The figure has been hinted at a few times over the last few weeks, but now it’s here, and it’s worse than anyone thought. According to District CFO Natwar Gandhi, DC is facing a $175M Deficit for Fiscal 2011 that starts Friday. Revenue from income and sales taxes are down $100M, and overruns from DCPS ($25M) and Medicaid ($33M) are factors as well. Look for a lot of hand-wringing purse-string tightening, and new fees and taxes meant to make up the difference.
This is a good deal worse than anyone expected. More detail as it’s available.