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: Huge deficit looms for District unless Kelly acts, Wilson Date: Thu, 29 Oct 92 14:38:17 EST Message-ID: \SE B;METROPOLITAN \HD Huge deficit looms for District unless Kelly acts, Wilson warns \BY Vincent McCraw \CR THE WASHINGTON TIMES The District faces insolvency unless lawmakers and Mayor Sharon Pratt Kelly bring spending under control, D.C. Council Chairman John Wilson said yesterday. Flanked by eight of his 12 colleagues, Mr. Wilson made his remarks at a news conference aimed at counteracting weeks of attacks by union leaders and the mayor. Mrs. Kelly has said D.C. workers could have gotten raises and would not have been furloughed if the council had adopted her budget, which included a series of new taxes on professionals and universities. But at the news conference, Mr. Wilson, whose colleagues let him do all the talking, said the council isn't totally at fault for the financial crisis. He did not explicitly attack Mrs. Kelly. "We're here to tell our supporters and the people who have to vote for us Nov. 3 what the true picture of the finances really is. The mayor can defend her position whichever way she wants," Mr. Wilson said. Using charts to show that Mrs. Kelly's plan was unworkable, he said the city faces a $415 million deficit when it starts fiscal 1994 unless something is done. Mrs. Kelly said she and Mr. Wilson don't disagree on the problem but differ on how to solve it. "I'm not bashing anybody. What we do have is a deep, deep philosophical difference," she said. "He sees the world as it is and says, 'Sharon, these are the rules.' These rules are choking the life out of the people of the city. My view is let's change the rules." Council members say the mayor forced them to mandate the furloughs because she failed to offer a realistic plan to cut the city's budget. "There was no plan whatsoever [in her budget]," Mr. Wilson said. "How would it go into effect on Oct. 1? We wanted a plan, and there was none." The mayor sought a 2 percent gross-receipts tax on professionals, a payment from universities, tax relief for senior citizens with incomes up to $60,000, and an increase in the personal income tax rate from 9.5 percent to 10 percent. Mrs. Kelly also supports giving raises to city employees, who have not had a raise in three years, and blames the council for rejecting her proposed 11 percent raise for police, firefighters and nurses. "What we want citizens to know is that you can't keep talking pay raises and no furloughs if you can't come up with the money," council member John Ray said. "The idea today is to put the facts out there." The mayor said she will continue to fight for the taxes, though she has narrowed her focus by suggesting she'd ask Congress to allow the city to impose a commuter tax on the 60 percent of D.C. workers who live outside the city. That would raise about $50 million annually. "I've got to fight for what I believe is in the best interest of improving the quality of life," she said. "I think if we hang together we can win the fights. If we don't, we'll never prevail." 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