In what’s become a quarterly tradition around these parts, Chief Financial Officer Natwar M. Gandhi announced this afternoon that projected city revenues over the next few years are again being revised downward.

The bottom line: The mayor and council have to find at least $190 million to balance this year’s budget, which runs until Sept. 30. (That number may rise; the CFO has identified $87 million in overspending, too, but that can be offset by underspending and other cuts yet to be identified.) Finding the money, actually, isn’t hard: The city’s budget reserve can cover it, but at least half would have to be paid back in the next year’s budget.

And for that budget, passed by the council last month, they’ll have to find another $150 million in cuts even without having to refill the reserve. Add that in, and it’s at least $245 million.

Read More “District Revenues Keep Falling, Gandhi Says” »

Not a lot of folks are getting good news from Wall Street these days, but the District got a little something nice today.

The Office of the Chief Financial Officer is announcing this evening that Standard & Poor’s, one of three outfits that rate municipal debt, has given the District a “AAA” rating on a recent bond issue. That’s S&P’s top mark.

In a statement, CFO Natwar Gandhi calls it “a gilt-edged rating.”

Now it’s not quite accurate to say that the new rating represents a rise in the District’s credit rating, since S&P is passing judgment on a new type of debt instrument, something called income-tax-secured revenue bonds only recently authorized by the D.C. Council. But according to City Administrator Dan Tangherlini, this bond issue is “practically the same as” and “will do the same work of” general-obligation bonds—whose ratings are most commonly cited when referring to the District’s creditworthiness.

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