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Mayor Gray Welcomes New Estimates Showing $140 Million Revenue Boost Due to Booming District Economy

Friday, September 28, 2012

Mayor Gray Welcomes New Estimates Showing $140 Million Revenue Boost Due to Booming District Economy

Says Strategies to Grow and Diversify the District Economy Are Working

(WASHINGTON, DC) – Today, Mayor Vincent C. Gray welcomed new estimates from the Office of the Chief Financial Officer (OCFO) that show the District government taking in $139.5 million more in Fiscal Year 2012 than expected.

Significant growth in employment among District residents and robust economic growth were the biggest drivers of the revenue boost. The estimates show that individual income tax withholding increased by $51.2 million, and the sales fueled by higher earnings yielded an additional $22.8 million in sales taxes.

“This good news is affirmation that we are reaping the benefits of our investments in growing the District’s economy and getting our residents back to work,” Mayor Gray said. “Thanks to initiatives like One City ‚óŹ One Hire and our multiple efforts to encourage the robust growth of our real estate, technology, hospitality and other private-sector industries, the District’s economy is on a roll.”

However, Mayor Gray noted, OCFO’s estimates for Fiscal Year 2013 revenues remain flat due to the threat of federal sequestration – currently scheduled to take effect in January – and its anticipated effect on the local economy. “The District’s fiscal future looks far bleaker if Congress and the President do not act quickly to prevent what everyone agrees is a completely unacceptable and destructive means of reducing the federal budget,” he said. “It also underscores the urgency of diversifying the District’s economy and reducing dependence on the federal government for our economic success.”