Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.metro From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Kelly takes deficit problem to public via cable TV Date: Fri, 20 Nov 92 15:30:30 EST Message-ID: \SE B;METROPOLITAN \HD Kelly takes deficit problem to public via cable TV \BY Jonetta Rose Barras \CR THE WASHINGTON TIMES The District faces a $625 million deficit by the end of 1994, D.C. Mayor Sharon Pratt Kelly announced last night during her monthly television show on D.C. Cable 16. Mrs. Kelly also launched a community education project about the city's financial woes, which could include town meetings on how to handle the District's declining revenue. "There are no easy options facing D.C. residents and their elected leadership. Every decision to leave a service or program at the current or greater funding levels increases the severity of a cut or elimination in some other part of the government," Mrs. Kelly said during her hourlong show. The District for the past two years faced mounting financial problems, principally as a result of dwindling revenues. Mrs. Kelly in her fiscal year 1992 budget sought to increase revenue by levying a variety of taxes and fees, including a gross receipts tax on professionals and a fee in lieu of taxes on universities. Both proposals were rejected by the D.C. Council, which voted instead to increase taxes and set 12 days of furloughs for city workers. The second furlough date, which affects all employees other than police, firefighters and other essential personnel, is scheduled for Nov. 27. "It's pretty bleak. The money just isn't coming in," City Administrator Robert Mallett said earlier in the day during a wide-ranging meeting with reporters. He said revenues are less than expected and that he and the city's chief financial officer, Ellen O'Connor, held discussions with council Chairman John Wilson about the budget. Mayor Kelly said she will push for a non-resident tax, which many have described as a commuter tax. She said more than 64 percent of the $25 billion earned in the District is "escaping taxation." "We are just trying to get some parity," Mr. Mallett said. Earlier this week the Fairfax County Board of Supervisors voted to oppose any commuter tax, and D.C. Delegate Eleanor Holmes Norton urged the mayor not to base her budget on a tax that is not likely to be approved by Congress. Last night Mrs. Kelly once again referred to her "non-resident tax" and hinted at reviving her call for a tax on universities. She called program reductions the "least popular option" because "it would mean the complete elimination of some services and probable job loss." The mayor urged residents to call her Office of Constituent Services about upcoming community budget hearings. "I encourage you to ask yourself what services you believe only government can deliver and what services you believe may be delivered by someone else," Mrs. Kelly said. In her fiscal 1992 budget proposal, she advocated contracting out a number of services. But the council rejected that, contending that such a plan would mean hundreds of District workers losing their jobs. This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM