Housing Complex

Mayor Gray Second-Guesses CFO, Says There’s Got to be More Money Out There

As I noted on Wednesday, Chief Financial Officer Nat Gandhi found that the District would bring in more money this year than originally anticipated. But Mayor Vince Gray still isn't excited about the prospect of a $115 million shortfall, and thinks Gandhi lowballed the District. Yesterday, he fired off a letter asking the CFO to look under some more rocks. "It is difficult for me to believe that the revenue impact of these positive trends in fiscal year 2013 will be as insignificant as you currently project," Gray wrote, noting the city's falling unemployment, increasing population, and expanding economy.

Here's the letter:

[scribd id=83512065 key=key-7ldu7mpv8a84t0b5xhp mode=list]

  • Kevin

    I can see why Gray would not want to propose "significant spending cuts" or "additional sources of revenue" to close a shortfall only to later find out *surprise surprise* the CFO had used overly conservative projections and FY13 ended with a surplus again. Smart of him to push back on these projections.

  • Eric

    Alternatively, I find his push to "find" more money more effort than it's worth and frankly a bit ignorant. To state that Gandhi's projections are "overly conservative" is very subjective. Conservative, yes, but when you are estimating such things, you need to be conservative or risk not having any money to cover the things you already agreed to fund. That would risk our credit rating and ability to borrow more money. In this especially risky and indefinite fiscal environment, it helps to be "overly conservative" rather than fast and loose. If more money is *needed*, then it needs to be raised somewhere else besides the accounting books.