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Center on Budget and Policy

Priorities
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DC’s Budget Would Grow Slowly in 2012

And Would Be Far Smaller than Before the Recession

DC’s locally funded budget would grow only modestly in 2012. Taking into
account local funds needed to replace federal funds and accounting changes,
the real budget growth in 2012 is less than the rate of inflation. This means
that funding for many services in 2012 would be lower than in 2011.
Moreover, the 2012 budget remains over $400 million lower than the FY 2008
budget—despite rising
enrollment in schools, FIGURE 1
Medicaid and DC’S BUDGET WOULD GROW SLOWLY IN FY 2012
increased costs of
operating the
government as
inflation rises.

DC’s budget would

grow slowly in FY
2012. DC’s proposed
general fund budget of
$6.34 billion is about
$105 million higher
than the FY 2011
budget of $6.24
million, after adjusting
for inflation.

Yet, for two key

reasons, funding for
most services in the FY 2012 budget is less than the amount available
for FY 2011. The FY 2012 budget includes $113 million in local funds to
replace expiring federal Recovery Act funds being used this year to maintain
public and charter schools, Medicaid, and homeless services. The FY 2012
budget also moves $47 million of staff and maintenance expenses from the
capital budget into the operating budget. These changes make it appear that
budget is $160 million larger when the changes do not actually increase
service levels or staffing.

When these adjustments are taken into account, the FY 2012 budget for most
services is actually smaller than the funding for these services in FY 2011 (see
figure 1).

1
 FIGURE 2
MOST AREAS OF DC’S BUDGET HAVE BEEN CUT SIGNIFICANTLY SINCE FY 2008

DC’s FY 2012 budget remains lower than the FY 2008 budget. The FY
2012 proposed general funds budget is $414 million lower than the budget in
FY 2008, after adjusting for inflation. Despite rising enrollment in DC publicly
funded schools and increased enrollment in Medicaid, as well as increased
costs of basic government operations a result of inflation and other factors—
the overall budget continues to be smaller. The smaller FY 2012 budget is the
result of reductions to nearly all areas of DC’s budget, including a 14 percent
reduction in programs that serve DC’s most vulnerable residents during the
Great Recession (see figure 2).