted for cuts, was given an additional $1.5 million in funding. Other additions included $600,000 to support Rock Creek Tennis Center improvements, $440,852 for support rat-resistant trash and recycling cans, and $2.4 million to maintain janitorial services at public-facing facilities.

But the council funded the budget in part by using $150 million from the city's reserve fund — something that could add fuel to an ongoing fight with the city's chief financial officer, who is required to declare that the city's budget is balanced.

CFO Glen Lee has already warned that he would find the budget “unbalanced” if the council used the reserves. That disagreement would not be a good look for the city — and could encourage congressional interference.

“It is imprudent to depend on these resources to support appropriations,” Lee wrote in a letter to Council Chairman Phil Mendelson that was released Monday.

The chairman told the CFO to mind his own business.

“The CFO does not now have the authority to make a policy decision that this time the Council may not use local reserves to support appropriations,” Mendelson wrote and partially read aloud during Tuesday’s meeting.

The council praised Mendelson for navigating the body through a tough budget season and trying to mitigate the $1.1 billion hole in the District’s budget. But members also acknowledged that its revenue problems aren’t going away and there will be structural gaps for some time.

One proposal to increase revenue is Councilmember Brianne Nadeau’s wealth tax, which is structured as a 3% surtax on passive income for individuals making more than $400,000 per year or couples filing jointly making more than $500,000 per year. Nadeau said she plans to introduce her proposal in the fall.

“I reject the notion that the only way to balance a budget is by removing food assistance for people who can’t afford to feed their children healthy meals,” Nadeau has previously said.

Janeese Lewis George, the Democratic nominee for mayor, said she was excited for a public hearing on the wealth tax so residents could voice their opinions.

But the current mayor still has the final say. Mendelson must now present the budget to Bowser, who has 10 business days to approve it.