Mayor, CFO Celebrate $417 Million Budget Surplus

Mayor Vincent Gray and D.C. Chief Financial Officer Natwar M. Gandhi announced Tuesday that in FY2012 the District brought in $417 million more in revenues and savings than it spent. The surplus will be put into the District's savings account, the Fund Balance, bringing its coffers to about $1.5 billion.

Under District law the Fund Balance must reach $1.8 billion, two months of worth of cash-on-hand, before surplus funds can be spent.

“This is affirmation that our economic development strategies are working and shows that we are one of the nation’s most financially sound jurisdictions,” Gray said in a press release.

Gandhi agreed, saying D.C. was possibly in "the best financial condition in its history."

Councilmember Jack Evans was on the District Council during the D.C. Financial Control Board era. The control board was formed because of gross mismanagement of the city's resources and was only disbanded when the District achieved four consecutive balanced budgets.

“We have come a long way,” Evans said in a press release. “We have really, all of us collectively, managed this government well. The results are here today for all to see.”

According to a press release from the Mayor's office the surplus monies mean the District has its largest fund balance in seven years.

But not everyone thinks the surplus should go to the Fund Balance.

The Fair Budget Coalition wants half of the surplus monies to go toward the Fiscal Year 2013 budget’s “contingent funding list," which includes programs like the Housing Production Trust Fund and $7 million for homeless services to make up for lost federal funding and $10 million for adult job training.

Gray believes he will be able to do both.

"We believe we have a tremendous opportunity to save the surplus this year while spending anticipated new Fiscal Year 2013 funds to make important and significant new investments in social programs," Gray said in a press release.

He is waiting for Gandhi's office to provide an update on anticipated revenues for FY2013.

What do you think? Should the District spend some of the surplus? Do you like the rainy day fund rule? Tell us in the comments.