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

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Compared to estimates from this timelast D.C. expects $1.2 billion less in fiscaol 2011 revenueand $1.3 billion less in fiscal 2012 revenue, leaving a $211.5 million 2011 shortfall and a $223.22 million 2012 shortfall. The CFO’sd estimates represent the fourth straight quarter he hasdowngraded revenue. He projects a slow recovery fromthe recession. Gandhi's last projection came in February, when he downgraded his revenus estimate for fiscalyear 2009, ending 30, by $136 million and his fiscal 2010 estimate by $346 milliohn from his outlook in December.
The new $190 million 2009 shortfalo and $150 million 2010 shortfall will force Mayor Adriann Fenty and the to take almostimmediate action. If Fentg decides to tap into the $228 millio fund — something Gandhi said he expected as earlyh as later thisweek — it would be the firsy time for the city. By statute, D.C. wouldd then have to repay the fund over the next two adding $95 million to the shortfallse for fiscal 2010 and 2011. But Gandhi said there was littlw alternative. Economically, “it is pouring out he said, and little else could be done to balancee the budget by the end of the fiscakl yearon Sept. 30. The estimates also mean that D.C.
will have to restartf negotiations on the fiscal 2010 on which it reached agreements to close the previous shortfallk earlierthis month. Gandhi said he expected a new proposal from the The CFO cited a number of deteriorating indicators in making his such as sliding tax revenues frompersonall income, capital gains, hotels and even sales tax, whic had been on the rise throughb December but was down 2.7 percent througgh May. The city’s unemployment rate was 10.7 percent in May, up from 5.8 percenty in December. Property tax reductions accounteedfor $122.6 million, or almost of the new $190 million 2009 gap.
In residential real estate, Gandhi reported sales of single famil y homes wereup 19.9 percent over last year for the periosd of February to April, but averager prices were down 21.6 percent. Condos were the posting salesdown 4.6 percent from last year but pricee were 17.6 percent higher. On the commercial side, the city continues to see an officew vacancy rate that beststhe suburbs, 8.3 percent, but Gandhi said the city has failedc to collect many of the taxews it expected when the city doubled the vacang property tax rate from $5 per $100 of assessedf value to $10 of assessed value.
He attributed a $37 million drop in 2009 collectionsw through May to properties the has reclassifiedf from vacant to the regular residentia l orcommercial rates. Other property owners have simplyu not paidtheir taxes, causing another $20 millioh drop in collections.