D.C. Weighs Whether to Save $400M Budget Surplus

WASHINGTON— District of Columbia officials are weighing how to handle an expected $400 million budget surplus from the 2012 fiscal year.

D.C. Councilman Jack Evans has said any surplus should be added to the district’s rainy-day fund to build its balance toward $1.6 billion. The city already has $1.2 billion in cash reserves.

The Washington Examiner reports that adding another $400 million to the D.C. savings account would place the district among the top 10 in the nation, if it were a state.

Norton Francis, a researcher at the Urban-Brookings Tax Policy Institute says that balance is a little high for normal times, unless there’s a serious threat to a state’s revenue.

The reserve fund can help protect the city if there’s a sudden downturn or cut in federal spending.

Follow WNEW on Twitter.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


More From CBS DC

D.C. Lottery Live
Follow and Like Us

Listen Live