D.C. Mayor Muriel Bowser is calling for tax increases and deep cuts to social programs to offset downtown revenue losses in the budget she presented Wednesday to the D.C. Council.
Her fiscal 2025 proposal calls for $21 billion in operating funds, up from $19.8 billion in fiscal 2024 and a new high for the nation’s capital. Ms. Bowser also is seeking $11.8 billion in capital improvement funds.
The 400-page plan focuses on shoring up public safety, downtown business development and public education while trimming funds for affordable housing and other social programs. Key spending items include $217 million to support the struggling Metro system and a substantial investment in Capital One Arena, home of the NBA’s Wizards and the NHL’s Capitals.
“It’s smart, it’s responsible, but most important, this is a budget that will keep D.C. the best city in the world,” said Ms. Bowser, a Democrat in her third term.
The mayor said she would offset $500 million in revenue losses by eliminating 407 city government positions and trimming several programs. Cuts would include administrative spending, the Early Childhood Development Fund, a job training program, a truancy program, and eliminating the Circulator bus service.
She proposed canceling $300 million of the District’s budget deficit through tax hikes. That includes boosting the general sales tax from 6% to 6.5% in fiscal 2026 and to 7% in fiscal 2027, which would net the city a projected $100 million a year.
It also includes adding a 1%-3% tax on electric vehicles based on size, an 80-cent-per-night hotel room fee to pay for 911 worker training and increases in required employer contributions to paid family leave.
