Property Reassessments Partially to Blame for D.C. Budget Problems

This morning, the Washington Post reported that CFO Nat Gandhi is projecting $500 million less than previously expected in city revenues in the next two years. If the past is any indication, that means affordable housing and street paving might take the hits.

After that initial story came out, D.C. Wire reported on one of the “prime culprits” responsible for the ever-changing, ever-disappointing revenue declines.

In recent years, the city has been paying out about $40 million to $50 million in fees to property owners who have appealed their property assessments–and resulting tax bills–and successfully gotten them reduced.

This year, however, Gandhi said the appeals are skyrocketing and the city expects to pay out about $100 million to property owners. Next year, the estimated figure is $120 million, he said.