|FOR IMMEDIATE RELEASE
August 27, 1998
|CONTACT: Jim Davison
District of Columbia Financial Responsibility and Management Assistance Authority
Increase in Projected Budget Surplus
Washington, D.C. The District of Columbia budget surplus for fiscal
year 1998 may reach $302 million. This is about $88 million higher than the $214 million
amount estimated last February.
If the latest projection is realized, the Districts
accumulated deficit which was $332 million at the end of the last fiscal year
would shrink to only $30 million, said Dr. Andrew F. Brimmer, Chairman of the
District of Columbia Financial Responsibility and Management Assistance Authority.
The $88 million increase in the estimated 1998 budget surplus is due
to a rise in sales and use, income, and deed tax revenue, stated Mr. Earl C.
Cabbell, Interim Chief Financial Officer of the District of Columbia. Continued strength
in the national economy, fiscal recovery of the District government, and improved tax
administration, all contribute to the $88 million increase.
The expected budget surplus of $302 million in 1998 would exceed last
years surplus (which was $185 million) by $117 million.
Dr. Brimmer said he was particularly pleased to see that the Office of the
Chief Financial Officer, under Mr. Cabbells leadership, has continued to enforce
restraints on spending and maintain vigorous enforcement of collections.
Dr. Brimmer also said he was especially pleased to see the significant
rise in revenue generated by the expanded volume of commercial real estate activity in the
District. Through my own economic and financial consulting business, I have been
able to observe the substantial expansion and the inflow of capital market funds seeking
investment opportunities in the District, he said. Investors are responding to
the greatly improved environment that has emerged as the District has gotten its own
financial house in order over the past 3 years, he stated.
Finally, Dr. Brimmer stressed that, as the Districts revenue
prospects have brightened, the Authority in collaboration with the Interim CFO
has taken special care to assure that the restrictions on expenditures would not be
relaxed. Consequently, the goal of restoring and maintaining the fundamental
financial stability of the District, will be achieved.