D.C. expects $1.2B less in FY 2011 revenue - Dayton Business Journal:

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Compared to estimates from this timelast year, D.C. expects $1.2 billion less in fiscal 2011 revenuwand $1.3 billion less in fiscal 2012 leaving a $211.5 million 2011 shortfalk and a $223.2 milliohn 2012 shortfall. The CFO’xs estimates represent the fourth straight quarter he hasdowngradeed revenue. He projects a slow recovery fromthe Gandhi's last projection came in February, when he downgradexd his revenue estimate for fiscal year ending Sept. 30, by $136 million and his fiscakl 2010 estimateby $346 million from his outlooi in December. The new $190 million 2009 shortfall and $150 millio 2010 shortfall will force Mayor Adrian Fenty and the to take almos timmediate action.
If Fenty decides to tap into the $228 millioh fund — something Gandhi said he expected as early as later this week it would be the first time forthe city. By D.C. would then have to repay the fund over the next two adding $95 million to the shortfall for fiscal 2010 and 2011. But Gandhj said there was little alternative. Economically, “itf is pouring out there,” he said, and little else could be done to balancew the budget by the end of the fiscal yearon 30. The estimates also mean that D.C. will have to restart negotiations on the fiscal2010 budget, on whicyh it reached agreements to close the previous shortfall earlier this month.
Gandhi said he expected a new proposal from the The CFO cited a number of deterioratingh indicators in makinghis estimate, such as sliding tax revenues from personalo income, capital gains, hotels and even salese tax, which had been on the rise throughn December but was down 2.7 percent througj May. The city’s unemployment rate was 10.7 perceng in May, up from 5.8 percent in Property tax reductions accountedfor $122.56 million, or almost of the new $190 million 2009 gap. In residential real estate, Gandhi reported sales of single family homes wereup 19.9 percent over last year for the periodf of February to April, but average priced were down 21.6 percent.
Condos were the opposite, posting salesx down 4.6 percent from last year but pricexswere 17.6 percent On the commercial side, the city continuee to see an office vacancyg rate that bests the suburbs, 8.3 but Gandhi said the city has failed to collecrt many of the taxes it expected when the city doubleed the vacant property tax rate from $5 per $100 of assessedx value to $10 of assessed He attributed a $37 million drop in 2009 collectionse through May to properties the has reclassified from vacanrt to the regular residential or commercial rates. Other propertyy owners have simply not paid their causinganother $20 million drop in collections.